# EDGAR Filing Document

**Accession Number:** 0001584879
**File Stem:** 0001493152-23-009087
**Filing Date:** 2023-3
**Character Count:** 812506
**Document Hash:** 76cf611bc2dfcbc61d309f07cfc70247
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-009087.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0001493152-23-009087

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CoLabs Int'l, Corp.
- **CENTRAL INDEX KEY:** 0001584879
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-270866
- **FILM NUMBER:** 23764667

**BUSINESS ADDRESS:**
- **STREET 1:** 18593 MAIN STREET
- **CITY:** HUNTINGTON BEACH
- **STATE:** CA
- **ZIP:** 92648
- **BUSINESS PHONE:** 888-878-5536

**MAIL ADDRESS:**
- **STREET 1:** 18593 MAIN STREET
- **CITY:** HUNTINGTON BEACH
- **STATE:** CA
- **ZIP:** 92648

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CoLabs International Corp
- **DATE OF NAME CHANGE:** 20130821

**As filed with the U.S. Securities and Exchange Commission on March 27, 2023.**

**Registration No. [ ]**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM S-1**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

------

**<u>COLABS INT'L, CORP.</u>** 

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

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---

| | | |
|:---|:---|:---|
| **<u>Nevada</u>** | **<u>2834</u>** | **<u>26-3233192</u>** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(Primary Standard Industrial**<br> **Classification Code Number)** | **(I.R.S. Employer**<br> **Identification Number)** |

---

**18593 Main St.**

**Huntington Beach, CA 92648**

**<u>949-945-3330</u>**

**(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)**

------

**Laura Cohen, M.D.**

**18593 Main St.**

**Huntington Beach, CA 92648**

**<u>949-945-3330</u>**

**(Name, address, including zip code, and telephone number, including area code, of agent for service)**

------

***Copies to:***

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| | |
|:---|:---|
| **Lynne Bolduc, Esq.** | <br> **Lance Brunson, Esq.** |
| **Josephine Aranda, Esq.** | **Brunson Chandler & Jones, PLLC** |
| **FitzGerald Kreditor Bolduc Risbrough LLP** | **175 S. Main Street, Suite 1410** |
| **2 Park Plaza, Suite 850** | **Salt Lake City, UT 84111** |
| **Irvine, California 92614** | **Tel: (801) 303-5737** |
| **Tel: (949) 788-8900** |  |
| **Fax: (949) 788-8980** |  |

---

------

**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: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please 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, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting 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 Act or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

**The information contained 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 it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

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| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED MARCH 27, 2023** |

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**1,300,000** **Shares of Common Stock**

![](forms1_001.jpg)

**COLABS INT'L, CORP.**

This is a firm commitment initial public offering of 1,300,000 shares of common stock, $0.001 par value per share of CoLabs Int'l, Corp. ("we," "us," or the "Company").

Prior to this offering, there has been no public market for our common stock. We anticipate that the initial public offering price of per common stock will be between $4.00 and $5.00. The number of shares of common stock offered in this prospectus and all other applicable information has been determined based on an assumed public offering price of $4.50 per share of common stock, which is the midpoint of the above range. Therefore, the assumed public offering price per share of common stock used throughout this prospectus may not be indicative of the actual public offering price for the common stock.

We have applied to list our common stock on the Nasdaq Capital Market ("Nasdaq") under the symbol "CLLB." If our application is not approved, we will not complete this offering.

We are also seeking to register the issuance of warrants to purchase 97,500 shares of common stock (the "Representative Warrants") to the representatives of the underwriters of this offering as well as the 97,500 shares of common stock issuable upon exercise by the representatives of the Representative Warrants at an exercise price of $5.63 per share (125% of the initial public offering price, based on an assumed initial public offering price of $4.50 per share (the midpoint of the estimated price range set forth on this cover page)).

We refer to the shares of common stock and the shares issued or issuable upon exercise of the Representative Warrants, collectively, as the "securities." (See "Description of Securities.")

Upon completion of this offering, Laura Cohen, our founder, Chief Executive Officer, and Chairman of our Board of Directors, together with William Cohen, our Chief Financial Officer, will continue to control a majority of the voting power of our outstanding common stock. As a result, we will be a "controlled company" under the Nasdaq rules. As a controlled company, we will be exempt from certain Nasdaq requirements pursuant to Nasdaq provisions.

We are an "emerging growth company" under the federal securities laws and have elected to comply with certain reduced public company reporting requirements. (See "Prospectus Summary—Implications of Being an Emerging Growth Company.")

**Investing in our securities involves a high degree of risk. (See "Risk Factors" beginning on page 5.)**

**Neither the Securities and Exchange Commission ("SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share of<br> Common**<br> **Stock** | **Total** | **Total with** <br> **Over allotmen**t |
| Initial public offering price | $4.50 | $5850000 | $6727500 |
| Underwriting discounts and commissions<sup>(1)</sup> | $0.36 | $468000 | $538200 |
| Proceeds to us, before expenses<sup>(2)</sup> | $4.14 | $5382000 | $6189300 |

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(1) Underwriting
 discounts and commissions do not include a non-accountable expense allowance of $100,000 and an accountable expense allowance not
 to exceed $200,000 payable to the underwriter in this offering. (See "Underwriting.")

(2) We
 estimate that our total expenses for the offering will be approximately $600,000 in addition to underwriting discounts.

We have granted a 45-day option to the underwriter to purchase, at the public offering price, less the underwriting discounts and commissions, up to an additional 15% of the total number of securities offered by us in this offering, which equates to up to 195,000 additional shares of common stock, solely to cover overallotments, if any.

The underwriters expect to deliver the shares of common stock to purchasers on or about [ ], 2023.

---

| | |
|:---|:---|
| **Craft Capital Management LLC** | **R.F. Lafferty & Co., Inc.** |

---

The date of this prospectus is [ ], 2023

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [Prospectus Summary](#d_001) | 1 |
| [Risk Factors](#d_002) | 5 |
| [Cautionary Note Concerning Forward-Looking Statements](#d_003) | 18 |
| [Use of Proceeds](#d_004) | 19 |
| [Capitalization](#d_005) | 21 |
| [Dilution](#d_006) | 22 |
| [Dividend Policy](#d_007) | 23 |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#d_008) | 24 |
| [Our Business](#d_009) | 30 |
| [Management](#d_010) | 47 |
| [Executive and Director Compensation](#d_011) | 52 |
| [Certain Relationships and Related Party Transactions](#d_012) | 57 |
| [Principal Stockholders](#d_013) | 58 |
| [Description of Securities](#d_014) | 59 |
| [Shares Eligible For Future Sale](#d_015) | 62 |
| [Certain Material Federal Income Tax Considerations](#d_016) | 63 |
| [Underwriting](#d_017) | 68 |
| [Legal Matters](#d_018) | 72 |
| [Experts](#d_019) | 72 |
| [Where You Can Find More Information](#d_020) | 72 |
| [Index to Financial Statements](#d_021) | F-1 |

---

i

**ABOUT THIS PROSPECTUS**

As used in this prospectus, unless the context otherwise requires or indicates, references to "the Company," "we," "our," "ourselves," and "us" refer to CoLabs Int'l, Corp.

You should rely only on the information contained in this prospectus and any free writing prospectus prepared by us or on our behalf that we have referred you to. Neither we nor the underwriter have authorized anyone to provide you with additional or different information. If anyone provides you with additional, different, or inconsistent information, you should not rely on it. We and the underwriter take no responsibility for, and can provide no assurance as to, the reliability of any other information that others may give you. This prospectus is an offer to sell only the securities offered hereby and only under circumstances and in jurisdictions where it is lawful to do so. We and the underwriter are not making an offer of these securities in any state, country, or other jurisdiction where the offer is not permitted. You should not assume that the information in this prospectus or any free writing prospectus is accurate as of any date other than the date of the applicable document regardless of its time of delivery or the time of any sales of our securities. Our business, financial condition, results of operations and cash flows may have changed since the date of the applicable document.

This prospectus describes the specific details regarding this offering and the terms and conditions of our securities being offered hereby and the risks of investing in our common stock. For additional information, please see the section entitled "Where You Can Find More Information."

You should not interpret the contents of this prospectus or any free writing prospectus to be legal, tax advice, business, or financial advice. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial, and other issues that you should consider before investing in our securities.

Unless otherwise stated, all information in this prospectus assumes that the underwriters have not exercised their option to purchase additional shares of common stock.

**MARKET AND INDUSTRY DATA**

This prospectus includes industry and trade association data, forecasts, and information that we have prepared based, in part, upon data, forecasts, and information obtained from independent trade associations, industry publications and surveys, government agencies, and other independent information publicly available to us. Statements as to our market position are based on market data currently available to us. Industry publications, surveys, and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe these sources are reliable, we have not independently verified the information obtained from these sources. Some data is also based on our good faith estimates, which are derived from management's knowledge of the industry and independent sources.

We believe our internal research is reliable, even though such research has not been verified by any independent sources. While we are not aware of any misstatements regarding our industry data presented herein, our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under the heading "Risk Factors" in this prospectus.

In addition, forward-looking information obtained from these sources is subject to the same qualifications and the additional uncertainties regarding the other forward-looking statements in this prospectus. Trademarks used in this prospectus are the property of their respective owners, although for presentational convenience we may not use the® or the™ symbols to identify such trademarks. In addition, certain market and industry data has been obtained from publicly available industry publications. These sources generally state that the information they provide has been obtained from sources believed to be reliable, but that the accuracy and completeness of the information are not guaranteed. We have not independently verified the data obtained from these sources. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and additional uncertainties regarding the other forward-looking statements in this prospectus.

ii

**PROSPECTUS SUMMARY**

This summary highlights information contained elsewhere in this prospectus, but it does not contain all of the information that you may consider important in making your investment decision. Therefore, you should read this entire prospectus carefully, including, in particular, the "Risk Factors" section of this prospectus.

**Our Company** 

CoLabs Int'l, Corp. (the "Company," "CoLabs," "we," "our," and "us") is an over-the-counter ("OTC") pharmaceutical company with multi-market applications for our revolutionary targeted drug delivery system which is identified as *QuantaSphere® Technology (QS®)*.

We currently hold 29 issued patents and have an additional 15 patent applications pending.

Our technology places OTC drugs, pharmaceuticals, and chemicals into micro-sized, electrostatically charged encapsulates as well as into other types of micro-encapsulates. These encapsulates are then suspended in uniquely designed formulations. This formulation of a highly advanced micro-technology can: target the delivery of topically applied drugs; limit unwanted absorption of chemicals, drugs, and cosmetics through the skin; and provide a designed release of active ingredients with a prescribed depth of skin penetration.

We have already developed commercially unique and innovative targeted skin delivery systems for topical pharmacology. Our technology limits unwanted side effects that can occur as a result of uncontrolled absorption of topical medications through the skin. The penetration of chemicals through the skin can have serious impact on the body's organs and systems. Our current applications include anti-bacterial/viral sanitizers/soaps, sunscreens, pest-repellents, and healing cosmetic lotions. For consumers, we provide elegant skin delivery of topically applied drugs and cosmetics. This combined end purpose is the unique foundation of our technology.

**Summary Risk Factors**

An investment in our securities involves a high degree of risk. You should consider carefully the risks discussed below and described more fully along with other risks under "Risk Factors" in this prospectus before investing in our securities.

*<u>Risks Related to our Business and Intellectual Property ("IP")</u>*

 

● The biotechnology research industry is highly competitive, and if we are unable to compete effectively our results will suffer.

● We do not manufacture our products ourselves and rely on a number of third-party suppliers, manufacturers, and other vendors, which may lead to delayed production and could have a material adverse effect on our business, results of operation, and financial condition.

● Our success depends on our ability to obtain and maintain patent protection in the U.S. and other countries, and we also rely on trade secrets, including unpatented know-how, technology, and other proprietary information, to maintain our competitive position.

 

*<u>Risks Related to Our Company and this Offering</u>*

● We are an "emerging growth company" and, as a result of the reduced disclosure and governance requirements available to emerging growth companies, our securities may be less attractive to investors.

● There is currently no public market for shares of our common stock. If and when we achieve listing on a stock exchange, the prices of our securities may be volatile and could decline substantially following this offering.

● We have incurred losses since inception and continue to incur losses over the next several years and may never achieve or maintain profitability. These factors raise substantial doubt about our ability to continue as a *going concern* absent obtaining significant additional funding.

● There is no guarantee that we will ever realize any significant operating revenues or that our operations will ever be profitable. Furthermore, we may not be able to generate sufficient operating cash flows to pay our operating expenses or service our indebtedness. As a result, it is possible you may lose some or all of your investment.

**Corporate Information**

We were incorporated on August 5, 2008 under the laws of the State of Nevada.

Our principal executive office is located at 18593 Main St., Huntington Beach, California 92648. Our main telephone number is (949) 945-3330. Our corporate website is colabsintl.com, while our product information website is klenskin.com. The information contained on, or that can be accessed through, our websites are not incorporated by reference and is not a part of this prospectus.

**Implications of Being an Emerging Growth Company**

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." These provisions include, among other matters:

● an exemption to provide fewer years of financial statements and other financial data in an initial public offering registration statement;

● an exemption from the auditor attestation requirement in the assessment of the emerging growth company's internal control over financial reporting;

● an exemption from new or revised financial accounting standards until they would apply to private companies and from compliance with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation;

● reduced disclosure about the emerging growth company's executive compensation arrangements; and

● no requirement to seek non-binding advisory votes on executive compensation or golden parachute arrangements.

We have elected to adopt the reduced disclosure requirements available to emerging growth companies. As a result of these elections, the information that we provide in this prospectus may be different than the information you may receive from other public companies.

We would cease to be an "emerging growth company" upon the earliest of: (i) the end of the fiscal year following the fifth anniversary of this offering, (ii) the first fiscal year after our annual gross revenues are $1.235 billion or more, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities or (iv) as of the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year.

**Recent Developments**

On February 24, 2023, we closed a private offering of 60,000 shares of our Series A Convertible Preferred Stock ("Series A Preferred Stock") sold to three accredited investors at a purchase price of $5.00 per share for total gross proceeds to us of $300,000.

Pursuant to the Certificate of Designation of the Series A Preferred Stock filed with the Secretary of State of the State of Nevada on February 14, 2023, 2,000,000 shares of our preferred stock have been designated as Series A Preferred Stock. The Series A Preferred Stock is convertible to common stock at the option of the holder thereof. The number of shares of common stock issuable upon the conversion of each share of Series A Preferred Stock is calculated by dividing the purchase price by the conversion price, whereby the conversion price is the greater of: (a) 70% of the last reported sales price per share of common stock (if traded on a national exchange or over the counter market); or (b) $1.75. (See "Description of Securities—Series A Preferred Stock.")

**THE OFFERING**

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| | |
|:---|:---|
| **Common stock offered** | 1,300,000 shares.<br>|
| **Common stock to be outstanding after this offering**<br>| 34,175,742 shares (assumes no exercise of the Representative Warrants) or 34,370,742 shares if the underwriter exercises in full its over-allotment option to purchase additional shares of common stock. |
| **Over-allotment option** | We have granted the underwriters the option to purchase up to an additional 195,000 shares of our common stock (15% of the shares of common stock sold in this offering) at the initial offering price, less any underwriting discounts and commissions, to cover overallotments, if any, for a period of 45 days from the date of this prospectus.<br>|
| **Public Offering Price** | Each share of common stock is being offered at a price of $4.50. |
| **Use of Proceeds** | We expect to receive net proceeds from this offering of approximately $4,782,000 (assuming an initial public offering price of $4.50 per share of common stock, which is the midpoint of the price range set forth on the cover page of this prospectus), or approximately $5,589,300 if the underwriters exercise in full their overallotment option, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us. We intend to use the net proceeds from this offering for marketing; executive compensation; working capital; research and development ("R&D"); acquisition of raw materials inventory; leasing additional facilities; repayment of notes payable; and legal, IP, and regulatory costs. (See "Use of Proceeds.") |
| **Dividend Policy** | We currently intend to retain our future earnings, if any, to finance the development and expansion of our business. The determination to pay dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in any financing instruments, and such other factors as our Board of Directors deems relevant in its discretion. (See "Dividend Policy.") |
| **Controlled Company** | Upon completion of this offering, Laura Cohen, our founder, Chief Executive Officer, and Chairman of our Board of Directors, together with William Cohen, our Chief Financial Officer, will collectively control more than 50% of the voting power of our outstanding common stock. As a result, we will be a "controlled company" within the meaning of the listing rules of The Nasdaq Stock Market LLC, or the Nasdaq rules. Under these standards, a company of which more than 50% of the voting power is held by an individual, group, or another company is a "controlled company" and may elect not to comply with certain corporate governance standards. (See "Management.") |
| **Risk Factors** | Investing in our common stock involves a high degree of risk. (See "Risk Factors.") |
| **Lock-ups** | Our directors, executive officers, and holders of 5% or more of our outstanding common stock, will agree with the underwriter not to offer for sale, issue, sell, contract to sell, pledge or otherwise dispose of any of our common stock or securities convertible into common stock in amounts exceeding 25% of their holdings for a period of six months from the date of this prospectus and the remaining 75% of their holdings for a period of 12 months from the date of this prospectus. We will agree not to issue any shares of common stock or securities convertible into common stock, subject to certain exceptions, for a period of 180 days after the closing date of this offering without the consent of the underwriter. (See "Underwriting.") |
| **Stock Exchange Symbol** | We have applied to list our common stock on the Nasdaq Capital Market under the symbol "CLLB." However, no assurance can be given that our application will be approved. |

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Except as otherwise indicated, all information in this prospectus is based on 32,875,742 shares outstanding as of the date of this prospectus, and:

&nbsp;&nbsp;&nbsp;&nbsp;● assumes no exercise of
 the underwriter's overallotment option;

● assumes
 no exercise of the Representative Warrants issued in this offering;

● excludes
 13,127,758 shares of our common stock issuable upon the exercise of outstanding options to purchase common stock; and

● excludes common stock issuable
 upon conversion of 60,000 shares of our Series A Preferred Stock.

(See "Description of Securities.")

**SUMMARY FINANCIAL DATA**

The following table presents summary financial data. The statement of operations data for the years ended December 31, 2022 and 2021. Our historical results are not necessarily indicative of our results in any future period.

You should read the following summary financial data together with "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. The summary financial data in this section is not intended to replace our financial statements and the related notes and are qualified in their entirety by the financial statements and related notes included elsewhere in this prospectus. In the tables below, the amounts presented are rounded to the nearest thousands.

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| | | |
|:---|:---|:---|
|  | Year Ended December 31, | Year Ended December 31, |
|  | 2022 | 2021 |
| **Statement of Operations Data** |  |  |
| Revenue | $157000 | $80000 |
| Cost of revenue | 70000 | 143000 |
| Gross profit (loss) | 87000 | (63000) |
| Expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 6390000 | 1022000 |
| &nbsp;&nbsp;&nbsp;Research and development | 244000 | 181000 |
| Total expenses | 6634000 | 1203000 |
| Net operating loss | (6547000) | (1266000) |
| Other Income (expenses) |  |  |
| &nbsp;&nbsp;&nbsp;Gain on forgiveness of Paycheck Protection Program loans |  | 110000 |
| &nbsp;&nbsp;&nbsp;Interest expense | (13000) | (1000) |
| &nbsp;&nbsp;&nbsp;Net other income (expenses) | (13000) | 109000 |
| Net loss | $(6560000) | $(1157000) |

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| | | |
|:---|:---|:---|
|  | As of | As of |
|  | December 31, 2022 | December 31, 2021 |
| **Balance Sheet Data** |  |  |
| Cash and Cash Equivalents | $9000 | $68000 |
| Total Current Assets | 20000 | 82000 |
| Total Assets | 154000 | 92000 |
| Total Current Liabilities | 632000 | 65000 |
| Total Liabilities | 671000 | 104000 |
| Accumulated Deficit | (18034000) | (11474000) |
| Total Stockholder's Deficit | (517000) | (12000) |
| Total Liabilities and Stockholder's Equity | 154000 | 92000 |

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**RISK FACTORS**

An investment in our common stock involves a high degree of risk and should be considered highly speculative. Before making an investment decision, you should carefully consider the following risk factors, which address the material risks concerning our business and an investment in our common stock, together with the other information contained in this prospectus. If any of the risks discussed in this prospectus occur, our business, prospects, liquidity, financial condition, and results of operations could be materially and adversely affected, in which case the trading price of our common stock could decline significantly, and you could lose all or part of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section entitled "Cautionary Note Concerning Forward-Looking Statements."

**<u>Risks Related to Our Business</u>**

***We have a history of net losses, we expect to continue to incur net losses in the near future, and we may not achieve or maintain profitability.***

We have a history of net losses from our continuing operations, which includes expenses for R&D testing, IP registration, legal fees, and marketing. For the years ended December 31, 2022 and 2021, we incurred net losses of $6,560,000 and $1,157,000, respectively. We have incurred significant net losses and have relied on our ability to fund our operations through revenues from the sale of our products and from various financings. A successful transition to sustained profitability is dependent upon achieving a level of revenues adequate to support our cost structure. This may not occur and, unless and until it does, we will continue to need to raise additional capital. We may seek additional funds from public and private equity or debt financings, borrowings under debt facilities, or other sources to fund our projected operating requirements. However, we may not be able to obtain further financing on reasonable terms, or at all. If we are unable to raise additional funds on a timely basis, or at all, our business, results of operations, financial condition, and prospects will be materially adversely affected.

 ****

***We have a concentrated customer base. The loss of a major customer could have a significant effect on our sales.***

A significant amount of our sales revenues were generated from sales to Advanced Dermatology Care Center ("ADCC") and one international customer. Our dependence on a small volume of customers has an inherent risk of our success being controlled by those major customers. The complete or a significant partial loss of orders from either one of these customers could adversely affect our business, financial condition, and results of operations.

 ****

During the years ended December 31, 2022 and 2021, sales to ADCC, a dermatology practice formerly owned by Dr. Laura Cohen, our Chief Executive Officer, accounted for 6% and 24% of our revenue, respectively. In addition, one international customer accounted for 38% and 14% of our revenue, respectively. No other customer accounted for more than 10% of revenues.

 ****

ADCC was sold by Dr. Cohen to an unrelated third party in November 2022. There are no agreements with the new owner of ADCC that requires the new owner to continue the purchase of the products from us. We cannot guarantee that the new owner will continue to purchase products from us at the same historical volume, if at all. If ADCC does not continue to purchase products from us, there is a possibility that we will have a significant reduction in sales or revenues in the foreseeable future, if any, since we will have lost one of our largest customers.

 

***Our independent audit firm has expressed in its report to our Audited Financial Statements a substantial doubt about our ability to continue as a going concern.***

We have not been able to generate substantial revenues from our operations to fund our activities and are therefore dependent upon external sources for financing our operations. There is a risk that we will be unable to obtain necessary financing to continue our operations on terms acceptable to us or at all. As a result, our independent audit firm has expressed in its auditors' report on the financial statements a substantial doubt regarding our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of the uncertainty regarding our ability to continue as a going concern. This going concern opinion could materially limit our ability to raise additional funds through the issuance of equity or debt securities or otherwise. Future reports on our financial statements may include an explanatory paragraph with respect to our ability to continue as a going concern. If we cannot continue as a going concern, our shareholders may lose their entire investment.

***Terms of any subsequent financing, if any, may adversely impact your investment.***

We may have to engage in common equity, debt, or preferred stock financings in the future. Your rights and the value of your investment in our common stock could be reduced by the dilution caused by future equity issuances, or convertible debt issuances with conversion rates below the then fair market value of our stock at the time of conversion. Interest plus potential amortization of debt issuance costs on debt securities could increase costs and negatively impact operating results. As we are permitted to issue preferred stock pursuant to the terms of our governing documents, preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be more advantageous to those investors than to the holders of our common stock.

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***Our operating plan relies in large part upon our assumptions and analyses. If these assumptions or analyses prove to be incorrect, our actual operating results may be materially different from our forecasted results.***

Whether actual operating results and business developments will be consistent with our expectations and assumptions as reflected in our forecast depends on a number of factors, many of which are outside our control, including, but not limited to:

● whether we can obtain sufficient capital to sustain and grow our business;

● our ability to manage our growth;

● results of our R&D activity;

● demand for our current products;

● competition;

● our ability to retain existing key management and consultants, to integrate recent hires and to attract, retain, and motivate qualified personnel; and

● the overall strength and stability of domestic and international economies including the potential adverse effects of inflation which can uncontrollably increase our costs of raw materials, shipping, staffing, and production.

Unfavorable changes in any of these or other factors, most of which are beyond our control, could materially and adversely affect our business, results of operations, and financial condition.

***Inflation and the consequences of rising prices pose risks for the sales of our products and our ability to compete.***

With an environment of increasing inflation globally affecting prices at both ends of the spectrum, we are continually having to search for better pricing of the needed raw materials for our products and competitively price shipping, and manufacturing to control our costs. This places additional demands on our management and should the negotiation for a favorable cost structure fail, competitively, our products will be at a disadvantage. This condition will affect our ability to increase or maintain our present revenues. Further, cutting margins to maintain pricing competitiveness will also have deleterious effects on our profitability. Inflation creates risks to us that may materially and adversely our financial viability.

***Our future financial performance and our ability to commercialize our products and services and to compete effectively will depend, in part, on our ability to manager any future growth effectively.***

As our operations expand, we expect that we will need to manage additional relationships with various strategic partners, suppliers, and other third parties. Our future financial performance and our ability to commercialize our products and services and to compete effectively will depend, in part, on our ability to manage any future growth effectively. To that end, we must be able to manage our development efforts effectively and hire, train, and integrate additional management, administrative and sales and marketing personnel. Our projected growth will place a significant strain on our administrative, operational, and financial resources. If we are unable to successfully manage our future growth, establish and continue to upgrade our operating and financial control systems, recruit and hire necessary personnel, or effectively manage unexpected expansion difficulties, our financial condition and results of operations could be materially and adversely affected.

***We face competition in our market from various large and small companies, most of which have greater financial, R&D, production, and other resource than us.***

We may face significant competition from other biotechnology companies, and our operating results could suffer if we fail to compete effectively. The biotechnology industry is intensely competitive and subject to rapid and significant technological change. We have competitors both in the United States and internationally, including major biotechnology companies and universities and other research institutions. Many of our competitors have substantially greater financial, technical, and other resources, such as larger R&D staff and experienced marketing and manufacturing organizations. Additional mergers and acquisitions in the biotechnology industries may result in even more resources being concentrated in our competitors. As a result, these companies may obtain regulatory approval, if required, or market acceptance more rapidly than we are able and may be more effective in selling and marketing their products as well. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large, established companies. Our ability to compete depends, in part, upon a number of factors outside our control, including the ability of our competitors to develop alternatives that are superior. Competition may increase further as a result of advances in the commercial applicability of technologies and greater availability of capital for investment in these industries. Our competitors may succeed in developing, acquiring, or licensing on similar products or services that we may develop. There are competing alternatives to our proposed product as well, such as a recent successful pig-to-human heart transplant. If we fail to successfully compete in our market, or if we incur significant expenses in order to compete, it could have a material adverse effect on our results of operations.

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***Our business model is evolving.***

Our business model is unproven and is likely to continue to evolve. Accordingly, our initial business model may not be successful and may need to be changed. Our ability to generate significant revenues will depend, in large part, on our ability to successfully market our products to potential users who may not be convinced of the need for our products and services or who may be reluctant to rely upon third parties to develop and provide these products. We intend to continue to develop our business model as our market continues to evolve.

***The biotechnology research industry is highly competitive, and if we are unable to compete effectively our results will suffer.***

We face vigorous competition from companies throughout the world, including large multinational consumer products companies that have many brands under ownership, with many distribution channels. Competition in this industry is based on the introduction of new products, pricing of products, brand awareness, technology, perceived value and quality, innovation, presence and visibility, promotional activities, advertising, editorials, e-commerce, and mobile-commerce initiatives and other activities. We must compete with a high volume of new product introductions and existing products by diverse companies across several different distribution channels.

Many multinational consumer companies have greater financial, technical, or marketing resources, longer operating histories, greater brand recognition, or larger customer bases than we do and may be able to respond more effectively to changing business and economic conditions than we can. We may be unsuccessful in our growth strategy in the event that we are not able to reach our target market or collaborate with our strategic partners. In addition, our competitors, many of whom have greater resources than we do, may be better able to produce similar products or technologies and withstand longer amounts of time without sales.

It is difficult for us to predict the timing and scale of our competitors' activities in these areas or whether new competitors will emerge in this industry. In addition, further technological breakthroughs, including new and enhanced technologies which increase competition in the online retail market, new product offerings by competitors, and the strength and success of our competitors' marketing programs may impede our growth and the implementation of our business strategy.

Our ability to compete also depends on the continued strength of our brand and products, the success of our marketing, innovation and execution strategies, the continued diversity of our product offerings, the successful management of new product introductions and innovations, strong operational execution, including in order fulfillment, and our success in entering new markets and expanding our business in existing geographies. If we are unable to continue to compete effectively, it would have a material adverse effect on our business, financial condition, and results of operations.

***We do not manufacture our products ourselves and rely on a number of third-party suppliers, manufacturers, and other vendors, which may lead to delayed production and could have a material adverse effect on our business, results of operation, and financial condition.***

We use multiple third-party suppliers and manufacturers to source and manufacture substantially all of our products. With them, we now have the capacity to produce our product on a large-scale, contract-manufacturing basis. We are reliant on facilities that are compliant with FDA manufacturing guidelines to manufacture our products at a high level of quality control. The ability of these third parties to supply and manufacture our products may be affected by:

● competing orders from other companies;

● varied quality control and regulatory actions;

● economic or business interests or goals that are inconsistent with ours;

● actions taken contrary to our instructions, requests, policies, or objectives;

● being unable or unwilling to fulfill their obligations under relevant purchase orders, including obligations to meet our production deadlines, quality standards, pricing guidelines and product specifications, or to comply with applicable regulations, including those regarding the safety and quality of products and ingredients and good manufacturing practices;

● their financial difficulties;

● not complying with FDA requirements;

● raw material or labor shortages;

● increases in raw material or labor costs which may affect our costs; and

● engaging in activities or employing practices that may harm our reputation.

Should our suppliers or manufacturers be unable to achieve our required levels of production according to our specifications, in a timely manner or on budget, our profitability may be adversely affected. Further, failure to produce as specified as a result of a manufacturing process or ingredients can lead to costly recalls with public relations issues. The occurrence of any of these events, alone or together, could have a material adverse effect on our business, financial condition, and results of operations.

In addition, such problems may require us to find new third-party suppliers or manufacturers, and there can be no assurance that we would be successful in finding new third-party suppliers or manufacturers. If we experience any supply chain disruptions caused by our manufacturing process or by our inability to locate suitable third-party manufacturers or suppliers, or if our manufacturers or raw material suppliers experience problems with product quality or disruptions or delays in the manufacturing process or delivery of the finished products or the raw materials or components used to make such products, our business, financial condition, and results of operations could be materially and adversely affected.

**<u>Risks Related to Our Organization and Structure</u>**

***Our founders control and will continue to control the majority of our outstanding Common Stock.***

As of the date of this prospectus, we have 32,875,742 outstanding shares of common stock of which 23,502,242 are owned by our two founders (our "Founders"), Laura Cohen and Lisa LeBlanc, both of whom are on our Board of Directors and are executive officers. Consequently, our Founders currently have 71% of the outstanding voting shares. After this offering, the Founders will have 69% of the outstanding voting shares. Therefore, our Founders control us and will continue to control all matters requiring a vote by our shareholders after the completion of this offering, including our dividend, acquisition, and financing policies, as well as other major decisions by voting their common stock, electing our directors, and exercising their powers as officers, directors, and shareholders of us. In addition, William Cohen, our Chief Financial Officer and Laura Cohen's husband, owns 3% of our outstanding voting shares (collectively, Laura Cohen, William Cohen, and Lisa LeBlanc will be referred to as the "Cohen Family"). Therefore, collectively, the Cohen Family owns 74% of our outstanding voting stock.

***A majority of our executive team are related.***

Three members of our executive team are family members-Laura Cohen and William Cohen are wife and husband, and Lisa LeBlanc is their daughter. The Cohen Family relationship presents a potential conflict of interest between the Cohen Family and the Company. We cannot assure you that these officers' interests will always be wholly aligned with our corporate interests or that strains on such family relationships will not negatively impact us or our business.

As a controlled company, no nominating committee or nominations process with independent directors is required, and as such, the Cohen Family will have the power to nominate and elect a majority of the Board of Directors. The Cohen Family's control of us allows the Cohen Family to control the outcome of corporate actions that require or may be accomplished by stockholder approval, including the election and removal of directors and transactions resulting in a change in control of us. For so long as the Cohen Family maintains control of us, our stockholders (other than those members of the Cohen Family) will be unable to affect the outcome of proposed corporate actions supported by the Cohen Family.

The interests of the Cohen Family may not be the same as our or those of our other stockholders. For example, the Cohen Family may have an interest in pursuing transactions that could enhance their investment even though such transactions might involve risks to us and our non-affiliated shareholders. The Cohen Family may also have an interest in delaying, deterring, or preventing a change in control or business combination that might otherwise be beneficial to us and our non-affiliated shareholders.

***There are limitations on the liability of our directors.***

We provide for the indemnification of directors to the fullest extent permitted by law and, to the extent permitted by such law, eliminate or limit the personal liability of directors for monetary damages for certain breaches of fiduciary duty. Such indemnification may be available for liabilities arising in connection with this prospectus. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers, or persons controlling the Company pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

***We currently have limited marketing and sales capabilities in place.***

We currently have limited marketing and limited sales capabilities for our products and services. If we are unable to establish sufficient marketing and sales capabilities or enter into agreements with third parties to market and sell our products and services, we may not be able to effectively market and sell our product and services or generate product revenues.

***We are a "controlled company" within the meaning of Nasdaq corporate governance standards and, as a result, will qualify for, and intend to rely on, certain exemptions to the corporate governance standards.***

Upon the completion of this offering, Laura Cohen, our founder, Chief Executive Officer, and Chairman of our Board of Directors together with William Cohen, our Chief Financial Officer, will continue to control a majority of the voting power of our common stock. (See "Principal Stockholders.") As a result, we are a "controlled company" within the meaning of the Nasdaq rules. Under these rules, a company of which more than 50% of the voting power is held by an individual, a group, or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements of Nasdaq, including (1) the requirement that a majority of the Board of Directors consist of independent directors; (2) the requirement that we have a nominating committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and (3) the requirement that we have a compensation committee that is composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities. Following this offering, we intend to rely on some or all of these exemptions. Accordingly, you will not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

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***We are an "Emerging Growth Company" and, as a result of the reduced disclosure and governance requirements, our securities may be less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and we are eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies but not to emerging growth companies, including, but not limited to, a requirement to present only two years of audited financial statements, an exemption from the auditor attestation requirement of Section 404 of the Sarbanes-Oxley Act, reduced disclosure about executive compensation arrangements pursuant to the rules applicable to smaller reporting companies, and no requirement to seek non-binding advisory votes on executive compensation or golden parachute arrangements. We have elected to adopt these reduced disclosure requirements. We could be an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of this offering, although a variety of circumstances could cause us to lose that status earlier.

In addition, Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the "Securities Act") for complying with new or revised financial accounting standards. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the extended transition period and, as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. In choosing to take advantage of the extended transition period, we may later decide otherwise (i.e., "opt in" by complying with the financial accounting standard effective dates applicable to non-emerging growth companies), so long as it complies with the requirements in Sections 107(b)(2) and (3) of the JOBS Act, which is irrevocable.

We cannot predict if investors will find our common stock less attractive as a result of our taking advantage of these exemptions. If some investors find our common stock less attractive as a result of our choices, there may be a less active trading market for our common stock and our stock price may be more volatile.

***As a result of being a public company, we will be obligated to develop and maintain proper and effective internal controls over financial reporting.***

As a public company, we will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting as of the end of our fiscal year 2022. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting.

Effective internal control over financial reporting is necessary for us to provide reliable and timely financial reports and, together with adequate disclosure controls and procedures, are designed to reasonably detect and prevent fraud. Our failure to implement and maintain effective internal control over financial reporting could result in errors in our financial statements that could result in a restatement of our financial statements and could cause us to fail to meet our reporting obligations. In addition, we could become subject to investigations by the stock exchange on which our securities are listed, the SEC, or other regulatory authorities, which could require additional financial and management resources.

During the evaluation and testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal controls are effective. If we are unable to assert that our internal control over financial reporting is effective, we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our common stock to decline, and we may be subject to investigation or sanctions by the SEC.

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***We will incur increased costs as a result of being a public company.***

As a public company, we will incur significant legal, accounting, and other expenses that we did not incur as a private company. In addition, rules implemented by the SEC and Nasdaq require changes in corporate governance practices of public companies. We expect these rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly. We will also incur additional costs associated with our public company reporting requirements. 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 accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified people to serve on our Board of Directors, particularly to serve on our audit committee and compensation committee, or as executive officers.

**<u>Regulatory and Intellectual Property Risks</u>**

***If we are unable to obtain and maintain sufficient intellectual property protection for our products, or if the scope of the intellectual property protection is not sufficiently broad, our competitors could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize our products may be adversely affected.***

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Our success depends in large part on our ability to obtain and maintain patent protection in the U.S. and other countries with respect to our products. We seek to protect our proprietary position by filing patent applications in the U.S. and abroad related to our technologies, however, we cannot predict:

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| |
|:---|
| if and when patents may issue based on our patent applications; |
| the scope of protection of any patent issuing based on our patent applications; |
| whether the claims of any patent issuing based on our patent applications will protect our products and their intended uses or prevent others from commercializing competitive technologies or products; |
| whether or not third parties will find ways to invalidate or circumvent our patent rights; |
| whether or not others will obtain patents claiming aspects similar to those covered by our patents and patent applications; and/or |
| whether we will need to initiate litigation or administrative proceedings to enforce and/or defend our patent rights which will be costly whether we win or lose. |

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Obtaining and enforcing patents is expensive and time-consuming, and we may not be able to file and prosecute all necessary or desirable patent applications, or maintain and/or enforce patents that may issue based on our patent applications, at a reasonable cost or in a timely manner. It is also possible that we will fail to identify patentable aspects of our R&D results before it is too late to obtain patent protection. Although we enter into non-disclosure and confidentiality agreements with parties who have access to patentable aspects of our R&D output, such as our employees, corporate collaborators, outside scientific collaborators, contract research organizations, contract manufacturers, consultants, advisors, and other third parties, any of these parties may breach these agreements and disclose such results before a patent application is filed, thereby jeopardizing our ability to seek patent protection.

***We may not identify relevant third-party patents or may incorrectly interpret the relevance, scope, or expiration of a third-party patent which might adversely affect our ability to develop and market our products.***

We cannot guarantee that any of our patent searches or analyses, including the identification of relevant patents, the scope of patent claims, or the expiration of relevant patents, are complete or thorough, nor can we be certain that we have identified each and every third-party patent and pending application in the U.S. and abroad that is relevant to or necessary for the commercialization of our products in any jurisdiction.

The scope of a patent claim is determined by an interpretation of the law, the written disclosure in a patent, and the patent's prosecution history. Our interpretation of the relevance or the scope of a patent or a pending application may be incorrect, which may negatively impact our ability to market our products. We may incorrectly determine that our products are not covered by a third-party patent or may incorrectly predict whether a third party's pending application will issue with claims of relevant scope. Our determination of the expiration date of any patent in the U.S. or abroad that we consider relevant may be incorrect, which may negatively impact our ability to develop and market our products. Our failure to identify and correctly interpret relevant patents may negatively impact our ability to develop and market our products.

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***In the future, we may need to obtain additional licenses of third-party technology that may not be available to us or are available only on commercially unreasonable terms, and which may cause us to operate our business in a more costly or otherwise adverse manner that was not anticipated.***

From time to time we may be required to license technology from additional third parties to further develop or commercialize our own technology and products. Should we be required to obtain licenses to any third-party technology, including any such patents required to manufacture, use, or sell our products and technology, such licenses may not be available to us on commercially reasonable terms, or at all. The inability to obtain any third-party license required to develop or commercialize any of our products or technology could cause us to abandon any related efforts, which could seriously harm our business and operations.

***We may become involved in lawsuits alleging that we have infringed the intellectual property rights of third parties or to protect or enforce our patents or other intellectual property, which litigation could be expensive, time consuming, and adversely affect our ability to develop or commercialize our products.***

The coverage of patents is subject to interpretation by the courts, and the interpretation is not always uniform. There is a substantial amount of IP litigation in the biotechnology and pharmaceutical industries, and we may become party to, or threatened with, litigation or other adversarial proceedings regarding IP rights. Third parties may assert infringement claims against us based on existing or future IP rights. If we were sued for patent infringement, we would need to demonstrate that our technology, products, or methods either do not infringe the patent claims of the relevant patent or that the patent claims are invalid or unenforceable, and we may not be able to do this. Proving invalidity may be difficult. For example, in the U.S., proving invalidity in court requires a showing of clear and convincing evidence to overcome the presumption of validity enjoyed by issued patents. If we are found to infringe a third party's IP rights, we could be forced, including by court order, to cease developing, manufacturing, or commercializing the infringing product. Alternatively, we may be required to obtain a license from such third party in order to use the infringing technology and continue developing, manufacturing, or marketing the infringing product. However, we may not be able to obtain any required license on commercially reasonable terms or at all. Even if we were able to obtain a license, it could be non-exclusive, thereby giving our competitors access to the same technologies licensed to us. In addition, we could be found liable for monetary damages, including treble damages and attorneys' fees if we are found to have willfully infringed a patent. A finding of infringement could prevent us from commercializing our products or force us to cease some of our business operations, which could materially harm our business.

In addition, we may find that competitors are infringing our patents, trademarks, copyrights, or other IP. To counter infringement or unauthorized use, we may be required to file infringement claims, which can be expensive and time consuming and divert the time and attention of our management and scientific personnel. Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that we infringe their patents, in addition to counterclaims asserting that our patents are invalid or unenforceable, or both. In any patent infringement proceeding, there is a risk that a court will decide that a patent of ours is invalid or unenforceable, in whole or in part, and that we do not have the right to stop the other party from using the invention at issue. There is also a risk that, even if the validity of such patents is upheld, the court will construe the patent's claims narrowly or decide that we do not have the right to stop the other party from using the invention at issue on the grounds that our patent claims do not cover the invention. An adverse outcome in a litigation or proceeding involving our patents could limit our ability to assert our patents against those parties or other competitors, and may curtail or preclude our ability to exclude third parties from making and selling similar or competitive products. Any of these occurrences could adversely affect our competitive business position, business prospects, and financial condition. Similarly, if we assert trademark infringement claims, a court may determine that the marks we have asserted are invalid or unenforceable, or that the party against whom we have asserted trademark infringement has superior rights to the marks in question. In this case, we could ultimately be forced to cease use of such trademarks. Even if we establish infringement, the court may decide not to grant an injunction against further infringing activity and instead award only monetary damages, which may or may not be an adequate remedy.

Furthermore, because of the substantial amount of discovery required in connection with IP litigation, there is a risk that some of our confidential information could be compromised by disclosure during litigation. There could also be public announcements of the results of hearings, motions, or other interim proceedings or developments. Moreover, we cannot assure you that we will have sufficient financial or other resources to defend or pursue such litigation, which typically lasts for years before a conclusion. Even if we are successful in such a proceeding, we may incur substantial costs and the time and attention of our management and personnel could be diverted during a proceeding, which could have a material adverse effect on our business and operations. In addition, we may not have sufficient resources to bring an action to a successful conclusion.

***Because of the expense and uncertainty of litigation, we may not be in a position to enforce our intellectual property rights against third parties.***

Because of the expense and uncertainty of litigation, we may conclude that even if a third party is infringing our issued patent, any patents that may be issued as a result of our pending or future patent applications or other IP rights, the risk-adjusted cost of bringing and enforcing such a claim or action may be too high or not in the best interest of our company or our stockholders. In such cases, we may decide that the more prudent course of action is to simply monitor the situation or initiate or seek some other non-litigious action or solution.

***We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties.***

We could in the future be subject to claims that we or our employees have inadvertently or otherwise used or disclosed alleged trade secrets or other confidential information of former employers or competitors. Although we try to ensure that our employees and consultants do not use the IP, proprietary information, know-how or trade secrets of others in their work for us, we may become subject to claims that we caused an employee to breach the terms of his or her non-competition or non-solicitation agreement, or that we or these individuals have, inadvertently or otherwise, used or disclosed the alleged trade secrets or other proprietary information of a former employer or competitor.

While we may litigate to defend ourselves against these claims, even if we are successful, litigation could be a distraction to management and result in substantial costs. If our defenses to these claims fail, in addition to requiring us to pay monetary damages, a court could prohibit us from using technologies or features that are essential to our products, if such technologies or features are found to incorporate or be derived from the trade secrets or other proprietary information of the former employers. Moreover, any such litigation or the threat thereof may adversely affect our reputation, our ability to form strategic alliances or sublicense our rights to collaborators, engage with scientific advisors or hire employees or consultants, each of which would have an adverse effect on our business, results of operations, and financial condition.

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***We may not be able to protect our intellectual property rights throughout the world.***

Patents are of national or regional effect, and filing, prosecuting, and defending patents on all of our products throughout the world would be prohibitively expensive. As such, we may not be able to prevent third parties from producing our inventions in all countries outside the U.S., or from selling or importing products made using our inventions in and into the U.S. or other jurisdictions. Further, the legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other IP protection, particularly those relating to pharmaceuticals or biologics, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. In addition, certain developing countries have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. This could limit our potential revenue opportunities. Accordingly, our efforts to enforce our IP rights around the world may be inadequate to obtain a significant commercial advantage from the IP that we develop or license.

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***We may rely on trade secret and proprietary know-how which can be difficult to trace and enforce and, if we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.***

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In addition to seeking patents for some of our technology and products, we may also rely on trade secrets, including unpatented know-how, technology, and other proprietary information, to maintain our competitive position. Elements of our products and technology, including processes for their preparation and manufacture, may involve proprietary know-how, information, or technology that is not covered by patents, and thus for these aspects we may consider trade secrets and know-how to be our primary IP. Any disclosure, either intentional or unintentional, by our employees, the employees of third parties with whom we share facilities or third party consultants and vendors that we engage to perform research, clinical trials, or manufacturing activities, or misappropriation by third parties (such as through a cybersecurity breach) of our trade secrets or proprietary information could enable competitors to duplicate or surpass our technological achievements, thus eroding our competitive position in our market.

Trade secrets and know-how can be difficult to protect. We require our employees to enter into written employment agreements containing provisions of confidentiality and obligations to assign to us any inventions generated in the course of their employment. We and any third parties with whom we share facilities enter into written agreements that include confidentiality and IP obligations to protect each party's property, potential trade secrets, proprietary know-how, and information. We further seek to protect our potential trade secrets, proprietary know-how, and information in part, by entering into non-disclosure and confidentiality agreements with parties who are given access to them, such as our corporate collaborators, outside scientific collaborators, contract research organizations, contract manufacturers, consultants, advisors, and other third parties. With our consultants, contractors, and outside scientific collaborators, these agreements typically include invention assignment obligations. Despite these efforts, any of these parties may breach the agreements and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive, and time-consuming, and the outcome is unpredictable. In addition, some courts inside and outside the U.S. are less willing or unwilling to protect trade secrets. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us. If any of our trade secrets were to be disclosed to or independently developed by a competitor or other third party, our competitive position would be harmed.

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***Rapid technological change could make our products obsolete.***

Pharmaceutical technologies have historically undergone, and will most likely continue to undergo, rapid and significant change and improvement. Our future will depend in large part on our ability to maintain our competitive position with respect to these rapidly evolving technologies. Any pharmaceutical products or processes that we develop may become obsolete before we recover expenses incurred in connection with their development. Obsolescence of our products and technology would materially and adversely affect our business, financial condition, and results of operations.

***Changes in regulations could increase our costs and affect our profitability.***

Our activities are highly regulated and subject to government oversight. Various federal, state, provincial and local laws and regulations govern drug approvals, manufacturing, and marketing, as well as licensing, trade, tax, and environmental matters. Governing bodies regularly issue new regulations and changes to existing regulations. Also the regulatory response to a pandemic may adversely affect sales, distribution, and shipping, as well as creating many other potential issues. Our need to comply with new or revised regulations or their interpretation and application including proposed requirements designed to enhance safety or to regulate imported ingredients, could materially and adversely affect our product sales, financial condition, and results of operations.

***We may not meet our product development milestones.***

We may not meet our product development and commercialization milestones, and may meet adverse competition, marketing restrictions, supply obstacles, pricing restrictions, regulatory issues, and other sales impediments in targeted markets. If any of these events hinder our market development, it will reduce our overall sales and adversely affect our financial condition.

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***Any event affecting our access to components may affect our production.***

Base components used in our formulations may become readily unavailable, restricted, face increased tariffs, realize increased transportation or distribution costs, have inflationary cost increases, or have supply chain issues, which will result in the development and production of our products becoming more expensive. Any of these events or others would restrict our ability to manufacture products at competitive pricing levels, thereby adversely increasing our costs of production and marketability of our products. We experienced supply chain issues as a consequence of the COVID-19 pandemic, including higher prices and slower shipment times. We worked with our alternative suppliers and delayed some production, which has now started to normalize. We have recently observed the prices return to normalized levels and increased availability of raw materials. In the event that the availability reverts back and decreases, then we will have to again source alternative suppliers.

***We may enter into agreements with customers and partners that may require us to share our intellectual property rights.***

We may enter into agreements with customers and partners that may require us to share our IP rights. Entering into these relationships poses a number of risks, including but not limited to: disputes may arise in the future with respect to the ownership of IP rights; disagreements with corporate partners could delay or terminate the development or commercialization of products, or result in litigation or arbitration; we cannot effectively control whether contractors or partners will devote sufficient resources to our partnership or products; partners with marketing rights may choose to devote fewer resources to the marketing of our products than they do to others; and partners have discretion in electing whether to work with us. Given these risks, any partnership or business relationship may not be successful. Failure of these efforts could delay our product development or impair commercialization of our products. If any of the aforementioned events were to occur, it will adversely affect sales forecasts and market expansion.

***Any failure in testing will affect our business plan.***

Any failures, missteps, or delays in our testing of our products during any phase of the development through manufacturing processes, could negatively affect our customer relationships, jeopardize sales, increase our costs, delay product production and sales, and give us legal exposure.

**<u>Risks Related to this Offering and Ownership of our Securities</u>**

***An investment in our securities is speculative.***

An investment in our securities is speculative and involves a high degree of risk. There is no assurance that investors will obtain any return on their investment. You should not purchase the securities if you cannot afford the loss of your entire investment.

***There is currently no public market for our securities and a trading market for our securities may never develop.***

There is currently no public market for our securities. We have applied to list our common stock on the Nasdaq Capital Market under the symbol "CLLB." Even if we do list our securities on Nasdaq, an active trading market for our securities may never develop or if one develops, it may not be sustained following this offering. Accordingly, no assurance can be given as to the following:

● the likelihood that an active trading market for our securities will develop or be sustained;

● the liquidity of any such market;

● the ability of our shareholders to sell their shares of common stock; or

● the price that our shareholders may obtain for their common stock.

If an active market for our securities does not develop or is not maintained, the market price of our securities may decline, and you may not be able to sell your shares. Even if an active trading market develops for our securities subsequent to this offering, the market price of our securities may be highly volatile and subject to wide fluctuations. Our financial performance, government regulatory action, tax laws, interest rates, and market conditions in general could have a significant impact on the future market price of our securities.

Some of the factors that could negatively affect or result in fluctuations in the market price of our securities include:

● actual or anticipated variations in our quarterly operating results;

● changes in market valuations of similar companies;

● adverse market reaction to the level of our indebtedness;

● additions or departures of key personnel;

● actions by shareholders;

● speculation in the press or investment community;

● general market, economic, and political conditions, including an economic slowdown, supply chain issues, or dislocation in the global credit markets;

● our operating performance and the performance of other similar companies;

● changes in accounting principles; and

● passage of legislation or other regulatory developments that adversely affect us or the biotechnology industry.

***Even if we are successful in listing our common stock on NASDAQ, failure to maintain our NASDAQ listing could limit investors' ability to make transactions in our common stock and subject us to additional trading restrictions.***

We may not be able to meet the continued listing requirements for our common stock in the future. Failure to meet the continued listing requirements could result in Nasdaq delisting our ordinary shares from trading on its exchange. If this should happen, we could face significant material adverse consequences, including:

● a limited availability of market quotations for our securities;

● a limited amount of news and analyst coverage for us; and

● a decreased ability to issue additional securities or obtain additional financing in the future.

***If our common stock were delisted and determined to be a "penny stock," a broker-dealer may find it more difficult to trade our common stock and an investor may find it more difficult to acquire or dispose of our common stock in the secondary market.***

If our common stock were removed from listing with the Nasdaq Capital Market, it may be subject to the so-called "penny stock" rules. The SEC has adopted regulations that define a "penny stock" to be any equity security that has a market price per share of less than $5.00, subject to certain exceptions, such as any securities listed on a national securities exchange. For any transaction involving a "penny stock," unless exempt, the rules impose additional sales practice requirements on broker-dealers, subject to certain exceptions. If our common stock were delisted and determined to be a "penny stock," a broker-dealer may find it more difficult to trade our common stock and an investor may find it more difficult to acquire or dispose of our common stock on the secondary market. Investors in penny stocks should be prepared for the possibility that they may lose their whole investment.

***The offering price per share of the securities offered under this prospectus may not accurately reflect the value of your investment.***

Prior to this offering, there has been no market for our securities. The offering price per share of our securities offered by this prospectus was negotiated between us and the underwriters. Factors considered in determining the price of our common stock include:

● the history and prospects of companies with a similar principal business;

● prior offerings of those companies;

● our capital structure;

● general conditions of the securities markets at the time of this offering; and

● other factors we deemed relevant.

The offering price may not accurately reflect the value of our securities and may not be realized upon any subsequent disposition of the shares.

***Investors in this offering will experience immediate and substantial dilution.***

Due to our significant accumulated deficit, investors in this offering will suffer immediate and substantial dilution. Further, investors in this offering will own approximately 4% of the then outstanding shares of common stock, but will have paid approximately 40% of the total consideration for our outstanding shares. (See "Dilution.")

***We may undertake additional equity or debt financing that may dilute the shares in this offering.***

We may undertake further equity or debt financing which may be dilutive to existing shareholders, including you, or result in an issuance of securities whose rights, preferences, and privileges are senior to those of existing shareholders, including you, and also reducing the value of securities subscribed for under this offering.

***We may not be able to obtain additional financing.***

We may require additional funds to continue and grow its business. We may not be able to obtain additional financing as needed, on acceptable terms, or at all, which would force us to delay our plans for growth and implementation of our strategy which could seriously harm our business, financial condition, and results of operations. If we need additional funds, we may seek to obtain them primarily through additional equity or debt financings. Those additional financings could result in dilution to our current shareholders and to you if you invest in this offering.

***If securities analysts do not publish research or reports about our business, or if they downgrade our common stock, the price of our securities could decline.***

The trading market for our securities could be influenced by any research and reports that securities or industry analysts publish about us or our business. 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 us, the trading price for our securities would be negatively impacted. In the event securities or industry analysts cover us and one or more of these analysts downgrade our securities or publish inaccurate or unfavorable research about our business, the price of our securities would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our securities could decrease, which could cause the price of our securities and trading volume to decline.

***We have not paid dividends in the past and do not expect to pay dividends in the foreseeable future.***

We have never paid cash dividends on our securities and do not anticipate paying cash dividends in the foreseeable future. We currently intend to retain our future earnings, if any, to finance the development and expansion of our business. The determination to pay dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in any financing instruments, and such other factors as our Board of Directors deems relevant in its discretion. Accordingly, you may need to sell your shares of our common stock to realize a return on your investment, and you may not be able to sell your shares at or above the price you paid for them, or at all for an indefinite period of time, except as permitted under the Securities Act and the applicable securities laws of any other jurisdiction.

 ****

***We have broad discretion to use the proceeds from this offering and our investment of those proceeds may not yield a favorable return.***

Our management has broad discretion to use the proceeds from this offering in ways with which you may not agree. There can be no assurance that management's use of proceeds generated through this offering will prove optimal or translate into revenue or profitability for us. The failure of our management to apply these funds effectively could result in unfavorable returns. This could harm our business and could cause the market value of our securities to decline. Investors are urged to consult with their attorneys, accountants, and personal investment advisors prior to making any decision to invest in us.

***Future sales of our common stock and other securities exercisable or convertible into common stock or preferred stock could cause the market value of our common stock to decline and could result in dilution of your shares.***

Our Board of Directors is authorized, without your approval, to cause us to issue additional shares of our common stock or to raise capital through the creation and issuance of preferred stock, other debt securities convertible into common stock, options, warrants and other rights, on terms and for consideration as our Board of Directors in its sole discretion may determine. Sales of substantial amounts of our common stock or of preferred stock could cause the market price of our common stock to decrease significantly. We cannot predict the effect, if any, of future sales of our common stock, or the availability of our common stock for future sales, on the value of our common stock. Sales of substantial amounts of our common stock by Laura Cohen or another large shareholder, or the perception that such sales could occur, may adversely affect the market price of our common stock.

In addition, in connection with this offering, subject to certain exceptions, each of our officers and directors and the majority of our shareholders has entered into a lock-up agreement that restricts the direct or indirect sale of shares of our common stock beneficially held by such person in excess of 25% for six months and 75% for 12 months after the date of this prospectus without the prior written consent of the underwriter. In addition, such persons have agreed not to directly or indirectly sell, offer to sell, grant any option or otherwise transfer or dispose of shares of our common stock for six months after the date of this prospectus; provided, however, that such restrictions shall not apply with respect to any of our shareholders (other than our officers, directors, or employees) for the sale of shares of common stock acquired by them in the open market after the completion of this offering. We have agreed not to waive or otherwise modify that agreement without the prior written consent of the underwriter. The underwriter may, at any time, release, or authorize us to release, as the case may be, all or a portion of our common stock subject to the foregoing lock-up provisions. If the restrictions under the lock-up provisions of the lock-up agreements entered into in connection with this offering are waived and when the lock-up agreements expire in six and 12 months, shares of our common stock will become available for sale into the market, subject to applicable law, which could reduce the market price for our common stock.

***Certain recent initial public offerings with smaller public floats have experienced extreme price volatility that was seemingly unrelated to company performance. Such volatility, if it occurs to us, may make it difficult for prospective investors to assess the rapidly changing value of our shares.***

The trading price of our shares following this offering is likely to be volatile and our shares may be subject to rapid and substantial price volatility. There have been recent instances of extreme stock price run-ups followed by rapid price declines following initial public offerings, particularly with companies with relatively smaller public floats, and we expect that such instances may continue and/or increase in the future. Contributing to this risk of volatility are a number of factors. First, our shares are likely to be more sporadically and thinly traded than that of larger, more established companies. As a consequence of this lack of liquidity, the trade of relatively small quantities of shares by our stockholders may disproportionately influence the price of those shares in either direction. The price of our shares could, for example, decline precipitously in the event that a large number of our shares are sold on the market without commensurate demand as compared to a seasoned issuer that could better absorb those sales without adverse impact on its stock price. Second, we are a speculative investment due to our limited operating history and lack of profitability. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a larger, more established company that has a relatively large public float.

Many of these factors are beyond our control and may decrease the market price of our securities. Such volatility, including any stock run-ups, may be unrelated or disproportionate 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 shares.

Furthermore, the stock market in general, and the market for biotechnology companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies. Broad market and industry factors, as well as general economic, political, and market conditions such as recessions or interest rate changes, may seriously affect the market price of our securities, regardless of our actual operating performance. These fluctuations may be even more pronounced in the trading market for our securities shortly following this offering. If the market price of our shares after this offering does not exceed the per share offering price, you may not realize any return on your investment in us and may lose some or all of the value of your investment.

**CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS**

Various statements contained in this prospectus, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income, and capital spending. Our forward-looking statements are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan," "goal," or other words that convey the uncertainty of future events or outcomes. The forward-looking statements in this prospectus speak only as of the date of this prospectus, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements:

● the timing of receipt of regulatory approvals;

● economic changes either nationally or in the markets in which we operate, including declines in employment, volatility and upward trend in interest rates, threat of a recession, and growth of inflation;

● downturn in the biotechnology industry;

● changes in assumptions used to make industry forecasts;

● continued volatility and uncertainty in the credit markets and broader financial markets;

● our future operating results and financial condition;

● our business operations including further effects of Covid and supply chain issues;

● changes in our business and investment strategy;

● availability, terms, and deployment of capital;

● changes in, or the failure or inability to comply with, governmental laws and regulations;

● the degree and nature of our competition;

● our leverage and debt service obligations;

● general volatility of the capital markets and the lack of a public market for shares of our securities;

● availability of qualified personnel and our ability to retain our key personnel;

● our financial performance;

● our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act;

● our expected use of the proceeds from this offering; and

● additional factors discussed under the sections captioned "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Our Business."

These forward-looking statements reflect our management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this prospectus and are subject to risks and uncertainties. We discuss many of these risks in greater detail under "Risk Factors." Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

The forward-looking statements made in this prospectus relate only to events as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements after the date of this prospectus or to conform such statements to actual results or revised expectations, except as required by law.

**USE OF PROCEEDS**

We expect to receive net proceeds from this offering of approximately $4,782,000 (assuming an initial public offering price of $4.50 per share, which is the midpoint of the price range set forth on the cover page of this prospectus), after deducting the underwriting discounts and commissions and the estimated offering expenses of approximately $600,000 payable by us.

The underwriters have an option to purchase up to 195,000 additional shares of our common stock within 45 days after the date of this prospectus to cover overallotments, if any, made by the underwriters to investors from whom orders were solicited prior to the date of this prospectus. Exercise of this option in full would result in additional net proceeds to us of approximately $807,300. All of such additional net proceeds would be used for working capital and inventory.

---

| | | |
|:---|:---|:---|
|  | **Amount** | **Percentage** |
| **Net proceeds to us<sup>(1)</sup>** | $4782000 | 100% |
| ***Use of proceeds:*** |  |  |
| &nbsp;&nbsp;&nbsp;Marketing- Staff and Campaigns | $3100000 | 64.8% |
| &nbsp;&nbsp;&nbsp;Executive Compensation | $440000 | 9.2% |
| &nbsp;&nbsp;&nbsp;Working Capital | $357000 | 7.5% |
| &nbsp;&nbsp;&nbsp;Research and Development: Testing and Lab Equipment | $310000 | 6.5% |
| &nbsp;&nbsp;&nbsp;Raw Materials and Inventory | $190000 | 3.9% |
| &nbsp;&nbsp;&nbsp;Repayment of Notes Payable | $153000 | 3.2% |
| &nbsp;&nbsp;&nbsp;Administrative Facilities | $147000 | 3.1% |
| &nbsp;&nbsp;&nbsp;Legal, IP, Audits, and Regulatory Costs | $85000 | 1.8% |
| &nbsp;&nbsp;&nbsp;**Total** |  | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Reflects
 estimated offering expenses, underwriting discounts and commissions payable by us and assumes no exercise of the underwriter's
 option to purchase additional shares of our common stock.

**Marketing-Staff and Campaigns.** A majority of the proceeds from this offering is intended to be used to initiate and bolster our marketing efforts, either through the direct expansion of hiring additional senior management and marketing support staff, or through an acquisition of a marketing company. Our efforts will include increasing brand awareness and retail expansion in order to propel sales for the sectors that we have targeted. (See "Our Business.")

Additionally, we intend to retain additional staff to directly support the ingredient sales to our partners who already have prime market positions and can promote our next generation formulations added into their products. We have hired an experienced sales and marketing consultant and an internet marketing brokers who have already generated new sales accounts and are modifying our online sales presence. Additionally, we have engaged Brand Knew to advance sales of our products and promote our brand and name recognition.

**Executive Compensation.** We intend to use a portion of the proceeds raised in this offering to fund the compensation payable to our executive officers, as described under "Compensation of Directors and Executive Officers."

**Working Capital.** We anticipate that our operating capital needs will increase along with an increase of our staff and production. We intend to use a portion of the proceeds of this offering to cover the additional costs of maintaining, shipping, and logistically delivering products prior to final payments for the sale of these goods being received.

**Research and Development; Testing and Lab Equipment.** R&D is expected to remain at a level of <10% of future revenues. Our system has evolved with new R&D efficiencies and a designed inherent flexibility. This means that new, highly effective, low cost consumer retail formulations can be rapidly developed for testing. It is not expected that we will face major financial commitments for new generational cosmeceutical projects. Some retail and over-the-counter ("OTC") formulations may be designed, tested, and deployed into markets in as little as an 18 to 36 month time frame. We will also use certain proceeds to fund R&D, product testing, and the commercialization of new pipeline products.

**Raw Materials and Inventory.** We intend to use a portion of the proceeds of this offering for the costs of acquiring raw materials and manufacturing inventory.

**Repayment of Note Payable.** We intend to repay a promissory note of $49,000 with Celtic Bank entered into on October 12, 2022, with a 12-month term and an annual interest rate of 55.16%; (ii) $62,000 from a Line of Credit Agreement dated October 13, 2022 with Celtic Bank; and (iii) $42,000 pursuant to the Small Business Administration (SBA) authorized (under Section 7(b)) of the Small Business Act, as amended, with a 30 year term and an annual interest rate of 3.75%.

**Administrative Facilities.** In connection with our intention to expand our administrative staff and our production, we intend to use a portion of the proceeds from this offering to lease both additional administrative office space for the staff and warehouse space to store finished products and raw materials.

**Legal, IP, and Regulatory Costs.** We have legal costs related to producing and developing our pharmaceuticals. Further, we have ongoing R&D which may require further IP and trademark fillings both domestically and internationally. We also have ongoing fees associated with maintaining existing IP and the processing of our pending patent applications.

Our plan of operations for the next few years includes advancing the development, sales, and marketing of our product line, as well as investing in our infrastructure and our continued R&D.

The amounts set forth above are our current estimates for such development, and we cannot be certain that actual costs will not vary from these estimates. Our management has significant flexibility and broad discretion in applying the proceeds received in this offering. We cannot assure you that our assumptions, expected costs and expenses and estimates will prove to be accurate or that unforeseen events, problems, or delays will not occur that would require us to seek additional debt and/or equity funding, which may not be available on favorable terms or at all. (See "Risk Factors—*We will require additional capital in the future and may not be able to secure adequate funds on terms acceptable to us.*")

Management anticipates that the funding received from this offering will be sufficient to allow us to maintain our current level of operations through 2025 without any increase in sales volume.

Actual expenditures may vary materially from these estimates. The foregoing represents our best estimate of the application of the net proceeds of the offering based upon present plans and current business conditions. Unforeseen events, pandemics, economic and inflationary pressures, supply chain issues, as well as changing business conditions, and a number of other factors that are beyond our control could necessitate changes in the application of proceeds. We reserve the right to reallocate the net proceeds of the offering among the various uses described above or for such other purposes as we deem necessary.

**CAPITALIZATION**

The following table sets forth our capitalization as of December 31, 2022:

● on an actual basis;

● on a pro forma basis to give effect to the sale of our preferred stock and the exercise of stock options after December 31, 2022; and

● on a pro forma as adjusted to give effect to the sale of our common stock in this offering, assuming an initial public offering price of $4.50 per share of common stock, which is the midpoint of the price range set forth on the cover page of this prospectus, and net proceeds of $4,782,000 after the payment of the underwriting discounts and commissions, offering expenses payable by us, and the repayment of our loans payable.

This table should be read in conjunction with the sections captioned "Use of Proceeds," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical financial statements and related notes thereto included elsewhere in this prospectus. The amounts in the table below are rounded to the nearest thousands, except for the share amounts.

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** |
|  |<br>**Actual** | **Unaudited, Pro**<br>**Forma<sup>(1)(2)</sup>** | **Unaudited, Pro Forma as**<br>**Adjusted<sup>(3)</sup>** |
| Cash | $9000 | $438000 | $5067000 |
| Loans payable | 153000 | 153000 |  |
| Stockholders' (Deficiency) Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 20,000,000 shares authorized on an actual basis, no shares outstanding, 60,000 outstanding, and 60,000 outstanding pro forma and pro forma as adjusted |  | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 50,000,000 shares authorized on an actual basis, 100,000,000 shares authorized on a pro forma basis (prior to this offering), 32,366,234 outstanding, and 33,619,234 outstanding pro forma as adjusted | 32000 | 32000 | 32000 |
| &nbsp;&nbsp;&nbsp;Additional paid in capital | 17485000 | 17614000 | 22396000 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (18034000) | (18034000) | (18034000) |
| &nbsp;&nbsp;&nbsp;Total stockholders' (deficiency) equity | (517000) | (88000) | 4694000 |
| &nbsp;&nbsp;&nbsp;Capitalization | $(364000) | $65000 | $4694000 |

---

(1) From
 February 14, 2023 through February 27, 2023, we offered and sold 60,000 shares of our Series
 A Preferred Stock at $5.00 per share for gross proceeds of $300,000 to three of our existing
 shareholders who are also accredited investors.

(2) From January 3, 2023 through February 1, 2023, we received
 proceeds of $129,000 from Dr. Cohen, our Chief Executive Officer, on the exercise of 258,740 stock options for 258,740 shares of
 our common stock.

(3) The
 pro forma as adjusted information presented is illustrative only and will be adjusted based on the actual public offering price and
 other terms of this offering determined at pricing. A $1.00 increase (decrease) in the assumed initial public offering price of $4.50
 per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease)
 our pro forma as adjusted cash and cash equivalents, additional paid-in capital, total shareholders' equity, and total capitalization
 by approximately $1,196,000, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,
 remains the same, and after deducting the estimated underwriting discounts and commissions. Similarly, each increase (decrease) of
 500,000 shares in the number of shares offered by us would increase (decrease) our pro forma as adjusted cash and cash equivalents,
 additional paid-in capital, total shareholders' equity, and total capitalization by approximately $2,070,000, assuming
 that the assumed initial public offering price, which is the midpoint of the price range set forth on the cover page of this prospectus,
 remains the same and after deducting the estimated underwriting discounts and commissions. If the underwriter's option to purchase
 additional shares is exercised in full, the pro forma as adjusted amount of each of cash and cash equivalents, additional paid-in
 capital, total shareholders' equity, and total capitalization would increase by approximately $807,000, after
 deducting the estimated underwriting discounts and commissions, and we would have shares of our common stock and preferred stock
 issued and outstanding, pro forma as adjusted.

The outstanding share information in the table above is based on 32,617,002 shares of our common stock outstanding as of December 31, 2022, and:

● assumes no exercise of the underwriter's overallotment option;

● excludes up to 97,500 shares of our common stock issuable upon the exercise of the Representative Warrants to be issued to the underwriter at the closing of this offering;

● excludes 13,127,758 shares of our common stock issuable upon the exercise of outstanding options for shares of common stock; and

● excludes common stock issuable upon conversion of 60,000 shares of our Series A Preferred Stock.

(See "Description of Securities.")

**DILUTION**

If you purchase securities in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share in this offering and the net tangible book value per share of common stock upon completion of this offering.

Net tangible book value per share of common stock represents the amount of our total tangible assets (which excludes deferred offering costs of $118,000) less total liabilities, divided by the number of shares of common stock outstanding. Our net tangible book value as of December 31, 2022 was $(635,000) or $(0.02) per share of common stock, based upon 32,617,002 shares of common stock outstanding.

Investors participating in this offering will incur immediate, substantial dilution. After giving effect to the sale of our securities at the initial public offering price of $4.50 per share, the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, our net tangible book value as of December 31, 2022 would have been approximately $4,576,000, or approximately $0.13 per share of common stock.

This represents an immediate increase in net tangible book value of $0.15 per share to existing common shareholders, and an immediate dilution of $4.37 per share to investors participating in this offering. If the initial public offering price is higher or lower, the dilution to new shareholders will be greater or lower, respectively.

The following table illustrates this dilution on a per share basis:

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| | | |
|:---|:---|:---|
| Assumed initial offering price per share |  | $4.50 |
| Historical net tangible book value per share as of December 31, 2022 | $(0.02) |  |
| Pro forma net tangible book value per share as of December 31, 2022 | $0.13 |  |
| Increase in pro forma net tangible book value per share after this offering | $0.15 |  |
| Pro forma as adjusted net tangible book value per share after this offering |  | $0.15 |
| Dilution in net tangible book value per share to new investors<sup>(1)</sup> |  | $4.37 |

---

(1) Dilution is determined
 by subtracting net tangible book value per share after giving effect to this offering from the initial public offering price paid
 by a new investor.

A $1.00 increase (or decrease) in the assumed initial public offering price of $4.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, would increase (or decrease) the as adjusted net tangible book value per share after this offering by approximately $0.03, and dilution in net tangible book value per share to new investors by approximately $0.97 per share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters exercise in full their option to purchase additional shares of our common stock in this offering, the as adjusted net tangible book value after this offering would be $0.17 per share, the increase in net tangible book value to existing shareholders would be $0.17 per share and the dilution to new investors would be $4.35 per share, in each case assuming an initial public offering price of $4.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus.

The following table summarizes, as of December 31, 2022, the differences between our existing shareholders and new investors with respect to the number of shares purchased from us, the total consideration paid, and the average price per share paid. The calculations with respect to shares purchased by new investors in this offering reflect the initial public offering price of $4.50 per share, which is the midpoint of the estimated initial public offering price range set forth on the cover page of this prospectus, before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | Number | Percentage | Amount | Percentage | **Average Price**<br>**Per Share** |
| Existing shareholders | 32596002 | 96% | $7069000 | 55% | $0.22 |
| New investors | 1300000 | 4% | $5850000 | 45% | $4.50 |
| Total | 33896002 | 100% | $12919000 | 100% | $0.38 |

---

If the underwriters exercise their overallotment option to purchase additional shares of our common stock in full, our existing shareholders would own 96% and our new investors would own 4% of the total number of shares of our common stock outstanding following this offering.

The outstanding share information in the table above is based on 32,617,002 shares of our common stock outstanding as of December 31, 2022, and:

● assumes no exercise of
 the underwriter's overallotment option;

● excludes
 up to 97,500 shares of our common stock issuable upon the exercise of the Representative Warrants to be issued
 to the underwriter at the closing of this offering;

● excludes
 13,386,498 shares of our common stock issuable upon the exercise of outstanding options for shares of common stock; and

● excludes
 common stock issuable upon conversion of 60,000 shares of our Series A Preferred Stock.

(See "Description of Securities.")

**DIVIDEND POLICY**

We currently intend to retain our future earnings, if any, to finance the development and expansion of our business. The determination to pay dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in any financing instruments, and such other factors as our Board of Directors deems relevant in its sole discretion. Accordingly, you may need to sell your shares of our common stock to realize a return on your investment, and you may not be able to sell your shares at or above the price you paid for them. (See "Risk Factors—Risks Related to this Offering and Ownership of our Common Stock—We currently do not intend to pay dividends on our common stock.")

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis should be read together with our financial statements. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. (See "Cautionary Note Concerning Forward-Looking Statements" for a discussion of the uncertainties, risks, and assumptions associated with these statements.) Actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth under "Risk Factors" and elsewhere in this prospectus.

**General**

*The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes appearing at the end of this Prospectus. This discussion and analysis contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled "Risk Factors." The accompanying balance sheets and the related statements of operations, shareholders' equity and cash flows as of December 31, 2022 and 2021.*

**Corporate Structure**

CoLabs Int'l, Corp. (the "Company," "CoLabs," "we," "our," and "us") was incorporated on August 5, 2008 under the laws of the State of Nevada as an OTC pharmaceutical company with multi-market applications for our revolutionary targeted epidermal-drug delivery system which is identified as: *QuantaSphere*® *Technology* (*QS*®).

We currently hold 29 issued patents and have an additional 15 patent applications pending.

**Overview**

Our technology places OTC drugs, pharmaceuticals, chemicals, and agrochemicals into micro-sized, electrostatically charged encapsulates as well as into other types of micro-encapsulates. These encapsulates are then suspended in uniquely designed formulations. This formulation of a highly advanced micro-technology can: target the delivery of topically applied drugs; limit unwanted absorption of chemicals, drugs, and cosmetics through the skin; and provide a designed release of active ingredients with a prescribed depth of skin penetration.

We have already developed commercially unique and innovative targeted skin delivery systems for topical pharmacology. Our technology limits unwanted side effects that can occur as a result of absorption through the skin. The penetration of chemicals through the skin can have serious impact on the body's organs and systems. Our current applications include anti-bacterial/viral sanitizers/soaps, sunscreens, pest-repellents, and healing cosmetic lotions. For consumers, we provide elegant skin delivery of topically applied drugs and cosmetics. This combined end purpose is the unique foundation of our technology.

In September 2022, we acquired technology from an Australian company, S G Ventures Pty, Limited, for international issued and pending IP covering a highly advanced transdermal delivery system for pharmaceuticals, chemicals, and over the counter treatments. The total cost of this acquisition was $15,000, which includes ongoing patent processing. This new family of IP presents claims that cover a new method of making nanofibrous mats (a type of gauze) which are uniquely constructed with ceramic encapsulates that contain releasable substances. Basically, this technology offers an encapsulated version of a transdermal patch without a required reservoir. Management plans to develop, test, and expand this advanced transdermal delivery technology for multiple potential applications.

**COVID-19 Considerations**

The COVID-19 pandemic has significantly impacted our operating results. Due to COVID-19, we experienced reduced demand for our products in our domestic and international markets. Marketing programs planned for 2020 were curtailed by the lockdowns related to the epidemic. These included: AVP Beach Volleyball, NASCAR and golf tournaments events were all cancelled and/or postponed until 2021. In many locations, beaches and outdoor activities were also restricted which again limited sunscreen sales. Since the company has only limited online presence, which is directly related to sport event marketing, sales were seriously affected.

We are recently experiencing an improving trend in customer orders from both our domestic and international markets. As lockdowns are gradually lifted, more outdoor activities are allowed resulting in increasing sales. In the future, the pandemic may cause reduced demand for our products. Should the pandemic result in a recessionary economic environment, consumers who purchase our products will be negatively affected. We have not observed any material impairments of its assets or a significant change in the fair value of its assets due to the COVID-19 pandemic.

<u>Supply chain issues may continue</u>. This resultant issue impacts our ability to operate without significant negative operational impact from the COVID-19 pandemic will in part depend on our ability to protect our employees and our supply chain. We have endeavored to follow the recommended actions of government and health authorities to protect our employees. However, the uncertainty resulting from the COVID-19 pandemic could result in an unforeseen disruption to our workforce and supply chain (for example, an inability of a key supplier or transportation supplier to source and transport materials) that could negatively impact operations. We have recently observed lower prices and increased availability of raw materials due to a return to normalized levels of availability. These lower prices are likely temporary however, due to the persistence of inflation, high energy costs, and the potential of an economic slowdown which would adversely affect suppliers.

 

**Inflation**

<u>Global inflation increased during 2021 and in 2022</u>. The Russia-Ukraine conflict and other geopolitical conflicts, as well as related international response, have exacerbated inflationary pressures, including causing increases in the price for goods and services and global supply chain disruptions, which have resulted and may continue to result in shortages in food products, materials, and services. Such shortages have resulted and may continue to result in inflationary cost increases for labor, fuel, materials, and services, and could continue to cause costs to increase as well as result in the scarcity of certain materials. The current level of inflation, combined with any future upward trends in the rate of inflation and any other negative economic factors or associated increases in our operating costs, may negatively impact our business. To the extent we are unable to recover higher operating costs resulting from inflation or otherwise mitigate the impact of such costs on our business, our revenues and gross profit could decrease and our financial condition and results of operations could be similarly adversely affected.

**Stagflation**

<u>The advent of inflation with a potential economic slowdown may present "stagflation" in 2023.</u> This adverse economic condition may present with an economic recession combined with the current persistent inflationary pressures. For us, the effect of an inflationary environment is higher pricing for our products. Higher prices both at the retail and wholesale levels are the unavoidable effect of rising costs of raw materials, shipping, packaging, and labor/staff. Notably, we are currently seeing some decline in raw material prices which were brought on by the easing of Covid induced supply issues. This has resulted in increased wholesale pricing. Our current pricing levels will likely not be maintained through 2023 which may adversely affect sales and our overall financial condition. These prices may increase multiple times depending on increasing costs of raw materials, shipping, manufacturing, and packaging.

**Operating Results**

**Results of Operations for the Year Ended December 31, 2022, Compared to the Year Ended December 31, 2021**

**Revenue**

Our revenue increased 96% to $157,000 during the year ended December 31, 2022, compared to $80,000 during the year ended December 31, 2021. The increase in revenue was due to the post-COVID-19 opening of certain Asian markets and increased efforts in expanding the *Klēnskin™* product line on the internet.

**Cost of Revenue** 

Cost of revenue primarily represents our material cost for manufacturing our products and changes in inventory reserves for slow-moving or potentially obsolete products. Our cost of revenue decreased by $73,000 to $70,000 for the year ended December 31, 2022, compared to $143,000 for the year ended December 31, 2021. Our gross margin was 55% and a negative 79% for the years ended December 31, 2022 and 2021, respectively, with the increase in gross margin resulting from the change in product mix sold and our inventory reserves.

**Operating Expenses**

Operating expenses include selling, general, and administrative expenses, and research and development expenses.

Our selling, general, and administrative expenses increased approximately $5,368,000 to $6,390,000 during the year ended December 31, 2022, compared to $1,022,000 during the year ended December 31, 2021. The increase in selling, general, and administrative expenses was from increased stock-based compensation of $5,212,000, and $156,000 of increased expenses from routine changes in our selling, general, and administrative expenses accounts to support our operations.

Research and development expenses include employees, rent, advisors, consultants, and product design and development activity.

Research and development expenses increased $63,000 to $244,000 during the year ended December 31, 2022, compared to $181,000 during the year ended December 31, 2021. The increase in research and development expenses were due to an increase in new product testing and an increase in employee compensation and benefit expense as compared to the prior year period.

**Loss from Operations**

Loss from operations increased $5,281,000 to $6,547,000 for the year ended December 31, 2022, compared to $1,266,000 for the year ended December 31, 2021. The increase in operating loss was due to our increased gross profit, offset by stock based compensation expense, and increased operating costs, as discussed above.

**Gain on Forgiveness of Paycheck Protection Program Loans**

During the year ended December 31, 2021, we received formal notice that our Paycheck Protection Program ("PPP") loans were forgiven. As a result, the gain from the forgiveness of the PPP loans aggregating $110,000 was recognized in the statement of operations during the year ended December 31, 2021.

**Interest Expense** 

Interest expense was $13,000 for the year ended December 31, 2022, compared to $1,000 for the year ended December 31, 2021. The increase in interest expense was due to the increase in our notes payable balance during the year ended December 31, 2022.

**Net Loss** 

Net loss increased $5,403,000 to $6,560,000 during the year ended December 31, 2022, compared to $1,157,000 for the year ended December 31, 2021. The increase in operating loss was due to our increased gross profit, offset by stock based compensation expense, and increased operating costs, as discussed above.

**Liquidity and Capital Resources**

Our financial statements have been prepared assuming that we will continue as a going concern, which contemplates continuity of operations, generation of sales revenue, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, during the year ended December 31, 2022, we incurred a net loss of $6,560,000; used cash in operations of $880,000; and had a stockholders' deficit of $517,000 as of December 31, 2022. These factors raise substantial doubt about our ability to continue as a going concern as a biotechnology company within one year after the date that the financial statements are issued without a further influx of equity capital, growth of sales, or issuance of debt, or a combination of these capital inflows. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.

In addition, our independent registered public accounting firm, in its report on our December 31, 2022, financial statements, has raised substantial doubt about our ability to continue as a going concern.

At December 31, 2022, we had cash on hand of $9,000. During the year ended December 31, 2022, we received proceeds of $683,000 through sales of our common stock, proceeds of $168,000 from the exercise of stock options, and proceeds of $123,000 from notes payable. Subsequent to December 31, 2022, we received proceeds of $300,000 from the sale of our Series A Preferred Stock, and $129,000 from the exercise of stock options. Our ability to continue as a going concern is and has been dependent on our ability to execute our strategy, raise additional funds, and increase revenue from sales. No assurance can be given that the funds received from this offering will be adequate to achieve our goals and, if not, that any future financing will be successful. Even if we can obtain additional financing, it may place restrictions on management. Substantial dilution for stockholders may occur from future equity or debt financing.

**Sources of Operating Revenues and Cash Flows**

Refer to our Statements of Cash Flows in our financial statements and Note 2, Summary of Significant Accounting Policies, in our financial statements for further detail.

**Cash Flows from Operating Activities**

For the year ended December 31, 2022 and 2021, net cash used in operating activities was $880,000 and $1,198,000, respectively. During the year ended December 31, 2022, we incurred a net loss of $6,560,000, which included $5,212,000 of non-cash stock-based compensation expense, compared to a net loss of $1,157,000, which had no non-cash stock based compensation expense during the year ended December 31, 2021.

**Cash Flows from Investing Activities**

For the years ended December 31, 2022 and 2021, net cash used in investing activities was $15,000 and $0, respectively. During the year ended December 31, 2022, we purchased $15,000 of intellectual property, for which there was no similar purchase activity in the prior year period.

**Cash Flows from Financing Activities**

For the years ended December 31, 2022 and 2021, net cash provided by financing activities was $836,000 and $1,036,000, respectively. For the year ended December 31, 2022, we received proceeds of $683,000 from the sale of common stock; $168,000 from the exercise of stock options; $123,000 from notes payable, offset by the repurchase of common stock of $8,000, repayment of notes payable of $8,000, and $118,000 paid for deferred offering costs. Net cash provided by financing activities for the year ended December 31, 2021 was $1,036,000, which included proceeds of $105,000 from the exercise of stock options, proceeds of $882,000 received from a private placement offering of common stock, and proceeds of $49,000 received from a note payable.

**Loans**

On October 12, 2022, we entered in a Promissory Note (the "Note") with Celtic Bank. The principal loan amount was $58,000, with a 12-month term, to be repaid weekly at $1,418 per week, over a 52-week period. The Note has an annual interest rate of 55.16% and is personally guaranteed to Dr. Laura Cohen, our Chief Executive Officer. During the year ended December 31, 2022, we made principal payments of $9,000, leaving a principal balance owed of $49,000 at December 31, 2022, of which $49,000 was reflected as the current portion of note payable.

On October 13, 2022, we entered in a $65,000 Line of Credit Agreement (the "LOC") with Celtic Bank, with a 12-month term, to be repaid weekly at $1,707 per week, over a 52-week period. The LOC has an annual interest rate of 64.80% and is personally guaranteed to Dr. Laura Cohen, our Chief Executive Officer. During the year ended December 31, 2022, we made principal payments of $3,000, leaving a principal balance owed of $62,000 at December 31, 2022, of which $62,000 was reflected as the current portion of note payable.

On June 2, 2020, we obtained an Economic Injury Disaster Loan in the amount of $42,000, pursuant to the Small Business Administration (SBA) authorized (under Section 7(b)) of the Small Business Act, as amended. Interest on the loan is at the rate of 3.75% per year, and all loan payments are deferred for 12 months, at which time monthly installment payments are payable over 30 years from the date of the promissory note. The promissory note is secured by all of our assets. We will use all the proceeds of this loan solely as working capital to alleviate economic injury caused by COVID-19. At December 31, 2021, the balance on the loan was $42,000, of which $3,000 was reflected as the current portion of note payable. During the year ended December 31, 2022, we made nominal principal payments leaving the balance on the loan as $42,000, of which $3,000 was reflected as the current portion of note payable.

**Outlook and Recent Trends**

We have been developing our pipeline of advanced encapsulated products extending our reach into mineral based sunscreens, pest repellents, and herbicides. These market segments are growing despite the inflationary pressures on the economy and weakness in the equity markets. The growth in these sectors is due to demand for more efficient protection against the damages of UV exposure, threats of vector borne disease to both humans and animals, and the toxicity of agrichemicals for both humans and the environment. Our products address these issues with natural solutions combined with a better, more efficient, targeted, delivery system. We are a leader with our *QuantaSphere Technology* in meeting the demands for safer, more natural, and environmentally sustainable products. We are engaged in multiple negotiations for the potential licensing of our technology and formulations; however there can be no assurance that such negotiations will result in any licensing agreements or arrangements.

Advanced Dermatology Care Center, Inc. ("ADCC") is a significant related wholesale purchaser of *Klenskin™* products. These products are ordered and sold to patients of ADCC and our clients. ADCC is a general dermatology practice previously owned by Dr. Laura Cohen, our Chief Executive Officer. The products sold to ADCC are to enhance skin protection from sun exposure to patients who have sun damaged skin. During the years ended December 31, 2022 and 2021, sales to ADCC accounted for approximately 6% and 24% of our annual revenue, respectively. In November 2022, Dr. Cohen sold ADCC to an unrelated third party.

Dr. Cohen remains employed by ADCC, and our sales to ADCC have not been materially impacted by the sale of ADCC. While we don't anticipate a significant disruption in sales to ADCC, if a disruption does occur, and if not replaced by other customer sales, it could have a material impact on our total sales, gross margins, and results of operations.

**Critical Accounting Policies**

See Note 2, Summary of Significant Accounting Policies, in our financial statements for further detail.

**Off-Balance Sheet Arrangements**

As of December 31, 2022 and 2021, we had no off-balance sheet arrangements.

**Related Party Arrangements**

For further information regarding Related Party Arrangements, please see Note 7 in the accompanying financial statements below.

**Recent Developments**

We amended our Articles of Incorporation through the filing of a Certificate of Amendment with the Nevada Secretary of State on December 19, 2022, to increase our authorized shares to 120,000,000, consisting of 100,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share, 2,000,000 of which are designated as Series A Preferred Stock.

**Implications of Being an Emerging Growth Company** 

We are an "emerging growth company," as defined in the JOBS Act, and we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." These provisions include:

● a requirement to present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations included in an initial public offering registration statement;

● an exemption to provide fewer than five years of selected financial data in an initial public offering registration statement;

● an exemption from the auditor attestation requirement of Section 404 of the Sarbanes-Oxley Act in the assessment of the emerging growth company's internal control over financial reporting;

● an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies; and

● an exemption from compliance with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer.

We have elected to adopt the reduced disclosure requirements available to emerging growth companies. As a result of this election, the information that we provide in this prospectus may be different than the information you may receive from other public companies in which you hold equity interests.

We would cease to be an "emerging growth company" upon the earliest of: (i) the end of the fiscal year following the fifth anniversary of this offering, (ii) the first fiscal year after our annual gross revenues are $1.235 billion or more, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities or (iv) as of the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year.

**OUR BUSINESS**

**General**

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

Our technology places OTC drugs, pharmaceuticals, chemicals, and agrochemicals into micro-sized, electrostatically charged encapsulates as well as into other types of micro-encapsulates. These encapsulates are then suspended in uniquely designed formulations. This formulation of a highly advanced micro-technology can: target the delivery of topically applied drugs; limit unwanted absorption of chemicals, drugs, and cosmetics through the skin; and provide a designed release of active ingredients with a prescribed depth of skin penetration.

We have already developed commercially unique and innovative targeted skin delivery systems for topical pharmacology. Our technology limits unwanted side effects that can occur as a result of absorption through the skin. The penetration of chemicals through the skin can have serious impact on the body's organs and systems. Our current applications include anti-bacterial/viral sanitizers/soaps, sunscreens, pest-repellents, and healing cosmetic lotions. For consumers, we provide elegant skin delivery of topically applied drugs and cosmetics. This combined end purpose is the unique foundation of our technology.

***The Issue—Risk of Toxic Absorption of Drugs and Chemicals when Placed on Skin:***

We believe that major issues exist for the direct topical application for pharmaceutical ingredients. When drugs are applied to our largest organ, the skin, toxicity from absorption may occur. The FDA recently released an alarming, highly publicized study that revealed that topically applied sunscreens were detected in blood after several reapplications. (Journal of the American Medical Association, May 6, 2019.)

The Toxic Substances Control Act defines a "toxic effect" as an adverse change in the structure or function of the test subject produced as a result of exposure to a chemical substance. This adverse change can be acute, subchronic, or from chronic exposure. Acute toxicity tests demonstrate the immediate effects of exposure which occur usually within eight hours of exposure. Subchronic toxicity results show toxicity effects that occur over a period of weeks. Longer term chronic effects tests measure long-term exposure effects which are revealed in months or even years. The skin is one route of exposure. This transdermal route, sometimes shown in combination with other routes, can produce toxic effects and is a frequently tested route. The testing of product ingredients from natural or manufactured substances is used to determine the safety of cosmetics, pharmaceuticals, food additives, pesticides, chemicals, additives, and consumer products. Toxic effects, when discovered, can result and produce a variety of symptoms that can be manifested acutely or in the long term and these testing requirements are designed to avoid potential toxicity exposure.

A scientific article published in the May 6, 2019, Journal of the American Medical Association, describes the results of an exploratory maximal usage trial (MUsT) evaluating the systemic absorption (through the skin and into the body) of sunscreen active ingredients using four commercially available sunscreen products applied under maximal use conditions. A MUsT study evaluates the systemic absorption of a topical drug (i.e., one applied to the skin) when used according to the maximum limits of the product's directions for use. Because sunscreens are formulated to work on the surface of the skin, many assumed that sunscreens would not be absorbed in appreciable quantities and therefore that MUsT studies would be unnecessary. However, in this pilot study, all four active ingredients tested were absorbed from each formulation tested, showing that absorption of sunscreens is not just a theoretical concern.

While the fact that an ingredient is absorbed through the skin and into the body does not mean the ingredient is per se unsafe, the FDA expressed concern that further testing to determine the safety of that ingredient for repeated use is necessary. Such testing is part of the standard pre-market safety evaluation of most chronically administered drugs with appreciable systemic absorption. The FDA proposed updating the regulatory requirements for most sunscreen products in the United States, where sunscreens are regulated as drugs. Initial FDA studies (as described in the May 6, 2019 Journal of the American Medical Association article), which followed FDA application protocols, showed sunscreen active ingredients were absorbed into the bloodstream at a level of 0.5 ng/mL (nanograms per milliliter) or higher. Further testing is required to determine the risk for cancer, birth defects, or other adverse effects.

Currently, as there are no toxicity studies on sunscreen absorption, the FDA does not know what levels of absorption can be considered safe.

The potential threat to users of topical skin medications provides the key significance for our unique science for medicine and vast consumer products. Notably, the FDA is in the process of developing new testing protocols (MUsT) for topical OTC drugs to evaluate their effects on the body when absorbed. This major issue is the target of our *QS® Technology*. (See "Description of Business—FDA: Maximum Usage Trials (MUsT) for Topical Active Ingredients.")

*QS® Technology* is designed to improve effectiveness, durability, and tenaciousness as compared to other current competing application systems. Based on our own independent testing, we found that several of our current competitors' skin medications offered uncontrolled release and systemic absorption, as compared to our products. We believe that these issues may be unacceptable to a growing number of knowledgeable consumers.

***Our Innovative Solution:***

We can introduce selected cosmetic drugs as well as FDA and EPA approved pharmaceutical and chemical active ingredients into proprietary *QuantaSphere®* formulation*s*. When these chemical active ingredients are adapted in our new delivery system, they are enhanced in terms of the targeted delivery of the active drug agent.

We believe that our delivery system is a market disruptive, generational step to improve topical drug delivery. We believe that our *QS®* formulations can reduce absorption of ingredients while still being effective. New formulations include slow or time-release systems for new pharmacology actives.

It is important to note that we are providing topical delivery for existing drug active ingredients. We are not currently developing and introducing new drugs for which a New Drug Application ("NDA") is required. Thus, as new product formulations are developed, we may be able to avoid the long and costly FDA NDA process. We have also engaged a highly regarded FDA law firm to provide necessary FDA legal guidance and support for our products.

**<u>Regulatory Landscape</u>**

The regulatory landscape affecting our products is primarily controlled by the FDA, the EPA, and state regulatory agencies. Cosmetics, unless proven to be injurious, are not regulated by the FDA. Sunscreens are subject to guidelines outlined under 21 CFR 352 - Sunscreen Products for Over-the-Counter Human Use. We believe that our currently offered sunscreen products comply with the FDA Final Rule for sunscreen products under 21 CFR 352 Sunscreen products for Over-the-Counter Human Use. The FDA requires specific testing to ensure that all OTC products meet certain criteria. These tests have specific guidelines and protocols in order to determine the efficacy and safety of the products when used by consumers, all of which are delineated in the monograph. In addition, there are specific tests associated with OTC products and non-OTC products (i.e., cosmetics). The testing required for cosmetics is in place to ensure that the product is safe from microbes and pathogens through a stability criteria. Other tests may also be performed in order to meet any specific claims made for each product (e.g., comedogenicity testing in order to prove that the product is non-comedogenic).

We formulate our products and conduct ongoing testing and compliance review to assure conformance with FDA regulations and EPA Federal and state guidelines. Our product claims are the results of our independent testing and are clearly labeled as required for consumers on our product packaging. Also, on our labels appear use, applications, and product performance in compliance with FDA and EPA guidelines.

We currently use the following FDA approved ingredients in our sunscreen formulated products:

<u>Active Ingredients OTC Monograph Number Monograph</u>

---

| | |
|:---|:---|
| **Avobenzone up to 3 percent** | M020.10 (Part 352) sunscreen |
| **Homosalate up to 15 percent** | M020.10 (Part 352) sunscreen |
| **Octinoxate up to 7.5 percent** | M020.10 (Part 352) sunscreen |
| **Octisalate up to 5 percent** | M020.10 (Part 352) sunscreen |
| **Octocrylene up to 10 percent** | M020.10 (Part 352) sunscreen |
| **Zinc oxide up to 25 percent** | M020.10 (Part 352) sunscreen |

---

Pest repellents are subject to EPA and state regulations. All ingredients in our pest repellent formulations comply with the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Minimum Risk Exemption regulations in 40 CFR 152.25(f) and our pest repellent products are thereby exempt from EPA registration. We only sell our products in states where our pest repellents are fully compliant with state law. Currently, our pest repellents are not compliant for sale only in the state of Indiana.

Our products can use the following active ingredients under Section 25(b) FIFRA:

&nbsp;&nbsp;&nbsp;&nbsp;1. Castor
 Oil

2. Cedar
 Oil

3. Cinnamon
 and Cinnamon Oil

4. Citric
 Acid

5. Citronella
 and Citronella Oil

6. Cloves
 and Clove Oil

7. Corn
 Gluten Meal

8. Corn
 Oil

9. Cottonseed
 Oil

10. Dried
 Blood

11. Eugenol

12. Garlic
 and Garlic Oil

13. Geraniol

14. Geranium
 Oil

15. Lauryl
 Sulfate

16. Lemon
 grass Oil

17. Linseed
 Oil

18. Malic
 Acid

19. Mint
 and Mint Oil

20. Peppermint
 and Peppermint Oil

21. 2-phenylethyl
 propionate

22. Potassium
 Sorbate

23. Putrescent
 Whole Egg Solids

24. Rosemary
 and Rosemary Oil

25. Sesame
 (includes ground Sesame plant stalks) and Sesame Oil

26. Sodium
 Chloride (common salt)

27. Sodium
 Lauryl Sulfate

28. Soybean
 Oil

29. Thyme
 and Thyme Oil

30. White
 Pepper

31. Zinc
 Metal Strips

**<u>Some characteristics of Section 25(b) labels are:</u>**

● No approval or review by EPA done.

● Manufacturer is responsible for label content.

● Ingredients are limited to those approved by the EPA.

● No EPA Reg. number issued to identify label.

● No EPA Establishment number is required.

● No signal word is required notifying danger.

● No personal protective equipment (PPE) is required.

● False or leading statements as defined are not allowed.

**<u>Testing</u>**

All of our products are tested by third party independent labs. We work with five different testing facilities that each perform different tests on our products. All of the testing facilities are GMP certified.

This chart details all of the required testing for each of the below products. Aside from the "Stability Internal" test which is done in house, all of the below referenced tests are conducted by an independent third party lab, as further detailed below:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **SPF Testing per FDA Protocol 21CFR Water Resistance** | **Mosquito Repellency** | **Tick Repellency** | **HRIPT** | **Preservative Efficacy Test (PET) USP 51** | **Stability Internal** | **Stability External** | **Sulfate Free** | **Cholesterol Free** | **Paraben Free** | **Gluten** | **Benzene** |
| **SUNSCREENS** |  |  |  |  |  |  |  |  |  |  |  |  |
| SPF 30 Wash On | x |  |  | x |  | x | x |  |  |  |  | x |
| SPF 30 Wash On (Kids) | x |  |  |  |  |  | x | x |  | x | x | x |
| SPF 30 Stick | x |  |  | x |  | x |  | x |  | x | x | x |
| SPF 50 Lotion | x |  |  | x |  | x | x | x |  | x | x | x |
| SPF 40 Oil\* | x |  |  | x |  | x |  |  |  |  |  | x |
| SPF 30 Gel Type | x |  |  | x | x | x |  |  |  |  |  | x |
| SPF 35 Zinc\* | x |  |  | x |  | x |  |  | x | x | x | x |
| SPF 50 Lip Balm | x |  |  | x |  | x |  | x |  | x | x | x |
| **BUG REPELLENTS** |  |  |  |  |  |  |  |  |  |  |  |  |
| Bug Stick |  | x | x | x | x | x | x |  | x | x | x |  |
| Bug Repellent Spray |  | x | x | x | x | x |  |  | x | x | x |  |
| Bug Repellent Roll On |  | X | x | x | x | x |  |  | x | x | x |  |
| **MOISTURIZERS** |  |  |  |  |  |  |  |  |  |  |  |  |
| After Sun\* |  |  |  | x | x | x |  |  | x | x | x | x |
| Phospholipid Crème\* |  |  |  | x | x | x |  |  | x | x | x |  |

---

\**Product either currently not sold or in pre-production.* 

*Sunscreen Testing*

All of our sunscreen products undergo the following tests: Sun Protection Factor (SPF), Human Repeat Insult Patch Test (HRIPT), and Stability. Some of our sunscreen products have undergone additional testing for claims of being paraben free, gluten free, cholesterol free, and sulfate free. We also conduct Preservative Efficacy Test (PET) testing on some of our sunscreen products.

The SPF testing by our independent labs are all performed in accordance with FDA, 21 CFR Sec 201.327, subpart (i), SPF Test Procedure, Sunscreen Products for Over-the- Counter Human Use, Final Monograph, Federal Register, Vol. 76, No. 117, June 17, 2011, undergoing a minimum of ten subjects and an 80 minute water resistant study meeting the standards of 40 CFR Part 141. All of the SPF levels labelled on our products are consistent with the final SPF results provided by the independent labs.

All of the sunscreen products "passed" the HRIPT testing.

The PET tests were conducted using the protocols set forth by USP 51. The only sunscreen product that we tested for PET was our sunscreen gel product which passed. The sunscreen gel product also passed for testing on the claims of being paraben free, gluten free, cholesterol free, and sulfate free. All other sunscreen products were only tested for parabens, sulfate, and benzene, and were not tested for cholesterol, and the results of those tests had passed for all products as well.

*Bug Repellent Testing*

All of our currently marketed repellents are known as FIFRA 25(b) exempt, or minimum risk pesticides. The tests that were conducted on our bug repellent are for specific mosquitos and tick repellency, HRIPT, and cholesterol, paraben, and gluten free claims.

The testing protocols set by the independent lab for our pest repellents are established by using actual insects, controls, and competitor products on human skin, measuring landings and probes of the mosquito or ticks. The percent repellency is calculated by comparing the average number of tick or mosquito landings and probes during the treatment evaluation to the average number of landings and probes that occurred during the pre-treatment control evaluation. The results and claims made from these tests were all for greater than 90% repellency for ticks and mosquitos.

All of our bug repellent products passed the HRIPT tests and passed the tests for cholesterol, paraben, and gluten free claims.

*Moisturizers* 

The moisturization testing done by one of the independent labs for our "After Sun" product tested corneometer moisture reading and percentage changes on ten test subjects using untreated skin and glycerin as controls. The results showed that our product increased the moisture levels at eight hours an average of 46.32% considering untreated skin. The tests indicated the percent change in moisturization at each two hour time interval. The lab concluded that our After Sun produce will support market claim of "Moisturizes for 8 Hours."

All of our moisturizers passed the HRIPT tests and passed the tests for cholesterol, paraben, and gluten free claims. We also conducted in house stability tests and concluded that these products passed as well.

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

The current patent portfolio covering our *QS® Technology* and the products we currently commercialize are entirely owned by us. We were granted utility patents in France, Germany, Mexico, Japan, United Kingdom, and the United States, and have pending patent applications in Australia, Europe, and the United States. The series of products marketed under *Klēnskin SPF 30 WashOn Sunscreens* have patent protection in all of the aforementioned countries until November 6, 2033, except for Mexico, which expires on January 31, 2026. *Klēnskin* SPF 50 lotion and SPF 30 stick products have patent protection in France, Germany, Japan, United Kingdom, and the United States until November 6, 2033, and pending applications in Europe and the United States. *Klēnskin* SPF 20 SunBar products have patent protection in Japan and the United States until November 6, 2033. *Klēnskin* SPF 50 lip balm products have patent protection in Japan until November 6, 2033 and applications pending in Europe and the United States. *Klēnskin* insect repellent stick products have patent protection in the United States until November 6, 2033.

The current trademark portfolio is also entirely owned by us. *KLĒNSKIN* is registered in Canada, China, Europe, Japan, Singapore, and the United States in international class (IC) 003 for non-medicated skincare preparations and sunscreen preparations and 005 for medicated sunscreen preparations and insect repellents (China, Singapore, and United States only). A Malaysian trademark application for *KLĒNSKIN* is currently pending. The *QS®* logo is registered in Europe, Japan, and the United States in IC 001 for cellulose in capsule form and *QUANTASPHERE®* is registered in the United States in IC 001 for cellulose in capsule form. *WASH ON* is registered in Japan and the United States in IC 003 for sunscreen preparations and *SHOWER ON* is registered in the United States in IC 003 for sunscreen preparations.

**<u>Business Structure and Operations</u>**

We are a mid-stage biotechnology company, having developed patented, tested formulations, and commercialized products since 2008. We have four full time employees and seven independent contractors. We also have contracted laboratories for development and testing, specialized attorneys, and manufacturing facilities to support our operations.

We believe our unique and scientifically advanced technology will make us a global leader in targeted epidermal delivery systems for cosmeceuticals, fragrance delivery, antibacterial/anti-viral sanitizers/cleaners, and most importantly, topical pharmacology.

We directly market select products through the internet and in dermatologists' offices. Additionally, we develop marketing relationships whereby we supply formulatory guidance and base formulations directly to our partners for distribution. As a supplier, we sell ingredients and/or finished products into this expanding distribution channel. We have also expanded sunscreen and sanitizers/soap distribution for our *Klēnskin*™ products internationally.

Our *QuantaSphere*® (*QS®) Technology* formulations provide advanced proprietary, epidermal therapeutic effects that are unique and market disruptive. As such, our products are consumer friendly. *QS® Technology* blends consumer needs for a healthy lifestyle with our targeted, eco-friendly, multi-tasking product. Our innovative *QS® Technology* reduces the penetration of active ingredients into the skin and can be applied in a variety of applications.

We have shown, in our tested and commercialized sun protection factor ("SPF") and moisturizing formulations, that they provide potential skin benefits due to the sunscreen ingredients which block UVA (skin damaging radiation). Importantly, this is being validated under the grueling sun-sport applications. Our *Klēnskin*™ SPF sunscreen, has been the official sunscreen of both the AVP Beach Volleyball Series and the International FIVB - World Series of Beach Volleyball, Auto Club Speedway, and Talladega Superspeedway.

***Distribution***

We have been focused on our IP R&D and have not had a major shift of our attention to the marketing of our products, which is the focus of our use of proceeds of this offering. (See "Use of Proceeds—Marketing.")

Historically, a significant portion of our sales have come from two customers. However, during the years ended December 31, 2022 and 2021, a majority of sales were to Advanced Dermatology Care Center, a dermatology practice previously owned by Dr. Laura Cohen, our Chief Executive Officer, and which were $9,000 and $19,000, respectively, accounting for 6% and 24% of our revenue, respectively. Dr. Cohen sold her dermatology practice in November 2022. We currently do not have any agreements with the new owner of Advanced Dermatology Care Center requiring any purchase of our products. (See "Risk Factors— *We have a concentrated customer base. The loss of a major customer could have a significant effect on our sales.")*

Domestically, we have participated in sports marketing and sales through physicians' offices to promote consumer acceptance of our products. As a result of these efforts, both distributors and retailers who have been exposed to our products have sought to engage in the sales of our products. Internationally, we have an agreement with Spero (defined below) from which all of our international sales have been derived to date. With this offering and deploying our marketing plan (see "Description of Business —Marketing Direction"), we plan to reduce our reliance on our current major customers/distributors.

We have a Distribution Agreement with Spero Aesthetics PTE. LTD, for the distribution of our *Klēnskin*™ products in the territories of; Singapore, Malaysia, Cambodia and Vietnam, (as used in this paragraph, the "territory"). The Distribution Agreement provides Spero with a limited-exclusive right to market, sell, and distribute to retail distributors in the territory and the right to appoint any sub-distributors, retailers, or dealers for the *Klēnskin*™ products in the territory. The Distribution Agreement requires that Spero purchase minimum quantities of the *Klēnskin*™ products every year, as follows: 7,500 products in years 2021-2022; 10,000 products in years 2022-2023; and a minimum of 15,000 products in the years 2023-2024. Payment of 50% is due at the time of order and the final payment due upon notification that the order is available for shipment to Spero. Due to COVID-19 pandemic restrictions, we did not ship any products internationally during the year ended December 31, 2020. However, we resumed our international shipping to Spero in the latter half of 2021 and are continuing such shipments currently. The Distribution Agreement terminates on March 31, 2024, unless otherwise extended by written agreement of both parties. So long as the Distributor meets the minimum quantities in each year, the Distributor shall have the option to extend to term of the agreement for one additional year, and the parties will agree on the new minimum quantities during the extension.

**<u>Our Facilities and Manufacturing</u>**

We are a Nevada corporation, with our administrative offices located in Huntington Beach, California. Our executive team operate from our Huntington Beach office and, with its inventory space, we are able to fulfill our current product orders.

We operate a product development facility in Sarasota, Florida for our development, product design, and formulation. Daniel Traynor, our Vice-President of Product Development works in this Sarasota laboratory facility.

We also utilize certain manufacturing facilities that are compliant with FDA manufacturing guidelines that receive the specified raw materials for the manufacturing process of our commercialized products. Certain lotions and *Wash-On*™ products are manufactured in Florida. Our new solid SPF 30 Sticks and flavorful SPF 50 lip balms were introduced into the market in mid-2019. These are produced with a third-party manufacturer.

We also have partnerships in Asia which are expanding in several countries with a focus on the distribution of our *Wash-On*™ sunscreens and insect repellent products including pipeline soaps, with both natural and chemical repellents. A new ingredient-based bar-soap is in development and formulated for manufacture in the U.S. and our Aquea *Wash On™* is bottled and packaged in Singapore.

***Manufacturing Process***

Our product development research starts in our facility in Sarasota, Florida. Testing and production design including labels and packaging is then completed. Once this process has been finalized, we then schedule production. We work with approximately 15 suppliers from which we order our ingredients. All of the ingredients come with a Certificate of Analysis and a Safety Data Sheet. All of the manufacturers that we work with are manufacturing facilities that are compliant with FDA guidelines which are GMP compliant.

Our *Klēnskin™* products go through several steps in the manufacturing process. First, since these products require an encapsulation, this step is conducted separately from the rest of the manufacturing process at another GMP certified facility. Once the actives are encapsulated, they are then sent to another manufacturing facility, along with the other ingredients, for production. Once produced, the bulk formulation is then bottled, labelled, and packaged. Throughout this process, we conduct testing to ensure specification standards are met and, if an OTC, we test for microbes and actives.

The entire manufacturing process can range from one to three months depending on the product, availability of the raw materials, packaging, and the schedule of the manufacturer.

**<u>CoLabs Int'l, Corp.— *Scientific Revolution for Better Global Health and a Cleaner and Safer Environment*</u>**

*<u>Our Place in Biotechnology</u>*

Like other biotechnology companies, we exist because large pharmaceutical companies are not as focused, responsive, and creatively productive as the smaller, more innovative, and defined biotechnology companies. Our innovations have developed advanced encapsulate technology and our ownership of IP provides a novel enhanced delivery system for the skin. *QS***®** *Technology* is applicable for FDA approved, advanced pharmaceutical drugs and use with EPA pest repellents, pesticides, and herbicides. We designed *QS® Technology,* to potentially reduce potential toxic side-effects from unwanted drug absorption. Thus, we fit into the modern concept of biotechnology companies producing benefits that accrue to the benefit of consumers' health and lifestyle and environmental sustainability.

*<u>Our Founder</u>*

Laura Cohen, MD, is a Board-Certified Dermatologist, Dermatologic Surgeon, and Academic Medical Clinician, in practice in Southern California. Dr. Cohen has been in private practice for over 30 years. She was previously part of the medical school clinical faculty at the University of South Florida; the Clinical Faculty at the University of California Irvine; and was the medical staff at the Veterans Hospitals in Tampa, Florida; Las Vegas, Nevada; and Long Beach, California. She has served on the Keck (USC) – Hoag Hospital Melanoma Advisory Board, St. Joseph Dermatology Specialty Advisory Group, and was a founding physician at Moffett Cancer Center in Tampa, Florida. Dr. Cohen is also a Fellow with the American Academy of Dermatology. (See "Directors, Executive Officers, And Significant Employees*.*")

Dr. Cohen realized the need for precision targeting of a drug and/or its delivery system during her years of professionally treating patients with various stages and types of skin cancer. When queried to see if they used preventive sunscreen protection, the answers varied from usually, occasionally, and seldom or never. Her follow up question was, *"Do you bathe?"* which always resulted in an affirmative answer. Reasons for not wearing sunscreen are well documented in various marketing/research studies. Sunscreens are most typically perceived by consumers as sticky or tacky, inconvenient to use in their daily routine, irritating to the eyes, creating allergic reactions, collecting dust on the skin, and simply viewed as not needed, detrimental, or toxic. Dr. Cohen recognized the failure in the delivery system of sunscreens and sought to address this serious issue as well as the unintended drifting of topically applied chemicals and pharmaceuticals.

***<u>Unique Features of Klēnskin</u>*<u>™ Sunscreen</u>**

Most consumers are unaware that the World Health Organization (WHO) places the sun's UV radiation in the same category as smoking and plutonium in terms of dangerous cancer-causing sources. Sadly, most patients with skin cancers and severe skin aging, did not realize that regular use of sunscreen could have prevented or reduced the damage. Further, over 80% of sun damage is caused by daily incidental sun exposure. It was clear to Dr. Cohen and Lisa LeBlanc that a novel, new type of delivery system was needed. They concluded that a wet skin application sunscreen could become a major tool in preventing skin cancer caused by UV radiation exposure.

In 2008, Dr. Cohen and Ms. LeBlanc formed our company with a clear direction and scientific focus to develop a precise, user friendly, topical delivery system. Combining Dr. Cohen's knowledge of skin pharmaceuticals and cosmetic chemistry with Ms. LeBlanc's profound commitment to improved global health led to exhaustive research into polymer-based formulations that could be utilized for dermatologic applications. Together, they developed a *Wash-On®* SPF test of concept product which could be applied in a shower or used at the sink to provide sunscreen skin protection while performing routine daily hygiene as a wet skin application. The initial products were the *Klēnskin*™ *Wash On*® SPF 15 sunscreens, which were tested, commercialized, and dispensed through dermatologists' offices.

The scientific significance of our advanced formulations is that the active ingredients are functionally designed to remain at the treatment site with only limited drifting and absorption. Importantly, this innovation reduces absorption systemically of drugs. In the case of sunscreens, this means that photoreaction takes place on the surface of the skin rather than in the deeper living layer of epidermis. Our *Klēnskin* formulations also have the active ingredients supplemented by antioxidants, which quench free radicals produced by the reaction of the chemical sunscreens and UV radiation, and also moisturizing agents, which further enhance the health of the skin.

We intend to capture a strong position in the biotechnology sector with the ongoing development of our innovative formulations and potentially with licensing our technology to major pharmaceutical companies. *QS® Technology* is directly applicable to the commercialization for many approved products for skin cancer prevention and treatments, pest repellents, fragrances, sanitizing products, sun protection, and topical dermatologic treatments. By introducing these agents into our scientifically unique application and delivery system, we believe these products will become more efficacious and cosmetically elegant for consumers. (See "Description of Business – Targeted Biotechnology Industry Sectors*.*")

**<u>Strategic Direction</u>**

Our innovative *QS® Technology* provides non-transdermal delivery and is technologically adaptive. We are taking advantage of our presence in this unique space, utilizing our existing reputation, existing IP, and design capacity in order to formulate specific versions of our *QuantaSphere® Technology* for use in major health and beauty market sectors. We are currently expanding our research to include the adaptation of our *QS*® to agrochemicals.

We have provided major pharmaceutical companies with sample formulations for testing and evaluation with the purpose of inclusion of our technology into their next generation of products. We believe that in the long-term, this strategy will produce marketing relationships with strong operating cash flows and expanding market share across multiple market sectors. We are also focused on applying our rapidly evolving biotechnology delivery technology to key global market sectors both directly and with marketing partners. Our marketing strategy seeks to use regionally defined marketing alliances thereby increasing the potential sales for each targeted market sector. As a result of these efforts, we are currently negotiating a licensing agreement with a pharmaceutical company to manufacture their formulations with our adapted *QS®* technology; provided however that there can be no assurance that we will ultimately enter into that agreement.

We are exploring new IP relating to the adaptation of encapsulates into a cross-linked mesh formation. Additional research is being conducted to develop new encapsulates that are application specific. We believe that our encapsulates can offer a better regulated and safer delivery system for both OTC and pharmaceutical drugs.

Our pest repellent and herbicide encapsulates are in the formulation and testing phase and based on the success of the tests, will be moved into a registration phase or be reformulated to improve performance. Initial test results have been encouraging for these natural, environmentally sustainable agricultural products.

**<u>Critical Success Factors</u>**

To understand what it will take to make us successful and accelerate us to becoming recognized as a leader among competitors in terms of the application of our encapsulated delivery systems applied to products for our targeted biotechnology and pharmacology, consumer and industrial markets, we have examined our proposal from three perspectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Determine if our science and consumer acceptance intersect
 to the extent that growing *demand* will provide strong dynamics to fuel rapid sales and product expansion.

2. Determine where in the *product life cycle* our
 products and technology reside vis-à-vis current and future competition.

3. Determine
 whether funding will provide management the necessary *components* to propel sale of our products in the global
 market.

Our success is dictated by the benefits provided to the consumer in the form of advanced and properly targeted formulation designs and the sale and profitability accrued to those in our distribution chain.

***Critical Success Factors: Creating Demand***

There are important factors that dictate and drive the demand for our products and technologies. These factors, which are vital to our business plan, can be summarized as follows:

● growth of global consumer demand for technologically advanced, competitively priced goods;

● developing economies' needs for scientifically advanced products that can be locally produced;

● growing economic strength throughout the global marketplace focused on health;

● growth of regional trade agreements that expand the access to highly regulated pharmaceutical markets;

● worldwide healthcare pandemic and vector borne disease threats and concerns;

● global need for enhancements to preventive healthcare products that can be easily produced and manufactured;

● consumer focus on personal care, healthy lifestyle, and youthful appearance;

● increased consumer awareness of advanced and innovative technologies; and

● products that comply with increased focus on regulatory compliance for safety and environmental sustainability.

We believe that these factors may lead to an increase in demand for our products because educated consumers, while price sensitive, typically look for the "newest and greatest" products. In the case of our products, not only are the products technologically advanced through our use of encapsulated active ingredients, but we formulate our products to be cosmetically elegant, meaning they are applied smoothly and easily and are not tacky or sticky. Our products have only a light fragrance, if any at all, and do not leave a pasty appearance. Additionally, our formulations are designed to remain on the targeted application area with limited absorption because of encapsulates unable to be absorbed and penetrate through the skin because of their size. Lastly, we formulate with natural ingredients where possible with the intent of creating both environmentally and people friendly products.

 ****

***Critical Success Factors: Product Life Cycle***

The product life cycle is divided into four segments: introduction, growth, maturity, and decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Introduction: Relatively slow growth and limited profits.

2. Growth: Rapid expansion of sales and consumer acceptance
 with resulting high profitability.

3. Maturity: No major sales growth with high profits but
 slowing profits.

4. Decline: Eroding markets and declining sales volume
 with loss of profit margins.

We believe that the ongoing expansion of our targeted market sectors are being fueled by worldwide economic growth, consumer demands, and complex health threats. As economies and healthful practices expand, we believe that consumers will focus on products that address the various risks to their own personal and family care needs and health. Pricing, distribution, and technology are driving the healthcare market expansion. Knowledge of advanced, powerful new technologies by both distributors and consumers provides the fuel for new product sales thereby replacing older products based on outdated technology.

As such, we consider our products to have biotechnology that is in the very early stages of the product growth cycle. We hope to achieve prominence in markets needing enhancements to products that our IP brings by introducing a new generation of products of *QuantaSphere® Technology (QS®)* based derivative products. (See "Description of Business — Product Pipeline*.*")

***Critical Success Factors: Components to Success***

If we achieve high levels of satisfaction from our consumers and distributors with our formulations and products, we believe it will create an influx of new customers. This customer base, in turn, will fuel the expansion of distribution channels. We believe that the repeat consumer purchase cycle in combination with cost efficient distribution alliances are capable of creating overall profits combined with the valuable intrinsic satisfaction of the consumer base. This is illustrated by our strong 44% returning customer rate as of the third quarter of 2022. However, in November 2022, ADCC, one of largest customers which is a related party, sold their business to a third party, so we may not experience the same rate in the future. (See "Risk Factors—*We have a concentrated customer base. The loss of a major customer could have a significant effect on our sales.")*

We believe the following major factors are integral to our potential success:

● the ability to develop effective distribution partnerships to present and market products to consumers in vast regional markets;

● the ability to continually satisfy and perpetuate a loyal consumer base;

● continued growth of product sales to global markets and the expansion of the new product pipeline for new market sectors;

● preemptive entry of advanced product technologies into the marketplace before competitors are able to scientifically compete;

● having a focused and defined marketing plan, specifically designed for each targeted market, and having a capable marketing staff that is knowledgeable and capable to execute the plans;

● concentrating and developing our expertise while keeping our team directed and focused;

● rapidly developing new technologies and formulations with the related IP, through efficiencies achieved by a focused staff and limited regulatory delays; and

● adaptive use of new marketing technologies and mediums.

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

Our growth strategy is to increase revenue and net income by expanding the worldwide demand for our products, formulations, and technology. The avenues to achieve success rest on the fundamentals of our patents and wide applications of our IP. Further, as described in "Strategies for Advancing Market Penetration," developing these various sales and funding channels are key to establishing a market presence with corresponding revenue growth.

 ****

***Enhancement of Product Performance***

We are positioned in several key large and expanding market sectors. For example, as reported in Global News Wire on October 5, 2021, the cosmetic market in 2020 was forecasted to have a global value of $341.1 billion. This is our largest targeted sector for licensing agreements. Cosmetic products (skin care) inherently have numerous applications for our QS® formulations. Anti-aging moisturization (trans-epidermal water loss (TEWL)) in combination with cosmetic elegance as described above are key basic characteristics found in most cosmetic products. Encapsulated moisturization ingredients as well as our pest repellent products, unlike the sunscreens, provide a (timed) release. To prolong the effects, our encapsulates are designed to leech the ingredients, like a sponge, slowing releasing the ingredients into the skin. The actual active ingredients for these products do vary greatly depending on purpose. However, skin, or revitalizing serums perform best when retained on the surface of the skin or time-released into the epidermis. A Novameter testing by a major cosmetics partner concluded that our moisturizing and hydration formulation provided a high level of skin moisturization and the skin felt more moisturized to the touch when we compared it to non-encapsulated products. This result was because of the partial retention of the actives on the surface of the skin due to our encapsulated, timed-released formulation.

***Leverage the Technology to Provide Value-Added Ingredient Base***

We believe that current cosmetics, pest repellents, fragrances, sun care, and soap products ingredients move a generational level higher in performance when the *QS®* delivery system is employed. This is our competitive strength, which we believe is well suited for licensing agreement. We believe that our goal of enhancing value will be realized by using a combination of joint ventures, and licensing and distribution agreements.

***Advanced Product Design***

Our formulations and *QS*® provide innovative, targeted delivery for FDA designated OTC drugs and other highly effective skin products. Many medications exist that treat and/or ameliorate health symptoms.

Our *QuantaSphere®* delivery system for medications can be formulated to have characteristics to increase duration, have the benefits of fewer active ingredients, have less toxic risk from medications, and greater cosmetic elegance. We are looking to advance our pipeline with the appropriate related testing protocols, and the targeted outcome of producing finished commercializing and distributing products into appropriate markets. (See "Description of Business—Targeted Biotechnology Industry Sectors*.*")

**<u>Current Products</u>**

Our current product portfolio is as follows:

● SPF 50 Lotion – Water Resistant to 80 Minutes

● SPF 30 Wash On™ - Wet Skin Application (Three Variations)

● SPF 50 Lip Balm – Reef Safe (Four Flavors)

● SPF 30 Stick – Reef Safe

● SPF 30 Aquea Wash On™ (International)

● SPF 30 Gel Water Resistant 80 Minutes (Reef Safe)

● Spray Hand Sanitizer

● Gel Pump Sanitizer

● Bug Stick Repellent

All of our current products, except for the sanitizers, were formulated with the *QuantaSphere®* delivery system.

**<u>Product Pipeline</u>**

We have an extensive pipeline of new products that are being developed for the *Klēnskin™* brand of sunscreens and bug repellents as well as products for private branding.

**New Products in Development in 2023:** 

*Naturally Absorbent Encapsulate (application for use to wick moisture from the skin):*

 

● We have applied for a patent for a new technology for the safe absorption (wicking) of moisture from the skin. We plan to design the formulation and continue the testing process on this technology.

● Successful commercialization of this "wicking" technology at this early stage of this development is undeterminable. This encapsulate can be used in a formulation to absorb moisture to keep skin or a surface dry.

 

*Medical Encapsulated Cross-Linked Mesh* 

 

● In Development- Advanced encapsulation of drugs incorporating cross-linked mesh, potentially providing a safer and more regulated release of drugs for transdermal delivery applications. We plan to adapt our recently acquired technology to provide OTC drugs for skin conditions that require ongoing application of medicines.

*Agricultural and Veterinary Applications*

● Initial agrochemicals and formulations for veterinary use which include natural herbicides, pest repellents, and fertilizer prototypes, are expected in 2022 for testing with anticipated product launch in 2023. Our novel encapsulation methods are currently in development to provide long term applications of bug repellents for both agricultural and veterinary use.

*Bug Repellents:*

● Bug Repellent Roll-On and Spray Application (Ready for Production) Mosquito and Ticks. We currently have this tested to be marketed for outdoor use.

● Bed Bug Powder (In Testing) (Household) – for use in the hospitality industry and home use.

● Equine Fly Spray (In Testing) – for white label distribution for veterinary use.

● Porch and Turf Cleaner and Fly Repellent (Testing) - designed for white label distribution.

● Pet Products – Flea and Tick Line (In Development) - white label product for pet and veterinary market.

 

*Sunscreens:*

● Reef Safe SPF 30 Gel – Sunscreen – commercialized with pending distribution.

● Reef Safe SPF 40 Body Oil – Sunscreen – pending production and distribution.

 

*Cosmetics*:

● Phospholipid Complex Rejuvenating Cream -Moisturizing antioxidant cream. Pre-production, subject to obtaining a licensing/sales agreement.

**<u>Product Development</u>**

We currently meet our R&D needs internally with our existing staff combined with contracted laboratories to assist with additional testing and development. All critical scientific and product development, formulations, and design specifications are done internally and with our contracted labs for advanced development. Product development that provides needed and market accepted formulations is fundamental and inexplicably linked to positive consumer acceptance, brand recognition, and sales growth. We believe we are developing products that meet those criteria.

Unlike many other biotechnology companies, the time it takes for us to develop, formulate, test, and commercialize a product, is completed in a comparatively short span of time at a substantially lower cost. We have concentrated our focus on already approved OTC products, which have large markets, and require few regulatory filings.

Raw material components and advanced ingredients, regulatory advice, IP registration, and legal support are obtained from outside sources.

Our management is engaged in all functions critical to our operations. We believe that our skilled management team provides a focused, high-quality product, with cost controls, improved manufacturing capacity utilization, defined operational control, and tight product ingredient specifications which are confirmed by outside testing. This testing is done by independent FDA and EPA testing laboratories which follow approved guidelines for each targeted test.

Our internal R&D and Product Development groups and external partners are experienced and highly respected in the industry. Further, their unique focused knowledge in our realm of technology is a significant asset and a competitive advantage for us.

We have developed IP protected biotechnology designed for multiple new applications. This IP is technology driven, tested, proven, formidable, and commercialized. We currently hold 29 issued patents and have an additional 15 patents pending.

Our internal management and scientific team is augmented by partnerships which externally provide both material and development support. We are able to directly advance our research and manufacturing skills, which are then augmented by our partners' scientific and production teams.

New formulations are repeatedly tested by independent labs that are compliant with FDA guidelines. Testing is done during the development, pre-production, and manufacturing stages. By maximizing our leverage with suppliers and manufacturing partnerships, we have held personnel costs to an efficient level while rapidly advancing our technological growth.

Our topical delivery system, IP, and internal efficiencies allow our focus to remain directed at the development of formulations for vast commercial applications.

**<u>FDA: Maximum Usage Trials (MUsT) for Topical Active Ingredients</u>**

***Issue Background and a CoLabs Proposed Testing Protocol Standard for the FDA***

We believe that the absorption and systemic effects of active ingredients for many topically applied OTC products is a major focus of concern. Currently, topically applied active ingredients can be absorbed readily into the body. *QS® Technology* formulations can be designed to be minimally absorbed over-time or have virtually no absorption through the stratum corneum. It is important to first identify the degree of surface absorption by focusing on the absorption characteristics of a particular active and/or its excipients within its delivery system. As with any test, a time stamped testing protocol must be followed to determine the rate at which the product enters the skin and what depth of penetration occurs.

We have sought to create the most user-friendly sunscreen possible by encapsulating the active ingredients and placing an electrostatic charge on the surface of the encapsulate. The cationic electrostatic charge creates an attraction to the anionic stratum corneum. This charged micro-encapsulated formulation is designed to create an attraction to the surface of the skin and inhibit absorption.

With this in mind, non-absorption was one of our key concerns for three main reasons:

&nbsp;&nbsp;&nbsp;&nbsp;1. Systemic absorption and accumulation of sunscreen chemicals
 in the body may have unwanted effects;

2. Scientific concerns that absorbed chemical sunscreens
 produce a photoreaction within the skin which releases free radicals and could be damaging to living (DNA containing) epidermal cells;
 and

3. Absorption of sunscreen chemicals is potentially systemically
 toxic.

Our encapsulates are specifically manufactured to be approximately the size of a skin cell. We were confident that absorption through the epidermis is greatly inhibited by this specification. Additionally, we place an electrostatic charge on the surface of the encaps which causes the sunscreen encapsulates to attach to the stratum corneum. This unique design combination limits infiltration into the skin and possible systemic absorption. We sought to prove our scientific premise using the Confocal Stain Test ("CST").

We proposed to the FDA that the CST be used as a methodology for a MUsT protocol for the following reasons:

● If a product is intended to stay on the surface of the skin, it is an easy testing protocol that could eliminate the need for blood or urine tests to detect unwanted chemicals introduced to the body via topical application; and

● There are concerns regarding the accuracy of blood or urine tests because of the possibility that unwanted chemicals may be stored in the body, such as in adipose tissue or the liver.

**<u>Marketing Direction</u>**

We have developed a systematic long-term strategy to expand our technology, target product markets, and broaden our in-house capabilities.

We believe that we, in combination with our marketing partners, have the opportunity to become a significant force extending into a worldwide market that exceeds $341.1 billion as reported in *Global News Wire (Oct. 5*, 2021). These expanding group of partnerships include pharmacy purchasing groups, retail stores, outdoor sports stores, medical practice marketers, and national and international sports organizations. We anticipate that these key market sectors, which includes the cosmetics, pest repellents, fragrances, sunscreens, and topical pharmacology markets to grow significantly over the coming years. More specifically, we have substantial scientific knowledge, expertise, and years of experience in these markets and applications.

We currently own issued and filed IP addressing the next generation of product innovations that are directed at both consumers and the major industry suppliers for these global market sectors. We believe that the technology we have developed is both novel and scientifically advanced. Once adapted into products, our formulations arguably set an improved standard.

***Strategies for Advancing Market Penetration***

<u>Direct Retail Distribution</u> – We plan to expand our direct retail wholesale personnel in order to target distributers and retailers with our product lines. By servicing B2B accounts with internal and detail personnel, we can expand relationships and provide better hands-on support to retail outlets thereby encouraging their retail sales.

<u>Distribution Partnerships</u> – We plan to provide either *Klēnskin*™ branded products, base formulations, exclusive product formulations, or private label existing formulations to partners in order for them to market to their existing clientele.

<u>Direct Consumer Marketing</u> – We have been approached and have had discussions with television direct marketing groups. These discussions involved both informative commercials as well as shopping channel marketing. Typically, a celebrity or professional spokesperson is chosen to represent a company and its product lines. The cost of production, inventory, and the talent purchase are considerations weighed against the potential large volume of sales and rapid branding that occurs. We are currently considering expanding into this marketing channel.

<u>Government Sales</u> – *Klēnskin*™ products offer a generational advance in sanitizers, sunscreens, and bug repellents. These products have great potential to protect those government employees whose jobs require them performing their duties in contaminated environments and outdoors with exposure to the sun's radiation. We intend for these products to be initially directed to military services and related job areas where these products may excel. We are in discussions with a proven government supplier who is assisting us in meeting the requirements to provide our products to agencies requesting bids for products whose specifications match *Klēnskin*™ products.

<u>Global Sales</u> – We have greatly expanded our presence in the Asian markets. We believe that targeting products designed for the tastes in this region will propel current relationships and can expand into other distribution companies. Increased marketing presence with experienced personnel, advertising, and new region-specific product offerings are key drivers to sales. We believe that the initial international market acceptance of our products has been exceptional. This is a targeted marketing area that is slated for expansion.

<u>Internet Sales</u> – One of our main goals is to expand sales to targeted consumers and affiliations with key online marketing sites. The priority of our internet sales and marketing staff will be to seek greater social media exposure linked to the activation of target marketing campaigns. The full engagement of a social media marketing component can directly drive sales for company ecommerce, bloggers, social media exposure, lead generation, targeted promotions, and select marketing sites like Amazon. We expect this will be an important key element for new product launches.

<u>Event Participation</u> – As previously noted, our products are designed for active lifestyles. Branding thus far has associated *Klēnskin*™ with AVP Professional Beach Volleyball and NASCAR as well as prominent cancer fighting organizations and youth and college sports groups. These brands and their events and causes will be linked by our public relations firm, Brand Knew, to campaigns to develop name recognition for both *Klēnskin*™ and CoLabs. One of our management principles is to support and be a part of the community to improve our health, environment, and quality of life. Our products are designed with safety as well as these societal benefits inherent in all of our formulations. We have successfully offset some of the marketing costs with sales at the event site. We have found that these fan sales are important since these purchasers have become repeat buyers. In sharing their satisfaction with our products, they become *Klēnskin*™ sales ambassadors to their social network.

<u>Sales and Marketing Staff</u> – We believe that it essential for our success to retain a qualified marketing team to advance sales. The development of partnerships, the expansion of internet presence, and the development of new domestic and global distribution channels, along with sufficient financial resources, are necessary for an effective campaign. Brand Ambassadors, supporting television and radio advertising linked to event sponsorship will be strategically activated to promote our participation and branding. We recognize that a well engaged and effective staff is vital because of their commitment to garnering sales and their experience to promote their existing relations for the benefit of our product lines. To that extent, we have retained retail sales brokers and consultants to assist with marketing development with retail chains, online stores, and other internet marketing sites.

**<u>Targeted Biotechnology Industry Sectors</u>**

***Overview of the Global Cosmeceuticals Market***

The current global cosmeceutical market is estimated to be over $341 billion in 2020 as reported in *Global Newswire* (October 5, 2021). Innovations in technologies like nanotechnology, plant stem cell technology, and the emergence of new active ingredients are significantly aiding in the growth of the global cosmeceuticals market. Greater health and wellness trends are gaining traction across the globe. New ingredients for the manufacture of topical skincare products are currently a focus of this sector. Advertising is highlighting specific pharmaceutical ingredients and clinically proven facts for the products, which is driving the market's growth.

We have focused from the onset on dispensing dermatologists to distribute and evaluate our products. This approach has been valuable producing recognitions for its unique and patented technologies.

We believe that consumers are focused on cosmeceutical products primarily in the premium category. This can likely be attributed to growing consumer awareness of the advertised quality and safety of these premium products. The U.S. is the key revenue generator in the Americas, owing to the high sales of anti-aging, facial serums, face oils, and skin lightening products. We believe that growing consumer demand for natural and organic cosmetics and rapid development in the organized retail sector will have a positive impact on the cosmeceuticals market in the U.S. in the coming years. We anticipate that globally, there will be similar product demand and sales growth.

 ****

***Overview of the Global Fragrance Market***

The global fragrances and flavors markets are large and as reported, in a study by *Fortune Business Insights* in their report on October 23, 2019, had an estimated $26.5 billion in sales in 2018 and was expected to grow to $38.6 billion in 2026. The rise in demand from emerging markets, such as Asia-Pacific, Latin America, and Eastern Europe, and increased online sales of fragrances and perfumes are predicted to bolster the prospects for growth in this market during the forecast period.

Fortune Business Insights in the same issue also estimated that eminent factors, such as the recent rise in e-retail of fragrances and perfumes, will drive market growth during the forecast period. Recently, it has been observed that individuals prefer to shop online as it helps to save time and is more convenient and not just during the COVID-19 pandemic. This trend of online shopping is envisaged to bolster market growth as it helps vendors to augment sales and spread brand awareness. The segmentation of market is by product and analysis of the fragrances and perfumes market based on two pricing levels: premium and mass.

The premium segment currently dominates the global fragrances and perfumes market and is anticipated to maintain its dominance over the market. The rising disposable income of the populace and a rise in the availability of all brands through online channels are examples of some growth-promoting factors in this segment. Based on current market research, analysts estimate that North American will dominate the global market for perfumes and fragrances through the decade. Sales of premium brands and the launch of new products in this region are some of the significant factors that spur market growth.

The global fragrance and perfume market is highly competitive and consists of multiple raw material and retail manufacturers and most retail channels. We recognize that social media and e-retail channels are also expanding and are expected to vastly contribute to sales growth in this market at an accelerating rate.

***Overview of the Global (Mosquito) Bug Repellent Market***

Mosquitoes cause more human suffering than any other organism. According to the WHO, insect vector-borne diseases like malaria threaten half of the world's population, with over 212 million cases reported annually in the world. With this existing major health threat, the global mosquito/insect repellent market is currently estimated to reach $5.8 billion in 2025, according to a Market Watch report published on December 24, 2020 in *AmericaNewsHour*.

The public has keen awareness of mosquito-borne diseases due to news reports. In addition, government outreach programs are also launching warning campaigns and to actively educating populations about vector-borne diseases. Innovative repellents are sought for development by both the public and vendors, which are not only safe to use but also provide long-lasting relief from insects like mosquitoes. One of the latest developments in this market is the growing demand for organic/natural repellents because of the perceived toxicity of the chemicals used and the foul-smelling household insecticides. Mosquito repellents that are specifically natural and safe for children and also stronger tactical/outdoorsmen type formulations with limited absorption are our marketing and consumer focus.

The rising global health threats of mosquito/insect vector borne diseases like Zika, Black Plague, West Nile Fever, and Monkey Pox, combined with the growing consumer awareness about the importance of preventive measures, are key drivers propelling the growth of this market. There were over 1,000,000 deaths by parasites in 2013 according to Global Burden of Disease Study in 2013.

Globally, regions which have tropical and sub-tropical climate regions which are favorable for the survival and breeding of insects like mosquitoes, are increasing their demand for insecticide products and mosquito repellents. We are working with one of the global leaders in this area to advance their products sales using our technology. In the U.S., the EPA and states regulate pest repellents. As such, the cost of entry into this market is high and time consuming. We plan to enter the U.S. market with our line of exempt natural repellents and later with chemical repellent formulations.

Dengue Fever is also a vector borne viral infection commonly found in tropical regions. This is a multiple variant virus is becoming a mosquito-borne worldwide health problem. In *Stat,* November 2, 2017, the discussion elaborates on the serious threat of a second infection which can produce serious complications. It is reported that nearly 50% of the world's population and according to WHO's 2020 report on Dengue fever, nearly 400 million people are infected and nearly half require hospitalization. Prevention is a significant element in avoiding health risks. A new vaccine has only limited applications at this point. The huge number of people infected by this disease has dangerously increasing.

Currently, internet retail sites, convenience stores, hyperstores, and supermarkets are typical outlets for mosquito repellents. In many regions, repellents are basic requirements and consumers prefer to shop for these locally from retail outlets that offer a wide choice of products. Repellents are offered in the form of coils, sprays, vaporizers, aerosols, sticks, patches, and lotions.

***Overview of the Global Sun Care Market***

According to a report in the *Globe Newswire* (March 11, 2020), sun care products are estimated to grow to a level of $12.6 billion globally by 2026. Exposure to harmful UV radiations can cause excessive tanning, premature aging of the skin, and can also lead to skin cancer. Consumer knowledge that solar radiation directly causes skin cancer has made it become much more imperative to use sun care products to protect skin from damage. Manufacturers have addressed this rising concern with products like sprays, wipes, lotions, moisturizers, gels, and sun balms. These are all available in the market with varied SPF levels to suit consumer's individual requirements.

We design multifunctional sun care products. Sunscreen actives formulated into moisturizers, serums, and foundation for makeup, anti-aging lotions, wipes, and solid stick bars appear to be increasingly in popularity because of the convenience associated with that use. We see consumer demand for such multifunctional products. We believe that an increased demand for multifunctional products like the advanced *Klēnskin*™ products will positively influence the market as vendors launch new sun care products with added skin care benefits.

The sun care products market can be segmented into three basic groups: sun protection products, after-sun products, and self-tanning products.

SPF products dominate the sun care market and account for the majority of the market share. This market segment has matured in developed countries such as the U.S., Japan, the U.K., and Germany. Increasing awareness and concerns among consumers about the harmful effects of UV radiation and the benefits of using sun protection products may continue to propel the growth prospects for this market.

The U.S. has led the retail sun care products market. Early adoption of sun protection and after-sun products has made the region a mature market for sun care products. Moreover, we believe a growing aging population combined with an informed younger active population, has fueled the demand for multifunctional and anti-aging sun care products. These informed consumers in turn will continue to drive this market's growth.

Large global brands dominate the global sun care products market. However, the growing presence of many small- and mid-size vendors like us with commercialized SPF products has created a highly competitive marketplace and may positively impact the market revenue shares in the next few years. Vendors compete on the basis of product differentiation, product portfolio, quality, and pricing to gain maximum market share. With the rising demand for improved, innovative, and high-quality products, the market is expected to witness an influx of new and quality product launches, which will drive the market in the near future.

***Overview of the Global Personal Care Market***

As reported in *Globe Newswire* (January 24, 2020), research by Fior Markets suggests that the personal care market was $493 billion in 2018 and forecasted to be $475.7 billion in 2026 globally. Fior Markets' research predicts that this market will grow steadily. There appears to be a growing preference for multifunctional products as one of the primary growth factors for this market. Consumers prefer multifunctional products as they provide streamlined and time saving solutions for their perceived personal care needs. Vendors are thus focusing on developing integrated products that target various issues and offer multiple benefits. The demand for sunscreen products that can be used in makeup is steadily increasing to provide protection and enhance the natural look. Multifunctional products contain active ingredients that can perform multiple functions encourages consumers to adopt such products as they reduce time and give better results.

Additionally, the demand for conditioning agents and their usage in skincare personal care products is steadily increasing. The increasing awareness about the benefits of conditioning agents is encouraging vendors to develop new agents for skin care conditioning applications. The rising trend of professional hair shampoos, professional hair styling services, and hair styling products may contribute to the demand for conditioning agents. We anticipate that conditioning agents will be one of the key trends behind the growth of this market. Conditioning agents that have properties such as cationic, amphiphilic, and contain emollients, humectants, and occlusive agents that allow the retention of water and prevent the deterioration of skin collagen and water loss (anti-aging). These agents will contribute to their increased adoption in shampoos and conditioners.

The focus on health due to the COVID-19 pandemic is causing a tremendous demand for soaps, sanitizers, and other antibacterial products. We have been developing products to meet this growing demand. The supply channel for items like alcohol and other key antibacterial agents is very limited but with demand growing, it is expected that the backlog of orders will be addressed with an increase in suppliers and production. Our IP is adaptable for products that will satiate this medical and consumer need.

**Properties**

We currently do not own any real property. We lease office space and warehouse and product development spaces at:

18593 Main St.

Huntington Beach, California 92648

7222 South Tamiami Trail

Sarasota, Florida 34231

7251 W. Lake Mead Blvd., Ste 300

Las Vegas, Nevada 89128

On June 16, 2017, we entered into a First Amendment to Lease Agreement with Sarm Five Points Plaza, LLC for our Huntington Beach office for a term of five years beginning on November 1, 2016, and expiring on October 31, 2021, and we are currently on a month-to-month lease. Our current monthly rent started at $1,840 which increases incrementally every year until 2021, our monthly rent is now $2,956.73.

On December 1, 2017, we entered into a Commercial Lease with Branson Corp. for our Florida office for a one-year term beginning on December 1, 2017, with an option to extend for subsequent one year periods. Our current monthly rent is $820.20.

We lease, on a month-to-month basis, a virtual office in Nevada in compliance with being incorporated in Nevada. The monthly rent amount is nominal.

**Seasonality**

We do not experience seasonal variations in our quarterly operating results and capital requirements.

**Employees**

As of the date of this prospectus, we have four full-time employees, seven part-time employees, and eight advisors. None of our employees are members of a labor union or covered by a collective bargaining agreement.

**Legal Proceedings**

We are not party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, prospects, financial condition, liquidity, or results of operation. However, we may from time to time after the date of this prospectus become subject to claims and litigation arising in the ordinary course of business. One or more unfavorable outcomes in any claim or litigation against us could have a material adverse effect for the period in which such claim or litigation is resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management's attention, and may materially adversely affect our reputation, even if resolved in our favor.

**MANAGEMENT**

**Directors and Executive Officers**

We are managed by our directors and executive officers. Our Board of Directors consists of five directors. As a controlled company, we are not required to have a majority of our Board of Directors be independent. We currently have three independent directors. Our directors will serve for one-year terms and until their successors are duly elected and qualified. There will be no cumulative voting in the election of directors. Consequently, at each annual meeting, the successors to each of our five directors will be elected by a plurality of the votes cast at that meeting.

Set forth below are the names, ages and positions of our directors and executive officers as of the date of this prospectus.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Position with the Company** | **Term of Office** |
| *Laura Cohen* | 71 | Chief Executive Officer and Chairman of our Board of Directors | 2008 – Present |
| *Lisa LeBlanc* | 39 | President and Director | 2008 – Present |
| *William Cohen* | 76 | Chief Financial Officer and Chief Development Officer | 2019 – Present |
| *Daniel Traynor* | 52 | Vice President of Product Development | 2017 – Present |
| *Charles Fritts, Esq.* | 69 | Director | 2018 – Present |
| *Dean Stathakis, Esq.* | 59 | Director | 2018 – Present |
| *Peter Barton Hutt, Esq.* | 87 | Director | 2018 – Present |

---

**Biographical Information**

**Directors and Executive Officers** 

The following is a summary of certain biographical information concerning our current directors and our executive officers.

***Laura Cohen – Chief Executive Officer and Chairman of the Board of Directors***

Laura Cohen, MD, is a Board-Certified Dermatologist, Dermatologic Surgeon and Academic Medical Clinician, in practice in Southern California. Dr. Cohen is skilled, experienced, and knowledgeable concerning dermatological conditions, prevention, and formulation of treatment and prevention products. She received her medical degree from George Washington University School of Medicine and completed her residency in Dermatology at Indiana University School of Medicine. Dr. Cohen is a Fellow in the American Academy of Dermatology and was a Clinical Professor of Medicine at the University of California School of Medicine Irvine, Department of Dermatology from October 2004 to May 2020, and is on the Hoag-USC Melanoma Advisory Board. Dr. Cohen was the Director of the Nevada VA Hospital Department of Dermatology and was a Staff Physician at the Long Beach Veterans Administration Hospital from October 2004 to October 2017. Dr. Cohen was the previous owner and now works part-time for Advanced Dermatology Care Center, Inc. a dermatology practice currently located in Huntington Beach, California since April 2005 to the present. Previously, Dr. Cohen founded and sold her dermatology practice in Tampa, Florida. Dr. Cohen has authored and published a number of articles relating to skin disease. Dr. Cohen has been our founder and CEO from August 2008 to the present.

***Lisa LeBlanc – President and Director***

Lisa LeBlanc is a graduate of Arizona State University. She has been instrumental in the development of the formulation and marketing of the *Klēnskin™* product and has been working with us since our founding in August 2008. Ms. LeBlanc has been a Manager of Advanced Dermatology Care Center, Inc. located in Southern California, a dermatology practice and skin care facility from May 2008 to November 2022. Ms. LeBlanc has approximately 15 years of experience managing all aspects of a medical practice and spa.

 ****

***William Cohen – Chief Financial Officer***

William Cohen, M.B.A., J.D., is our Chief Financial Officer. Mr. Cohen graduated with a J.D. from the Antonin Scalia Law School at George Mason University, and received his M.B.A., majoring in International Business at George Washington University School of Business Administration. Mr. Cohen completed his BS in Business at Indiana University in Gary, IN. Mr. Cohen has been in the securities industry since 1979 and was the President/CEO of Integrated Trading and Investments, Inc., a broker dealer, from 1999 through 2018. Mr. Cohen has assisted the founders and consulted with us since 2008.

***Daniel Traynor – Vice President of Product Development***

Daniel Traynor is the Vice-President of Product Development. Mr. Traynor works from our product development facility in Sarasota, Florida. Mr. Traynor started working for us as an independent contractor in August 2010 and became an employee on August 2017. Mr. Traynor is a highly trained, skilled, and accomplished chemist, widely known and respected in the realm of cosmetic chemistry. He is responsible for the product development and formulation bases for use by us and our partners. Mr. Traynor works with corporate partners, who provide formulation and raw material support. He is also assisted by a part-time chemist, who shares the facilities in Sarasota with Mr. Traynor. He also supervises the ongoing independent testing of products both in early development and through the final manufacturing stages. He also conducts quality assurance audits at manufacturing sites.

***Charles Fritts, Esq. – Director***

Charles Fritts, Esq. Mr. Fritts has been a member of our Board of Directors since 2018 and is the Chairman of our Audit Committee. He graduated from the Antonin Scalia Law School at George Mason University. He is a retired senior director of Federal Government Relations for the Biotechnology Industry Organization in Washington D.C. where he worked from 2011 to 2020. Since 2020, Mr. Fritts acts as a Legal Consultant for this organization.

***Dean Stathakis, Esq. – Director***

Dean Stathakis, Esq., Ph.D. has been a member of our Board of Directors since January 2018. He attended Whittier Law School and has a Doctorate Degree in Molecular Biology from the University of Virginia. He is experienced in health care, life sciences & biotechnology, IP, and patent applications. Since 2017, Mr. Stathakis has been the President of UltimatEdge Law Group LLC in Irvine, California. Prior to that, from 2013 to 2017, he was the President and Chief Operations Officer at One3 IP Management, Irvine, California. Mr. Stathakis is known for patent work on Botox while previously employed at Allergan.

***Peter Barton Hutt, Esq.*** – ***Director***

Peter Barton Hutt, Esq. has been a member of our Board of Directors since January 2018. He received his LL.B. from Harvard Law and his LL.M from New York University Law School. He is currently Senior Counsel in the Washington, D.C. law firm of Covington & Burling LLP, where his has worked since 1960, specializing in Food and Drug Law. Mr. Hutt was formerly General Counsel at the FDA.

**Family Relationships**

Laura Cohen, our CEO, is the mother of Lisa LeBlanc, our President. Laura Cohen is married to William Cohen, our CFO. Aside from the aforementioned, there are no other family relationships between any other director, executive officer, person nominated or chosen by us to become a director or executive officer, or any other significant employee.

**Board Composition**

Our Board of Directors currently consists of five persons. After the completion of this offering, we expect our Board of Directors to remain the same, until the next election of directors by our shareholders.

Our Board of Directors believes its members collectively have the experience, qualifications, attributes and skills to effectively oversee our management, including a high degree of personal and professional integrity, an ability to exercise sound business judgment on a broad range of issues, sufficient experience and background to have an appreciation of the issues facing us, a willingness to devote the necessary time to board duties, a commitment to representing our best interests and the best interests of our shareholders, and a dedication to enhancing shareholder value.

There were two Board of Directors meetings held in 2022. A quorum of the members of the board was in attendance at all of these meetings.

**Director Independence**

We will be a "controlled company" under the Nasdaq rules and are not required to have a majority of our Board of Directors consist of "independent directors," as defined under the Nasdaq rules. If such rules change in the future or we no longer meet the definition of a controlled company under the current rules, we will adjust the composition of our Board of Directors and committees accordingly in order to comply with such rules.

Despite our status as a "controlled company" under the Nasdaq rules, we currently have three independent directors on our Board of Directors. We use Nasdaq's definition of "independence" to make this determination. Nasdaq provides that an "independent director" is a person other than an executive officer or employee of the company or any other individual having a relationship with which, in the opinion of the company's Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The rules provide that a director cannot be considered independent if:

● the director is, or at any time during the past three years was, an employee of the company;

● the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exemptions, including, among other things, compensation for board or board committee service);

● the director is a family member of an individual who is, or at any time during the past three years was, employed by the company as an executive officer;

● the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officer of the company served on the compensation committee of such other entity;

● the director or a family member of the director is a partner in, controlling shareholder of, or an executive officer of an entity to which the company made, or from which the company received, payments for property or services in the current or any of the past three fiscal years that exceed 5% of the recipient's consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exemptions); or

● the director or a family member of the director is a current partner of the company's outside auditor, or at any time during the past three years was a partner or employee of the company's outside auditor, and who worked on the company's audit.

Under such definitions, our Board of Directors has undertaken a review of the independence of each director and will review the independence of any new directors based on information provided by each director concerning his background, employment, and affiliations, in order to make a determination of independence. Our Board of Directors has determined that there are two independent directors on our Board of Directors.

**Controlled Company**

Upon completion of this offering, Laura Cohen, our founder, Chief Executive Officer and Chairman of our Board of Directors together with William Cohen, our Chief Financial Officer, will continue to control a majority of the voting power of our outstanding common stock. As a result, we will be a "controlled company" under the Nasdaq rules. As a controlled company, exemptions under the Nasdaq rules will exempt us from certain Nasdaq requirements, including the requirements:

● that a majority of our Board of Directors consists of "independent directors," as defined under the Nasdaq rules;

● that the compensation of our executive officers be determined, or recommended to the Board of Directors for determination, by majority vote of the independent directors or by a compensation committee comprised solely of independent directors; and

● that director nominees be selected, or recommended to the Board of Directors for selection, by majority vote of the independent directors or by a nomination committee comprised solely of independent directors.

As a controlled company that is choosing to take advantage of any or all of the exceptions under the corporate governance requirements, we will disclose in our annual meeting proxy statement (or our next annual report) that we are a controlled company and the basis for that determination.

Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the Nasdaq rules. In the event that we cease to be a controlled company, we will be required to comply with these provisions within the transition periods specified in the Nasdaq rules.

These exemptions do not modify the independence requirements for the composition of our audit committee under applicable Nasdaq rules and U.S. federal securities laws. We expect to satisfy the independence requirement for the composition of our audit committee as required under applicable Nasdaq rules and U.S. federal securities laws within the timeframe applicable to companies such as our Company that have recently completed an initial public offering. (See "—Committees of our Board of Directors.")

**Role of Our Board of Directors in Risk Oversight**

One of the key functions of our Board of Directors is informed oversight of our risk management process. Our Board of Directors administers this oversight function directly, and will have supporting committees, including the audit committee, and the compensation committee and when formed, the nominating and corporate governance committee, who each will then support the Board of Directors by addressing risks specific to its respective areas of oversight.

**Committees of Our Board of Directors**

*Audit Committee* 

Our audit committee has the responsibility to consider and discuss our major financial risk exposures and the steps our management takes to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. The audit committee also monitors compliance with legal and regulatory requirements, in addition to oversight of the performance of our internal audit function. Our compensation committee will assess and monitor whether any of our compensation policies and programs has the potential to encourage excessive risk-taking.

We intend to comply with the requirements of Rule 10A-3 of the Exchange Act and applicable Nasdaq corporate governance rules within the required timeframe. These rules require that our audit committee be composed of at least three members. At the effective date of the registration statement of which this prospectus forms a part, the audit committee must include one independent director. After 90 days from the effective date of the registration statement, the audit committee is required to be comprised of a majority of independent directors. After one year from the effective date of the registration statement, the audit committee must be exclusively independent directors. The audit committee will be composed exclusively of "independent directors" who are "financially literate" as defined under the Nasdaq listing standards. The Nasdaq listing standards define "financially literate" as being able to read and understand fundamental financial statements, including a company's balance sheet, income statement and cash flow statement. In addition, we have certified to Nasdaq that the committee has, and will continue to have, at least one member who has past employment experience in finance or accounting, requisite professional certification in accounting, or other comparable experience or background that results in the individual's financial sophistication.

On the effective date of the registration statement of which this prospectus forms a part, our audit committee is composed of Charles Fritts (Chair), Peter Barton Hutt, and Dean Stathakis, whereby the Board has determined that each of the members qualify as a "non-employee director" for purposes of Rule 16b-3 under the Exchange Act. Our Board of Directors has affirmatively determined that Charles Fritts meets the definition of "financial expert" for purposes of Section 407 of the Sarbanes-Oxley Act of 2022.

We have established a written charter for our audit committee, in which we set forth the duties of the audit committee to, among other matters, oversee (i) our financial reporting, auditing and internal control activities; (ii) the integrity and audits of our financial statements; (iii) our compliance with legal and regulatory requirements; (iv) the qualifications and independence of our independent auditors; (v) the performance of our internal audit function and independent auditors; and (vi) our overall risk exposure and management. Duties of the audit committee shall also include:

● annually review and assess the adequacy of the audit committee charter and the performance of the audit committee;

● be responsible for the appointment, retention, and termination of our independent auditors and determine the compensation of our independent auditors;

● review with the independent auditors the plans and results of the audit engagement;

● evaluate the qualifications, performance, and independence of our independent auditors;

● have sole authority to approve in advance all audit and non-audit services by our independent auditors, the scope and terms thereof, and the fees therefor;

● review the adequacy of our internal accounting controls; and

● meet at least quarterly with our executive officers, internal audit staff, and our independent auditors in separate executive sessions.

Following this offering, a copy of the audit committee charter will be available on our website at www.colabsintl.com. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

*Compensation Committee* 

Our compensation committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage excessive risk-taking. Currently, we have three members in our compensation committee, all of whom are independent directors, including Peter Barton Hutt (Chair), Dean Stathakis, and Charles Fritts.

Following this offering, a copy of the compensation committee charter will be available on our website at www.colabsintl.com. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

*Nominating and Corporate Governance Committee*

Our nominating and corporate governance committee is responsible for providing leadership with respect to corporate governance and advising and making recommendations to the Board of Directors, including potential candidates for Board membership. Currently, we have three members of the nominating and corporate governance committee, including Dean Stathakis (Chair), Peter Barton Hutt, and Dean Stathakis, all of which are independent directors and non-employee directors.

Following this offering, a copy of the nominating and corporate governance committee charter will be available on our website at www.colabsintl.com. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

**Code of Business Conduct and Ethics** 

We have adopted a written code of business conduct and ethics that will apply to our directors, officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and agents and representatives, including consultants. Following this offering, a copy of the code of business conduct and ethics will be available on our website at www.colabsintl.com. We intend to disclose future amendments to such code, or any waivers of its requirements, applicable to any principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions or our directors on our website identified above. The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website into this prospectus.

**Limitations on Liabilities and Indemnification of Directors and Officers** 

There are limitations of liability and indemnification and advancement rights applicable to our directors and officers. (See "Description of Securities—Limitations on Liability and Indemnification of Directors and Officers.")

**Director Compensation** 

We have a director compensation package that includes cash compensation as well as stock options. (See "Executive and Director Compensation—Director Compensation.")

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Executive Compensation**

***Summary Compensation Table***

The following table summarizes information regarding the compensation for fiscal years 2022 and 2021 for our named executive officers.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Stock<br> Awards<br> ($)** | **Option<br> Awards<br> ($)*<sup>(3)</sup>*** | **All Other<br> Compensation<br> ($)** | **Total <br> ($)** |
| *Laura Cohen, Chief Executive Officer and* | 2022 | 43000 | – | 348808 | – | 391808 |
| *Chairman of the Board of Directors(1)* | 2021 | 21000 | – |  | – | 21000 |
| Lisa LeBlanc, *President and Director<sup>(1)</sup>* | 2022 | 96000 | – | 348808 | – | 444888 |
|  | 2021 | 188250 | – |  | – | 188250 |
| William Cohen, *Chief Financial Officer <sup>(2)</sup>* | 2022 | 7500 | – | 1584444 | – | 1591944 |
|  | 2021 | 11500 | – |  | – | 11500 |
| Daniel Traynor, *VP of Product Development* | 2022 | 230000 | – |  | – | 230000 |
|  | 2021 | 157134 | – |  | – | 157134 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Dr. Cohen and Mrs. LeBlanc
 were not paid any cash compensation in their capacities as directors.

(2) Mr.
 Cohen was hired as Chief Financial Officer in 2022. The previous Chief Financial Officer was an independent contractor
 and invoiced the Company for services in the amount of $8,000 for 2021. In 2022 and 2021, Mr. Cohen was an independent contractor
 and compensated for being our Chief Development Officer.

(3) The amounts in this column reflect the aggregate grant
 date fair value of stock options granted in 2022 to each director calculated in accordance with FASB ASC Topic 718.

***Narrative to Summary Compensation Table***

We believe that the primary goal of executive compensation is to align the interests of our executive officers with those of our shareholders in a way that allows us to attract and retain the best executive talent.

*Annual Base Salary*. Base salary is designed to compensate our named executive officers at a fixed level of compensation that serves as a retention tool throughout the executive's career. In determining base salaries, our compensation committee considers each executive's role and responsibility, unique skills, future potential with us, salary levels for similar positions in our market and internal pay equity.

*Option Awards.* We plan to offer option awards to executives and other employees, in the discretion of the Board of Directors, considering the executive's role and other compensation. None of the options granted to employees were made pursuant to a stock option plan.

*Health/Welfare Plans.* We have a healthcare plan available to all employees, including our executives, who become eligible after 90 days of employment.

*PTO Plan.* Executives may take PTO at any time, at their own reasonable discretion.

**Employment Agreements with our Named Executive Officers**

*Compensation for Laura Cohen*

 

Effective as of October 1, 2022, we entered into an Executive Employment Agreement with Laura Cohen, our Chief Executive Officer, for a term of one year, subject to automatic renewal for additional one year periods. Dr. Cohen will be entitled to a base salary of $120,000 per annum, and is eligible for an annual cash bonus and to participate in our equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which Dr. Cohen would be entitled to a severance payment of (a) one year's Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date, as well as reimbursement of 24 consecutive months of COBRA costs.

 

*Compensation for Lisa LeBlanc*

 

Effective as of October 1, 2022, we entered into an Executive Employment Agreement with Lisa LeBlanc, our President for a term of one year, subject to automatic renewal for additional one year periods. Ms. LeBlanc is entitled to a base salary of $114,000 per annum, and is eligible for an annual cash bonus and to participate in our equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which Lisa LeBlanc would be entitled to a severance payment of (a) three times her then current Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date; as well as reimbursement of 36 consecutive amounts of COBRA costs.

*Employment Agreement with Daniel Traynor*

Effective September 1, 2017, we entered into an Employment Agreement with Daniel Traynor, as our product development chemist and formulator. The agreement provided for an annualized salary of $120,000. We agreed to grant Mr. Traynor 600,000 stock options with ten-year terms, immediate vesting on the grant date, and both the issuance price and the market price was determined to be the share price offered in the private placement in effect at the date of the stock option grant. Under the Employment Agreement, additional stock options may be granted annually, up to maximum fair market value, as determined by us, of 50% of Mr. Traynor's gross annual salary for the calendar year. Mr. Traynor's salary was increased to $240,000 in 2021.

*Compensation for William Cohen*

Effective as of October 1, 2022, we entered into an Executive Employment Agreement with William Cohen, our Chief Financial Officer for a term of one year, subject to automatic renewal for additional one year periods. Mr. Cohen will be entitled to a base salary of $108,000 per annum, and is eligible for an annual cash bonus and to participate in our equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which William Cohen would be entitled to a severance payment of (a) one year's Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date, as well as reimbursement of 24 consecutive months of COBRA costs. Prior to entering into the Employment Agreement, Mr. Cohen was compensated in stock options. In 2022, Mr. Cohen was issued 200,000 stock options for each year of his services as Chief Development Officer in 2020 (exercise price of $1.50 per share) and 2021 (exercise price of $2.75 per share).

**Director Compensation**

We have five directors. We currently do not pay our directors any cash compensation for their services as board members.

Our directors are granted stock options by the Board and decided and approved by the Board on a per Board meeting basis. For the years 2021 and 2022, the Board approved compensation of 60,000 options for each year, to purchase common stock with an exercise price of $2.75 to each of the directors for their service as a member of the Board. We have a Board Options agreement with the members of the Board which was initiated in 2018 and updated in 2022, granting each Director 30,000 options granted for each Board Meeting.

***Director Compensation***

The following table sets forth a summary of compensation for the fiscal year ended December 31, 2022, that we paid to each director other than our Chief Executive Officer and President, whose compensation is fully reflected in the compensation table above. We do not sponsor a pension benefits plan, a non-qualified deferred compensation plan, or a non-equity incentive plan for directors; therefore, these columns have been omitted from the following table. No other or additional compensation for services were paid to any of the directors.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Name | Fees<br> Earned<br> or Paid<br> in Cash<br> ($) | Option<br> Awards<br> ($) (1) | Stock<br> Awards<br> ($) | Total<br> ($) |
| Peter Barton Hutt | – | 348808 | – | 348808 |
| Dean Stathakis | – | 348808 | – | 348808 |
| Charles Fritts | – | 348808 | – | 348808 |

---

(1) The
 amounts in this column reflect the aggregate grant date fair value of stock options granted in 2022 to each director calculated in
 accordance with FASB ASC Topic 718.

 

**2022 Stock Option Plan** 

The 2022 Incentive and Nonstatutory Stock Option Plan was adopted by the Board of Directors on October 26, 2022 and approved by our shareholders on December 14, 2022 (the "2022 Stock Option Plan"). The 2022 Stock Option Plan provides for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), to our employees and the employees of any future subsidiary corporation, and for the grant of non-statutory stock options to non-employees, including directors and other service providers.

<u>Authorized Shares</u>. A total of 10,000,000 shares of our common stock have been reserved for issuance pursuant to the exercise of options issued from the 2022 Stock Option Plan.

<u>Plan Administration</u>. Our Board of Directors administers our 2022 Stock Option Plan.

<u>Stock Options</u>. Stock options may be granted under our 2022 Stock Option Plan. The exercise price of options granted under our 2022 Stock Option Plan must at least be equal to the fair market value of our common stock on the date of grant. The term of an incentive stock option may not exceed ten years, except that with respect to any participant who owns more than 10% of the voting power of all classes of our outstanding stock, the term must not exceed five years and the exercise price must equal at least 110% of the fair market value on the grant date. The administrator will determine the methods of payment of the exercise price of an option, which may include cash, shares, or other property acceptable to the administrator, as well as other types of consideration permitted by applicable law. After the termination of service of an employee, director, or consultant, he or she may exercise his or her option for the period of time stated in his or her option agreement. Generally, if termination is due to death or disability, the option will remain exercisable for 12 months. In all other cases, the option will generally remain exercisable for three months following the termination of service. However, in no event may an option be exercised later than the expiration of its term. Subject to the provisions of our 2022 Stock Option Plan, the administrator determines the other terms of options.

<u>Options Granted</u>. To date, pursuant to our 2022 Stock Option Plan, we have not issued any options to purchase shares of our common stock to our employees, officers, and directors.

<u>Non-transferability of Awards</u>. Unless the administrator provides otherwise, our 2022 Stock Option Plan generally does not allow for the transfer of awards and only the recipient of an award may exercise an award during his or her lifetime.

<u>Certain Adjustments</u>. In the event of certain changes in our capitalization, to prevent diminution or enlargement of the benefits or potential benefits available under our 2022 Stock Option Plan, the administrator will adjust the number and class of shares that may be delivered under our 2022 Stock Option Plan and/or the number, class and price of shares covered by each outstanding award and the numerical share limits set forth in our 2022 Stock Option Plan. In the event of our proposed liquidation or dissolution, the administrator will notify participants as soon as practicable and all awards will terminate immediately prior to the consummation of such proposed transaction.

<u>Merger or Change in Control</u>. Our 2022 Stock Option Plan provides that in the event of a merger or change in control, as defined under the 2022 Stock Option Plan, each outstanding award will be treated as the administrator determines, except that if a successor corporation or its parent or subsidiary does not assume or substitute an equivalent award for any outstanding award, then such award will fully vest, all restrictions on the shares subject to such award will lapse, all performance goals or other vesting criteria applicable to the shares subject to such award will be deemed achieved at 100% of target levels and all of the shares subject to such award will become fully exercisable, if applicable, for a specified period prior to the transaction. The award will then terminate upon the expiration of the specified period of time.

<u>Amendment; Termination</u>. The administrator has the authority to amend, suspend, or terminate the 2022 Stock Option Plan provided such action will not impair the existing rights of any participant. Our 2022 Stock Option Plan will automatically terminate in 2032, unless we terminate it sooner.

**2022 Restricted Stock Plan**

The 2022 Restricted Stock Plan was adopted by our Board of Directors on October 26, 2022 and approved by our shareholders on December 14, 2022 (the "2022 Restricted Stock Plan"). The 2022 Restricted Stock Plan provides for the grant of common stock awards and performance awards to our officers, directors, and key employees or of any subsidiary corporation.

<u>Purpose of the Plan</u>. The 2022 Restricted Stock Plan is intended to provide incentives which will attract, retain, motivate, and reward our officers, directors, and key employees or any of our Affiliates ("Participants"), by providing them opportunities to acquire shares of our common stock.

<u>Stock Subject to the Plan</u>. The aggregate number of shares of common stock that may be subject to Awards granted under the 2022 Restricted Stock Plan is 10,000,000 shares of common stock. If any shares of common stock are forfeited, retained by us as payment of tax withholding obligations with respect to an Award, or surrendered to us to satisfy tax withholding obligations, such shares of common stock will be added back to the shares available for Awards. The 2022 Restricted Stock Plan contains certain adjustment provisions relating to stock dividends, stock splits, and the like.

<u>Administration of the Plan</u>. The 2022 Restricted Stock Plan will be administered by the Board of Directors. The Board of Directors will have the full power and authority to grant Awards to the persons eligible to receive such Awards and to determine the amount, type, terms, and conditions of each such Award.

<u>Eligibility</u>. Participants consist of such officers, directors, and key employees of us or any of our Affiliates as the Board of Directors, in its sole discretion, determines to be significantly responsible for our success and future growth and whom the Board of Directors may designate from time to time to receive Awards under the 2022 Restricted Stock Plan.

<u>Types of Awards</u>. Stock Awards and Performance Awards may, as determined by the Board of Directors, in its discretion, constitute Performance-Based Awards.

<u>Stock Awards</u>. The Board of Directors is authorized to grant Stock Awards and will, in its sole discretion, determine the recipients and the number of shares of common stock underlying each Stock Award. Each Stock Award will be subject to such terms and conditions consistent with the 2022 Restricted Stock Plan as determined by the Board of Directors and as set forth in an Award agreement, including, without limitation, restrictions on the sale or other disposition of such shares and our right to reacquire such shares for no consideration upon termination of the Participant's employment or membership on the Board of Directors, as applicable, within specified periods.

<u>Performance Awards</u>. The Board of Directors is authorized to grant Performance Awards and will, in its sole discretion, determine the recipients and the number of shares of common stock that may be subject to each Performance Award. Each Performance Award will be subject to such terms and conditions consistent with the 2022 Restricted Stock Plan as determined by the Board of Directors and as set forth in an Award agreement. The Board of Directors will set performance targets at its discretion which, depending on the extent to which they are met, will determine the number of Performance Awards that will be paid out to the Participants and may attach to such Performance Awards one or more restrictions. Performance targets may be based upon, without limitation, Company-wide, divisional and/or individual performance.

The Board of Directors has the authority to adjust performance targets. The Board of Directors also has the authority to permit a Participant to elect to defer the receipt of any Performance Award, subject to the 2022 Restricted Stock Plan.

<u>Performance-Based Awards</u>. Certain Stock Awards and Performance Awards granted under the 2022 Restricted Stock Plan and the compensation attributable to such Awards are intended to (i) qualify as Performance-Based Awards or (ii) be otherwise exempt from the deduction limitation imposed by Section 162(m) of the Code.

The Board of Directors determines whether Stock Awards and Performance Awards granted under the 2022 Restricted Stock Plan qualify as Performance-Based Awards. The Board of Directors will establish in writing the performance goals, the vesting period, the performance targets, and any other terms and conditions of the Award in its sole discretion.

<u>Vesting</u>. Awards granted to Participants under the 2022 Restricted Stock Plan may be subject to a graded vesting schedule with a minimum vesting period of two years, unless otherwise determined by the Board of Directors.

If there is a Change in Control, all unvested Awards granted under the 2022 Restricted Stock Plan will become fully vested immediately upon the occurrence of the Change in Control and such vested Awards will be paid out or settled, as applicable, within 60 days upon the occurrence of the Change in Control, subject to requirements of applicable laws and regulations.

Subject to the discretion of the Board of Directors, if a Participant's employment or membership on the Board of Directors is terminated due to death or disability, then all unvested and/or unearned Awards will be forfeited as of such date.

<u>Section 409A of the Code</u>. Awards under the 2022 Restricted Stock Plan are intended either to be exempt from the rules of Section 409A of the Code or to satisfy those rules and shall be construed accordingly. However, we will not be liable to any Participant or other holder of an Award with respect to any Award-related adverse tax consequences arising under Section 409A or other provision of the Code.

<u>Transferability</u>. Each Award granted under the 2022 Restricted Stock Plan will not be transferable otherwise than by a will or the laws of decent and distribution or as otherwise decided by the Board of Directors.

<u>Fair Market Value</u>. For purposes of the 2022 Restricted Stock Plan, "Fair Market Value" means, as of any given date, the closing price of a share of common stock on The Nasdaq Stock Market LLC or such other public trading market on which shares of common stock are listed or quoted on that date.

<u>Withholding</u>. All payments or distributions of Awards made pursuant to the 2022 Restricted Stock Plan will be net of any amounts required to be withheld pursuant to applicable federal, state, and local tax withholding requirements.

<u>Amendments</u>. The Board of Directors may amend the 2022 Restricted Stock Plan from time to time or suspend or terminate it at any time. However, no amendment will be made, without approval of our shareholders to (i) increase the total number of shares which may be issued under the 2022 Restricted Stock Plan; (ii) modify the requirements as to eligibility for Awards under the 2022 Restricted Stock Plan; or (iii) otherwise materially amend the 2022 Restricted Stock Plan as provided in Nasdaq Marketplace Rules.

<u>Term of the Plan</u>. The 2022 Restricted Stock Plan will terminate on the tenth anniversary of its Effective Date.

<u>Current Issuance</u>. As of the date of this prospectus, there have been no awards issued under the 2022 Restricted Stock Plan.

**Rule 10b5-1 Sales Plan**

Our directors and executive officers may adopt written plans, known as Rule 10b5-1 plans, in which they would contract with a broker to buy or sell shares of our common stock on a periodic basis. Under a Rule 10b5-1 plan, a broker executes trades pursuant to parameters established by the director or officer when entering into the plan, without further direction from them. The director or executive officer may amend a Rule 10b5-1 plan in some circumstances and may terminate a plan at any time. Our directors and executive officers also may buy or sell additional shares outside a Rule 10b5-1 plan when they are not in possession of material nonpublic information subject to compliance with the terms of our policy on insider trading and communications with the public. Our directors and executive officers may not establish any such plan prior to the expiration of the lock-up agreements described under "Underwriting."

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

We had the following transactions with related parties during the last two fiscal years:

Advanced Dermatology Care Center, Inc. ("ADCC") is a significant related wholesale purchaser of *Klēnskin™* products. These products are ordered and sold to patients of ADCC and our clients. ADCC is a general dermatology practice previously owned by our Chief Executive Officer, Laura Cohen, MD. The products sold there are to enhance skin protection from sun exposure to patients who have sun damaged skin.

During the years ended December 31, 2022 and 2021, sales to ADCC accounted for approximately 6% and 24% of our annual revenue, respectively.

In November 2022, Dr. Cohen sold ADCC to an unrelated third party.

Our Chief Executive Officer, President, and Chief Financial Officer are all related. Dr. Cohen and William Cohen are husband and wife, and Lisa LeBlanc is their daughter (collectively, the "Cohen Family"). The Cohen Family collectively owns approximately 75% of our outstanding commons stock prior to this offering. (See "Risk Factors *–A majority of our executive team are related; --Our founders control and will continue to control the majority of our outstanding Common Stock.*")

**Policies and Procedures for Transactions with Related Persons**

All future related party transactions will be voted upon by the disinterested Board of Directors. The audit committee of the Board of Directors is responsible for evaluating each related party transaction and making a recommendation to the disinterested members of the Board of Directors as to whether the transaction at issue is fair, reasonable and within our policy and whether it should be ratified and approved. The audit committee, in making its recommendation, will consider various factors, including the benefit of the transaction to us, the terms of the transaction and whether they are at arm's-length and in the ordinary course of our business, the direct or indirect nature of the related person's interest in the transaction, the size and expected term of the transaction and other facts and circumstances that bear on the materiality of the related party transaction under applicable law and listing standards. The audit committee will review, at least annually, a summary of our transactions with our directors and officers and with firms that employ our directors, as well as any other related person transactions.

**PRINCIPAL STOCKHOLDERS**

Immediately prior to the completion of this offering, there are 32,875,742 shares of our common stock outstanding as of the date of this prospectus. The following table sets forth the beneficial ownership of our common stock immediately prior to and immediately after the completion of this offering by:

● each of our directors;

● each of our named executive officers;

● all of our directors and executive officers as a group; and

● each person known by us to be the beneficial owner of 5% or more of our outstanding common stock.

The percentage ownership information after the offering assumes the issuance of shares of common stock in this offering, but does not assume the exercise of the underwriter's overallotment option.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities. In addition, the rules include shares of common stock issuable pursuant to the exercise of stock options and/or warrants that are either immediately exercisable or exercisable on or before the date which is 60 days after the date of this prospectus. These shares are deemed to be outstanding and beneficially owned by the person holding those options and/or warrants for the purpose of computing the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Unless otherwise indicated, the persons or entities identified in this table have sole voting and investment power with respect to all shares shown as beneficially owned by them, subject to applicable community property laws, and the address of each beneficial owner listed in the table below is c/o our company, CoLabs Int'l, Corp., 18593 Main St., Huntington Beach, CA 92648.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Amount and Nature of Beneficial Ownership** | **Amount and Nature of Beneficial Ownership** | **Amount and Nature of Beneficial Ownership** | **Amount and Nature of Beneficial Ownership** |
| <br>**Name and Address of Beneficial Owner** | **Shares <br> Owned<br> Immediately<br> Prior to this<br> Offering** | **Percentage<br> Immediately<br> Prior to this<br> Offering** | **Shares Owned<br> Immediately<br> After this<br> Offering** | **Percentage<br> Immediately<br> After this<br> Offering** |
| **Directors and Named Executive Officers:** |  |  |  |  |
| Laura Cohen, *Chief Executive Officer and Chairman of the Board* | 20480000<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55% | 20480000<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53% |
| Lisa LeBlanc, *President and Director* | 12380000<sup>(2)</sup> | 33% | 12380000<sup>(2)</sup> | 32% |
| William Cohen, *Chief Financial Officer* | 1700000<sup>(3)</sup> | 5% | 1700000<sup>(3)</sup> | 5% |
| Daniel Traynor, *VP of Product Development* | 1320000<sup>(4)</sup> | 4% | 1320000<sup>(4)</sup> | 4% |
| Charles Fritts, *Director* | 250000<sup>(5)</sup> | \* | 250000<sup>(5)</sup> | \* |
| Peter Barton Hutt, *Director* | 240000<sup>(6)</sup> | \* | 240000<sup>(6)</sup> | \* |
| Dean Stathakis, *Director* | 240200<sup>(7)</sup> | \* | 240200<sup>(7)</sup> | \* |
| All directors and executive officers as a group (seven persons) | 36610200 | 81% | 36610200 | 79% |

---

\*Less than 1%.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes 3,414,758 options to purchase common stock ("Options")
 at an exercise price of $0.50; 700,000 Options with an exercise price of $0.90; 60,000 Options at an exercise price of $1.50;
 and 120,000 Options at an exercise price of $2.75.

(2) Includes 4,183,000 Options at an exercise price of $0.50; 700,000
 Options at an exercise price of $0.90; 60,000 Options at an exercise price of $1.50; and 120,000 Options at an exercise price
 of $2.75.

(3) Includes 400,000 Options at an exercise price of $1.50; and 400,000 Options at an exercise price of $2.75.

(4) Includes of 1,200,000
 Options at an exercise price of $0.50; and 120,000 Options at an exercise price of $0.90.

(5) Includes 40,000 Options
 with an exercise price of $0.50; 20,000 Options with an exercise price of $0.90; 60,000 Options with an exercise price of
 $1.50; and 120,000 Options with an exercise price of $2.75.

(6) Includes of 40,000
 Options with an exercise price of $0.50; 20,000 Options with an exercise price of $0.90; 60,000 Options with an exercise price
 of $1.50; and 120,000 Options with an exercise price of $2.75.

(7) Includes of 40,000
 Options with an exercise price of $0.50; 20,000 Options with an exercise price of $0.90; 60,000 Options with an exercise price
 of $1.50; and 120,000 Options with an exercise price of $2.75.

**DESCRIPTION OF SECURITIES**

**General**

We were formed as a Nevada corporation on August 5, 2008. We have authorized 120,000,000 shares, consisting of 100,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. Immediately prior to this offering, there are 32,875,742 shares of our common stock and 60,000 shares of our Series A Preferred Stock issued and outstanding. Upon the completion of this offering, as a result of the issuance of 1,300,000 shares in this offering, there will be 34,370,742 shares of our common stock issued and outstanding (assuming that the underwriters do not exercise their overallotment option).

**Common Stock**

Each holder of our common stock is entitled to one vote per each share on all matters to be voted upon by the common shareholders, and there are no cumulative voting rights. Subject to applicable law and the rights, if any, of the holders of outstanding shares of any series of preferred stock we may designate and issue in the future, holders of our common stock shall be entitled to vote on all matters on which shareholders generally are entitled to vote. Subject to the rights, if any, of the holders of outstanding shares of any series of preferred stock we may designate and issue in the future, holders of our common stock will be entitled to receive ratably the dividends, if any, as may be declared from time to time by our Board of Directors out of funds legally available for that purpose. If there is a liquidation, dissolution, or winding up of the Company, subject to the rights, if any, of the holders of outstanding shares of any series of preferred stock we may designate and issue in the future, holders of our common stock would be entitled to ratable distribution of our assets remaining after the payment in full of our liabilities.

Under the terms of our governing documents, the holders of our common stock have no preemptive or conversion rights or other subscription rights, and there are no redemption or sinking fund provisions applicable to the common stock. All currently outstanding shares of our common stock are fully paid and non-assessable. The rights of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

We have applied to list our common stock on the Nasdaq Capital Market under the symbol "CLLB."

**Preferred Stock**

We have authorized 20,000,000 shares of our preferred stock, par value $0.001, 2,000,000 of which are designated as Series A Preferred Stock. Our Articles of Incorporation authorize our Board of Directors to establish one or more series of preferred stock. Unless required by law or any stock exchange, the authorized but unissued shares of preferred stock will be available for issuance without further action by our shareholders. Our Board of Directors is authorized to divide the preferred stock into series and, with respect to each series, to fix and determine the designation, terms, preferences, limitations, and relative rights thereof, including dividend rights, dividend rates, conversion rights, voting rights, redemption rights and terms, liquidation preferences, sinking fund provisions and the number of shares constituting the series. Without shareholder approval, we could issue preferred stock that could impede or discourage an acquisition attempt or other transaction that some, or a majority, of our shareholders may believe is in their best interests or in which they may receive a premium for their common stock over the market price of the common stock.

**Series A Preferred Stock** 

We have designated 2,000,000 shares for our Series A Convertible Preferred Stock (the "Series A Preferred Stock"), 60,000 of which are issued as of the date of this prospectus.

*Rank*. The Series A Preferred Stock ranks: (i) senior to any other class or series of outstanding Preferred Stock or classes of capital stock; (ii) prior to all common stock; and (iii) prior to any other class or series of capital stock created after the Series A Preferred Stock ("Junior Securities"), and will rank as such with respect to distributions, if any.

 

*Dividends*. The Series A Preferred Stock will have no dividends, except that in the event dividends are declared for common stock, the same rate of dividend per share shall be due and payable to the holders of the Series A Preferred Stock (each a "Holder" and collectively the "Holders") on the same terms which the Holder would have been entitled to receive had the Series A Preferred Stock been already converted into common stock on the date the dividend was then declared.

*Liquidation.* In the event of any Liquidation Event, either voluntary or involuntary, the Holders of shares of Series A Preferred Stock will be entitled to receive, prior in preference to any distribution to common stock or other Junior Securities, an amount per share equal to $5.00 plus any allocable and due dividends per share.

*Conversion Option*. Upon a Liquidation Event, or at the option of the Holder, in the Holder's sole discretion, any Holder of Series A Preferred Stock shall be entitled to convert the shares of Series A Preferred Stock into common stock; provided, however, that the minimum number of shares of Series A Preferred Stock that the Holder may convert to common stock at any given time is 1,000 shares.

*Conversion Price*. The "Conversion Price" shall be: (A) 70% of the Last Reported Sales Price, whereby the "Last Reported Sale Price" means the closing sale price per share (or, if no closing sale price is reported, the average of the last bid price and the last ask price per share or, if more than one in either case, the average of the average last bid prices and the average last ask prices per share) of common stock on such Trading Day as reported by the U.S. national securities exchange on which the common stock is then listed, or if the common stock is not listed on a U.S. national securities exchange on such Trading Day, then the Last Reported Sale Price will be the last quoted bid price per share of common stock on such Trading Day in the over-the-counter market as reported by OTC Markets Group Inc. or a similar organization; provided, however, that in the event that the Conversion Price is calculated to be less than $1.75, then the Conversion Price shall be $1.75, subject to adjustment; or (B) in the event that the common stock is neither listed on a U.S. national securities exchange nor quoted in an over-the-counter market, then the Conversion Price shall be $3.00, subject to adjustment.

*No Fractional Shares*. If any conversion of the Series A Preferred Stock would create a fractional share of common stock or a right to acquire a fractional share of common stock, such fractional share shall be disregarded and the number of shares of common stock issuable upon conversion, in the aggregate, shall be rounded up to the nearest whole share.

*Adjustment.* The Conversion Price will be subject to adjustments for stock dividends, splits, combinations, and similar events.

*No Voting Rights*. The holders of the Series A Preferred Stock shall have no voting rights, unless required by law.

*Call Provision*. We have the right to redeem from the Holders some or all of the then outstanding shares of Series A Preferred Stock, at any time and from time to time (each, a "Redemption Date"), for cash in an amount equal to $5.50 per share of Series A Preferred Stock (the "Redemption Price").

*Registration Rights*. If at any time on or after the issuance date of the Series A Preferred Stock, there is no effective registration statement registering, or no current prospectus available for, the resale of the shares of common stock issuable upon the conversion of the shares of Series A Preferred Stock, and we propose to file a registration statement ("Registration Statement") with respect to any offering of securities, we will) offer to the Holders the opportunity to register the sale of such number of shares of common stock issuable upon conversion of the Series A Preferred Stock in any such Registration Statement(a "Piggyback Registration") as such Holders may request (collectively, the "Registrable Securities"). We will cause such Registrable Securities to be included in such Piggyback Registration, subject to certain restrictions in the event that the Piggyback Registration is for an underwritten offering. then we will be required to include in the Piggyback Registration only that number of Registrable Securities that the underwriters determine in their sole discretion will not jeopardize the success of the offering, provided that the Registrable Securities so included to be apportioned pro rata among the selling Holders, along with customary "lock-up" agreements in favor of the underwriter.

**Stock Options**

On October 26, 2022, we adopted the 2022 Stock Option Plan, pursuant to which we may grant equity awards to our employees, officers, directors, and certain service providers. There are 10,000,000 shares of our common stock reserved for issuance under the 2022 Stock Option Plan.

We issued stock options to certain employees, contractors, and the members of our Board of Directors, all of which are fully vested, as follows:

● 8,917,758 options with an exercise price of $0.50;

● 1,580,000 options with an exercise price of $0.90;

● 1,100,000 options with an exercise price of $1.50; and

● 1,530,000 options with an exercise price of $2.75.

As of the date of this prospectus, there were 13,127,758 shares of our common stock issuable upon exercise of outstanding stock options, none of which were issued pursuant to the 2022 Stock Option Plan.

**Restricted Stock Awards**

On October 26, 2022, our Board of Directors adopted the 2022 Restricted Stock Plan, pursuant to which we may grant common stock awards and performance awards to our officers, directors, and key employees. There are 10,000,000 shares of our common stock reserved for issuance under the 2022 Restricted Stock Plan. As of the date of this prospectus, there were no shares of our common stock awarded pursuant to the 2022 Restricted Stock.

**Representative Warrants**

The material terms and provisions of the Representative Warrants are described under the caption "Underwriting."

**Anti-Takeover Provisions Under the Nevada Revised Statutes**

*Business Combinations*

 

Sections 78.411 to 78.444 of the Nevada revised statutes (the "NRS") prohibit a Nevada corporation from engaging in a "combination" with an "interested stockholder" for three years following the date that such person becomes an interested stockholder and places certain restrictions on such combinations even after the expiration of the three-year period. With certain exceptions, an interested stockholder is a person or group that owns 10% or more of the corporation's outstanding voting power (including stock with respect to which the person has voting rights and any rights to acquire stock pursuant to an option, warrant, agreement, arrangement, or understanding or upon the exercise of conversion or exchange rights) or is an affiliate or associate of the corporation and was the owner of 10% or more of such voting stock at any time within the previous three years.

A Nevada corporation may elect not to be governed by Sections 78.411 to 78.444 by a provision in its articles of incorporation. We do not have such a provision in our Articles of Incorporation, as amended, pursuant to which we have elected to opt out of Sections 78.411 to 78.444; therefore, these sections apply to us.

 

*Control Shares*

Nevada law also seeks to impede "unfriendly" corporate takeovers by providing in Sections 78.378 to 78.3793 of the NRS that an "acquiring person" shall only obtain voting rights in the "control shares" purchased by such person to the extent approved by the other stockholders at a meeting. With certain exceptions, an acquiring person is one who acquires or offers to acquire a "controlling interest" in the corporation, defined as one-fifth or more of the voting power. Control shares include not only shares acquired or offered to be acquired in connection with the acquisition of a controlling interest, but also all shares acquired by the acquiring person within the preceding 90 days. The statute covers not only the acquiring person but also any persons acting in association with the acquiring person. The statute covers not only the acquiring person but also any persons acting in association with the acquiring person. The NRS control share statutes only apply to issuers that have 200 or more stockholders of record, at least 100 of whom have had addresses in Nevada appearing on the stock ledger of the corporation at all times during the 90 days immediately preceding such date; and whom do business in Nevada directly or through an affiliated corporation. We do not currently meet these requirements and as such these provisions do not apply to us.

A Nevada corporation may elect to opt out of the provisions of Sections 78.378 to 78.3793 of the NRS. We do not have a provision in our Amended and Restated Articles of Incorporation pursuant to which we have elected to opt out of Sections 78.378 to 78.3793; therefore, these sections do apply to us, subject to the above limitations.

 

 

*Removal of Directors*

Section 78.335 of the NRS provides that two-thirds of the voting power of the issued and outstanding shares of the Company is required to remove a Director from office. As such, it may be more difficult for stockholders to remove Directors due to the fact the NRS requires greater than majority approval of the stockholders for such removal.

**Anti-Takeover Effects of Our Articles of Incorporation and Bylaws**

The following provisions of our articles of incorporation and bylaws could have the effect of delaying or discouraging another party from acquiring control of us and could encourage persons seeking to acquire control of us to first negotiate with our Board of Directors:

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| the requirement that a special meeting of stockholders may be called only by either (i) the Board of Directors; (ii) such person or persons authorized by the Board; or (iii) one or more stockholders holding shares in the aggregate entitled to cast not less than 66 2/3% of the votes at that meeting. |

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**Limitation on Liability and Indemnification of Directors and Officers** 

Our charter documents limit the liability of our directors and officers. Our charter documents state that we shall indemnify, in accordance with and to the full extent now or hereafter permitted by law, every person who was or is a party or is threatened to be made a party to or is involved in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that he or she or a person of whom he or she is the legal representative is or was a Director or officer of the Corporation or is or was serving at the request of the corporation or for its benefit as a Director, officer, employee, or agent of another corporation, or as its representative in a partnership, joint venture, trust, or other enterprise against all expenses, liability and loss (including, attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amount paid in settlement) reasonably incurred or suffered by him or her in connection therewith.

In addition to the right to indemnification, an indemnitee shall also have the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition; provided however, that if the law so requires, the Director may have to provide an undertaking to repay all amounts so advanced if it is ultimately determined by a final adjudication that such indemnitee is not entitled to be indemnified for such expenses. Any right of indemnification shall not be exclusive of any other right which such Directors, officers or representatives may have or hereafter acquire and, which such directors, officers, or representatives may have or hereafter acquire and, without limiting the generality of such statement, they shall be entitled to their respective rights of indemnification under any bylaw, agreement, vote of shareholders, provision of law or otherwise. This does not apply to actions arising under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended.

There is no pending litigation or proceeding involving any of our directors or officers as to which indemnification is required or permitted, and we are not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

**Authorized but Unissued Shares**

Our authorized but unissued shares of common stock will be available for future issuance without your approval. We may use additional shares for a variety of purposes, including future offerings to raise additional capital, to fund acquisitions and as employee compensation. The existence of authorized but unissued shares of common stock could render it more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

**Transfer Agent and Registrar**

We have retained EQ Shareowner Services as the transfer agent and registrar for our common stock.

**SHARES ELIGIBLE FOR FUTURE SALE**

**General**

Prior to this offering, there was no established public trading market for our securities. Even if our application to list our common stock on Nasdaq Capital Market is approved, we cannot assure you that a significant public market for our securities will develop or be sustained following this offering. Future sales of substantial amounts of our securities (including common stock issued on the exercise of options and/or warrants) in the public market, or the perception that such sales could occur, could adversely affect prevailing market prices as well as our ability to raise equity capital in the future.

Upon completion of this offering and assuming no exercise of the Underwriters' Warrants, we will have 33,669,234 shares of common stock issued and outstanding (or 33,864,234 shares of common stock, if the underwriters exercise in full the overallotment option).

The securities sold in this offering will be freely tradable without further restriction or registration under the Securities Act, except for any shares held by our "affiliates" as that term is defined in Rule 144 under the Securities Act. The remaining outstanding shares of our common stock will be deemed "restricted securities" or "control securities" under the Securities Act. Subject to certain contractual restrictions, including the lock-up agreements described below, restricted securities and control securities may be sold in the public market only if (i) they have been registered or (ii) they qualify for an exemption from registration under Rule 144 or any other applicable exemption.

**Rule 144**

Under Rule 144, a person (or persons whose shares are aggregated) who is, or was at any time during the three months preceding a sale, deemed to be our "affiliate" would be entitled to sell within any three-month period a number of shares that does not exceed the greater of 1% of the then outstanding shares of our common stock, which would be approximately 341,757 shares of common stock immediately after this offering (assuming the underwriters do not elect to exercise their option to purchase additional shares), or the average weekly trading volume of our common stock on the during the four calendar weeks preceding such sale. Sales under Rule 144 are also subject to a six-month holding period and requirements relating to manner of sale and notice requirements and the availability of current public information about us. Upon completion of this offering and subject to the lock-up agreements described above, we expect that approximately 71.43% of our outstanding common stock (or 71.03% of our outstanding common stock if the underwriters exercise in full their option to purchase additional shares), will be subject to limitations on sales by affiliates under Rule 144 (assuming such affiliates do not purchase any shares in this offering).

Rule 144 also provides that a person who is not deemed to be, or have been, at any time during the three months preceding a sale, our affiliate, and who has for at least six months beneficially owned shares of our common stock that are restricted securities, will be entitled to freely sell such shares of our common stock subject only to the availability of current public information regarding us. A person who is not deemed to be, or have been, at any time during the three months preceding a sale, our affiliate, and who has beneficially owned for at least one year shares of our common stock that are restricted securities, will be entitled to freely sell such shares of our common stock under Rule 144 without regard to the current public information requirements of Rule 144.

**Lock-Up Agreements**

Pursuant to certain "lock-up" agreements, our executive officers, directors and holders of 5% or more of our outstanding common stock, have agreed, subject to limited exceptions, without the prior written consent of the underwriter, not to directly or indirectly, offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, our common stock or any securities convertible into or exercisable or exchangeable for our common stock, enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, in amounts exceeding 25% of their holdings for a period of six months days from the date of this prospectus and the remaining 75% of their holdings for a period of 12 months from the date of this prospectus. (See "Underwriting.")

**2022 Stock Option Plan**

On October 26, 2022, our Board of Directors adopted our 2022 Stock Option Plan, which provides for the grant of incentive stock options within the meaning of Section 422 of the Code, to our employees and any parent and subsidiary corporation's employees, and for the grant of non-statutory stock options, restricted stock and other stock awards to our employees, directors and certain service providers and the employees and service providers of any parent and subsidiary corporation. A total of 10,000,000 shares of our common stock are reserved for issuance under the 2022 Stock Option Plan. (See "Description of Securities—Stock Options.")

As of the date of this prospectus, there were 13,127,758 shares of our common stock issuable upon exercise of outstanding stock options, none of which were issued pursuant to the 2022 Stock Option Plan.

**2022 Restricted Stock Plan** 

On October 26, 2022, we adopted our 2022 Restricted Stock Plan which provides for the grant of common stock awards and performance awards to our officers, directors, and key employees and of our subsidiary corporations. A total of 10,000,000 shares of our common stock are reserved for issuance under the 2022 Restricted Stock Plan. (See "Description of Securities—Restricted Stock.") As of the date of this prospectus, we have not issued any shares of common stock pursuant to the 2022 Restricted Stock Plan.

**CERTAIN MATERIAL FEDERAL INCOME TAX CONSIDERATIONS**

The following is a summary of certain material United States federal income tax consequences to you of the acquisition, ownership, and disposition of shares of our common stock offered pursuant to this prospectus. This discussion is not a complete analysis of all of the potential United States federal income tax consequences relating thereto, and, except as otherwise specifically provided herein, it does not address any estate and gift tax consequences or any tax consequences arising under any state, local or foreign tax laws, or any other United States federal tax laws. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the Internal Revenue Service (the "IRS"), all as in effect as of the date of this prospectus. These authorities may change, possibly retroactively, resulting in United States federal income tax consequences different from those discussed below. No ruling has been or will be sought from the IRS with respect to the matters discussed below, and there can be no assurance that the IRS will not take a contrary position regarding the tax consequences of the acquisition, ownership, or disposition of the shares of our common stock, or that any such contrary position would not be sustained by a court.

This discussion is limited to holders who purchase shares of our common stock pursuant to this prospectus and who hold the shares of our common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the United States federal income tax laws, including, without limitation:

● financial institutions, banks, and thrifts;

● insurance companies;

● tax-exempt organizations;

● "S" corporations, partnerships, or other pass-through entities;

● traders in securities that elect to mark to market;

● regulated investment companies and real estate investment trusts;

● broker-dealers or dealers in securities or currencies;

● United States expatriates;

● persons subject to the alternative minimum tax;

● persons holding our stock as a hedge against currency risks or as a position in a straddle;

● persons that are former citizens or former long-term residents of the U.S.;

● persons that are subject to special tax accounting rules;

● controlled foreign corporations and passive foreign investment companies; or

● U.S. holders (as defined below) whose functional currency is not the United States dollar.

If a partnership (or other entity taxed as a partnership for United States federal income tax purposes) holds shares of our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, upon the activities of the partnership, and upon certain determinations made at the partner level. Accordingly, partnerships holding our common stock and the partners in such partnerships should consult their own tax advisors regarding the specific United States federal income tax consequences to them.

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***Prospective investors should consult their own tax advisors regarding the particular United States federal income tax consequences to them of acquiring, owning, and disposing of shares of our common stock, as well as any tax consequences arising under any state, local or foreign tax laws and any other United States federal tax laws.***

For purposes of this discussion, a "U.S. holder" is any beneficial owner of shares of our common stock who, for United States federal income tax purposes, is:

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States or of any state or in the District of Columbia;

● an estate the income of which is subject to United States federal income taxation regardless of its source; or

● a trust, if a United States court can exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust, or if the trust has a valid election in place to be treated as a United States person.

A "non-U.S. holder" is any beneficial owner of our common stock that is neither a "U.S. holder" nor an entity treated as a partnership for United States federal income tax purposes.

**Taxation of U.S. Holders**

***Distributions on Shares of Our Common Stock*.** If we make cash or other property distributions on shares of our common stock, such distributions generally will constitute dividends for United States federal income tax purposes to the extent of our current and accumulated earnings and profits, as determined under United States federal income tax principles. Subject to certain limitations, these distributions may be eligible for the dividends-received deduction in the case of U.S. holders that are corporations. Dividends paid to non-corporate U.S. holders generally will qualify for taxation at special rates as "qualified dividends" if such U.S. holder meets certain holding period and other applicable requirements. The special rate will not, however, apply to dividends received to the extent that the U.S. holder elects to treat dividends as "investment income," which may be offset by investment expense.

Amounts not treated as dividends for United States federal income tax purposes will constitute a return of capital and will first be applied against and reduce a U.S. holder's tax basis in the shares of our common stock, but not below zero. Distributions in excess of our current and accumulated earnings and profits and in excess of a U.S. holder's tax basis in its shares of our common stock will be taxable as capital gain realized on the sale or other disposition of the shares of our common stock and will be treated as described under "—Sales or Other Taxable Dispositions of Shares of Our Common Stock" below.

***Sale or Other Taxable Dispositions of Shares of Our Common Stock*.** If a U.S. holder sells or disposes of shares of our common stock, such U.S. holder generally will recognize gain or loss for United States federal income tax purposes in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale or other disposition and the U.S. holder's adjusted basis in the shares of our common stock for United States federal income tax purposes. This gain or loss generally will be long-term capital gain or loss if the U.S. holder has held the shares of our common stock for more than one year. The deductibility of capital losses is subject to limitations.

***Backup Withholding and Information Reporting*.** Information reporting will generally apply to U.S. holders with respect to payments of dividends on shares of our common stock and to certain payments of proceeds on the sale or other disposition of shares of our common stock. Certain U.S. holders may be subject to U.S. backup withholding on payments of dividends on shares of our common stock and certain payments of proceeds on the sale or other disposition of shares of our common stock unless the beneficial owner of shares of our common stock furnishes the payor or its agent with a taxpayer identification number, certified under penalties of perjury, and certain other information, or otherwise establishes, in the manner prescribed by law, an exemption from backup withholding.

U.S. backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a credit against a U.S. holder's United States federal income tax liability, which may entitle the U.S. holder to a refund, provided the U.S. holder timely furnishes the required information to the IRS.

***Medicare Tax.*** A U.S. person that is an individual or estate, or a trust that does not fall into a special class of trusts that is exempt from such tax, will be subject to an additional tax on the lesser of (1) the U.S. person's "net investment income" for the relevant taxable year and (2) the excess of the U.S. person's modified adjusted gross income for the taxable year over a certain threshold. Net investment income generally includes dividends, and net gains from the disposition of common stock, unless such income or gains are derived in the ordinary course of the conduct of a trade or business (other than a trade or business that consists of certain passive or trading activities). A U.S. holder that is an individual, estate or trust should consult its own tax advisor regarding the applicability of the Medicare tax to its income and gains in respect of its investment in our common stock.

**Taxation of Non-U.S. Holders**

***Distributions on Shares of Our Common Stock*.** Distributions that are treated as dividends (see "Taxation of U.S. Holders—Distributions on Shares of Our Common Stock") generally will be subject to United States federal withholding tax at a rate of 30% of the gross amount of the dividends, or such lower rate specified by an applicable income tax treaty. If we cannot determine at the time a distribution is made whether or not the distribution will exceed current and accumulated earnings and profits (and therefore whether the distribution will be treated as a dividend), we intend to withhold from the distribution at the rate applicable to dividends. A non-U.S. holder may seek a refund from the IRS of any amounts withheld if it is subsequently determined that the distribution was, in fact, in excess of our current and accumulated earnings and profits. To receive the benefit of a reduced treaty rate, a non-U.S. holder must furnish to us or our paying agent a valid IRS Form W-8BEN (or applicable successor form) certifying such non-U.S. holder's qualification for the reduced rate. This certification must be provided to us or our paying agent prior to the payment of dividends and must be updated as required by law. Non-U.S. holders that do not timely provide us or our paying agent with the required certification, but that qualify for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

If a non-U.S. holder holds shares of our common stock in connection with the conduct of a trade or business in the United States, and dividends paid on the shares of our common stock are effectively connected with such non-U.S. holder's United States trade or business (and if required by an applicable income tax treaty, attributable to a permanent establishment maintained by the non-U.S. holder in the United States), the non-U.S. holder will be exempt from United States federal withholding tax. To claim the exemption, the non-U.S. holder must generally furnish to us or our paying agent a properly executed IRS Form W-8ECI (or applicable successor form).

Any dividends paid on shares of our common stock that are effectively connected with a non-U.S. holder's United States trade or business (and if required by an applicable income tax treaty, attributable to a permanent establishment maintained by the non-U.S. holder in the United States) generally will be subject to United States federal income tax on a net income basis at the regular graduated United States federal income tax rates in much the same manner as if such non-U.S. holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items. Non-U.S. holders should consult their own tax advisors regarding any applicable income tax treaties that may provide for different rules.

Distributions that we determine are in excess of our current and accumulated earnings and profits and that are in excess of a non-U.S. holder's tax basis in its shares of our common stock will be treated as gain from the sale of common stock as described under "—Sales or Other Taxable Dispositions of Shares of Our Common Stock" below. If we are a USRPHC (as defined below) and we do not qualify for the Regularly Traded Exception (as defined below), distributions which constitute a return of capital will be subject to withholding tax unless an application for a withholding certificate is filed to reduce or eliminate such withholding. (See "— Sales or Other Taxable Dispositions of Shares of our Common Stock" below for a discussion of the treatment of USRPHCs.)

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***Sales or Other Taxable Dispositions of Shares of Our Common Stock*.** Subject to the discussion of backup withholding and withholding tax relating to foreign accounts below, a non-U.S. holder generally will not be subject to United States federal income tax for gain recognized on a sale or other disposition of common stock unless one of the following conditions is satisfied:

● the gain is effectively connected with a trade or business conducted by the non-U.S. holder in the United States (and, if an income tax treaty applies, is attributable to a permanent establishment maintained in the United States by such non-U.S. holder). The non-U.S. holder will, unless an applicable treaty provides otherwise, be taxed on its net gain derived from the sale or other disposition under regular graduated United States federal income tax rates. Effectively connected gains realized by a corporate non-U.S. holder may also, under certain circumstances, be subject to an additional "branch profits tax" at a 30% rate or a lower rate as may be specified by an applicable income tax treaty;

● in the case of a non-U.S. holder who is an individual and holds the common stock as a capital asset, the holder is present in the United States for 183 or more days in the taxable year of the sale or other disposition and certain other conditions exist. Such gain will be subject to United States federal income tax at a flat 30% rate (or such lower rate specified by an applicable income tax treaty), but may be offset by United States source capital losses (even though the individual is not considered a resident of the United States); or

● our common stock constitutes a USRPI within the meaning FIRPTA by reason of our status as a USRPHC for United States federal income tax purposes.

With respect to the third bullet point above, because of our holdings of United States real property interests, we believe that we are a USRPHC for United States federal income tax purposes. Because the determination of whether we are a USRPHC depends on the fair market value of our United States real property interests relative to the fair market value of our other trade or business assets and any foreign real property interests, it is possible that we may not remain a USRPHC in the future. As a USRPHC, if a class of our stock is regularly traded on an established securities market as determined under the Treasury Regulations (the "Regularly Traded Exception"), such stock will be treated as a USRPI only with respect to a non-U.S. holder that actually or constructively holds more than 5% of such class of stock at any time during the shorter of the five-year period preceding the date of disposition or the holder's holding period for such stock. We anticipate that our common stock will be regularly traded on an established securities market following this offering. However, no assurance can be given in this regard and no assurance can be given that our common stock will remain regularly traded in the future. If gain on the sale or other taxable disposition of shares of our common stock were subject to taxation under FIRPTA as a sale of a USRPI, the non-U.S. holder would be subject to regular United States federal income tax with respect to such gain in the same manner as a taxable U.S. holder (subject to any applicable alternative minimum tax and a special alternative minimum tax in the case of nonresident alien individuals). In addition, if the sale or other taxable disposition of shares of our common stock is subject to tax under FIRPTA, the purchaser of the stock would be required to withhold and remit to the IRS 15% of the purchase price unless an exception applies. A non-U.S. holder also will be required to file a United States federal income tax return for any taxable year in which it realizes a gain from the disposition of our common stock that is subject to United States federal income tax.

Non-U.S. holders should consult their own tax advisors concerning the consequences of selling or otherwise disposing of shares of our common stock.

***Backup Withholding Tax and Information Reporting*.** We must report annually to each non-U.S. holder of shares of our common stock and to the IRS the amount of payments on the shares of our common stock paid to such non-U.S. holder and the amount of any tax withheld with respect to those payments. These information reporting requirements apply even if no withholding was required because the payments were effectively connected with the non-U.S. holder's conduct of a United States trade or business, or withholding was reduced or eliminated by an applicable income tax treaty. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the non-U.S. holder resides or is established. Backup withholding, however, generally will not apply to distribution payments to a non-U.S. holder of shares of our common stock provided the non-U.S. holder furnishes to us or our paying agent the required certification as to its non-U.S. status, such as by providing a valid IRS Form W-8BEN or IRS Form W-8ECI, or certain other requirements are met. Notwithstanding the foregoing, backup withholding may apply if either we or our paying agent has actual knowledge, or reason to know, that the holder is a U.S. person that is not an exempt recipient.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a non-U.S. holder's United States federal income tax liability, provided the required information is timely furnished to the IRS.

***Additional Withholding Tax Relating to Foreign Accounts*.** Withholding taxes may be imposed under Sections 1471 to 1474 of the Code, the Treasury Regulations promulgated thereunder and other official guidance (commonly referred to as "FATCA") on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends on shares of our common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence, reporting and withholding obligations, (2) the non- financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence, reporting and withholding requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States-owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Accordingly, the entity through which shares of our common stock is held will affect the determination of whether such withholding is required. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. Future Treasury Regulations or other official guidance may modify these requirements.

Under the applicable Treasury Regulations, withholding under FATCA generally applies to payments of dividends on shares of our common stock. While withholding under FATCA would have also applied to payments of gross proceeds from the sale or other disposition of shares of our common stock on or after January 1, 2019, recently proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds. The preamble to these proposed regulations indicates that taxpayers may rely on them pending their finalization. The FATCA withholding tax will apply to all withholdable payments without regard to whether the beneficial owner of the payment would otherwise be entitled to an exemption from imposition of withholding tax pursuant to an applicable income tax treaty with the United States or U.S. domestic law. We will not pay additional amounts to holders of shares of our common stock in respect of amounts withheld.

Prospective investors should consult their own tax advisors regarding the potential application of withholding under FATCA to their investment in shares of our common stock.

**UNDERWRITING**

Craft Capital Management LLC and R.F. Lafferty & Co., Inc. are the representatives (the "Representatives") of the underwriters of this offering. We have entered into an underwriting agreement dated [ ] with the Representatives. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters named below and the underwriters named below have agreed to purchase from us, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of common stock listed next to its name in the following table:

---

| | |
|:---|:---|
| Underwriter | Number of Shares of <br> Common Stock |
| Craft Capital Management LLC |  |
| R.F. Lafferty & Co., Inc. |  |
| Total |  |

---

The underwriters are committed to purchase all securities offered by us other than those covered by the overallotment option, if they purchase any securities. The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to customary conditions, representations, and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

The underwriters are offering the shares of common stock subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by its counsel, and other conditions specified in the underwriting agreement. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

**Overallotment Option**

We have granted to the underwriters an option, exercisable for 45 days after the date of this prospectus, to purchase up to 195,000 additional shares of our common stock, representing 15% of the shares of our common stock sold in the offering. The purchase price to be paid per additional share of common stock will be equal to the public offering price, less the underwriting discount. The underwriters may exercise the option solely for the purpose of covering overallotments, if any, in connection with this offering. Any shares of our common stock will be issued and sold on the same terms and conditions as the other shares of our common stock that are the subject of this offering. If this option is exercised in full to purchase shares of common stock, the total offering price to the public will be $4.50 and the total net proceeds, before expenses, to us will be $6,189,300.

**Discounts and Commissions**

The following table summarizes the public offering price, underwriting discounts and commissions and proceeds before expenses to us assuming both no exercise and full exercise by the underwriters of the overallotment option:

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share of<br> Common <br> Stock** | **Total Without<br> Overallotment<br> Option** | **Total with<br> Overallotment<br> Option** |
| Public offering price | $4.50 | $5850000 | $6727500 |
| Underwriting discounts and commissions (8.0%) | $0.36 | $468000 | $538200 |
| Proceeds, before expenses, to us | $4.14 | $5382000 | $6189300 |

---

We have agreed to pay a non-accountable expense allowance to the Representatives of $100,000 and an accountable expense allowance not to exceed $200,000. The Representatives' accountable expense allowance includes (a) road show and travel expenses incurred by the Representatives; (b) reasonable fees of Representatives' legal counsel; and (c) due diligence expenses incurred by the Representatives. We have agreed to pay all expenses in connection with the offering including (a) all filing fees and expenses related to the registration of securities with the SEC; (b) all fees and expenses related to the review of this offering by FINRA; (c) all fees and expenses relating to the listing of our securities on an exchange; (d) all fees, expenses, and disbursements relating to the registration or qualification of the securities under the "blue sky" securities laws; (e) all fees, expenses, and disbursements relating to the registration, qualification, or exemption of the securities under the securities laws of foreign jurisdictions (none of which are expected to be incurred); (f) the costs of all mailing and printing; (g) transfer and/or stamp taxes; (h) fees and expenses of our accountants; and (i) fees and expenses including "road show" and diligence, and reasonable legal fees and disbursements for the Representatives' legal counsel.

We estimate the expenses of this offering payable by us, not including underwriting discounts and commissions, will be approximately $600,000.

**Representative Warrants**

We have agreed to issue to the Representatives or their designees, upon the closing of this offering, Warrants to purchase up to a total of 7.5% of the shares of our common stock sold in this offering through the exercise of the underwriter's overallotment option (the "Representative Warrants"). The Representative Warrants and the shares issuable upon the exercise of such Warrants are also being registered on the registration statement of which this prospectus forms a part. The Representative Warrants are exercisable at $5.63 per share (125% of the public offering price per Common Unit in the offering). The Representative Warrants are exercisable at any time and from time to time, in whole or in part, commencing on a date which is six months from the commencement date of sales of this offering and expiring on the date that is no more than five years from the commencement of sales of the offering in compliance with FINRA Rule 5110.

The Representative Warrants are deemed underwriter compensation by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110 of FINRA. The underwriter (or permitted assignees under Rule 5110) will not sell, transfer, assign, pledge, or hypothecate these Warrants or the securities underlying these Warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Warrants or the underlying securities for a period of 180 days from the effective date of this offering. The Warrants may be exercised as to all, or a lesser number of shares of common stock and will provide for cashless exercise in the event there is not an effective registration statement for the underlying shares. In addition, the Representative Warrants provide for one-time demand registration rights and unlimited piggyback registration rights. The demand registration right provided will not be greater than five years from the commencement of sales of this offering in compliance with FINRA Rule 5110(g)(8)(C). The piggyback registration rights provided will not be greater than seven years from the commencement of sales of this offering in compliance with FINRA Rule 5110(g)(8)(D). The Warrants will have anti-dilution terms that are consistent with FINRA Rule 5110(g)(8)(E) and (F). We will bear all fees and expenses attendant to registering the securities issuable on exercise of the Representative Warrants other than underwriting commissions incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the Representative Warrants may be adjusted in certain circumstances including in the event of a stock dividend or our recapitalization, reorganization, merger, or consolidation. However, neither the Representative Warrants' exercise price, nor the number of shares of common stock underlying such Warrants, will be adjusted for issuances of shares of common stock by the Company at a price below the exercise price of the Representative Warrants.

**Tail Financing**

We have agreed to pay Craft Capital Management LLC ("Craft") a cash placement fee equal to 8% of the aggregate purchase price with respect to any public or private financing or capital-raising transaction of any kind to the extent that such financing or capital is provided to the Company by investors whom Craft introduced to the Company during the 12-month period following expiration or termination of our engagement letter with Craft.

**Right of First Refusal**

The Representatives have the right of first refusal for 12 months following the consummation of this offering to act as exclusive financial advisors, or to act as joint financial advisors with another advisor in the Representatives' sole discretion, on any public or private financing (debt or equity) using an underwriter or placement agent (collectively, "Future Services"). In the event that we engage the Representatives to provide such Future Services and enter into another engagement, the Representatives will be compensated consistent with the terms of the underwriting agreement with the Representatives, unless we mutually agree otherwise.

**Lock-Up Agreements**

Pursuant to certain "lock-up" agreements, our executive officers, directors and holders of at least 5% of our common stock, have agreed, subject to limited exceptions, without the prior written consent of the Representatives, not to directly or indirectly, offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, our common stock or any securities convertible into or exercisable or exchangeable for our common stock, enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, in amounts exceeding 25% of their holdings for a period of six months days from the date of this prospectus and the remaining 75% of their holdings for a period of 12 months from the date of this prospectus. Additionally, we have agreed for a period of 180 days following [ ] (the date of the underwriting agreement), that we will not, without the prior written consent of the Representatives, directly or indirectly, offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable for our common stock, or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities.

**Securities Issuance Standstill** 

We agreed, for a period of 180 days following the date of this offering, to not issue, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option or contract to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, and shares of the Company or any securities convertible into or exercisable or exchangeable for shares of the Company.

**Indemnification**

We have agreed to indemnify the underwriters against specified liabilities relating to this offering arising under the Securities Act and the Exchange Act and to contribute to payments that the underwriters may be required to make for these liabilities.

**Electronic Offer, Sale, and Distribution of Securities**

A prospectus in electronic format may be made available on the websites maintained by one or more underwriter or selling group members, if any, participating in this offering and one or more of the underwriters participating in this offering may distribute prospectuses electronically. The Representatives may agree to allocate a number of securities to underwriters and selling group members for sale to their online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on the underwriters' websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

**Stabilization**

Stabilizing transactions permit bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum, and are engaged in for the purpose of preventing or retarding a decline in the market price of the shares while the offering is in progress.

Overallotment transactions involve sales by the underwriters of shares in excess of the number of shares the underwriters are obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of shares overallotted by the underwriters is not greater than the number of shares that they may purchase in the overallotment option. In a naked short position, the number of shares involved is greater than the number of shares that they purchase in the overallotment option. The underwriters may close out any short position by exercising their overallotment option and/or purchasing shares in the open market.

Syndicate covering transactions involve purchases of shares in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of shares to close out the short position, the underwriters will consider, among other things, the price of shares available for purchase in the open market as compared with the price at which they may purchase shares through exercise of the overallotment option. If the underwriters sell more shares than could be covered by exercise of the overallotment option and, therefore, have a naked short position, the position can be closed out only by buying shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there could be downward pressure on the price of the shares in the open market that could adversely affect investors who purchase in the offering.

Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when the shares originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding a decline in the market price of our securities. As a result, the price of our securities in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our securities. These transactions may be effected in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

**Passive Market Making**

In connection with this offering, underwriter and selling group members may engage in passive market making transactions in our common stock on the Nasdaq Capital Market in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the securities and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

**Offer Restrictions Outside of the United States**

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that country or jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**Other Relationships**

The underwriters and their affiliates may in the future provide various advisory, investment and commercial banking and other services for us in the ordinary course of business, for which they may receive customary fees and commissions.

**LEGAL MATTERS**

Certain legal matters in connection with this offering, including the validity of the securities offered hereby, will be passed upon for us by FitzGerald Kreditor Bolduc Risbrough LLP, Irvine, California. Certain legal matters of U.S. federal securities law in connection with this offering will be passed upon for the underwriters by Brunson Chandler & Jones, PLLC.

**EXPERTS**

The financial statements of CoLabs Int'l, Corp., a Nevada corporation, as of December 31, 2022 and 2021, and for the years then ended have been included herein and in the registration statement in reliance upon the report of Weinberg and Company, P.A., independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. The report thereon contains an explanatory paragraph which describes the conditions that raise substantial doubt about the ability of the Company to continue as a going concern and are contained in Footnote 1 to the financial statements.

**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 being offered by this prospectus. This prospectus, which constitutes part of that registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules which are part of the registration statement. Some items included in the registration statement are omitted from the prospectus in accordance with the rules and regulations of the SEC. For further information with respect to us and the securities offered in this prospectus, we refer you to the registration statement and the accompanying exhibits.

A copy of the registration statement and the accompanying exhibits and any other document we file may be inspected without charge at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549, and copies of all or any part of the registration statement may be obtained from this office upon the payment of the fees prescribed by the SEC. The public may obtain information on the operation of the public reference facilities in Washington, D.C. by calling the SEC at 1-800-SEC-0330. Our filings with the SEC are available to the public from the SEC's website at www.sec.gov.

Upon the completion of this offering, we will be subject to the information and periodic reporting requirements of the Exchange Act, applicable to a company with securities registered pursuant to Section 12 of the Exchange Act. In accordance therewith, we will file proxy statements, periodic information, and other information with the SEC. All documents filed with the SEC are available for inspection and copying at the public reference room and website of the SEC referred to above. We maintain a website at www.colabsintl.com. You may access our reports, proxy statements and other information free of charge at this website as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated by reference and 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**

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| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#sa_001) | F-2 |
| [Balance Sheets as of December 31, 2022 and 2021](#sa_002) | F-3 |
| [Statements of Operations for the Years Ended December 31, 2022 and 2021](#sa_003) | F-4 |
| [Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2022 and 2021](#sa_004) | F-5 |
| [Statements of Cash Flows for the Years Ended December 31, 2022 and 2021](#sa_005) | F-6 |
| [Notes to Financial Statements for the Years Ended December 31, 2022 and 2021](#sa_006) | F-7 – F-18 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of

CoLabs Int'l, Corp.

Huntington Beach, California

<u>Opinion on the Financial Statements</u>

We have audited the accompanying balance sheets of CoLabs Int'l, Corp. (the "Company") as of December 31, 2022 and 2021, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, 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, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

<u>Going Concern</u>

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has experienced recurring operating losses and negative operating cash flows since inception and has a stockholders' deficit as of December 31, 2022. These conditions 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 1 to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

<u>Basis for Opinion</u>

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 audits 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 provided a reasonable basis for our opinion.

We have served as the Company's auditor since 2020.

*/s/ Weinberg & Company, P.A,*

Los Angeles, California

March 24, 2023

**COLABS INT'L, CORP.**

**BALANCE SHEETS**

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $9000 | $68000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | 1000 |
| &nbsp;&nbsp;&nbsp;Inventory, net of reserves of $20,000, and $62,000, respectively | 10000 | 8000 |
| &nbsp;&nbsp;&nbsp;Prepaid and other current assets | 1000 | 5000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 20000 | 82000 |
| **Right of use asset** |  | 8000 |
| **Other assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 14000 |  |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 118000 |  |
| &nbsp;&nbsp;&nbsp;Other assets | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $154000 | $92000 |
| **Liabilities and Stockholders' Deficit** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $438000 | $39000 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 80000 | 14000 |
| &nbsp;&nbsp;&nbsp;Lease liability |  | 9000 |
| &nbsp;&nbsp;&nbsp;Loans payable, current portion | 114000 | 3000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 632000 | 65000 |
| &nbsp;&nbsp;&nbsp;Loans payable, net of current portion | 39000 | 39000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 671000 | 104000 |
| Commitments and contingencies |  |  |
| **Stockholders' deficit:** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $.001 par value; 20,000,000 shares authorized; no shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $.001 par value; 100,000,000 shares authorized; 32,617,002 and 31,747,500 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 32000 | 32000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 17485000 | 11160000 |
| &nbsp;&nbsp;&nbsp;Common stock issuable (0 and 269,106 shares of common stock) |  | 270000 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (18034000) | (11474000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' deficit** | (517000) | (12000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' deficit** | $154000 | $92000 |

---

The accompanying notes are an integral part of these financial statements.

**COLABS INT'L, CORP.**

**STATEMENTS OF OPERATIONS**

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021**

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** |
| **Revenue (1)** | $157000 | $80000 |
| Cost of revenue | 70000 | 143000 |
| Gross profit (loss) | 87000 | (63000) |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 6390000 | 1022000 |
| &nbsp;&nbsp;&nbsp;Research and development | 244000 | 181000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6634000 | 1203000 |
| **Loss from operations** | (6547000) | (1266000) |
| **Other income (expense):** |  |  |
| Gain on forgiveness of Paycheck Protection Program loans |  | 110000 |
| Interest expense | (13000) | (1000) |
| **Net loss** | $(6560000) | $(1157000) |
| **Net loss per share of common stock– basic and diluted** | $(0.20) | $(0.04) |
| **Weighted average common stock outstanding – basic and diluted** | 32015341 | 31622650 |
| (1) Sales to related party | $9000 | $19000 |

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The accompanying notes are an integral part of these financial statements.

**COLABS INT'L, CORP.**

**STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

**YEARS ENDED DECEMBER 31, 2022 AND 2021**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | |
|  | **$.001 Par** | **$.001 Par** | **Issuable** | **Issuable** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-**<br>**in Capital** |<br>**Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Equity**<br>**(Deficit)** |
| **December 31, 2020** | 31390000 | $31000 |  | $- | $10444000 | $(10317000) | $158000 |
| Common stock issued for cash | 357500 | 1000 | 60000 | 165000 | 716000 |  | 882000 |
| Common stock issued on exercise of stock options |  |  | 209106 | 105000 |  |  | 105000 |
| **Net loss** |  |  |  |  |  | (1157000) | (1157000) |
| **December 31, 2021** | 31747500 | 32000 | 269106 | 270000 | 11160000 | (11474000) | (12000) |
| Vesting of stock options |  |  |  |  | 5154000 |  | 5154000 |
| Issuance of prior year common stock issuable for cash | 60000 |  | (60000) | (165000) | 165000 |  |  |
| Issuance of prior year common stock issuable on exercise of stock options | 209106 |  | (209106) | (105000) | 105000 |  |  |
| Common stock issued for services | 21000 |  |  |  | 58000 |  | 58000 |
| Repurchase of common stock | (3000) |  |  |  | (8000) |  | (8000) |
| Common stock issued for cash | 248000 |  |  |  | 683000 |  | 683000 |
| Common stock issued on exercise of stock options | 334396 |  |  |  | 168000 |  | 168000 |
| **Net loss** |  |  |  |  |  | (6560000) | (6560000) |
| **December 31, 2022** | 32617002 | $32000 | - | $- | $17485000 | $(18034000) | $(517000) |

---

The accompanying notes are an integral part of these financial statements.

**COLABS INT'L, CORP.**

**STATEMENTS OF CASH FLOWS**

**YEARS ENDED DECEMBER 31, 2022 AND 2021**

---

| | | |
|:---|:---|:---|
|  | **Years Ended**<br> **December 31,** | **Years Ended**<br> **December 31,** |
|  | **2022** | **2021** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(6560000) | $(1157000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjustments to reconcile net loss to cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets amortization | 1000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vesting of stock options | 5154000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for services | 58000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in inventory reserve | (42000) | 62000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on forgiveness of Paycheck Protection Program loans |  | (110000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in right of use asset | 8000 | 29000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in lease liability | (9000) | (29000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 40000 | 4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 4000 | (5000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 399000 | (7000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 66000 | 14000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | (880000) | (1198000) |
| **Cash flows from investing activities:** |  |  |
| Purchase of intangible assets | (15000) | - |
| **Net cash used in investing activities** | (15000) | - |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock | 683000 | 882000 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | (8000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the exercise of stock options | 168000 | 105000 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 123000 | 49000 |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable | (12000) |  |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | (118000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | 836000 | 1036000 |
| &nbsp;&nbsp;&nbsp;Net decrease | (59000) | (162000) |
| &nbsp;&nbsp;&nbsp;Balance at the beginning of the period | 68000 | 230000 |
| &nbsp;&nbsp;&nbsp;Balance at the end of the period | $9000 | $68000 |
| **Supplemental disclosures of cash flow information:** |  |  |
| Income taxes paid | $- | $- |
| Interest paid | $13000 | $1000 |
| **Supplemental non-cash disclosure:** |  |  |
| Recognition of right-of-use asset and operating lease liability upon execution of new operating lease | $- | $17000 |

---

The accompanying notes are an integral part of these financial statements.

**COLABS INT'L, CORP.**

**NOTES TO FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021**

**1.** **Organization and Basis of Presentation** 

CoLabs Int'l, Corp. (the "Company," "CoLabs") was incorporated on August 5, 2008 under the laws of the State of Nevada as an OTC pharmaceutical company with multi-market applications for its targeted epidermal-drug delivery system which is identified as: *QuantaSphere*® *Technology* (*QS*®).

The Company has 29 issued patents and has an additional 15 patent applications pending.

The Company places OTC drugs, pharmaceuticals, chemicals, and agrochemicals into micro-sized, electrostatically charged encapsulates as well as into other types of micro-encapsulates. These encapsulates are then suspended in uniquely designed formulations. This formulation of a highly advanced micro-technology can: target the delivery of topically applied drugs; limit unwanted absorption of chemicals, drugs, and cosmetics through the skin; and provide a designed release of active ingredients with a prescribed depth of skin penetration.

The Company has developed commercially unique and innovative targeted skin delivery systems for topical pharmacology. The Company's technology limits unwanted side effects that can occur as a result of absorption through the skin. The penetration of chemicals through the skin can have serious impact on the body's organs and systems. The Company's current applications include anti-bacterial/viral sanitizers/soaps, sunscreens, pest-repellents, and healing cosmetic lotions. For consumers, it provides elegant skin delivery of topically applied drugs and cosmetics. This combined end purpose is the unique foundation of the Company's technology.

Effective December 19, 2022, the date of filing of the Certificate of Amendment with the Nevada Secretary of State, the total number of shares the Company is authorized to issue is 120,000,000, consisting of 100,000,000 shares of common stock, having a par value of $0.001 and 20,000,000 shares of Preferred Stock, having a par value of $0.001.

On December 1, 2021, the Company effected a 2 for 1 split of its outstanding shares of common stock. All shares and per share amounts and information presented herein have been retroactively adjusted to reflect the stock split for all periods presented.

*COVID-19 Considerations*

Through the date these financial statements were issued, the COVID-19 pandemic has significantly impacted the Company's operating results. Due to COVID-19, the Company experienced reduced demand for its products in its domestic and international markets. Marketing programs planned for 2020 were curtailed by the lockdowns related to the epidemic. These included: AVP Beach Volleyball, NASCAR and golf tournaments events were all cancelled and/or postponed until 2021. In many locations, beaches and outdoor activities were also restricted which again limited sunscreen sales. Since the Company has only limited online presence, which is directly related to sport event marketing, sales were seriously affected.

The Company is however, recently experiencing an improving trend in customer orders from both its domestic and international markets. As lockdowns are gradually lifted, more outdoor activities are allowed resulting in increasing sales. In the future, the pandemic may cause reduced demand for the Company's products. Should the pandemic result in a recessionary economic environment, consumers who purchase the Company's products will be negatively affected. The Company has not observed any material impairments of its assets or a significant change in the fair value of its assets due to the COVID-19 pandemic.

The Company's ability to operate without significant negative operational impact from the COVID-19 pandemic will in part depend on its ability to protect its employees and its supply chain. The Company has endeavored to follow the recommended actions of government and health authorities to protect its employees. However, the uncertainty resulting from the COVID-19 pandemic could result in an unforeseen disruption to its workforce and supply chain (for example, an inability of a key supplier or transportation supplier to source and transport materials) that could negatively impact operations.

 

 

*Going Concern*

The Company's financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, the generation of sales revenue, the realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the financial statements, during the year ended December 31, 2022, the Company incurred a net loss of $6,560,000, and used net cash in operating activities of $880,000 and had a stockholders' deficit of $517,000 on December 31, 2022. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued without a further influx of equity capital, growth of sales or issuance of debt or a combination of these capital inflows. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

At December 31, 2022, the Company had cash on hand of $9,000. During the year ended December 31, 2022, the Company received proceeds of $683,000 from the sales of its common stock, $168,000 of proceeds from the exercise of stock options, and proceeds of $123,000 from notes payable. The ability of the Company to continue as a going concern is and has been dependent on the Company's ability to execute its strategy and in its ability to raise additional funds and expand revenue from sales. Management is currently seeking additional operating funds, primarily through the issuance of equity securities to expand its marketing and overall business development. No assurance can be given that any future financing will be successful or, the funding will be adequate for the Company to achieve its goals. Even if the Company can obtain additional financing, it may place restrictions on management. Substantial dilution for stockholders may occur from the structuring of either equity or debt financing.

**2.** **Summary of Significant Accounting Policies** 

*Revenue Recognition*

The Company products are sold under the brand name *KLENSKIN®,* which consists of distinct sunscreen products titled SPF 30 Shampoo, Face and Body Wash, SunBar SPF 20 Bar Soap, Broad Spectrum SPF 50 Lotion, and a hand sanitizer and insect repellant. The products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. Contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. The Company does offer a general right of return, but historically the return rates have been insignificant.

The Company recognizes revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. This standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services.

Under this guidance, revenue is recognized when control of promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company reviews its sales transactions to identify contractual rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations, if applicable. Revenue and costs of sales are recognized once products are delivered to the customer's control and performance obligations are satisfied.

 

*Revenue Concentrations*

The Company performs a regular review of customer activity and associated credit risks and does not require collateral or other arrangements.

During the years ended December 31, 2022 and 2021, sales to Advanced Dermatology Care Center, a dermatology practice owned and sold in November 2022 by Dr. Laura Cohen, the Company's Chief Executive Officer, accounted for 6% and 24% of Company's revenue, respectively.

During the years ended December 31, 2022 and 2021, one international customer accounted for 38% and 14% of the Company's revenue, respectively.

No other customers accounted for more than 10% of revenues during the years ended December 31, 2022 and 2021.

*Stock-Based Compensation*

The Company periodically issues stock options to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, *Compensation-Stock Compensation* whereby the value of the award is measured on the date of grant and recognized for employees as compensation expense on the straight-line basis over the vesting period. The Company recognizes the fair value of stock-based compensation within its Statements of Operations with classification depending on the nature of the services rendered.

The fair value of each option or warrant grant is estimated using the Black-Scholes option-pricing model. The Company is a private company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies within the consumer product industry with characteristics similar to the Company. The expected term of the Company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is zero, based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

During the years ended December 31, 2022 and 2021, shares of the Company's common stock were not publicly traded. As such, during the period, the Company estimated the fair value of common stock using an appropriate valuation methodology, in accordance with the framework of the American Institute of Certified Public Accountants' Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation. Each valuation methodology includes estimates and assumptions that require the Company's judgment. These estimates and assumptions include a number of objective and subjective factors, including external market conditions, guideline public company information, the prices at which the Company sold its common stock to third parties in arms' length transactions, the rights and preferences of securities senior to the Company's common stock at the time, and the likelihood of achieving a liquidity event such as an initial public offering or sale. Significant changes to the assumptions used in the valuations could result in different fair values of stock options at each valuation date, as applicable.

 

*Fair Value Measurements*

The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by ASC Topic 820 - *Fair Value Measurements and Disclosure* defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets:

Level 1—Quoted prices in active markets for identical assets or liabilities;

Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3—Unobservable inputs based on the Company's assumptions.

The Company is required to use observable market data if such data is available without undue cost and effort. At December 31, 2022 and 2021, the carrying amounts of financial assets and liabilities, such as cash, accounts receivable, inventory, other assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature. The carrying values of notes payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates.

 ****

 ****

*Basic and Diluted Net Loss per Share of Common Stock*

Basic net loss per share is computed by using the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed giving effect to all dilutive potential shares of Common Stock that were outstanding during the period. Dilutive potential shares of Common Stock consist of incremental shares of Common Stock issuable upon exercise of stock options. No dilutive potential shares of Common Stock were included in the computation of diluted net loss per share because their impact was anti-dilutive. As of December 31, 2022, and 2021, the Company had total outstanding options of 13,386,498 and 11,090,894, respectively, which were excluded from the computation of net loss per share because they are anti-dilutive.

*Use of Estimates*

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 may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions include estimates for reserves of uncollectible accounts, reserves for inventory obsolescence, analysis of impairments of long-lived assets, accruals for potential liabilities, and valuation of deferred tax assets. Actual results could differ from those estimates.

 

*Intangible assets*

 

Intangible assets acquired separately are reported at cost less accumulated amortization (where they have finite useful lives) and accumulated impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives are not amortized. Each period, the useful lives of such assets are reviewed to determine whether events and circumstances continue to support an indefinite useful life assessment for the asset. Such assets are tested for impairment annually.

*Deferred Offering Costs*

Deferred offering costs consist principally of legal, accounting, and underwriters' fees incurred related to equity financings. These deferred offering costs are deferred and then charged against the gross proceeds received once the equity financing occurs or are charged to expense if the financing does not occur.

*Research and Development*

Research and development costs are expensed as incurred. Research and development expenses for the years ended December 31, 2022 and 2021, were $244,000 and $181,000, respectively.

*Advertising Costs*

Advertising costs are charged to operations as part of selling, general and administrative expenses at the time the costs are incurred. Advertising costs for the years ended December 31, 2022 and 2021, were $543,000 and $278,000, respectively.

*Patent and Licensing Legal and Filing Fees and Costs*

 

Due to the significant uncertainty associated with the successful development of one or more commercially viable products based on the Company's research efforts and related patent applications, all patent and licensing legal and filing fees and costs related to the development and protection of its intellectual property are charged to operations as incurred. Patent and licensing legal and filing fees and costs were $38,000 and $71,000 for the years ended December 31, 2022 and 2021, respectively. Patent and licensing legal and filing fees and costs are included in general and administrative costs in the Company's statements of operations.

 

*Concentration of Credit Risk*

The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. During the year ended December 31, 2022, the Company had cash deposits that exceeded the federally insured limit of $250,000. The Company believes that no significant concentration of credit risk exists with respect to these cash balances because of its assessment of the creditworthiness and financial viability of the financial institution.

*Inventories*

Inventories are stated at the lower of cost or net realizable value. Cost is computed on a first-in, first-out basis. The Company's inventories consist almost entirely of finished goods as of December 31, 2022.

The Company provides inventory reserves based on excess and obsolete inventories determined primarily by future demand forecasts. The write down amount is measured as the difference between the cost of the inventory and net realizable value based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. At December 31, 2022, the Company recorded a reserve of $20,000 for excess and obsolete inventory.

 

*Recent Accounting Pronouncements*

In September 2016, the FASB issued Accounting Standards Update ("ASU") 2016-13, Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments ("ASC 2016-13"). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses to estimate credit losses on certain types of financial instruments, including trade receivables, which may result in the earlier recognition of allowance for losses. ASU 2016-13 is effective beginning January 1, 2023, and early adoption is permitted. The adoption of ASU 2016-13 is not expected to have any impact on the Company's financial statement presentation or disclosures.

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options ("ASU 2021-04"). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 did not have any impact on the Company's financial statement presentation or disclosures.

Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company's financial statement presentation or disclosures.

**3.** **Intangible Assets** 

Intangible asset consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Acquired technology (patents) | $15000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Accumulated amortization | (1000) | - |
| Total Intangible Assets, net of amortization | $14000 | $- |

---

In September 2022, the Company acquired technology from an Australian company, S G Ventures Pty, Limited, for international issued and pending intellectual property ("IP") covering a transdermal delivery system for pharmaceuticals, chemicals, and over the counter treatments. The total cost of this acquisition was $15,000, which includes ongoing patent processing. This new family of IP presents claims that cover a new method of making nanofibrous mats (a type of gauze) which are uniquely constructed with ceramic encapsulates that contain releasable substances.

During the year ended December 31, 2022 and 2021, the Company recorded amortization expense of $1,000 and $0, respectively. The following table summarizes the amortization expense to be recorded in future periods for intangible assets that are subject to amortization:

---

| | |
|:---|:---|
| **Year Ending** | **Amortization** |
| 2023 | $5000 |
| 2024 | 5000 |
| 2025 | 4000 |
| &nbsp;&nbsp;&nbsp;Total | $14000 |

---

**4.** **Lease Payable** 

The Company determines whether a contract is, or contains, a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset during the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company leases its headquarters office, and certain office equipment and automobiles. Leases with an initial term of 12 months or less are not included on the balance sheets.

During the year ended December 31, 2021, the Company entered an office lease in Sarasota, Florida, for its research and development activities. The Sarasota lease was a 24-month lease ending on November 30, 2022, and was recently extended for an additional 12-month period expiring on November 30, 2023. The Company also leases its corporate administrative office and warehouse facility located in Huntington Beach, California, on a month-to-month basis. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for the lease and non-lease components of its leases as a single lease component. Rent expense is recognized on a straight-line basis over the lease term.

During the years ended December 31, 2022 and 2021, lease costs totaled $50,000 and $44,000, respectively.

During the year ended December 31, 2022, the Company recorded a reduction of ROU assets of $8,000 related to its leases, resulting in no remaining ROU asset balance at December 31, 2022.

As of December 31, 2020, lease liabilities totaled $21,000. During the year ended December 31, 2021, the Company added the Sarasota operating lease of $17,000 and made payments of $29,000 towards its operating lease liability. As of December 31, 2021, operating lease liabilities totaled $9,000. During the year ended December 31, 2022, the Company made its remaining operating lease payments of $9,000, leaving no operating lease liability balance remaining at December 31, 2022.

**5.** **Loans Payable** 

The table below displays the Company's notes payable balances as of December 31, 2022 and December 31, 2021, respectively.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Celtic Bank Term Loan (a) | $49000 | $- |
| Celtic Bank Line of Credit (b) | 62000 |  |
| Economic Injury Disaster Loan (EIDL) (c) | 42000 | 42000 |
| Total Loan Balance | 153000 | 42000 |
| Short Term Balance | 114000 | 3000 |
| Long Term Balance | $39000 | $39000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 October 12, 2022, the Company entered in a Promissory Note (the "Note") with Celtic Bank. The principal loan amount was
 $58,000, with a 12-month term, to be repaid weekly at $1,418 per week, over a 52-week period. The Note has an annual interest rate
 of 55.16% and is personally guaranteed to Dr. Laura Cohen, the Company's Chief Executive Officer. During the year ended December
 31, 2022, the Company made principal payments of $9,000, leaving a principal balance owed of $49,000 at December 31, 2022, of which
 $49,000 were reflected as the current portion of note payable.

&nbsp;&nbsp;&nbsp;&nbsp;(b) On
 October 13, 2022, the Company entered in a $65,000 Line of Credit Agreement (the "LOC") with Celtic Bank, with a 12-month
 term, to be repaid weekly at $1,707 per week, over a 52-week period. The LOC has an annual interest rate of 64.80% and is personally
 guaranteed to Dr. Laura Cohen, the Company's Chief Executive Officer. During the year ended December 31, 2022, the Company
 made principal payments of $3,000, leaving a principal balance owed of $62,000 at December 31, 2022, of which $62,000 were reflected
 as the current portion of note payable.

(c) On
 June 2, 2020, the Company obtained an Economic Injury Disaster Loan in the amount of $42,000, pursuant to the Small Business Administration
 (SBA) authorized (under Section 7(b)) of the Small Business Act, as amended. Interest on the loan is at the rate of 3.75% per year,
 and all loan payments are deferred for twelve months, at which time monthly installment payments are payable over 30 years from the
 date of the promissory note. The promissory note is secured by all the assets of the Company. The Company will use all the proceeds
 of this Loan solely as working capital to alleviate economic injury caused by COVID-19. At December 31, 2021, the balance on the
 loan was $42,000, of which $3,000 were reflected as the current portion of note payable. During the year ended December 31, 2022,
 the Company made nominal principal payments leaving the balance on the loan of $42,000, of which $3,000 were reflected as
 the current portion of note payable.

The following table displays the Company's schedule of future principal payments.

---

| | |
|:---|:---|
| **Year Ending** | **Principal** |
| 2023 | $114000 |
| 2024 | 3000 |
| 2025 | 3000 |
| 2026 | 3000 |
| 2027 and thereafter | 30000 |
| Total | $153000 |

---

**6.** **Stockholders' Equity** 

The Company amended its Articles of Incorporation through the filing of a Certificate of Amendment with the Nevada Secretary of State on December 19, 2022, to increase its authorized shares to 120,000,000, consisting of 100,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share, 2,000,000 of which have been designated as Series A Preferred Stock.

**Common Stock**

Each holder of the Company's common stock is entitled to one vote per each share on all matters to be voted upon by the common shareholders, and there are no cumulative voting rights. Subject to applicable law and the rights, if any, of the holders of outstanding shares of any series of preferred stock designated and issued in the future, holders of common stock are entitled to vote on all matters on which shareholders generally are entitled to vote. Subject to the rights, if any, of the holders of outstanding shares of any series of preferred stock the Company may designate and issue in the future, holders of the Company's common stock will be entitled to receive ratably the dividends, if any, as may be declared from time to time by the Board of Directors out of funds legally available for that purpose. If there is a liquidation, dissolution, or winding up of the Company, subject to the rights, if any, of the holders of outstanding shares of any series of preferred stock designated and issued in the future, holders of common stock would be entitled to ratable distribution of the assets remaining after the payment in full of liabilities.

Under the terms of its governing documents, the holders of the Company's common stock have no preemptive or conversion rights or other subscription rights, and there is no redemption or sinking fund provisions applicable to the common stock. All currently outstanding shares of common stock are fully paid and non-assessable. The rights of the holders of the Company's common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that is designated and issued in the future.

**Preferred Stock**

The Company has authorized 20,000,000 shares of preferred stock, par value $0.001, 2,000,000 of which are designated as Series A Preferred Stock. The Company's Articles of Incorporation authorize its Board of Directors to establish one or more series of preferred stock. Unless required by law or any stock exchange, the authorized but unissued shares of preferred stock will be available for issuance without further action by the Company's shareholders. The Company's Board of Directors is authorized to divide the preferred stock into series and, with respect to each series, to fix and determine the designation, terms, preferences, limitations, and relative rights thereof, including dividend rights, dividend rates, conversion rights, voting rights, redemption rights and terms, liquidation preferences, sinking fund provisions and the number of shares constituting the series. Without shareholder approval, the Company could issue preferred stock that could impede or discourage an acquisition attempt or other transaction that some, or a majority, of the Company's shareholders may believe is in their best interests or in which they may receive a premium for their common stock over the market price of the common stock.

**Series A Preferred Stock**

The Company has designated 2,000,000 shares for its Series A Convertible Preferred Stock (the "Series A Preferred Stock").

*Rank*. The Series A Preferred Stock ranks: (i) senior to any other class or series of outstanding Preferred Stock or classes of capital stock; (ii) prior to all common stock; and (iv) prior to any other class or series of capital stock created after the Series A Preferred Stock ("Junior Securities"), and will rank as such with respect to distributions, if any.

 

*Dividends*. The Series A Preferred Stock will have no dividends, except that in the event dividends are declared for common stock, the same rate of dividend per share shall be due and payable to the holders of the Series A Preferred Stock (each a "Holder" and collectively the "Holders") on the same terms which the Holder would have been entitled to receive had the Series A Preferred Stock been already converted into common stock on the date the dividend was then declared.

*Liquidation.* In the event of any Liquidation Event, either voluntary or involuntary, the Holders of shares of Series A Preferred Stock will be entitled to receive, prior in preference to any distribution to common stock or other Junior Securities, an amount per share equal to $5.00 plus any allocable and due dividends per share.

*Conversion Option*. Upon a Liquidation Event, or at the option of the Holder, in the Holder's sole discretion, any Holder of Series A Preferred Stock shall be entitled to convert the shares of Series A Preferred Stock into common stock; provided, however, that the minimum number of shares of Series A Preferred Stock that the Holder may convert to common stock at any given time is 1,000 shares.

*Conversion Price*. The "Conversion Price" shall be: (A) 70% of the Last Reported Sales Price, whereby the "Last Reported Sale Price" means the closing sale price per share (or, if no closing sale price is reported, the average of the last bid price and the last ask price per share or, if more than one in either case, the average of the average last bid prices and the average last ask prices per share) of common stock on such Trading Day as reported by the U.S. national securities exchange on which the common stock is then listed, or if the common stock is not listed on a U.S. national securities exchange on such Trading Day, then the Last Reported Sale Price will be the last quoted bid price per share of common stock on such Trading Day in the over-the-counter market as reported by OTC Markets Group Inc. or a similar organization; provided, however, that in the event that the Conversion Price is calculated to be less than $1.75, then the Conversion Price shall be $1.75, subject to adjustment; or (B) in the event that the common stock is neither listed on a U.S. national securities exchange nor quoted in an over-the-counter market, then the Conversion Price shall be $3.00, subject to adjustment.

*No Fractional Shares*. If any conversion of the Series A Preferred Stock would create a fractional share of common stock or a right to acquire a fractional share of common stock, such fractional share shall be disregarded and the number of shares of common stock issuable upon conversion, in the aggregate, shall be rounded up to the nearest whole share.

*Adjustment.* The Conversion Price will be subject to adjustments for stock dividends, splits, combinations, and similar events.

*No Voting Rights*. The holders of the Series A Preferred Stock shall have no voting rights, unless required by law.

*Call Provision*. The Company has the right to redeem from the Holders some or all of the then outstanding shares of Series A Preferred Stock, at any time and from time to time (each, a "Redemption Date"), for cash in an amount equal to $5.50 per share of Series A Preferred Stock (the "Redemption Price").

*Registration Rights*. If at any time on or after the issuance date of the Series A Preferred Stock, there is no effective registration statement registering, or no current prospectus available for, the resale of the shares of common stock issuable upon the conversion of the shares of Series A Preferred Stock, and the Company proposes to file a registration statement ("Registration Statement") with respect to any offering of securities, the Company will offer the Holders the opportunity to register the sale of such number of shares of common stock issuable upon conversion of the Series A Preferred Stock in any such Registration Statement (a "Piggyback Registration") as such Holders may request (collectively, the "Registrable Securities"). The Company will cause such Registrable Securities to be included in such Piggyback Registration, subject to certain restrictions in the event that the Piggyback Registration is for an underwritten offering. then the Company will be required to include in the Piggyback Registration only that number of Registrable Securities that the underwriters determine in their sole discretion will not jeopardize the success of the offering, provided that the Registrable Securities so included to be apportioned pro rata among the selling Holders, along with customary "lock-up" agreements in favor of the underwriter.

**Private Offerings**

During the year ended December 31, 2022, the Company received aggregate proceeds of $683,000 from the sale of 248,000 shares of common stock.

During the year ended December 31, 2021, the Company received aggregate proceeds of $882,000 from the sale of 417,500 shares of common stock. At December 31, 2021, 60,000 shares of common stock valued at $165,000 were classified as common stock issuable on the balance sheet at December 31, 2021. The 60,000 shares classified as common stock issuable were issued during the year ended December 31, 2022.

**Shares Issued for Services**

During the year ended December 31, 2022, the Company issued 21,000 shares of common stock with a fair value of $58,000 for services.

**2022 Restricted Stock Plan**

The 2022 Restricted Stock Plan was adopted by the Company's Board of Directors on October 26, 2022 and approved by the shareholders on December 14, 2022 (the "2022 Restricted Stock Plan"). The 2022 Restricted Stock Plan provides for the grant of common stock awards and performance awards to officers, directors, and key employees or of any subsidiary corporation. The 2022 Restricted Stock Plan is intended to provide incentives which will attract, retain, motivate, and reward officers, directors, and key employees or any of Affiliates ("Participants"), by providing them opportunities to acquire shares of Company common stock. The aggregate number of shares of common stock that may be subject to Awards granted under the 2022 Restricted Stock Plan is 10,000,000 shares of common stock. If any shares of common stock are forfeited, retained by the Company as payment of tax withholding obligations with respect to an Award, or surrendered to the Company to satisfy tax withholding obligations, such shares of common stock will be added back to the shares available for Awards. The 2022 Restricted Stock Plan contains certain adjustment provisions relating to stock dividends, stock splits, and the like. During the year ended December 31, 2022, no awards were granted pursuant to the 2022 Restricted Stock Plan.

**2022 Stock Option Plan**

The 2022 Incentive and Nonstatutory Stock Option Plan was adopted by the Company's Board of Directors on October 26, 2022 and approved by the shareholders on December 14, 2022 (the "2022 Stock Option Plan"). The 2022 Stock Option Plan provides for the grant of incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), to employees and the employees of any future subsidiary corporation, and for the grant of non-statutory stock options to non-employees, including directors and other service providers. A total of 10,000,000 shares of common stock have been reserved for issuance pursuant to the exercise of options issued from the 2022 Stock Option Plan. During the year ended December 31, 2022, no options were granted pursuant to the 2022 Stock Option Plan.

A summary of the stock options for the years ended December 31, 2022 and 2021, is as follows:

---

| | | |
|:---|:---|:---|
|  |<br>**Number**<br>**Of**<br>**Options** | **Weighted**<br>**Average**<br>**Exercise**<br>**Price** |
| Balance outstanding, December 31, 2020 | 11300000 | $0.55 |
| Options granted |  |  |
| Options exercised | (209106) | 0.55 |
| Options expired or forfeited | - | - |
| Balance outstanding, December 31, 2021 | 11090894 | 0.56 |
| Options granted | 2630000 | 2.23 |
| Options exercised | (334396) | 0.50 |
| Options expired or forfeited | - | - |
| Balance outstanding, December 31, 2022 | 13386498 | $0.89 |
| Balance exercisable, December 31, 2022 | 13386498 | $0.89 |

---

Information relating to outstanding stock options at December 31, 2022, summarized by exercise price, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Outstanding** | **Outstanding** | **Outstanding** | **Exercisable** | **Exercisable** |
|<br><br>**Exercise Price Per Share** |<br>**Shares** |<br>**Life**<br> **(Years)** | **Weighted**<br>**Average**<br>**Exercise**<br> **Price** |<br>**Shares** | **Weighted**<br>**Average**<br>**Exercise** <br> **Price** |
| $0.50 | 9176498 | 7.31 | $0.50 | 9176498 | $0.50 |
| $0.90 | 1580000 | 10.60 | $0.90 | 1580000 | $0.90 |
| $1.50 | 1100000 | 4.50 | $1.50 | 1100000 | $1.50 |
| $2.75 | 1530000 | 4.50 | $2.75 | 1530000 | $2.75 |
|  | 13386498 | 7.15 | $0.89 | 13386498 | $0.89 |

---

During the year ended December 31, 2022, the Company received proceeds of $168,000 on the exercise of 334,396 stock options.

During the 12 months ended December 31, 2021, the Company received proceeds of $105,000 on the exercise of 209,106 stock options. As the shares of common stock from the exercise of stock options were not issued at December 31, 2021, the Company reclassified the common stock as a component of common stock issuable on the balance sheet at December 31, 2021. The 209,106 shares of common stock from the exercise of stock options were issued during the year ended December 31, 2022.

During the year ended December 31, 2022, the Company granted its employees, officers, directors, and select contractors, aggregate options to purchase 2,630,000 shares of common stock, at a weighted average exercise price of $2.23 per share of common stock, with immediate vesting at date of grant, and an expiration period of five years. The total fair value of these options at grant date was approximately $5,154,000, which was determined using a Black-Scholes-Merton option pricing model with the following weighted average assumptions: fair value of stock price of $2.75 per share, based on the Company's current private offering price, the expected term of three years, volatility of 110%, dividend rate of 0%, and risk-free interest rate of 2.99%.

As of December 31, 2022, the Company had no outstanding unvested options with future compensation costs. As of December 31, 2022, both the outstanding and exercisable options had an intrinsic value of approximately $24,945,000.

**7.** **Commitments and Contingencies** 

<u>Employment Agreements with Named Executive Officers</u>

*Compensation for Laura Cohen*

 

Effective as of October 1, 2022, the Company entered into an Executive Employment Agreement with Laura Cohen, as its Chief Executive Officer for a term of one year, subject to automatic renewal for additional one year periods. Dr. Cohen is entitled to a base salary of $120,000 per annum, and is eligible for an annual cash bonus and to participate in the Company's equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which Dr. Cohen would be entitled to a severance payment of (a) one year's Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date, as well as reimbursement of 24 consecutive months of COBRA costs. Prior to entering into the Employment Agreement in 2022, Dr. Cohen was issued 180,000 stock options with a fair value of approximately $349,000 with a weighted average exercise price of $2.33 per share (see Note 6).

*Compensation for Lisa LeBlanc*

 

Effective as of October 1, 2022, the Company entered into an Executive Employment Agreement with Lisa LeBlanc, as its President for a term of one year, subject to automatic renewal for additional one year periods. Ms. LeBlanc is entitled to a base salary of $114,000 per annum, and is eligible for an annual cash bonus and to participate in the Company's equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which Ms. LeBlanc would be entitled to a severance payment of (a) three times her then current Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date; as well as reimbursement of 36 consecutive amounts of COBRA costs. Prior to entering into the Employment Agreement in 2022, Ms. LeBlanc was issued 180,000 stock options with a fair value of approximately $349,000 with a weighted average exercise price of $2.33 per share (see Note 6).

*Compensation for William Cohen*

Effective as of October 1, 2022, the Company entered into an Executive Employment Agreement with William Cohen, as its Chief Financial Officer for a term of one year, subject to automatic renewal for additional one year periods. Mr. Cohen is entitled to a base salary of $108,000 per annum, and is eligible for an annual cash bonus and to participate in the Company's equity incentive plans, according to the recommendation of the Compensation Committee and approval of the Board. The Executive Employment Agreement provides for various termination events, including termination without cause or for good reason (both as defined in the agreement), under which Mr. Cohen would be entitled to a severance payment of (a) one year's Base Salary; (b) the average annual cash bonus for the three preceding completed years; and (c) the target long-term incentive award for the year of the Termination Date, as well as reimbursement of 24 consecutive months of COBRA costs. Prior to entering into the Employment Agreement, Mr. Cohen was compensated in stock options. In 2022, Mr. Cohen was issued 800,000 stock options with a fair value of approximately $1,584,000 (200,000 stock options for each year of his services as Chief Development Officer) with a weighted average exercise price of $2.13 per share (see Note 6).

**8.** **Income Taxes** 

Reconciliation between the expected federal income tax rate and the actual tax rate is as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** |
| Federal statutory tax rate | 21% | 21% |
| State tax, net of federal benefit | 7% | 7% |
| Total tax rate | 28% | 28% |
| Allowance | (28)% | (28)% |
| Effective tax rate | -% | -% |

---

The following is a summary of the deferred tax assets:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** |
| Net operating loss carryforwards | $2195000 | $1818000 |
| Valuation allowance | (2195000) | (1818000) |
| Net deferred tax asset | $- | $- |

---

The Company has no tax provision for any period presented due to its history of operating losses. As of December 31, 2022, the Company had net operating loss carryforwards of approximately $7,841,000 that may be available to reduce future years' taxable income through 2042. Future tax benefits which may arise because of these losses have not been recognized in these financial statements, as management has determined that their realization is not likely to occur and accordingly, the Company has recorded a valuation allowance for the full value of the deferred tax asset relating to these tax loss carry-forwards.

The Company adopted accounting rules which address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under these rules, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. These accounting rules also provide guidance on de-recognition, classification, interest, and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2022, no liability for unrecognized tax benefits was required to be recorded.

As of December 31, 2022, there have been no allowances for the possibility of research and development tax credits, as the Company has not reached profitability. If the Company reaches profitability in the future, research and development tax credits may be available to the Company.

**9.** **Related Party** 

Advanced Dermatology Care Center, Inc. ("ADCC") is a significant related wholesale purchaser of Klēnskin™ products. These products are ordered and sold to patients of ADCC and the Company's clients. ADCC is a general dermatology practice previously owned by the Company's Chief Executive Officer, Laura Cohen, MD. The products sold to ADCC are to enhance skin protection from sun exposure to patients who have sun damaged skin. During the years ended December 31, 2022 and 2021, sales to ADCC accounted for approximately 6% and 24% of the Company's annual revenue, respectively. In November 2022, Dr. Cohen sold ADCC to an unrelated third party.

The Chief Executive Officer, President, and Chief Financial Officer of the Company are all related. Dr. Laura Cohen and William Cohen are wife and husband, and Lisa LeBlanc is their daughter (collectively, the "Cohen Family"). The Cohen Family collectively owns approximately 75% of the Company's outstanding common stock.

**10.** **Subsequent Events** 

The Company has evaluated subsequent events occurring from January 1, 2023, through March 24, 2023, the date the financial statements were issued.

Subsequent to December 31, 2022, the Company received proceeds of approximately $129,000 from Dr. Laura Cohen, the Company's Chief Executive Officer, on the exercise of 258,740 stock options.

Subsequent to December 31, 2022, the Company received proceeds of $300,000 from the sale of 60,000 shares of the Company's Series A Preferred Stock.

**1,300,000** **Shares of**

**Common Stock**

![](forms1_001.jpg)

**COLABS INT'L, CORP.**

**PROSPECTUS**

---

| | |
|:---|:---|
| **Craft Capital Management LLC** | **R.F. Lafferty & Co., Inc.** |

---

[ ], 2023

Through and including [ ], 2023 (the 25th day after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13.** **Other Expenses of Issuance and Distribution.**

The following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable in connection with the sale of common stock being registered. All amounts shown are estimates, except the U.S. Securities and Exchange Commission registration fee and Financial Industry Regulatory Authority filing fee.

---

| | |
|:---|:---|
| **Description** | **Amount** |
| U.S. Securities and Exchange Commission registration fee | $901 |
| Financial Industry Regulatory Authority filing fee | $4000 |
| Nasdaq listing fee (1) | $75000 |
| Accounting fees and expenses | $50000 |
| Legal fees and expenses | $150000 |
| Transfer agent and registrar fees and expenses | $3000 |
| Printing expenses | $10000 |
| Accountable expenses of the Underwriter (excluding legal fees) | $100000 |
| Non-accountable expenses of the Underwriter | $200000 |
| Miscellaneous | $7099 |
| Total | $600000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes Nasdaq initial
 application fee of $5,000. Additional listing fees payable to Nasdaq upon listing based on total shares outstanding. See NASDAQ Listing
 Rule 5910.

**Item 14.** **Indemnification of Directors and Officers.**

Sections 78.751 and 78.7502 of the Nevada Revised Statutes (NRS) provides that directors and officers of Nevada corporations may, under certain circumstances, be indemnified against expenses (including attorneys' fees) and other liabilities actually and reasonably incurred by them as a result of any suit brought against them in their capacity as a director or officer, if they acted in good faith and in a manner that they reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, if they had no reasonable cause to believe their conduct was unlawful. Section 78.7502 of the NRS also provides that directors and officers of Nevada corporations may also be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by them in connection with a derivative suit if they acted in good faith and in a manner that they reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification may be made without court approval if such person was adjudged liable to the corporation.

Section 78.751 of the NRS states that any discretionary indemnification pursuant to NRS 78.7502, unless ordered by a court or advanced pursuant to subsection 2, may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. Such determination must be made by: (a) the stockholders; (b) the Board of Directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding; (c) if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion; or (d) if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.

Article XIV of our bylaws provides that we shall, to the fullest extent permitted by the laws of the State of Nevada, indemnify our directors, officers and certain other persons, and that we shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation against any liability asserted against such person in any such capacity or arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the NRS.

**Item 15.** **Recent Sales of Unregistered Securities.**

In connection with each of the following unregistered sales and issuances of securities, except as otherwise provided below, the Company relied upon the exemption from registration provided by Section 4(a)(2) of the Securities Act for transactions not involving a public offering.

***a) Issuance of Capital Stock.***

On May 24, 2021, we commenced a qualified Tier II offering (the "Tier II Offering") of our common stock under Regulation A of the Securities Act with proceeds of up to $50 million available under the Tier II Offering with an original price of $3.25 per share. We terminated the Tier II Offering on July 13, 2022. We sold a total of 5,500 shares of common stock for $17,875.

Between January 2019 and January 2021, we sold 5,800,000 shares of common stock to nine accredited investors, at a purchase price of $0.50 per share, for aggregate proceeds of $2,900,000. We made the offering pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, promulgated under the Securities Act, where each purchaser was an "accredited investor" within the meaning of Rule 501 of Regulation D.

Between January 2019 and January 2021, we sold 800,000 shares of common stock to three accredited investors, at a purchase price of $0.90 per share, for aggregate proceeds of $720,000. We made the offering pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, promulgated under the Securities Act, where each purchaser was an "accredited investor" within the meaning of Rule 501 of Regulation D.

Between January 2019 and January 2021, we sold 1,390,000 shares of common stock to 25 accredited investors, at a purchase price of $1.50 per share, for aggregate proceeds of $2,085,000. We made the offering pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, promulgated under the Securities Act, where each purchaser was an "accredited investor" within the meaning of Rule 501 of Regulation D.

Between August 2021 and July, 2022, we sold 450,000 shares of common stock to ten accredited investors, at a purchase price of $2.75 per share, for aggregate proceeds of $1,287,500. We made the offering pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, promulgated under the Securities Act, where each purchaser was an "accredited investor" within the meaning of Rule 501 of Regulation D.

On February 24, 2023, we closed a private offering of 60,000 shares of our Series A Convertible Preferred Stock ("Series A Preferred Stock") sold to three accredited investors at a purchase price of $5.00 per share for total gross proceeds to us of $300,000. We made the offering pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act and Rule 504 of Regulation D, promulgated under the Securities Act, where each purchaser was an "accredited investor" within the meaning of Rule 501 of Regulation D.

***(b) Option Grants.***

On June 30, 2022, we granted our employees, officers, directors, and certain independent contractors, aggregate options to purchase 2,630,000 shares of common stock, at a weighted average exercise price of $2.23 per share of common stock, with immediate vesting at date of grant, and an expiration period of five years.

No other stock options were granted over the past three years.

The options described above were deemed exempt from registration in reliance on Section 4(a)(2) of the Securities Act or Rule 701 promulgated thereunder as transactions pursuant to benefit plans and contracts relating to compensation as provided under Rule 701.

***(a) The following exhibits are filed as part of this Registration Statement and are numbered in accordance with Item 601 of Regulation S-K:***

See the Exhibit Index immediately preceding the Signature Page.

 ****

***(b) Financial Statement Schedules:***

See our Financial Statements starting on page F-1. All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required, are inapplicable or the information is included in the financial statements, and have therefore been omitted.

**Item 17.** **Undertakings.**

The undersigned registrant (the "Registrant") hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to the 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 SEC such indemnification is against public policy as expressed in the Securities 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 Securities Act and will be governed by the final adjudication of such issue.

The Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) 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.

(2) That, for the purpose of determining liability of the
 registrant under the Securities Act of 1933 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;a. Any preliminary prospectus
 or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

b. 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;

c. 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

d. Any other communication
 that is an offer in the offering made by the undersigned registrant to the purchaser.

The Registrant hereby further undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;(1) For
 purposes of determining any liability under the Securities Act of 1933, as amended, 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 of 1933, as amended, shall be deemed to be part of this Registration
 Statement as of the time it was declared effective.

(2) For
 the purpose of determining any liability under the Securities Act of 1933, as amended, 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.

**EXHIBIT INDEX**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Exhibit** |  | **Description** | **Form** | **Exhibit** | **Filing Date** | **Filed Herewith** |
| 1.1 | \* | Form of Underwriting Agreement between the Company and Craft Capital Management LLC and R.F. Lafferty & Co., Inc. |  |  |  |  |
| 2.1 |  | [Articles of Incorporation of the Company, dated August 5, 2008](https://www.sec.gov/Archives/edgar/data/1584879/000149315221010230/ex2-1.htm) | 1-A | 2.1 | 04/30/2021 |  |
| 2.2 |  | [Amended Articles of Incorporation, dated April 27, 2012](https://www.sec.gov/Archives/edgar/data/1584879/000149315221010230/ex2-2.htm) | 1-A | 2.2 | 04/30/2021 |  |
| 2.3 |  | [Amended Articles of Incorporation, dated January 12, 2021](https://www.sec.gov/Archives/edgar/data/1584879/000149315221010230/ex2-3.htm) | 1-A | 2.3 | 04/30/2021 |  |
| 2.4 |  | [Amended Articles of Incorporation, dated December 19, 2022](ex2-4.htm) |  |  |  | X |
| 2.5 |  | [Second Amended and Restated Bylaws of the Company](ex2-5.htm) |  |  |  | X |
| 2.6 |  | [Certificate of Designation of Series A Convertible Preferred Stock, dated February 14, 2023](ex2-6.htm) |  |  |  | X |
| 4.1 | \* | Form of Representative Warrant |  |  |  |  |
| 4.2 |  | [Distribution Agreement between CoLabs Int'l Corp and Spero Pte Ltd., dated March 23, 2021](https://www.sec.gov/Archives/edgar/data/1584879/000149315221010230/ex4-2.htm) | 1-A | 4.2 | 04/30/2021 |  |
| 5.1 | \* | Opinion of FitzGerald Kreditor Bolduc Risbrough LLP |  |  |  |  |
| 10.1 | † | [2022 Incentive and Nonstatutory Stock Option Plan to Employees, Directors, and Consultants, dated October 26, 2022](ex10-1.htm) |  |  |  | X |
| 10.2 | † | [2022 Restricted Stock Plan, dated October 26, 2022](ex10-2.htm) |  |  |  | X |
| 10.3 | † | [Executive Employment Agreement between and Company and Laura Cohen, M.D., dated October 1, 2022](ex10-3.htm) |  |  |  | X |
| 10.4 | † | [Executive Employment Agreement between and Company and Lisa LeBlanc, dated October 1, 2022](ex10-4.htm) |  |  |  | X |
| 10.5 | † | [Executive Employment Agreement between and Company and William Cohen, dated October 1, 2022](ex10-5.htm) |  |  |  | X |
| 10.6 |  | [Form of Series A Preferred Stock Private Offering Documents](ex10-6.htm) |  |  |  | X |
| 23.1 |  | [Consent of Weinberg and Company, P.A.](ex23-1.htm) |  |  |  |  |
| 23.2 | \* | Consent of FitzGerald Kreditor Bolduc Risbrough LLP (included in Exhibit 5.1) |  |  |  |  |
| 24.1 |  | [Power of attorney (see signature page)](#d_022) |  |  |  |  |
| 101.1 |  | Interactive Data File |  |  |  | X |
| 107 |  | [Calculation of Filing Fee Tables](ex107.htm) |  |  |  | X |

---

\* To be filed by amendment <br> † Indicates management contract or compensatory plan

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Huntington Beach, State of California, on March 24, 2023.

---

| | |
|:---|:---|
| **COLABS INT'L, CORP.** | **COLABS INT'L, CORP.** |
| By: | */s/ Laura Cohen* |
|  | Laura Cohen |
|  | Chief Executive Officer and Chairman of the Board of Directors |

---

We, the undersigned officers and directors of CoLabs Int'l, Corp., hereby severally constitute and appoint Laura Cohen, our true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution in her for her or him and in her or his name, place and stead, and 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 attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite or necessary to be done in and about the premises, as full to all intents and purposes as she or he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or her or his 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 on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Laura Cohen* | Chief Executive Officer and Chairman of the Board of Director | March 24, 2023 |
| Laura Cohen | (Principal Executive Officer) |  |
| */s/ William Cohen* | Chief Financial Officer | March 24, 2023 |
| William Cohen | (Principal Financial Officer and Principal Accounting Officer) |  |
| */s/ Dean Stathakis* | Director | March 24, 2023 |
| Dean Stathakis |  |  |
| */s/ Peter Barton Hutt* | Director | March 24, 2023 |
| Peter Barton Hutt |  |  |
| */s/ Charles Fritts* | Director | March 24, 2023 |
| Charles Fritts |  |  |

---

## Exhibit 2.4

**Exhibit 2.4**

**Amendment to Articles of Incorporation**

**of CoLabs Int'l, Corp.**

This Amendment to the Articles of Incorporation shall amend and restate Article 3 of the existing Articles of Incorporation effective as of the date of filing the Certificate of Amendment with the Nevada Secretary of State.

Effective as of the date of filing of the Certificate of Amendment with the Nevada Secretary of State, the total number of shares which CoLabs Int'l, Corp. (the "Corporation") is authorized to issue is 120,000,000, consisting of 100,000,000 shares of common stock, having a par value of $0.001 and 20,000,000 shares of Preferred Stock, having a par value of $0.001. The Preferred Stock may be issued from time to time in one or more series. The Corporation's Board of Directors (the "Board") is authorized, within the limitations and restrictions stated in these Articles of Incorporation, to determine and alter the rights, preferences, privileges and restrictions granted to or imposed upon the Preferred Stock or any series thereof with respect to any wholly-unissued series or class of Preferred Stock, and to fix the number of shares constituting any such series and the designation thereof (each, a "Preferred Stock Designation"). Subject to compliance with applicable protective voting rights which have been or may be granted to the Preferred Stock or series thereof in a Preferred Stock Designation or the Corporation's Articles of Incorporation or otherwise ("Protective Provisions"), but notwithstanding any other rights of the Preferred Stock or any series thereof, the rights, privileges, preferences and restrictions of any such additional series may be subordinate to, pari passu, with, (including, without limitation, inclusion in provisions with respect to acquisition preferences, dividend rights, rights and preferences upon dissolution and liquidation, conversion features, redemption and/or approval of matters by vote or written consent and any other relative, participating, optional, or other special powers preferences, rights, qualifications, or restrictions thereof), or senior to, any of those of any present or future class or series of Preferred Stock. Subject to compliance with applicable Protective Provisions, the Board is also authorized to increase or decrease the number of shares of any series, prior or subsequent to the issue of that series, but not below the number of shares of such series then outstanding. In case the number of shares of any series shall be so decreased, the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

The date of the adoption of this Amendment to the Articles of Incorporation is December 14, 2022. This amendment was duly adopted by the shareholders of this Corporation in accordance with NRS 78.385 and 78.390.

---

| | |
|:---|:---|
| By: | */s/ Laura Cohen* |
| Name: | Laura Cohen |
| Its: | Chief Executive Officer |

---

## Exhibit 2.5

**Exhibit 2.5**

**SECOND AMENDED AND RESTATED BYLAWS**

**OF**

**COLABS INT'L, CORP., a Nevada Corporation** 

**<u>ARTICLE I – OFFICES</u>**

The registered office of COLABS INT'L, CORP. (the "Corporation") in the State of Nevada shall be located in the City and State designated in the Articles of Incorporation. The Corporation may also maintain offices at such other places within or without the State of Nevada as the Board of Directors (the "Board" and each a "Director") may, from time to time, determine.

**<u>ARTICLE II - MEETING OF SHAREHOLDERS</u>**

**<u>Section 1 - Annual Meetings:</u>**

The annual meeting of the shareholders (the "Shareholders") of the Corporation shall be held at the time fixed, from time to time, by the Board.

**<u>Section 2 - Special Meetings:</u>**

Special meetings of the Shareholders may be called by the Board, or such person or persons authorized by the Board, and shall be called by the Board upon the written request of the Shareholders of record of 66 2/3% of the outstanding shares of the Corporation entitled to vote at the meeting requested to be called. Such request shall state the purpose of the proposed meeting. At such meeting the only business which may be transacted is that relating to the purpose or purposes set forth in the notice thereof.

**<u>Section 3 - Place of Meetings:</u>**

Meetings of Shareholders shall be held at the registered office of the Corporation, or at such other places, within or without the State of Nevada as the Board may from time to time fix. If no designation is made, the meeting shall be held at the Corporation's registered office in the state of Nevada.

**<u>Section 4 - Notice of Meetings:</u>**

(a) Written or printed notice of each meeting of Shareholders, whether annual or special, signed by the president, vice president or secretary, stating the time when and place where it is to be held, as well as the purpose or purposes for which the meeting is called, shall be served either personally or by mail, by or at the direction of the president, the secretary, or the officer or the person calling the meeting, not less than ten or more than 60 days before the date of the meeting, unless the lapse of the prescribed time shall have been waived before or after the taking of such action, upon each shareholder of record entitled to vote at such meeting, and to any other Shareholder to whom the giving of notice may be required by law. If mailed, such notice shall be deemed to be given when deposited in the United States mail, addressed to the Shareholder as it appears on the share transfer records of the Corporation or to the current address, which a Shareholder has delivered to the Corporation in a written notice.

(b) Further notice to a Shareholder is not required when notice of two consecutive annual meetings, and all notices of meetings or of the taking of action by written consent without a meeting to him or her during the period between those two consecutive annual meetings; or all, and at least two payments sent by first-class mail of dividends or interest on securities during a 12-month period have been mailed addressed to him or her at his or her address as shown on the records of the Corporation and have been returned undeliverable.

**<u>Section 5 - Quorum:</u>**

(a) Except as otherwise provided herein, or by law, or in the Articles of Incorporation (such Articles and any amendments thereof being hereinafter collectively referred to as the "Articles of Incorporation"), a quorum shall be present at all meetings of Shareholders of the Corporation if the holders of 33 1/3% of the shares entitled to vote on that matter are represented at the meeting in person or by proxy.

(b) The subsequent withdrawal of any Shareholder from the meeting after the commencement of a meeting, or the refusal of any Shareholder represented in person or by proxy to vote, shall have no effect on the existence of a quorum after a quorum has been established at such meeting.

(c) Despite the absence of a quorum at any meeting of Shareholders, the Shareholders present may adjourn the meeting.

**<u>Section 6 - Voting and Action:</u>**

(a) Except as otherwise provided by law, the Articles of Incorporation, or these Bylaws, any corporate action, the affirmative vote of the majority of shares entitled to vote on that matter and represented either in person or by proxy at a meeting of Shareholders at which a quorum is present, shall be the act of the Shareholders of the Corporation.

(b) Except as otherwise provided by statute, the Articles of Incorporation, or these Bylaws, at each meeting of Shareholders, each Shareholder of the Corporation entitled to vote thereat, shall be entitled to one vote for each share registered in his name on the books of the Corporation.

(c) Where appropriate communication facilities are reasonably available, any and all Shareholders shall have the right to participate in any Shareholders' meeting, by means of video conference, conference telephone, or any means of communications by which all persons participating in the meeting are able to hear each other.

**<u>Section 7 - Proxies:</u>**

Each Shareholder entitled to vote or to express consent or dissent without a meeting, may do so either in person or by proxy, so long as such proxy is executed in writing by the Shareholder himself or herself, his or her authorized officer, director, employee, or agent, or by the signature of the Shareholder to be affixed to the writing by any reasonable means, including, but not limited to, a facsimile signature, or by his or her attorney-in-fact there unto duly authorized in writing. Every proxy shall be revocable at will unless the proxy conspicuously states that it is irrevocable and the proxy is coupled with an interest. A telegram, telex, cablegram, or similar transmission by the Shareholder, or a photographic, photostatic, or facsimile, shall be treated as a valid proxy, and treated as a substitution of the original proxy, so long as such transmission is a complete reproduction executed by the Shareholder. If it is determined that the telegram, cablegram or other electronic transmission is valid, the persons appointed by the Corporation to count the votes of Shareholders and determine the validity of proxies and ballots or other persons making those determinations must specify the information upon which they relied. No proxy shall be valid after the expiration of six months from the date of its execution, unless otherwise provided in the proxy. Such instrument shall be exhibited to the Secretary at the meeting and shall be filed with the records of the Corporation. If any Shareholder designates two or more persons to act as proxies, a majority of those persons present at the meeting, or, if one is present, then that one has and may exercise all of the powers conferred by the Shareholder upon all of the persons so designated unless the Shareholder provides otherwise.

**<u>Section 8 - Action Without a Meeting:</u>**

Unless otherwise provided for in the Articles of Incorporation of the Corporation, any action to be taken at any annual or special Shareholders' meeting, may be taken without a meeting, without prior notice and without a vote if written consents are signed by 51% of the Shareholders of the Corporation, except however if a different proportion of voting power is required by law, the Articles of Incorporation or these Bylaws, than that proportion of written consents is required. Such written consents must be filed with the minutes of the proceedings of the Shareholders of the Corporation.

**<u>ARTICLE III - BOARD OF DIRECTORS</u>**

**<u>Section 1 - Number, Term, Election, and Qualifications:</u>**

(a) The first Board and all subsequent Boards of the Corporation shall consist of, not less than one nor more than 11, unless and until otherwise determined by vote of a majority of the entire Board. The Board shall have the power, in the interim between annual and special meetings of the Shareholders, to increase or decrease the number of Directors of the Corporation. No decrease in the number of Directors shall shorten the term of any incumbent Director. A Director need not be a Shareholder of the Corporation unless the Articles of Incorporation of the Corporation or these Bylaws so require.

(b) Except as may otherwise be provided herein or in the Articles of Incorporation, the members of the Board of the Corporation shall be elected at the first annual Shareholders' meeting and at each annual meeting thereafter by a plurality of the votes cast at a meeting of Shareholders by the holders of shares entitled to vote in the election.

(c) Directors will be elected at the annual meeting of Shareholders and shall hold office until the annual meeting of the Shareholders next succeeding their election, or until their prior death, resignation, or removal. Any Director or the entire Board of the Corporation may be removed solely by the affirmative vote of 66 2/3% the holders of shares entitled to vote generally in the election of Directors. Any Director may resign at any time upon written notice of such resignation to the Corporation.

(d) All Directors of the Corporation shall have equal voting power unless the Articles of Incorporation of the Corporation provide that the voting power of individual Directors or classes of Directors are greater than or less than that of any other individual Directors or classes of Directors, and the different voting powers may be stated in the Articles of Incorporation. If the Articles of Incorporation provide that any Directors have voting power greater than or less than other Directors of the Corporation, every reference in these Bylaws to a majority or a proportion of Directors shall be deemed to refer to majority or other proportion of the voting power of all the Directors or classes of Directors, as may be required by the Articles of Incorporation.

**<u>Section 2 - Duties and Powers:</u>**

The Board of Directors shall be responsible for the control and management of the business and affairs, property, and interests of the Corporation, and may exercise all powers of the Corporation, except such as those stated under Nevada state law, are in the Articles of Incorporation or by these Bylaws, expressly conferred upon or reserved to the Shareholders or any other person or persons named therein.

**<u>Section 3 - Regular Meetings; Notice:</u>**

(a) A regular meeting of the Board shall be held either within or without the State of Nevada at such time and at such place as the Board shall fix.

(b) No notice shall be required of any regular meeting of the Board and, if given, need not specify the purpose of the meeting; provided, however, that in case the Board shall fix or change the time or place of any regular meeting when such time and place was fixed before such change, notice of such action shall be given to each Director who shall not have been present at the meeting at which such action was taken within the time limited, and in the manner set forth in these Bylaws with respect to special meetings, unless such notice shall be waived in the manner set forth in these Bylaws.

**<u>Section 4 - Special Meetings; Notice:</u>**

(a) Special meetings of the Board may be called by 1/3 of the Directors then in office (rounded up to the nearest whole number) or the chief executive officer and shall be held at such time and place as may be specified in the respective notices or waivers of notice thereof.

(b) Except as otherwise required by statute, written notice of special meetings shall be mailed directly to each Director, addressed to him at his residence or usual place of business, or delivered orally, with sufficient time for the convenient assembly of Directors thereat, or shall be sent to him at such place by electronic means, telegram, or cable, or shall be delivered to him personally or given to him orally, not later than the day before the day on which the meeting is to be held. If mailed, the notice of any special meeting shall be deemed to be delivered on the fifth day after it is deposited in the United States mails, so addressed, with postage prepaid. A notice, or waiver of notice, except as required by these Bylaws, need not specify the business to be transacted at or the purpose or purposes of the meeting.

(c) Notice of any special meeting shall not be required to be given to any Director who shall attend such meeting without protesting prior thereto or at its commencement, the lack of notice to him, or who submits a signed waiver of notice, whether before or after the meeting. Notice of any adjourned meeting shall not be required to be given.

**<u>Section 5 - Chairperson:</u>**

The Chairperson of the Board, if any and if present, shall preside at all meetings of the Board. If there shall be no Chairperson, or he or she shall be absent, then the President shall preside, and in his or her absence, any other Director chosen by the Board shall preside.

**<u>Section 6 - Quorum and Adjournments:</u>**

(a) At all meetings of the Board, or any committee thereof, the presence of a majority of the entire Board, or such committee thereof, shall constitute a quorum for the transaction of business, except as otherwise provided by law, by the Certificate of Incorporation, or these Bylaws.

(b) A majority of the Directors present at the time and place of any regular or special meeting, although less than a quorum, may adjourn the same from time to time without notice, whether or not a quorum exists. Notice of such adjourned meeting shall be given to Directors not present at the time of the adjournment and, unless the time and place of the adjourned meeting are announced at the time of the adjournment to the other Directors who were present at the adjourned meeting.

**<u>Section 7 - Manner of Acting:</u>**

 

(a) At all meetings of the Board, each Director present shall have one vote, irrespective of the number of shares of stock, if any, which he may hold.

(b) Except as otherwise provided by law, by the Articles of Incorporation, or these Bylaws, action approved by a majority of the votes of the Directors present at any meeting or any committee thereof, at which a quorum is present shall be the act of the Board or any committee thereof.

(c) Any action authorized in writing made prior, or subsequent to, such action, by all of the Directors entitled to vote thereon and filed with the minutes of the Corporation shall be the act of the Board, or any committee thereof, and have the same force and effect as if the same had been passed by unanimous vote at a duly called meeting of the Board or committee for all purposes.

(d) Where appropriate communications facilities are reasonably available, any or all Directors shall have the right to participate in any Board meeting, or a committee of the Board meeting, by means of conference telephone or any means of communication by which all persons participating in the meeting are able to hear each other.

**<u>Section 8 - Vacancies:</u>**

(a) Unless otherwise provided for by the Articles of Incorporation of the Corporation, any vacancy in the Board occurring by reason of an increase in the number of Directors, or by reason of the death, resignation, disqualification, removal, or inability to act of any Director, or other cause, shall be filled solely and exclusively by an affirmative vote of a majority of the remaining Directors, though less than a quorum of the Board or by a sole remaining Director. Any Director so elected shall serve until the next annual Shareholder election.

(b) Unless otherwise provided for by law, the Articles of Incorporation or these Bylaws, when one or more Directors shall resign from the Board, and such resignation is effective at a future date, a majority of the directors, then in office, including those who have so resigned, shall have the power to fill such vacancy or vacancies, the vote otherwise to take effect when such resignation or resignations shall become effective.

**<u>Section 9 - Resignation:</u>**

A Director may resign at any time by giving written notice of such resignation to the Corporation.

**<u>Section 10 - Removal:</u>**

Unless otherwise provided for by the Articles of Incorporation, one or more or all the Directors of the Corporation may be removed with or without cause at any time by a vote of 66 2/3% of the Shareholders entitled to vote thereon at a special meeting of the Shareholders called for that purpose, unless the Articles of Incorporation provide that Directors may only be removed for cause.

**<u>Section 11 - Compensation:</u>**

The Board may authorize and establish reasonable compensation of the Directors for services to the Corporation as Directors, including, but not limited to attendance at any annual or special meeting of the Board.

**<u>Section 12 - Committees:</u>**

Unless otherwise provided for by the Articles of Incorporation of the Corporation, the Board of Directors, may from time to time designate from among its members one or more committees, and alternate members thereof, as they deem desirable, each consisting of one or more members, with such powers and authority (to the extent permitted by law and these Bylaws) as may be provided in such resolution. Unless the Articles of Incorporation or Bylaws state otherwise, the Board may appoint natural persons who are not Directors to serve on such committees authorized herein. Each such committee shall serve at the pleasure of the Board and, unless otherwise stated by law, the Articles of Incorporation of the Corporation or these Bylaws, shall be governed by the rules and regulations stated herein regarding the Board.

**<u>ARTICLE IV - OFFICERS</u>**

**<u>Section 1 - Number, Qualifications, Election, and Term of Office:</u>**

(a) The Corporation's officers ("Officers") shall have such titles and duties as shall be stated in these Bylaws or in a resolution of the Board which is not inconsistent with these Bylaws. The Officers of the Corporation shall consist of a president, secretary and treasurer, and also may have one or more vice presidents, assistant secretaries and assistant treasurers and such other Officers as the Board may from time to time deem advisable. Any Officer may hold two or more offices in the Corporation.

(b) The Officers of the Corporation shall be elected by the Board at the regular annual meeting of the Board.

(c) Each Officer shall hold office until the annual meeting of the Board next succeeding his election, and until his successor shall have been duly elected and qualified, subject to earlier termination by his or her death, resignation or removal.

**<u>Section 2 - Resignation:</u>**

Any Officer may resign at any time by giving written notice of such resignation to the Corporation.

**<u>Section 3 - Removal; Vacancies:</u>**

Any Officer elected by the Board may be removed, either with or without cause, but such removal shall be without prejudice to the contractual rights of such Officer. Any vacancy occurring in any office of the Corporation by death, resignation, removal, or otherwise may be filled for the unexpired portion of the term by the Board.

**<u>Section 4 - Compensation:</u>**

The compensation of the Officers of the Corporation shall be fixed from time to time by the Board.

**<u>ARTICLE V - SHARES OF STOCK</u>**

**<u>Section 1 - Certificate of Stock:</u>**

(a) The shares of the Corporation shall be represented by certificates or shall be uncertified shares.

(b) Certificated shares of the Corporation shall be signed, (either manually or by facsimile), by the Officers or agents designated by the Corporation for such purposes and shall certify the number of shares owned by him in the Corporation. Whenever any certificate is countersigned or otherwise authenticated by a transfer agent or transfer clerk, and by a registrar, then a facsimile of the signatures of the Officers or agents, the transfer agent or transfer clerk or the registrar of the Corporation may be printed or lithographed upon the certificate in lien of the actual signatures. If the Corporation uses facsimile signatures of its Officers and agents on its stock certificates, it cannot act as registrar of its own stock, but its transfer agent and registrar may be identical if the institution acting in those dual capacities countersigns or otherwise authenticates any stock certificates in both capacities. If any Officer who has signed or whose facsimile signature has been placed upon such certificate, shall have ceased to be such Officer before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such Officer at the date of its issue.

(c) If the Corporation issues uncertificated shares as provided for in these Bylaws, within a reasonable time after the issuance or transfer of such uncertificated shares, and at least annually thereafter, the Corporation shall send the shareholder a written statement certifying the number of shares owned by such Shareholder in the Corporation.

(d) Except as otherwise provided by law, the rights and obligations of the holders of uncertificated shares and the rights and obligations of the holders of certificates representing shares of the same class and series shall be identical.

**<u>Section 2 - Lost or Destroyed Certificates:</u>**

The Board may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the Corporation alleged to have been lost, stolen, or destroyed and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of such alleged loss, theft, or destruction of any such certificate or the issuance of such new certificate.

**<u>Section 3 - Transfers of Shares</u>**<u>:</u>

(a) Transfers or registration of transfers of shares of the Corporation shall be made on the stock transfer books of the Corporation by the registered holder thereof, or by his attorney duly authorized by a written power of attorney, and in the case of shares represented by certificates, only after the surrender to the Corporation of the certificates representing such shares with such shares properly endorsed, with such evidence of the authenticity of such endorsement, transfer, authorization and other matters as the Corporation may reasonably require, and the payment of all stock transfer taxes due thereon.

(b) The Corporation shall be entitled to treat the holder of record of any share or shares as the absolute owner thereof for all purposes and, accordingly, shall not be bound to recognize any legal, equitable or other claim to, or interest in, such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by law.

**<u>Section 4 - Record Date:</u>**

(a) The Board may fix, in advance, which shall not be more than 60 days before the meeting or action requiring a determination of Shareholders, as the record date for the determination of Shareholders entitled to receive notice of, or to vote at, any meeting of Shareholders, or to consent to any proposal without a meeting, or for the purpose of determining Shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action. If no record date is fixed, the record date for Shareholders entitled to notice of meeting shall be at the close of business on the day preceding the day on which notice is given, or, if no notice is given, the day on which the meeting is held, or if notice is waived, at the close of business on the day before the day on which the meeting is held.

(b) The Board may fix a record date, which shall not precede the date upon which the resolution fixing the record date is adopted for Shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights of Shareholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action.

(c) A determination of Shareholders entitled to notice of or to vote at a Shareholders' meeting is effective for any adjournment of the meeting unless the Board fixes a new record date for the adjourned meeting.

**<u>ARTICLE VI - DIVIDENDS</u>**

(a) Dividends may be declared and paid out of any funds available therefor, as often, in such amounts, and at such time or times as the Board may determine and shares may be issued pro rata and without consideration to the Corporation's Shareholders or to the Shareholders of one or more classes or series.

(b) Shares of one class or series may not be issued as a share dividend to shareholders of another class or series unless: (i) so authorized by the Articles of Incorporation; (ii) a majority of the shareholders of the class or series to be issued approve the issue; or (iii) there are no outstanding shares of the class or series of shares that are authorized to be issued.

**<u>ARTICLE VII - FISCAL YEAR</u>**

The fiscal year of the Corporation shall be fixed, and shall be subject to change, by the Board from time to time, subject to applicable law.

**<u>ARTICLE VIII - CORPORATE SEAL</u>**

The Corporate seal, if any, shall be in such form as shall be prescribed and altered, from time to time, by the Board. The use of a seal or stamp by the Corporation on corporate documents is not necessary and the lack thereof shall not in any way affect the legality of a corporate document.

**<u>ARTICLE IX - AMENDMENTS</u>**

**<u>Section 1 - By Shareholders:</u>**

All Bylaws of the Corporation shall be subject to alteration or repeal, and new Bylaws may be made, by a 51% vote of the Shareholders at the time entitled to vote in the election of Directors even though these Bylaws may also be altered, amended, or repealed by the Board.

**<u>Section 2 - By Directors:</u>**

The Board shall have the power to make, adopt, alter, amend and repeal, from time to time, the Bylaws of the Corporation.

**<u>ARTICLE X - WAIVER OF NOTICE:</u>**

Whenever any notice is required to be given by law, the Articles of Incorporation or these Bylaws, a written waiver signed by the person or persons entitled to such notice, whether before or after the meeting by any person, shall constitute a waiver of notice of such meeting.

**<u>ARTICLE XI - INTERESTED DIRECTORS:</u>**

No contract or transaction shall be void or voidable if such contract or transaction is between the Corporation and one or more of its Directors or Officers, or between the Corporation and any other corporation, partnership, association, or other organization in which one or more of its Directors or Officers, are directors or officers, or have a financial interest, when such Director or Officer is present at or participates in the meeting of the Board, or the committee of the Shareholders which authorizes the contract or transaction or his, her or their votes are counted for such purpose, if:

(a) the material facts as to his, her, or their relationship or interest and as to the contract or transaction are disclosed or are known to the Board or the committee and are noted in the minutes of such meeting, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested Directors, even though the disinterested Directors be less than a quorum; or

(b) the material facts as to his, her, or their relationship or relationships or interest or interests and as to the contract or transaction are disclosed or are known to the Shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the Shareholders; or

(c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board, a committee of the Shareholders; or

(d) the fact of the common directorship, office, or financial interest is not disclosed or known to the Director or Officer at the time the transaction is brought before the Board of the Corporation for such action.

Such interested Directors may be counted when determining the presence of a quorum at the Board or committee meeting authorizing the contract or transaction.

**<u>ARTICLE XII - ANNUAL LIST OF OFFICERS, DIRECTORS, AND REGISTERED AGENT:</u>**

 

The Corporation shall, within 60 days after the filing of its Articles of Incorporation with the Secretary of State of Nevada, and annually thereafter on or before the last day of the month in which the anniversary date of incorporation occurs each year, file with the Secretary of State of Nevada a list of its president, secretary and treasurer and all of its Directors, along with the post office box or street address, either residence or business, and a designation of its resident agent in the State of Nevada. Such list shall be certified by an Officer of the Corporation.

**<u>ARTICLE XIII - EXCLUSIVE FORUM</u>**

Unless the Corporation consents in writing to the selection of an alternative forum the state and federal courts in the Clark County, State of Nevada shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim, or a claim based on, breach of a fiduciary duty owed by, or other wrongdoing by, any current or former Director, Officer, employee or Shareholder of the Corporation to the Corporation or the Corporation's Shareholder, (iii) any action asserting a claim against the Corporation or any current or former Director, Officer, employee or Shareholder of the Corporation of breach of a fiduciary duty owed by, or other wrongdoing by, any Director, Officer, or other employee of the Corporation to the Corporation or the Corporation's Shareholder, (iii) any action asserting a claim against the Corporation arising pursuant to any provision of the Chapter 78 of the Nevada Revised Statutes, the Corporation's Amended and Restated Certificate of Incorporation or its Amended and Restated Bylaws, or (iv) any action to interpret, apply, enforce or determine the validity of the Corporation's Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws, or (v) any action asserting a claim against the Corporation governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article.

**<u>ARTICLE XIV - INDEMNIFICATION OF DIRECTORS AND OFFICERS AND THEIR AGENTS</u>**

**<u>Section 1 - Right to Indemnification:</u>**

Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "proceeding"), by reason of the fact that he or she is or was a Director or an Officer of the Corporation or is or was serving at the request of the Corporation as a Director, Officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter an "indemnitee"), whether the basis of such proceeding is alleged action in an official capacity as a Director, Officer, employee or agent or in any other capacity while serving as a Director, Officer, employee or agent, shall be indemnified and held harmless by the Corporation to the fullest extent authorized by law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by such indemnitee in connection therewith; provided, however, that: (i) indemnification shall only issue if the Officer or Director (A) is not liable under Nevada Revised Statutes Section 78.138 or (B) acted in good faith in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful; and (ii) in any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that the indemnitee is or was a Director, Officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a Director, Officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, there shall be no indemnification if the indemnitee has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Corporation or for amounts paid in settlement to the Corporation, unless and only to the extent that the court in which such action or suit was brought or other court of competent jurisdiction determines upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

**<u>Section 2 - Right to Advancement of Expenses:</u>**

In addition to the right to indemnification conferred in Section 2 of this Article XIV an indemnitee shall also have the right to be paid by the Corporation the expenses (including attorneys' fees) incurred in defending any such proceeding in advance of its final disposition (hereinafter an "advancement of expenses"); provided, however, that, if the law so requires, an advancement of expenses incurred by an indemnitee in his or her capacity as a Director or Officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) shall be made only upon delivery to the Corporation of an undertaking (hereinafter an "undertaking"), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal (hereinafter a "final adjudication") that such indemnitee is not entitled to be indemnified for such expenses under this Section 2 or otherwise. The rights to indemnification and to the advancement of expenses conferred in Section 1 and Section 2 of this Article XIV shall be contract rights and such rights shall continue as to an indemnitee who has ceased to be a Director, Officer, employee or agent and shall inure to the benefit of the indemnitee's heirs, executors and administrators.

**<u>Section 3 - Right of Indemnitee to Bring Suit:</u>**

If a claim under Section 1 or Section 2 of this Article XIV is not paid in full by the Corporation within 60 days after a written claim has been received by the Corporation, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be 20 days, the indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall be entitled to be paid also the expense of prosecuting or defending such suit. In (i) any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) in any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met any applicable standard for indemnification set forth by law. Neither the failure of the Corporation (including its Directors who are not parties to such action, a committee of such Directors, independent legal counsel, or its Shareholders) to have made a determination prior to the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth by law, nor an actual determination by the Corporation (including its Directors who are not parties to such action, a committee of such Directors, independent legal counsel, or its Shareholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the indemnitee, be a defense to such suit. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder or brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article XIV or otherwise shall be on the Corporation.

**<u>Section 4 - Non-Exclusivity of Rights:</u>**

The rights to indemnification and to the advancement of expenses conferred in this Article XIV shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, the Corporation's Articles of Incorporation, Bylaws, agreement, vote of Shareholders or disinterested Directors, or otherwise.

**<u>Section 5 - Insurance:</u>**

The Corporation may maintain insurance, at its expense, to protect itself and any Director, Officer, employee, or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability, or loss under applicable law.

**<u>Section 6 - Indemnification of Employees and Agents of the Corporation:</u>**

The Corporation may, to the extent authorized from time to time by the Board, grant rights to indemnification and to the advancement of expenses to any employee or agent of the Corporation to the fullest extent of the provisions of this Article XIV with respect to the indemnification and advancement of expenses of Directors and Officers of the Corporation.

The foregoing SECOND AMENDED AND RESTATED BYLAWS were duly adopted and approved by the Board of Directors of the Company on October 26, 2022, and by a majority of the Shareholders on December 14, 2022.

---

| | |
|:---|:---|
| **COLABS INT'L, CORP.,** | **COLABS INT'L, CORP.,** |
| **a Nevada corporation** | **a Nevada corporation** |
| */s/ Lisa LeBlanc* | */s/ Lisa LeBlanc* |
| By: | Lisa LeBlanc |
| Its: | Secretary |

---

## Exhibit 2.6

**Exhibit 2.6**

**<u>CERTIFICATE OF DESIGNATION OF</u>**

**<u>SERIES A CONVERTIBLE PREFERRED STOCK OF</u>**

**<u>COLABS INT'L, CORP.,</u>**

**a Nevada corporation**

Pursuant to Sections 78.315 and 78.1955 of the Nevada Revised Statutes, CoLabs Int'l, Corp., a corporation organized and existing under the laws of the State of Nevada (the "Company"), does hereby certify that the following resolution was duly adopted by the Board of Directors (the "Board") of the Company:

**WHEREAS, the Articles of Incorporation of the Company, as amended (the "Articles") authorizes the issuance of 20,000,000 shares of Preferred Stock, $0.001 par value per share, in one or more series and expressly authorizes the Board to determine the rights, preferences, privileges, and restrictions granted to or imposed upon the Preferred Stock or any series thereof with respect to any wholly-unissued series or class of Preferred Stock, and to fix the number of shares constituting any such series and the designation thereof.**

**RESOLVED, that pursuant to the authority conferred upon the Board by the Articles of the Company, the Board hereby authorizes the designation of 2,000,000 shares of Series A Convertible Preferred Stock, par value $0.001 per share, of the Company, and hereby fixes the rights, preferences, privileges and restrictions thereof, in addition to those set forth in the Articles of the Company, as follows:**

**Section 1. Designation and Amount.** The shares of the class of preferred stock hereby and herein created shall have a par value of $0.001 per share and shall be designated as Series A Convertible Preferred Stock (the "Series A Convertible Preferred Stock") and the number of shares constituting the Series A Convertible Preferred Stock shall be 2,000,000.

**Section 2. Rank.** The Series A Convertible Preferred Stock shall rank: (i) senior to any other class or series of outstanding Preferred Stock or classes of capital stock of the Company; (ii) prior to all of the Company's common stock ("Common Stock"); and (iv) prior to any other class or series of capital stock of the Company hereafter created ("Junior Securities"); and in each case as to distributions of assets upon liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, and on an as-converted basis (all such distributions being referred to collectively as "Distributions").

**Section 3. Dividends.** The Series A Convertible Preferred Stock shall bear no dividends, except that in the event dividends are declared for Common Stock, the same rate of dividend per share shall be due and payable to the holders of the Series A Convertible Preferred Stock (each a "Holder" and collectively the "Holders") on the same terms which the Holder would have been entitled to receive had the Series A Convertible Preferred Stock been converted into Common Stock on the date the dividend was then declared.

**Section 4. Liquidation/Merger Preference.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as a majority of the shares of Series A Convertible Preferred Stock are outstanding, the Company will not, without the written consent of the holders of at least 51% of the Company's outstanding Series A Convertible Preferred Stock, either directly or by amendment, merger, consolidation, or otherwise: (i) amend, alter, or repeal any provision of the Articles or the 2<sup>nd</sup> Amended and Restated Bylaws of the Company, as amended, in a manner adverse to the Series A Convertible Preferred Stock; (ii) create or authorize the creation of, or issue any other new security convertible into or exercisable for, any equity security, having rights, preferences, or privileges senior to the Series A Convertible Preferred Stock; or (iii) purchase or redeem or pay any dividend on any capital stock prior to the Series A Convertible Preferred Stock, other than stock repurchased from former employees or consultants in connection with the cessation of their employment and/or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any Liquidation Event (defined below), either voluntary or involuntary, the holders of shares of Series A Convertible Preferred Stock (each a "Holder" and collectively the "Holders") shall be entitled to receive, prior in preference to any distribution to Common Stock or other Junior Securities, an amount per share equal to $5.00 plus any allocable and due dividends per share. A "Liquidation Event" shall include: (A) the closing of the sale, transfer or other disposition of all or substantially all of the Company's assets; (B) the consummation of the merger or consolidation of the Company with or into another entity (except a merger or consolidation in which the holders of capital stock of the Company immediately prior to such merger or consolidation continue to hold more than 50% of the voting or economic power of the outstanding capital stock of the Company (or the surviving or acquiring entity); (C) the closing of the transfer (whether by merger, consolidation, or otherwise), in one transaction or a series of related transactions, to a Person or "group" (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "Exchange Act")) (other than an underwriter of the Company's securities), of the Company's securities if, after such closing, such Person or "group" (within the meaning of Section 13(d)(3) of the Exchange Act) would own more than 50% of voting or economic power of the outstanding capital stock of the Company (or the surviving or acquiring entity); or (D) a liquidation, dissolution, or winding up of the Company; provided that a transaction shall not constitute a Liquidation Event if its sole purpose is to change the jurisdiction of the Company's incorporation or to create a holding company that will be owned in the same proportions by the persons who held the Company's securities immediately prior to such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the completion of the distribution required by subsection 4(b), above, if assets remain in the Company, they shall be distributed to holders of Junior Securities or Common Stock, as applicable, in accordance with the Company's Articles including any duly adopted Certificate(s) of Designation.

**Section 5. Conversion of Preferred Shares to Common.** The Holders of the Series A Convertible Preferred Stock may convert, or be converted, to shares of Common Stock as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Conversion Option*. Upon a Liquidation Event, or at the option of the Holder, in the Holder's sole discretion, any Holder of Series A Convertible Preferred Stock shall be entitled at the office of the Company or any transfer agent for the Series A Convertible Preferred Stock designated by the Company to the Holder in writing (the "Transfer Agent"), to convert the shares of Series A Convertible Preferred Stock into Common Stock by electing, in writing, to convert the shares of Series A Convertible Preferred Stock then outstanding and held by the Holder into shares of Common Stock of the Company at the Conversion Price; *provided, however*, that the minimum number of shares of Series A Convertible Preferred Stock that the Holder may convert to Common Stock at any given time is 1,000 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Conversion Price*. The "Conversion Price" shall be: (A) 70% of the Last Reported Sales Price, whereby the "Last Reported Sale Price" means the closing sale price per share (or, if no closing sale price is reported, the average of the last bid price and the last ask price per share or, if more than one in either case, the average of the average last bid prices and the average last ask prices per share) of Common Stock on such Trading Day (defined below) as reported by the U.S. national securities exchange on which the Common Stock is then listed, or if the Common Stock is not listed on a U.S. national securities exchange on such Trading Day, then the Last Reported Sale Price will be the last quoted bid price per share of Common Stock on such Trading Day in the over-the-counter market as reported by OTC Markets Group Inc. or a similar organization; *provided, however*, that in the event that the Conversion Price is calculated to be less than $1.75, then the Conversion Price shall be $1.75, subject to adjustment as provided in Section 5(f); or (B) in the event that the Common Stock is neither listed on a U.S. national securities exchange nor quoted in an over-the-counter market, then the Conversion Price shall be $3.00, subject to adjustment as provided in Section 5(f). "Trading Day" means any day on which trading in the Common Stock generally occurs on the principal U.S. national securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national securities exchange, on the principal other market on which the Common Stock is then traded. If the Common Stock is not so listed or traded, then "Trading Day" means a "Business Day," which is defined as any day other than a Saturday, a Sunday, or any day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Mechanics of Conversion*. In order to convert Series A Convertible Preferred Stock into shares of Common Stock under the conversion option specified in 5(a), the Holder shall: (i) fax or deliver via electronic mail on the date of conversion (the "Conversion Date"), a copy of a fully executed notice of conversion ("Notice of Conversion") to the Company at the office of the Company or the Transfer Agent stating that the Holder elects to convert their Series A Convertible Preferred Stock into Common Stock, which Notice of Conversion shall specify the date of conversion, the number of shares of Series A Convertible Preferred Stock to be converted to shares of Common Stock issuable upon such conversion (together with a copy of the front page of each certificate to be converted); and (ii) once converted (but not otherwise unless specifically requested by the Company from time to time), surrender to a common courier for delivery to the office of the Company or the Transfer Agent, the original certificate(s) representing the Series A Convertible Preferred Stock being converted (the "Preferred Stock Certificate(s)"), duly endorsed for transfer; unless the Holder notifies the Company or its Transfer Agent that such Preferred Stock Certificate have been lost, stolen, or destroyed (subject to the requirements of Section 5(d)(1) below); or if the shares are held in book-entry form by the Transfer Agent, then written directive to the Transfer Agent directing them to acknowledge the conversion by updating their ledger to evidence the completion of the transaction. Upon receipt by the Company of a Notice of Conversion, Company shall immediately send, but in all cases, no later than two business days after receipt thereof, via facsimile or email, a confirmation of receipt of the Notice of Conversion, which shall specify that the Notice of Conversion has been received and the name and telephone number of a contact person at the Company whom the Holder should contact regarding information related to the Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Administration*.

&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) *Lost or Stolen Certificates*. Upon receipt by the Company of evidence of the loss, theft, destruction, or mutilation of any Preferred Stock Certificate, and, in the case of loss, theft, or destruction, of indemnity or security reasonably satisfactory to the Company, and upon surrender and cancellation of the Preferred Stock Certificate, if mutilated, the Company shall execute and deliver a new Preferred Stock Certificate of like tenor and date. However, the Company shall not be obligated to re-issue such lost or stolen Preferred Stock Certificate(s) if Holder contemporaneously requests the Company to convert such Series A Convertible Preferred Stock into Common Stock.

&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) *Delivery of Common Stock Upon Conversion*. The Transfer Agent or the Company (as applicable) shall, no later than the close of business on the third business day (the "Deadline") after receipt by the Company or the Transfer Agent of a Notice of Conversion and receipt by Company or the Transfer Agent from the Holder of all necessary documentation duly executed and in proper form required for conversion as stated in this Section 5, issue and surrender to a common courier for either overnight or (if delivery is outside the United States) two day delivery to the Holder at the address of the Holder as shown on the stock records of the Company a certificate for the number of shares of Common Stock to which the Holder shall be entitled as aforesaid, or in the event that the shares are held in book entry with the Transfer Agent, then the Company shall direct the Transfer Agent to update its ledger to evidence such conversion by the Deadline and notify the Holder as such. In any event, delivery to each Holder of Common Stock upon a properly submitted conversion of Series A Convertible Preferred Stock shall be made within five business days after the Conversion Date. Without limiting a Holder's other rights at law or in equity, should delivery be later than five business days after the Conversion Date, the Holder shall have the right to either (1) rescind the conversion by facsimile notice to the Company; (2) by giving a new Notice of Conversion, adjust the Conversion Price and the amount of dividends accrued and unpaid, in which case the Company shall process the conversion as if the latter notice were the original notice; or (3) accept the late delivery. The Holders shall also be entitled to the equitable remedy of specific performance to enforce the delivery requirements upon conversion of Series A Convertible Preferred Stock.

&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) *No Fractional Shares*. If any conversion of the Series A Convertible Preferred Stock would create a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall be disregarded and the number of shares of Common Stock issuable upon conversion, in the aggregate, shall be rounded up to the nearest 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;(iv) *Date of Conversion*. The date on which conversion occurs (the "Conversion Date") shall be deemed to be the date set forth in such Notice of Conversion, provided that the advance copy of the Notice of Conversion is received by the Company before 11:59 p.m., Pacific Time, on the Conversion Date. The person or persons entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the Holder or Holders of such shares of Common Stock on the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Reservation of Stock Issuable Upon Conversion*. The Company shall at all times reserve and keep available or make provision to increase, reserve, and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Series A Convertible Preferred Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all then outstanding Series A Convertible Preferred Stock into Common Stock; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of Series A Convertible Preferred Stock, the Company will take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Adjustment to 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;(i) The Conversion Price will be subject to adjustments for stock dividends, splits, combinations, and similar events as specified 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;(ii) If prior to the conversion of all Series A Convertible Preferred Stock, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Company shall be changed into the same or a different number of shares of the same or another class or classes of stock or securities of the Company or another entity or there is a sale of all or substantially all the Company's assets, then the Holders of Series A Convertible Preferred Stock shall thereafter have the right to receive upon conversion of Series A Convertible Preferred Stock, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities and/or other assets ("New Assets") which the Holder would have been entitled to receive in such transaction had the Series A Convertible Preferred Stock been convertible into New Assets from the date thereof, at the market price of such New Assets on the date of conversion, and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holders of the Series A Convertible Preferred Stock to the end that the provisions hereof (including, without limitation, provisions for the adjustment of the Conversion Price and of the number of shares of Common Stock issuable or New Assets deliverable upon conversion of the Series A Convertible Preferred Stock) shall thereafter be applicable, as nearly as may be practicable in relation to any securities thereafter deliverable upon the exercise 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;(iii) If any adjustment under this Section 5(f) would create a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall be disregarded and the number of shares of Common Stock issuable upon conversion, in the aggregate, shall be rounded up to the nearest whole share.

**Section 6. No Voting Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *No Voting Rights.* The holders of the Series A Convertible Preferred Stock shall have no voting rights, except as otherwise set forth herein or unless required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Notice.* The Holders of the Series A Convertible Preferred Stock shall be entitled to notice of any Regular or Special Meeting of the Shareholders for meetings which require the vote of the holders of the Series A Convertible Preferred Stock pursuant to Section 4(a).

**Section 7. Call Provision.** The Company shall have the right to redeem from the Holders some or all of the then outstanding shares of Series A Convertible Preferred Stock, at any time and from time to time (each, a "Redemption Date"), for cash in an amount equal to $5.50 per share of Series A Convertible Preferred Stock (the "Redemption Price"). The Company's election to exercise its redemption rights must be by notice in writing (the "Call Notice") at least ten calendar days prior to the Redemption Date, and each of them. Upon receipt of the Call Notice, the Holders shall return the Preferred Stock Certificate(s) along with executed stock powers, or its equivalent if held in book-entry form with the Transfer Agent, in form and substance reasonably satisfactory to the Company, for purposes of assigning and transferring all of their right, title, and interest in and to the shares of Series A Convertible Preferred Stock subject to the Call Notice prior to the Redemption Date. The Redemption Price is payable in full on the Redemption Date as set forth in the Call Notice. Nothing in this Section 7 will prevent a Holder from converting his, her, or its Series A Convertible Preferred Stock into Common Stock at any time during the ten day period between the Call Notice and the Redemption Date.

**Section 8. Registration Rights**. If at any time on or after the issuance date of the Series A Convertible Preferred Stock, there is no effective registration statement registering, or no current prospectus available for, the resale of the shares of Common Stock issuable upon the conversion of the shares of Series A Convertible Preferred Stock, and the Company proposes to file a registration statement ("Registration Statement") with respect to any offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders of the Company), other than a Registration Statement in connection with a merger or acquisition, then the Company shall: (x) give written notice of such proposed filing to the Holders as soon as practicable but in no event less than ten calendar days before the anticipated filing date of the Registration Statement, which notice shall describe the amount and type of securities to be included in such Registration Statement, the intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering; and (y) offer to the Holders the opportunity to register the sale of such number of shares of common stock issuable upon conversion of the Series A Convertible Preferred Stock in any such Registration Statement(a "Piggyback Registration")) as such Holders may request in writing within five calendar days following receipt of such notice (collectively, the "Registrable Securities"). The Company shall cause such Registrable Securities to be included in such Piggyback Registration. However, if the Piggyback Registration is for an underwritten offering, the number of Registrable Securities are subject to: (i) the Holder accepting the terms of the underwriting as agreed between the Company and the underwriters; (ii) the case being, if the total amount of securities, including the Registrable Securities, requested to be included in such Piggyback Registration exceeds the amount of securities that the underwriters determine in their sole discretion is compatible with the success of any such Registration Statement, then the Company shall be required to include in the Piggyback Registration only that number of Registrable Securities that the underwriters determine in their sole discretion will not jeopardize the success of the offering, provided that the Registrable Securities so included to be apportioned pro rata among the selling Holders according to the total amount of Registrable Securities requested to be included therein owned by each selling Holder or in such other proportions as shall mutually be agreed by such selling Holders); and (iii) customary "lock-up" agreements in favor of the underwriter pursuant to which a security holder of the Company will agree to neither offer, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of their securities in the Company, or a portion thereof, for a period of time following the effective date of the Registration Statement, as determined by the underwriter and as set forth in the agreement between a security holder and the underwriter, without the underwriter's prior written consent, and in the discretion of the underwriter(s).

Any Holder may elect to withdraw such Holder's request for inclusion of Registrable Securities in any Piggyback Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the Registration Statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual obligations) may withdraw a Piggyback Registration Statement at any time prior to the effectiveness of such Piggyback Registration.

The Company shall notify the Holders at any time when a prospectus relating to such Holder's Securities is required to be delivered under the Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. The Holders shall not offer or sell any Registrable Securities covered by the Registration Statement after receipt of such notification until the receipt of such supplement or amendment.

The Company may request a Holder to furnish the Company such information with respect to such Holder and such Holder's proposed distribution of the Registrable Securities pursuant to the Registration Statement as the Company may from time to time reasonably request in writing or as shall be required by law or by the Securities and Exchange Commission in connection therewith, and such Holders shall furnish the Company with such information.

**Section 9. Status of Converted Stock**. In the event any shares of Series A Convertible Preferred Stock shall be converted pursuant to Section 5 hereof, the shares so converted shall be cancelled, and shall return to the status of authorized but unissued Preferred Stock of no designated class, and shall not be issuable by the Company as Series A Convertible Preferred Stock.

## Exhibit 10.1

**Exhibit 10.1**

**COLABS INT'L, CORP.**

**2022 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN**

1. <u>Purpose</u>

This Incentive and Nonstatutory Stock Option Plan (the "Plan") is intended to further the growth and financial success of CoLabs Int'l, Corp., a Nevada corporation (the "Company") by providing additional incentives to selected employees, directors, and consultants to the Company or parent corporation or subsidiary corporation of the Company as those terms are defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the "Code") (such parent corporations and subsidiary corporations hereinafter collectively referred to as "Affiliates") so that such employees, directors, and consultants may acquire or increase their proprietary interest in the Company. Stock options granted under the Plan (hereinafter "Option(s)") may be either "Incentive Stock Options," as defined in Section 422A of the Code and any regulations promulgated under said Section, or "Nonstatutory Options" at the discretion of the Board of Directors of the Company (the "Board") and as reflected in the respective written stock option agreements granted pursuant hereto.

2. <u>Administration</u>

The Plan shall be administered by the Board of the Company; provided however, that the Board may delegate such administration to a committee of not fewer than three members (the "Committee"), at least two of whom are members of the Board and all of whom are disinterested administrators, as contemplated by Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended ("Rule 16b-3"); and provided further, that the foregoing requirement for disinterested administrators shall not apply prior to the date of the first registration of any of the securities of the Company under the Securities Act of 1933, as amended (the "Act").

Subject to the provisions of the Plan, the Board and/or the Committee shall have authority to (a) grant, in its discretion, Incentive Stock Options in accordance with Section 422A of the Code or Nonstatutory Options; (b) determine in good faith the fair market value of the stock covered by an Option; (c) determine which eligible persons shall be granted Options and the number of shares to be covered thereby and the term thereof; (d) construe and interpret the Plan; (e) promulgate, amend and rescind rules and regulations relating to its administration, and correct defects, omissions, and inconsistencies in the Plan or any Option; (f) consistent with the Plan and with the consent of the optionee, as appropriate, amend any outstanding Option or amend the exercise date or dates thereof; (g) determine the duration and purpose of leaves of absence which may be granted to optionholders without constituting termination of their employment for the purpose of the Plan; and (h) make all other determinations necessary or advisable for the Plan's administration. The interpretation and construction by the Board of any provisions of the Plan or of any Option shall be conclusive and final. No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Option.

3. <u>Eligibility</u>

The persons who shall be eligible to receive Options shall be employees, directors, or consultants of the Company or any of its Affiliates ("Optionees"). The term consultant shall mean any person who is engaged by the Company to render services and is compensated for such services, and any director of the Company whether or not compensated for such services; provided that, if the Company registers any of its securities pursuant to the Act, the term consultant shall thereafter not include directors who are not compensated for their services or are paid only a director fee by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Incentive Stock Options</u>. Incentive Stock Options may only be issued to employees of the Company or its Affiliates. Incentive Stock Options may be granted to officers, whether or not they are directors, but a director shall not be granted an Incentive Stock Option unless such director is also an employee of the Company. Payment of a director fee shall not be sufficient to constitute employment by the Company. Any grant of option to an officer or director of the Company subsequent to the first registration of any of the securities of the Company under the Act shall comply with the requirements of Rule 16b-3. An optionee may hold more than one Option.

The Company shall not grant an Incentive Stock Option under the Plan to any employee if such grant would result in such employee holding the right to exercise for the first time in any one calendar year, under all options granted to such employee under the Plan or any other stock option plan maintained by the Company or any Affiliate, with respect to shares of stock having an aggregate fair market value, determined as of the date of the Option is granted, in excess of $100,000. Should it be determined that an Incentive Stock Option granted under the Plan exceeds such maximum for any reason other than a failure in good faith to value the stock subject to such option, the excess portion of such option shall be considered a Nonstatutory Option. If, for any reason, an entire option does not qualify as an Incentive Stock Option by reason of exceeding such maximum, such option shall be considered a Nonstatutory Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nonstatutory Option</u>. The provisions of the foregoing Section 3(a) shall not apply to any option designated as a "Nonstatutory Stock Option Agreement" or which sets forth the intention of the parties that the option be a Nonstatutory Option.

4. <u>Stock</u>

The stock subject to Options shall be the shares of the Company's authorized but unissued or reacquired Common Stock (the "Stock").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares</u>. Subject to adjustment as provided in Section 5(h) of this Plan, the total number of shares of Stock which may be purchased through exercise of Options granted under this Plan shall not exceed 10,000,000 shares. If any Option shall for any reason terminate or expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination shall again be available for the grant of Options with respect thereto under this Plan as though no Option had been granted with respect to such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Reservation of Shares</u>. The Company shall reserve and keep available at all times during the term of the Plan such number of shares as shall be sufficient to satisfy the requirements of the Plan. If, after reasonable efforts, which efforts shall not include the registration of the Plan or Options under the Act, the Company is unable to obtain authority from any applicable regulatory body, which authorization is deemed necessary by legal counsel for the Company for the lawful issuance of shares hereunder, the Company shall be relieved of any liability with respect to its failure to issue and sell the shares for which such requisite authority was so deemed necessary unless and until such authority is obtained.

5. <u>Terms and Conditions of Options</u>

Options granted hereunder shall be evidenced by agreements between the Company and the respective Optionees, in such form and substance as the Board or Committee shall from time to time approve. Such agreements need not be identical, and in each case may include such provisions as the Board or Committee may determine, but all such agreements shall be subject to and limited by the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number of Shares</u>. Each Option shall state the number of shares to which it pertains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Price</u>. Each Option shall state the Option Price, which shall be determined as follows:

&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 Option granted to a person who at the time the Option is granted owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of value of all classes of stock of the Company, or of any Affiliate, ("10% Holder") shall have an Option Price of no less than 110% of the fair market value of the common stock as of the date of grant;

&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) Incentive Stock Options granted to a person who at the time the Option is granted is not a 10% Holder shall have an Option price of no less than 100% of the fair market value of the common stock as of the date of grant; 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) Nonstatutory Options granted to a person who at the time the Option is granted is not a 10% Holder shall have an Option Price determined by the Board as of the date of grant.

For the purposes of this Section 5(b), the fair market value shall be as determined by the Board, in good faith, which determination shall be conclusive and binding; provided however, that if there is a public market for such stock, the fair market value per share shall be the average of the bid and asked prices on the date of grant of the Option, or if listed on a stock exchange, the closing price on such exchange on such date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Medium and Time of Payment</u>. To the extent permissible by applicable law, the Option price shall be paid, at the discretion of the Board, at either the time of grant or the time of exercise of the Option (i) in cash or by check, (ii) by delivery of other common stock of the Company, provided such tendered stock was not acquired directly or indirectly from the Company, or, if acquired from the Company, has been held by the Optionee for more than six months, or (iii) such other form of legal consideration permitted by federal and state law as may be acceptable to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Term and Exercise of Options</u>. Any Option granted to a 10% Holder shall become exercisable over a period of no longer than five years. Any Option otherwise granted to an Employee of the Company shall become exercisable over a period of no longer than ten years. In no event shall any Option be exercisable after the expiration of ten years from the date it is granted. Unless otherwise specified by the Board or the Committee in the resolution authorizing such option, the date of grant of an Option shall be deemed to be the date upon which the Board or the Committee authorizes the granting of such Option.

Each Option shall be exercisable to the nearest whole share, in installments or otherwise, as the respective option agreements may provide. During the lifetime of an Optionee, the Option shall be exercisable only by the Optionee and shall not be assignable or transferable by the Optionee, and no other person shall acquire any rights therein. To the extent not exercised, installments (if more than one) shall accumulate, but shall be exercisable, in whole or in part, only during the period for exercise as stated in the option agreement, whether or not other installments are then exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination of Status as Employee, Director, or Consultant</u>. If Optionee's status as an employee, director, or consultant shall terminate for any reason, then the Optionee (or if the Optionee shall die after such termination, but prior to exercise, Optionee's personal representative or the person entitled to succeed to the Option) shall have the right to exercise any vested Options, in whole or in part, at any time after such termination during the remaining term of the Option; provided, however, that the Board may specify a shorter period for exercise following termination as the Board deems reasonable and appropriate, but not shorter than 12 months in the event Optionee's termination was caused by permanent disability within the meaning of Section 22(e)(3) of the Code. The Option may be exercised only with respect to installments that the Optionee could have exercised at the date of termination of employment. Nothing contained herein or in any Option granted pursuant hereto shall be construed to affect or restrict in any way the right of the Company to terminate the employment of an Optionee with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Death of Optionee</u>. If an Optionee dies while employed or engaged as a director or consultant by the Company or an Affiliate, the portion of such Optionee's Option or Options which were exercisable at the date of death may be exercised, in whole or in part, by the estate of the decedent or by a person succeeding to the right to exercise such Option or Options, at any time within the remaining term of the Option, but only to the extent, that Optionee could have exercised the Option as of the date of Optionee's death; provided, in any case, that the Option may be so exercised only to the extent that the Option has not previously been exercised by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Nontransferability of Option</u>. No Option shall be transferable by the Optionee, except by will or by the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Recapitalization</u>. Subject to any required action by the shareholders, the number of shares of common stock covered by each outstanding Option, and the price per share thereof set forth in each such Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of common stock of the Company resulting from a subdivision or consolidation of shares or the payment of a stock dividend, or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company.

Subject to any required action by the shareholders, if the Company shall be the surviving entity in any merger or consolidation, each outstanding Option thereafter shall pertain to and apply to the securities to which a holder of shares of common stock equal to the shares subject to the Option would have been entitled by reason of such merger or consolidation. A dissolution or liquidation of the Company or a merger or consolidation in which the Company is not the surviving entity shall cause each outstanding Option to terminate on the effective date of such dissolution, liquidation, merger, or consolidation. In such event, if the entity which shall be the surviving entity does not tender to Optionee an offer, for which it has no obligation to do so, to substitute for any unexercised Option, a stock option or capital stock of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee with substantially the same economic benefit as such unexercised Option, then the Board may grant to such Optionee, but shall not be obligated to do so, the right for a period commencing 30 days prior to and ending immediately prior to such dissolution, liquidation, merger, or consolidation or during the remaining term of the Option, whichever is the lesser, to exercise any unexpired Option or Options, without regard to the installment provisions of Section 5(d) of this Plan; provided, that any such right granted shall be granted to all Optionees not receiving an offer to substitute on a consistent basis, and provided further, that any such exercise shall be subject to the consummation of such dissolution, liquidation, merger, or consolidation.

In the event of a change in the common stock of the Company as presently constituted, which is limited to a change of all of its authorized shares without par value into the same number of shares with a par value, the shares resulting from any such change shall be deemed to be the common stock within the meaning of this Plan.

To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding, and conclusive. Except as expressly provided in this Section 5(h), the Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock or any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number or price of shares of common stock subject to any Option shall not be affected by, and no adjustment shall be made by reason of, any dissolution, liquidation, merger or consolidation, or any issue by the Company of shares of stock of any class or securities convertible into shares of stock of any class.

The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make any adjustments, reclassifications, reorganizations, or changes in its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Rights as a Shareholder</u>. An Optionee shall have no rights as a shareholder with respect to any shares covered by an Option until the date of the exercise of the Option, including payment and execution of all documents required therefor (the "Exercise Date"). No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities, or other property) or distributions or other rights for which the record date is prior to the Exercise Date, except as expressly provided in Section 5(h) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Modification, Acceleration, Extension, and Renewal of Options</u>. Subject to the terms and conditions and within the limitations of the Plan, the Board may modify an Option, or once an Option is exercisable, accelerate the rate at which it may be exercised, and may extend or renew outstanding Options granted under the Plan or accept the surrender of outstanding Options (to the extent not theretofore exercised) and authorize the granting of new Options in substitution for such Options, provided such action is permissible under Section 422A of the Code and state law.

Notwithstanding the foregoing provisions of this Section 5(j), however, no modification of an Option shall, without the consent of the Optionee, alter to the Optionee's detriment or impair any rights or obligations under any Option theretofore granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Investment Intent</u>. Unless and until the issuance and sale of the shares subject to the Plan are registered under the Act, each Option under the Plan shall provide that the purchases of stock thereunder shall be for investment purposes and not with a view to, or for resale in connection with, any distribution thereof. Further, unless the issuance and sale of the stock have been registered under the Act, each Option shall provide that no shares shall be purchased upon the exercise of such Option unless and until (i) any then applicable requirements of state and federal laws and regulatory agencies shall have been fully complied with to the satisfaction of the Company and its counsel, and (ii) if requested to do so by the Company, the person exercising the Option shall (A) give written assurances as to the knowledge and experience of such person (or a representative employed by such person) in financial and business matters and the ability of such person (or representative) to evaluate the merits and risks of exercising the Option, and (B) execute and deliver to the Company a letter of investment intent, all in such form and substance as the Company may require. If shares are issued upon exercise of an Option without registration under the Act, subsequent registration of such shares shall relieve the purchaser thereof of any investment restrictions or representations made upon the exercise of such Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Exercise Before Exercise Date</u>. At the discretion of the Board, the Option may, but need not, include a provision whereby the Optionee may elect to exercise all or any portion of the Option prior to the stated exercise date of the Option or any installment thereof. Any shares so purchased prior to the stated exercise date shall be subject to repurchase by the Company upon termination of Optionee's employment as contemplated by Sections 5(e), 5(f), and 5(g) hereof prior to the exercise date stated in the Option and such other restrictions and conditions as the Board or Committee may deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Other Provisions</u>. The Option agreements authorized under this Plan shall contain such other provisions, including, without limitation, restrictions upon the exercise of the Options, as the Board or the Committee shall deem advisable. Shares shall not be issued pursuant to the exercise of an Option, if the exercise of such Option or the issuance of shares thereunder would violate, in the opinion of legal counsel for the Company, the provisions of any applicable law or the rules or regulations of any applicable governmental or administrative agency or body, such as the Act, the Securities Exchange Act of 1934, the rules promulgated under the foregoing or the rules and regulations of any exchange upon which the shares of the Company are listed.

6. <u>Availability of Information</u>

During the term of the Plan and any additional period during which an Option granted pursuant to the Plan shall be exercisable, the Company shall make available, not later than 120 days following the close of each of its fiscal years, such financial and other information regarding the Company as is required by the bylaws of the Company and applicable law to be furnished to the shareholders of the Company.

7. <u>Effectiveness of Plan; Expiration</u>

Subject to approval by the shareholders of the Company, this Plan shall be deemed effective as of the date it is adopted by the Board. The Plan shall expire on October 26, 2032, but such expiration shall not affect the validity of outstanding Options.

8. <u>Amendment and Termination of the Plan</u>

The Board may, insofar as permitted by law, from time to time, with respect to any shares at the time not subject to Options, suspend or terminate the Plan or revise or amend it in any respect whatsoever, except that without the approval of the shareholders of the Company, no such revision or amendment shall (i) increase the number of shares subject to the Plan, (ii) decrease the price at which Options may be granted, (iii) materially increase the benefits to Optionees, or (iv) change the class of persons eligible to receive Options under this Plan; provided, however, no such action shall alter or impair the rights and obligations under any Option outstanding as of the date thereof without the written consent of the Optionee thereunder. No Option may be granted while the Plan is suspended or after it is terminated, but the rights and obligations under any Option granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan.

9. <u>Indemnification of Board</u>

In addition to such other rights or indemnifications as they may have as directors or otherwise, and to the extent allowed by applicable law, the members of the Board and the Committee shall be indemnified by the Company against the reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim, action, suit or proceeding, or in connection with any appeal thereof, to which they or any of them may be a party by reason of any action taken, or failure to act, under or in connection with the Plan or any Option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such claim, action, suit or proceeding, except in any case in relation to matters as to which it shall be adjudged in such claim, action, suit or proceeding that such Board member is liable for negligence or misconduct in the performance of his or her duties; provided that within 60 days after institution of any such action, suit or Board proceeding the member involved shall offer the Company, in writing, the opportunity, at its own expense, to handle and defend the same.

10. <u>Application of Funds</u>

The proceeds received by the Company from the sale of common stock pursuant to the exercise of Options will be used for general corporate purposes.

11. <u>No Obligation to Exercise Option</u>

The granting of an Option shall impose no obligation upon the Optionee to exercise such Option.

12. <u>Notices</u>

All notice, requests, demands, and other communications pursuant to this Plan shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the fifth day following the mailing thereof to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, or at the time and date of transmission by e-mail if such transmission is between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day ("business hours") and if not transmitted during business hours, at 9:00 a.m. Pacific time on the next business day following transmission.

13. <u>Definition of "Days"</u>

When used herein, the word "days" refers to calendar days and the phrase "business days" refers to all days other than Saturdays, Sundays, and legal holidays defined by the IRC, or, if not defined by the IRC, as defined by the State of California.

The foregoing Incentive and Nonstatutory Stock Option Plan was duly adopted and approved by the Board of Directors on October 26, 2022, and approved by the shareholders of the Company on December 14, 2022.

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| | |
|:---|:---|
| | */s/ William Cohen* |
|  | William Cohen, Chief Financial Officer |

---

**COLABS INT'L, CORP.**

**2022 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN**

**NOTICE AND AGREEMENT**

Unless otherwise defined herein, the terms defined in the CoLabs Int'l, Corp. 2022 Incentive and Nonstatutory Stock Option Plan (the "Plan") shall have the same defined meanings in this Incentive Stock Option Agreement (including all Exhibits hereto, the "Option Agreement").

**NOTICE OF INCENTIVE STOCK OPTION GRANT**

---

| |
|:---|
| Name of Optionee: |
| Address: |

---

The undersigned Optionee has been granted an Option to purchase shares of Common Stock of the Company (the "Option"), subject to the terms and conditions of the Plan and this Option Agreement, as follows:

---

| |
|:---|
| Date of Grant: |
| Vesting Commencement Date: |
| Exercise Price Per Share: |
| Total Number of Options Granted: |
| Total Exercise Price: |
| Term/Expiration Date:\* |

---

\*Subject to earlier termination as set forth in the Option Agreement.

**<u>Vesting Schedule</u>:**

This Option shall be exercisable, in whole or in part, according to the following vesting schedule:

One thirty-sixth of the Shares subject to the Option shall vest each month on the same day of the month as the Vesting Commencement Date subject to Optionee continuing to be an employee through each such date.

**<u>Termination Period</u>:**

This Option shall be exercisable for three months after Optionee ceases to be an employee, unless such termination is due to Optionee's death or permanent disability, in which case this Option shall be exercisable for 12 months after Optionee ceases to be an employee. Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and this Option may be subject to earlier termination as provided in the Plan.

**COLABS INT'L, CORP.**

**2022 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN**

**INCENTIVE STOCK OPTION AGREEMENT**

THIS INCENTIVE STOCK OPTION AGREEMENT (this "Agreement") is made and entered into as of the Date of Grant specified in the Notice of Incentive Stock Option Grant (the "Grant Notice"), by and between CoLabs Int'l, Corp., a Nevada corporation (the "Company"), and the Optionee name in the Grant Notice, with reference to the following recitals of facts:

WHEREAS, the Board has authorized the granting to Optionee of an incentive stock option ("Option") to purchase shares of Common Stock of the Company (the "Shares") upon the terms and conditions hereinafter stated;

WHEREAS, the Board and stockholders of the Company have heretofore adopted a 2022 Incentive and Nonstatutory Stock Option Plan (the "Plan"), pursuant to which this Option is being granted; and

WHEREAS, it is the intention of the parties that this Option be an Incentive Stock Option (a "Qualified Stock Option").

NOW, THEREFORE, in consideration of the covenants herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term of Option; Continuation of Employment</u>. This Option shall expire, and all rights hereunder to purchase the Shares shall terminate, ten years from the date hereof. This Option shall earlier terminate as set forth in Sections 4 and 5 hereof. Nothing contained herein shall be construed to interfere in any way with the right of the Company to terminate the employment of Optionee or to increase or decrease the compensation of Optionee from the rate in existence at the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting of Option</u>. Subject to the provisions of Sections 4 and 5 hereof, this Option shall vest and become exercisable during the term of Optionee's employment as set forth in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Exercise</u>. In order to exercise this Option with respect to all or any part of the Shares for which this Option is at the time exercisable, Optionee must take the following actions:

&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) Execute and deliver to the Company a written notice of exercise stating the number of Shares being purchased (in whole shares only) and such other information set forth on the form of Notice of Exercise attached hereto as Appendix A;

&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) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Cash or check made payable 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Should the Common Stock be registered under Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") at the time the Option is exercised, then the Exercise Price may also be paid as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In shares of Common Stock held by Optionee for the requisite period necessary to avoid a charge to the Company's earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent the Option is exercised for vested Shares, through a special sale and remittance procedure pursuant to which Optionee shall concurrently provide irrevocable instructions (a) to a Company-approved brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal, State and local income and employment taxes required to be withheld by the Company by reason of such exercise; and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale (a "cashless exercise 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provisions herein to the contrary, if the Fair Market Value of one share of the Company's Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Option by payment of cash, the Optionee may elect to receive shares equal to the value (as determined below) of this Option (or the portion thereof being canceled) by surrender of this Option at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the Company shall issue to the Optionee a number of shares of Common Stock computed using the following formula:

X = <u>Y (A-B)</u>

A

Where X = the number of shares of Common Stock to be issued to the Optionee

Y = the number of shares of Common Stock purchasable under the Option or, if only a portion of the Option is being exercised, the portion of the Option being canceled (at the date of such calculation)

A = the Fair Market Value of one share of the Company's Common Stock (at the date of such calculation)

B = Exercise Price (as adjusted to the date of such calculation)

&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) Execute and deliver to the Company such written representations as may be requested by the Company in order for it to comply with the applicable requirements of Federal and State securities 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;(d) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, State, and local income and employment tax withholding requirements applicable to the Option exercise, if any; 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;(e) If requested, execute and deliver to the Company a written statement as provided for in Section 10 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment</u>. If Optionee shall cease to serve as an employee of the Company for any reason, whether voluntarily or involuntarily, Optionee shall have the right, during the remaining term of the Option, to exercise in whole or in part this Option to the extent, but only to the extent, that this Option was exercisable as of the last day of employment, and had not previously been exercised; provided, however, that the Board may specify a shorter period for exercise following termination as the Board deems reasonable and appropriate, but not shorter than six months in the event Optionee's termination was caused by permanent disability within the meaning of Section 22(e)(3) of the Code. The Option may be exercised only with respect to installments that the Optionee could have exercised at the date of termination of employment.

Notwithstanding anything herein to the contrary, all rights under this Option shall expire in any event on the date specified in Section 1 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Death of Optionee</u>. If the Optionee shall die while an employee of the Company, Optionee's personal representative or the person entitled to Optionee's rights hereunder may at any time during the remaining term of this Option, exercise this Option and purchase Shares to the extent, but only to the extent, that Optionee could have exercised this Option as of the date of Optionee's death; provided, in any case, that this Option may be so exercised only to the extent that this Option has not previously been exercised by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Rights as Stockholder</u>. Optionee shall have no rights as a stockholder with respect to the Shares covered by any installment of this Option until the Exercise Date and no adjustment will be made for dividends or other rights for which the record date is prior to the Exercise Date except as provided in Section 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Recapitalization</u>. Subject to any required action by the stockholders of the Company, the number of Shares covered by this Option, and the price per Share thereof, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of shares or the payment of a stock dividend, or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company; provided however that the conversion of any convertible securities of the Company shall not be deemed having been "effected without receipt of consideration by the Company."

In the event of a proposed dissolution or liquidation of the Company, a merger or consolidation in which the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, this Option shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, at its sole and absolute discretion and without obligation, declare that this Option shall terminate as of a date fixed by the Board and grant Optionee the right for a period commencing 30 days prior to and ending immediately prior to such date, or during the remaining term of this Option, whichever occurs sooner, to exercise this Option as to all or any part of the Shares, without regard to the installment provision of Section 2; provided, however, that such exercise shall be subject to the consummation of such dissolution, liquidation, merger, consolidation or sale.

Subject to any required action by the stockholders of the Company, if the Company shall be the surviving entity in any merger or consolidation, this Option thereafter shall pertain to and apply to the securities to which a holder of Shares equal to the Shares subject to this Option would have been entitled by reason of such merger or consolidation, and the vesting provisions of Section 2 shall continue to apply.

In the event of a change in the Shares of the Company as presently constituted, which is limited to a change of all of its authorized Shares without par value into the same number of Shares with a par value, the Shares resulting from any such change shall be deemed to be the Shares within the meaning of this Agreement.

To the extent that the foregoing adjustments relate to shares or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding, and conclusive. Except as heretofore expressly provided, Optionee shall have no rights by reason of any subdivision or consolidation of share of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number and price of shares subject to this Option shall not be affected by, and no adjustments shall be made by reason of, any dissolution, liquidation, merger, or consolidation, or any issue by the Company of shares of stock of any class or securities convertible into shares of stock of any class.

The grant of this Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes in its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Taxation upon Exercise of Option</u>. Optionee understands that, upon exercise of this Option, Optionee may recognize income, for federal and state income tax purposes, in an amount equal to the amount by which the Fair Market Value of the Shares, determined as of the date of exercise, exceeds the exercise price. The acceptance of the Shares by Optionee shall constitute an agreement by Optionee to report such income in accordance with then applicable law and to cooperate with Company in establishing the amount of such income and corresponding deduction to the Company for its income tax purposes. Withholding for federal or state income and employment tax purposes will be made, if and as required by law, from Optionee's then current compensation, or, if such current compensation is insufficient to satisfy withholding tax liability, the Company may require Optionee to make a cash payment to cover such liability as a condition of the exercise of this Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Modification, Extension and Renewal of Options</u>. The Board may modify, extend, or renew this Option or accept the surrender thereof (to the extent not theretofore exercised) and authorize the granting of a new option in substitution therefore (to the extent not theretofore exercised), subject at all times to the Plan. Notwithstanding the foregoing provisions of this Section 9, no modification shall, without the consent of the Optionee, alter to the Optionee's detriment or impair any rights of Optionee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Investment Intent; Restrictions on Transfer</u>. Optionee represents and agrees that if Optionee exercises this Option in whole or in part, Optionee will in each case acquire the Shares upon such exercise for the purpose of investment and not with a view to, or for resale in connection with, any distribution thereof; and that upon such exercise of this Option in whole or in part, Optionee (or any person or persons entitled to exercise this Option under the provisions of Sections 4 and 5 hereof) shall furnish to the Company a written statement to such effect, satisfactory to the Company in form and substance. The Company, at its option, may include a legend on each certificate representing Shares issued pursuant to any exercise of this Option, stating in effect that such Shares have not been registered under the Securities Act of 1933, as amended (the "Act"), and that the transferability thereof is restricted. If the Shares represented by this Option are registered under the Act, either before or after the exercise of this Option in whole or in part, the Optionee shall be relieved of the foregoing investment representation (attached as Exhibit A) and agreement and shall not be required to furnish the Company with the foregoing written statement.

Optionee further represents that Optionee has had access to the financial statements or books and records of the Company, has had the opportunity to ask questions of the Company concerning its business, operations and financial condition, and to obtain additional information reasonably necessary to verify the accuracy of such information, and further represents that Optionee has either such experience and knowledge in investment, financial and business matters or has investments similar to the stock of the Company such that Optionee is capable of evaluating the merits and risks thereof and has the capacity to protect his or her own interest in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notice, requests, demands, and other communications pursuant to this Plan shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the fifth day following the mailing thereof to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, or at the time and date of transmission by e-mail if such transmission is between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day ("business hours") and if not transmitted during business hours, at 9:00 a.m. Pacific time on the next business day following transmission at the address last provided to the Company by Optionee for his or her employee records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Agreement Subject to Plan; Applicable Law</u>. This Agreement is made pursuant to the Plan and shall be interpreted to comply therewith. A copy of such Plan is available to Optionee, at no charge, at the principal office of the Company. Any provision of this Agreement inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. This Agreement has been granted, executed, and delivered in the State of California, and the interpretation and enforcement shall be governed by the laws thereof and subject to the exclusive jurisdiction of the courts therein.

**(SIGNATURE PAGE IMMEDIATELY FOLLOWS)**

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Date of Grant.

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| | | |
|:---|:---|:---|
| OPTIONEE | CoLabs Int'l, Corp., | CoLabs Int'l, Corp., |
|  | a Nevada corporation | a Nevada corporation |
| Signature | By: | William Cohen |
|  | Its: | Chief Financial Officer |
| Print Name |  |  |
| Address 1 |  |  |
| Address 2 |  |  |

---

Appendix A

**NOTICE OF EXERCISE**

CoLabs Int'l, Corp.

18593 Main Street

Huntington Beach, CA 92648

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** ☐ The undersigned hereby elects to purchase _______________ shares of the Common Stock of CoLabs Int'l, Corp. (the "Company") pursuant to the terms of the attached Option and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

☐ The undersigned hereby elects to purchase _______________ shares of the Common Stock of the Company pursuant to the terms of the net exercise provisions set forth in Section 3(b)(iii) of the attached Option, and shall tender payment of all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

---

| |
|:---|
| Name |
| Address |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** The undersigned represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned's own interests; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Option have not been registered under the Securities Act of 1933, as amended (the "Act"), by reason of a specific exemption from the registration provisions of the Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Act, they must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Company and the Company has not made such information available and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company stating that such registration is not required.

---

| | |
|:---|:---|
| Date | Signature |
|  | Print name |

---

**EXHIBIT A**

**INVESTMENT REPRESENTATION STATEMENT**

---

| | |
|:---|:---|
| OPTIONEE: | |
| COMPANY: | COLABS INT'L, CORP. |
| SECURITY: | COMMON STOCK |
| NO. OF SHARES: | |
| DATE: | |

---

In connection with the above-listed Securities, the undersigned Optionee represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Optionee is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Optionee acknowledges and understands that the Securities constitute "restricted securities" under the Act and have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee's investment intent as expressed herein. In this instance, Optionee understands that, in the view of the Securities and Exchange Commission ("SEC"), the statutory basis for such exemption may be unavailable if Optionee's representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, for a period of one year or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Optionee, the exercise shall be exempt from registration under the Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, 90 days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of the applicable conditions specified by Rule 144, including in the case of affiliates (1) the availability of certain public information about the Company; (2) the amount of Securities being sold during any three month period not exceeding specified limitations; (3) the resale being made in an unsolicited "broker's transaction," transactions directly with a "market maker" or "riskless principal transactions" (as those terms are defined under the Securities Exchange Act of 1934); and (4) the timely filing of a Form 144, if applicable.

In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require (i) the availability of current public information about the Company; (ii) the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and (iii) in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in Sections (2), (3), and (4) of the paragraph immediately above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any other such registration exemption shall be available in such event.

---

| | |
|:---|:---|
| OPTIONEE |  |
| Signature | Date |
| Print Name |  |

---

**COLABS INT'L, CORP.**

**2022 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN**

**NOTICE AND AGREEMENT**

Unless otherwise defined herein, the terms defined in the CoLabs Int'l, Corp. 2022 Incentive and Nonstatutory Stock Option Plan (the "Plan") shall have the same defined meanings in this Nonstatutory Stock Option Agreement (including all Exhibits hereto, the "Option Agreement").

**NOTICE OF NONSTATUTORY STOCK OPTION GRANT**

---

| |
|:---|
| Name of Optionee: |
| Address: |

---

The undersigned Optionee has been granted an Option to purchase shares of Common Stock of the Company (the "Option"), subject to the terms and conditions of the Plan and this Option Agreement, as follows:

---

| |
|:---|
| Date of Grant: |
| Vesting Commencement Date: |
| Exercise Price Per Share: |
| Total Number of Options Granted: |
| Total Exercise Price: |
| Term/Expiration Date:\* |

---

\*Subject to earlier termination as set forth in the Option Agreement.

**<u>Vesting Schedule</u>:**

This Option shall be exercisable, in whole or in part, according to the following vesting schedule:

One hundred percent of the Shares subject to the Option shall vest immediately upon the granting of the Option.

**<u>Termination Period</u>:**

This Option shall be exercisable for three months after Optionee ceases to be an employee, director, or consultant or otherwise engaged by or with the Company, as the case may be, unless such termination is due to Optionee's death which has no limit on the exercise period or Permanent Disability (as defined in Code Section 22(e)(3)) in which case this Option shall be exercisable for 12 months after Optionee ceases to be an Optionee. Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above and this Option may be subject to earlier termination as provided in the Plan.

**COLABS INT'L, CORP.**

**2022 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN**

**NONSTATUTORY STOCK OPTION AGREEMENT**

THIS NONSTATUTORY STOCK OPTION AGREEMENT (this "Agreement") is made and entered into as of the Date of Grant specified in the Notice of Nonstatutory Stock Option Grant (the "Grant Notice"), by and between CoLabs Int'l, Corp., a Nevada corporation ("Company"), and the Optionee named in the Grant Notice (referred to herein as the "Optionee"), with reference to the following recitals of facts:

WHEREAS, the Board has authorized the granting to Optionee of a nonstatutory stock option ("Option") to purchase shares of Common Stock of the Company (the "Shares") upon the terms and conditions hereinafter stated;

WHEREAS, the Board and stockholders of the Company have heretofore adopted a 2022 Incentive and Nonstatutory Stock Option Plan (the "Plan"), pursuant to which this Option is being granted; and

WHEREAS, it is the intention of the parties that this Option be a Nonstatutory Stock Option.

NOW, THEREFORE, in consideration of the covenants herein set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term of Option; Continuation of Employment or Engagement</u>. This Option shall expire, and all rights hereunder to purchase the Shares shall terminate, ten years from the date hereof. This Option shall earlier terminate as set forth in Sections 4 and 5 hereof. Nothing contained herein shall be construed to interfere in any way with the right of the Company to terminate the employment or engagement, as applicable, of Optionee or to increase or decrease the compensation of Optionee (if any) from the rate in existence at the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Vesting of Option</u>. Subject to the provisions of Sections 4 and 5 hereof, this Option shall vest and become exercisable during the term of Optionee's employment or engagement as set forth in the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Exercise</u>. In order to exercise this Option with respect to all or any part of the Shares for which this Option is at the time exercisable, Optionee must take the following actions:

&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) Execute and deliver to the Company a written notice of exercise stating the number of Shares being purchased (in whole shares only) and such other information set forth on the form of Notice of Exercise attached hereto as Appendix A;

&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) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Cash or check made payable 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Should the Common Stock be registered under Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") at the time the Option is exercised, then the Exercise Price may also be paid as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) In shares of Common Stock held by Optionee for the requisite period necessary to avoid a charge to the Company's earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent the Option is exercised for vested Shares, through a special sale and remittance procedure pursuant to which Optionee shall concurrently provide irrevocable instructions (a) to a Company-approved brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal, State and local income and employment taxes required to be withheld by the Company by reason of such exercise; and (b) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale (a "cashless exercise 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provisions herein to the contrary, if the Fair Market Value of one share of the Company's Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Option by payment of cash, the Optionee may elect to receive shares equal to the value (as determined below) of this Option (or the portion thereof being canceled) by surrender of this Option at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the Company shall issue to the Optionee a number of shares of Common Stock computed using the following formula:

X = <u>Y (A-B)</u>

A

Where X = the number of shares of Common Stock to be issued to the Optionee

Y = the number of shares of Common Stock purchasable under the Option or, if only a portion of the Option is being exercised, the portion of the Option being canceled (at the date of such calculation)

A = the Fair Market Value of one share of the Company's Common Stock (at the date of such calculation)

B = Exercise Price (as adjusted to the date of such calculation)

&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) Execute and deliver to the Company such written representations as may be requested by the Company in order for it to comply with the applicable requirements of Federal and State securities 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;(d) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, State, and local income and employment tax withholding requirements applicable to the Option exercise, if any; 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;(e) If requested, execute, and deliver to the Company a written statement as provided for in Section 10 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment or Engagement</u>. If Optionee shall cease to serve as an employee, director, or consultant of the Company for any reason, whether voluntarily or involuntarily, Optionee shall have the right, during the remaining term of the Option, to exercise in whole or in part this Option to the extent, but only to the extent, that this Option was exercisable as of the last day of employment or engagement, as applicable, and had not previously been exercised; provided, however, that the Board may specify a shorter period for exercise following termination as the Board deems reasonable and appropriate, but not shorter than six months in the event Optionee's termination was caused by permanent disability within the meaning of Section 22(e)(3) of the Code. The Option may be exercised only with respect to installments that the Optionee could have exercised at the date of termination of employment or engagement.

Notwithstanding anything herein to the contrary, all rights under this Option shall expire in any event on the date specified in Section 1 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Death of Optionee</u>. If the Optionee shall die while an employee, director, or consultant of the Company, Optionee's personal representative or the person entitled to Optionee's rights hereunder may at any time during the remaining term of this Option, exercise this Option and purchase Shares to the extent, but only to the extent, that Optionee could have exercised this Option as of the date of Optionee's death; provided, in any case, that this Option may be so exercised only to the extent that this Option has not previously been exercised by Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Rights as Stockholder</u>. Optionee shall have no rights as a stockholder with respect to the Shares covered by any installment of this Option until the Exercise Date and no adjustment will be made for dividends or other rights for which the record date is prior to the Exercise Date except as provided in Section 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Recapitalization</u>. Subject to any required action by the stockholders of the Company, the number of Shares covered by this Option, and the price per Share thereof, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of shares or the payment of a stock dividend, or any other increase or decrease in the number of such shares affected without receipt of consideration by the Company; provided however that the conversion of any convertible securities of the Company shall not be deemed having been "effected without receipt of consideration by the Company."

In the event of a proposed dissolution or liquidation of the Company, a merger or consolidation in which the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, this Option shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, at its sole and absolute discretion and without obligation, declare that this Option shall terminate as of a date fixed by the Board and grant Optionee the right for a period commencing 30 days prior to and ending immediately prior to such date, or during the remaining term of this Option, whichever occurs sooner, to exercise this Option as to all or any part of the Shares, without regard to the installment provision of Section 2; provided, however, that such exercise shall be subject to the consummation of such dissolution, liquidation, merger, consolidation or sale.

Subject to any required action by the stockholders of the Company, if the Company shall be the surviving entity in any merger or consolidation, this Option thereafter shall pertain to and apply to the securities to which a holder of Shares equal to the Shares subject to this Option would have been entitled by reason of such merger or consolidation, and the vesting provisions of Section 2 shall continue to apply.

In the event of a change in the Shares of the Company as presently constituted, which is limited to a change of all of its authorized Shares without par value into the same number of Shares with a par value, the Shares resulting from any such change shall be deemed to be the Shares within the meaning of this Agreement.

To the extent that the foregoing adjustments relate to shares or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding, and conclusive. Except as heretofore expressly provided, Optionee shall have no rights by reason of any subdivision or consolidation of share of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number and price of shares subject to this Option shall not be affected by, and no adjustments shall be made by reason of, any dissolution, liquidation, merger or consolidation, or any issue by the Company of shares of stock of any class or securities convertible into shares of stock of any class.

The grant of this Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes in its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of its business or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Taxation upon Exercise of Option</u>. Optionee understands that, upon exercise of this Option, Optionee may recognize income, for federal and state income tax purposes, in an amount equal to the amount by which the Fair Market Value of the Shares, determined as of the date of exercise, exceeds the exercise price. The acceptance of the Shares by Optionee shall constitute an agreement by Optionee to report such income in accordance with then applicable law and to cooperate with Company in establishing the amount of such income and corresponding deduction to the Company for its income tax purposes. Withholding for federal or state income and employment tax purposes will be made, if and as required by law, from Optionee's then current compensation, or, if such current compensation is insufficient to satisfy withholding tax liability, the Company may require Optionee to make a cash payment to cover such liability as a condition of the exercise of this Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Modification, Extension and Renewal of Options</u>. The Board may modify, extend, or renew this Option or accept the surrender thereof (to the extent not theretofore exercised) and authorize the granting of a new option in substitution therefore (to the extent not theretofore exercised), subject at all times to the Plan. Notwithstanding the foregoing provisions of this Section 9, no modification shall, without the consent of the Optionee, alter to the Optionee's detriment or impair any rights of Optionee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Investment Intent; Restrictions on Transfer</u>. Optionee represents and agrees that if Optionee exercises this Option in whole or in part, Optionee will in each case acquire the Shares upon such exercise for the purpose of investment and not with a view to, or for resale in connection with, any distribution thereof; and that upon such exercise of this Option in whole or in part, Optionee (or any person or persons entitled to exercise this Option under the provisions of Sections 4 and 5 hereof) shall furnish to the Company a written statement to such effect, satisfactory to the Company in form and substance. The Company, at its option, may include a legend on each certificate representing Shares issued pursuant to any exercise of this Option, stating in effect that such Shares have not been registered under the Securities Act of 1933, as amended (the "Act"), and that the transferability thereof is restricted. If the Shares represented by this Option are registered under the Act, either before or after the exercise of this Option in whole or in part, the Optionee shall be relieved of the foregoing investment representation (attached as Exhibit A) and agreement and shall not be required to furnish the Company with the foregoing written statement.

Optionee further represents that Optionee has had access to the financial statements or books and records of the Company, has had the opportunity to ask questions of the Company concerning its business, operations and financial condition, and to obtain additional information reasonably necessary to verify the accuracy of such information, and further represents that Optionee has either such experience and knowledge in investment, financial and business matters or has investments similar to the stock of the Company such that Optionee is capable of evaluating the merits and risks thereof and has the capacity to protect his or her own interest in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notice, requests, demands, and other communications pursuant to this Plan shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the fifth day following the mailing thereof to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, or at the time and date of transmission by e-mail if such transmission is between the hours of 9:00 a.m. and 5:00 p.m. Pacific time on a business day ("business hours") and if not transmitted during business hours, at 9:00 a.m. Pacific time on the next business day following transmission at the address last provided to the Company by Optionee for his or her employee records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Agreement Subject to Plan; Applicable Law</u>. This Agreement is made pursuant to the Plan and shall be interpreted to comply therewith. A copy of such Plan is available to Optionee, at no charge, at the principal office of the Company. Any provision of this Agreement inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. This Agreement has been granted, executed, and delivered in the State of California, and the interpretation and enforcement shall be governed by the laws thereof and subject to the exclusive jurisdiction of the courts therein.

**(SIGNATURE PAGE IMMEDIATELY FOLLOWS)**

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Date of Grant.

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| | | |
|:---|:---|:---|
| OPTIONEE | CoLabs Int'l, Corp., | CoLabs Int'l, Corp., |
|  | a Nevada corporation | a Nevada corporation |
| Signature | By: | William Cohen |
|  | Its: | Chief Financial Officer |
| Print Name |  |  |
| Address 1 |  |  |
| Address 2 |  |  |

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Appendix A

**NOTICE OF EXERCISE**

CoLabs Int'l, Corp.

18593 Main Street

Huntington Beach, CA 92648

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** ☐ The undersigned hereby elects to purchase _______________ shares of the Common Stock of CoLabs Int'l, Corp. (the "Company") pursuant to the terms of the attached Option and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

☐ The undersigned hereby elects to purchase _______________ shares of the Common Stock of the Company pursuant to the terms of the net exercise provisions set forth in Section 3(b)(iii) of the attached Option, and shall tender payment of all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

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| |
|:---|
| Name |
| Address |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** The undersigned represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned's own interests; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Option have not been registered under the Securities Act of 1933, as amended (the "Act"), by reason of a specific exemption from the registration provisions of the Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Act, they must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Company and the Company has not made such information available and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company stating that such registration is not required.

---

| | |
|:---|:---|
| Date | Signature |
|  | Print name |

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**EXHIBIT A**

**INVESTMENT REPRESENTATION STATEMENT**

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| | |
|:---|:---|
| OPTIONEE: | |
| COMPANY: | COLABS INT'L, CORP. |
| SECURITY: | COMMON STOCK |
| NO. OF SHARES: | |
| DATE: | |

---

In connection with the above-listed Securities, the undersigned Optionee represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Optionee is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the meaning of the Securities Act of 1933, as amended (the "Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Optionee acknowledges and understands that the Securities constitute "restricted securities" under the Act and have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee's investment intent as expressed herein. In this instance, Optionee understands that, in the view of the Securities and Exchange Commission ("SEC"), the statutory basis for such exemption may be unavailable if Optionee's representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, for a period of one year or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Optionee, the exercise shall be exempt from registration under the Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, 90 days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of the applicable conditions specified by Rule 144, including in the case of affiliates (1) the availability of certain public information about the Company; (2) the amount of Securities being sold during any three month period not exceeding specified limitations; (3) the resale being made in an unsolicited "broker's transaction," transactions directly with a "market maker" or "riskless principal transactions" (as those terms are defined under the Securities Exchange Act of 1934); and (4) the timely filing of a Form 144, if applicable.

In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which may require (i) the availability of current public information about the Company; (ii) the resale to occur more than a specified period after the purchase and full payment (within the meaning of Rule 144) for the Securities; and (iii) in the case of the sale of Securities by an affiliate, the satisfaction of the conditions set forth in Sections (2), (3), and (4) of the paragraph immediately above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Optionee further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any other such registration exemption shall be available in such event.

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| | |
|:---|:---|
| OPTIONEE |  |
| Signature | Date |
| Print Name |  |

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## Exhibit 10.2

**Exhibit 10.2**

**COLABS INT'L, CORP.**

**2022 RESTRICTED STOCK PLAN**

1. <u>Purpose</u>

This CoLabs Int'l, Corp. 2022 Restricted Stock Plan (this "Plan") is intended to provide incentives which will attract, retain, motivate, and reward executive officers, non-employee directors, and other key employees of CoLabs Int'l, Corp., a Nevada corporation (the "Company") or any of its Affiliates, by providing them opportunities to acquire shares of the common stock, with a par value of $0.001 per share ("Common Stock"), of the Company. "Affiliate," as used herein, shall mean any corporation or other entity owning, directly or indirectly, 50% or more of the outstanding stock of the Company, or in which the Company or any such corporation or other entity owns, directly or indirectly, 50% or more of the outstanding capital stock (determined by aggregate voting rights) or other voting interests. Furthermore, the Plan is intended to assist in further aligning the interests of the Company's executive officers, non-employee directors, and other key employees with those of its shareholders. The Plan has been adopted and approved by the Board of Directors (the "Board") of the Company and shall become effective as of the Effective Date, as defined below.

2. <u>Administration</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan generally shall be administered by a committee (the "Committee") which shall be the Compensation Committee of the Board or another committee appointed by the Board from among its members, subject to the rules of any stock exchange then listing the Common Stock. Unless the Board determines otherwise, the Committee shall be comprised solely of not less than two members who each shall qualify as a (i) "Non-Employee Director" within the meaning of Rule 16b-3(b)(3) (or any successor rule) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and (ii) an "outside director" within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations thereunder. The Committee is authorized, subject to the provisions of the Plan, to establish such rules and regulations as it deems necessary for the proper administration of the Plan and to make such determinations and interpretations and to take such action in connection with the Plan and any Awards granted hereunder as it deems necessary or advisable. All determinations and interpretations made by the Committee shall be binding and conclusive on all Participants, as defined below, and their legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No member of the Board, no member of the Committee, and no agent of the Committee who is an employee of the Company shall be liable for any act or failure to act hereunder, except in circumstances involving his or her bad faith, gross negligence, or willful misconduct, or for any act or failure to act hereunder by any other member or employee or by any agent to whom duties in connection with the administration of this Plan have been delegated. The Company shall indemnify members of the Board, members of the Committee, and any agent of the Committee who is an employee of the Company against any and all liabilities or expenses to which they may be subjected by reason of any act or failure to act with respect to their duties on behalf of the Plan, except in circumstances involving such person's bad faith, gross negligence, or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Committee has the authority to grant awards (the "Awards") to the Participants. The Committee may delegate such of its powers and authority under the Plan as it deems appropriate to designated officers or employees of the Company. In addition, the independent members of the full Board may exercise any of the powers and authority of the Committee under the Plan. In the event of such delegation of authority or exercise of authority by the Board, references in the Plan to the Committee shall be deemed to refer, as appropriate, to the agent of the Committee or the Board. The selection of members of the Committee or any subcommittee thereof, and any delegation by the Committee to designated officers or employees, under this Section 2(c) shall comply with Section 16(b) of the Exchange Act, the performance-based provisions of Section 162(m) of the Code, and the regulations promulgated under each of such statutory provisions, or the respective successors to such statutory provisions or regulations, as in effect from time to time, except to the extent that the Board determines that such compliance is not necessary or desirable. The Committee may employ such legal or other counsel, consultants, and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion or computation received from any such counsel, consultant, or agent. Expenses incurred by the Committee in the engagement of such counsel, consultant, or agent shall be paid by the Company or any of its Affiliates whose employees have benefited from the Plan, as determined by the Committee.

3. <u>Participants</u>

Participants shall consist of such executive officers, non-employee directors, and other key employees (individually, "Participant" and collectively, "Participants") of the Company or any of its Affiliates as the Committee in its sole discretion determines to be significantly responsible for the success and future growth and profitability of the Company and whom the Committee may designate from time to time to receive Awards under the Plan. Designation of a Participant in any year shall not require the Committee to designate such person to receive an Award in any other year or, once designated, to receive the same type or amount of Award as granted to the Participant in any other year. The Committee shall consider such factors as it deems pertinent in selecting Participants and in determining the type and amount of Awards.

4. <u>Types of Awards and Vesting Restrictions</u>

Stock Awards and Performance Awards may, as determined by the Committee, in its discretion, constitute Performance-Based Awards, as described in Section 8 below. Awards granted to Participants under the Plan may be subject to a graded vesting schedule with a minimum vesting period of two years, unless otherwise determined by the Committee. Awards shall be evidenced by Award agreements (which need not be identical) in the form attached hereto as **Exhibit A** or in such other form as the Committee may from time to time approve; provided, however, that in the event of any conflict between the provisions of the Plan and any such agreements, the provisions of the Plan shall prevail.

5. <u>Common Stock Available Under the Plan</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Shares Available</u>. The aggregate number of shares of Common Stock that may be subject to Awards granted under this Plan shall be 10,000,000 shares of Common Stock, which may be authorized and unissued or treasury shares, subject to any adjustments made in accordance with Section 9 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shares Underlying Awards That Again Become Available</u>. The following shares of Common Stock shall again become available for Awards: (1) any shares of Common Stock subject to an Award that are forfeited to the Company under Section 11(a), 11(b) or 11(c) of this Plan or under the provisions of the applicable Award agreement; (2) any shares of Common Stock subject to an Award that are retained by the Company as payment of the tax withholding obligations with respect to an Award; and (3) a number of shares of Common Stock equal to the number of previously owned shares of Common Stock surrendered to the Company to satisfy tax withholding obligations with respect to an Award.

6. <u>Stock Awards</u>

The Committee is authorized to grant Stock Awards and shall, in its sole discretion, determine such Participants in the Plan who will receive Stock Awards and the number of shares of Common Stock underlying each Stock Award. Each Stock Award shall be subject to such terms and conditions consistent with the Plan as shall be determined by the Committee and as set forth in the Award agreement, including, without limitation, restrictions on the sale or other disposition of such shares, and the right of the Company to reacquire such shares for no consideration upon termination of the Participant's employment or membership on the Board, as applicable, within specified periods. The Committee may require the Participant to deliver a duly signed stock power, endorsed in blank, relating to Common Stock covered by such Stock Award and/or that the stock certificates or other evidence of such shares be held in custody or bear restrictive legends until the restrictions thereon shall have lapsed. The Award agreement shall specify whether the Participant shall have, with respect to the shares of Common Stock subject to a Stock Award, all of the rights of a holder of shares of Common Stock, including the right to receive dividends or other distributions and to vote the shares.

7. <u>Performance Awards</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In General</u>. The Committee is authorized to grant Performance Awards and shall, in its sole discretion, determine such Participants who will receive Performance Awards and the number of shares of Common Stock that may be subject to each Performance Award. Each Performance Award shall be subject to such terms and conditions consistent with the Plan as shall be determined by the Committee and as set forth in the Award agreement. The Committee shall set performance targets at its discretion which, depending on the extent to which they are met, will determine the number of Performance Awards that will be paid out to the Participants, and may attach to such Performance Awards one or more restrictions. Performance targets may be based upon, without limitation, Company-wide, divisional and/or individual performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Adjustment of Performance Targets</u>. With respect to those Performance Awards that are not intended to qualify as Performance-Based Awards (as described below), the Committee shall have the authority at any time to make adjustments to performance targets for any outstanding Performance Awards which the Committee deems necessary or desirable unless at the time of establishment of goals the Committee shall have precluded its authority to make such adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payout</u>. Payment of earned Performance Awards shall be made in shares of Common Stock and shall be made in accordance with the terms and conditions prescribed or authorized by the Committee. The Committee, in its sole discretion, may permit a Participant to elect to defer the receipt of any Performance Award based upon a performance period of at least 12 months, provided that the Participant performed services continuously from a date no later than the date upon which the performance criteria are established through a date no earlier than the date upon which the Participant makes such deferral election. An election to defer the receipt of a Performance Award must be made no later than the date that is six months before the end of the performance period, provided that in no event may an election to defer a Performance Award be made after such Performance Award has become both substantially certain to be paid and readily ascertainable. Notwithstanding the foregoing to the contrary, a Participant shall not be permitted to elect to defer the receipt of a Performance Award unless such election complies with Code Section 409A and Treasury Regulations, Rulings and Notices of Internal Revenue Service ("IRS") issued thereunder.

8. <u>Performance-Based Awards</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In General</u>. Certain Stock Awards and Performance Awards granted under the Plan, and the compensation attributable to such Awards, are intended to (i) qualify as Performance-Based Awards (as defined in the next sentence) or (ii) be otherwise exempt from the deduction limitation imposed by Section 162(m) of the Code. Certain Awards granted under the Plan may be granted in a manner such that Awards qualify as "performance-based compensation" (as such term is used in Section 162(m) of the Code and the regulations thereunder) and thus be exempt from the deduction limitation imposed by Section 162(m) of the Code ("Performance-Based Awards"). Awards may only qualify as Performance-Based Awards if at the time of grant the Committee is comprised solely of two or more "outside directors" (as such term is used in Section 162(m) of the Code and the regulations thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Performance-Based Awards</u>. Stock Awards and Performance Awards granted under the Plan should qualify as Performance-Based Awards if, as determined by the Committee, in its discretion, either the granting or vesting of such Award is subject to the achievement of a performance target or targets based on one or more of the performance measures specified in Section 8(c) below. With respect to such Awards intended to qualify as Performance-Based Awards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the Committee shall establish in writing (x) the objective performance-based goals applicable to a given period and (y) the individual employees or class of employees to which such performance-based goals apply no later than 90 days after the commencement of such period (but in no event after 25% of such period has elapsed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. no Performance-Based Awards shall be payable to or vest with respect to, as the case may be, any Participant for a given period until the Committee certifies in writing that the objective performance goals (and any other material terms) applicable to such period have been satisfied; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. after the establishment of a performance goal, the Committee shall not revise such performance goal or increase the amount of compensation payable thereunder (as determined in accordance with Section 162(m) of the Code) upon the attainment of such performance goal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Performance Measures</u>. The Committee may use the following performance measures (either individually or in any combination) to set performance targets with respect to Awards intended to qualify as Performance-Based Awards: net sales; pretax income before allocation of corporate overhead and bonus; budget; earnings per share; net income; division, group, or corporate financial goals; return on shareholders' equity; return on assets; return on net assets; return on investment capital; gross margin return on investment; gross margin dollars or percent; payroll as a percentage of sales; inventory shrink; inventory turnover; employee turnover; sales, general, and administrative expense; attainment of strategic and operational initiatives; appreciation in and/or maintenance of the price of Common Stock or any other publicly-traded securities of the Company, if any; market share; gross profits; earnings before interest and taxes; earnings before interest, taxes, depreciation, and amortization; economic value-added models; comparisons with various stock market indices; and/or reductions in costs. The foregoing criteria shall have any reasonable definitions that the Committee may specify, which may include or exclude any or all of the following items as the Committee may specify: extraordinary, unusual, or non-recurring items; effects of accounting changes; effects of financing activities; expenses for restructuring or productivity initiatives; other non-operating items; spending for acquisitions; effects of divestitures; and effects of litigation activities and settlements. Any such performance criterion or combination of such criteria may apply to the Participant's Award opportunity in its entirety or to any designated portion or portions of the Award opportunity, as the Committee may specify.

9. <u>Adjustment Provisions</u>

If there shall be any change in Common Stock of the Company, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, split up, spin-off, combination of shares, exchange of shares, dividend in kind, or other like change in capital structure or distribution (other than normal cash dividends) to shareholders of the Company, in order to prevent dilution or enlargement of Participants' rights under the Plan, the Committee shall have the authority to adjust, in an equitable manner, the number and kind of shares that may be issued under the Plan, the number and kind of shares subject to outstanding Awards, and the Fair Market Value of Common Stock and other value determinations applicable to outstanding Awards. Appropriate adjustments may also be made by the Committee in the terms of any Awards under the Plan to reflect such changes or distributions and to modify any other terms of outstanding Awards on an equitable basis, including modifications of performance targets and changes in the length of performance periods. In addition, other than with respect to Awards intended to constitute Performance-Based Awards, the Committee is authorized to make adjustments to the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company or any of its Affiliates or the financial statements of the Company, or in response to changes in applicable laws, regulations, or accounting principles.

10. <u>Change In Control</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Accelerated Vesting</u>. Notwithstanding any other provision of this Plan, unless otherwise provided in the applicable Award agreement, if there is a Change in Control of the Company (as defined below), all unvested Awards granted under the Plan shall become fully vested immediately upon the occurrence of the Change in Control and such vested Awards shall be paid out or settled, as applicable, within 60 days upon the occurrence of the Change in Control, subject to requirements of applicable laws and regulations. The Committee shall have full discretion, notwithstanding anything herein or in an Award agreement to the contrary, with respect to an outstanding Award, upon the merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company, to provide that the securities of another entity may be substituted hereunder for the shares of Common Stock and to make equitable adjustment with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Definition</u>. For purposes of this Section 10, (i) if there is an employment agreement, at will offer letter, or director agreement between the Participant and the Company or any of its Affiliates in effect (for the avoidance of doubt, any Change of Control Agreement between the Participant and the Company shall not be considered an employment agreement, offer letter, or director agreement for the purposes of this Plan), "Change in Control" shall have the same definition as the definition of "Change in Control" contained in such employment agreement, at will offer letter, or director agreement; or (ii) if "Change in Control" is not defined in or if there is no such employment agreement, at will offer letter, or director agreement between the Participant and the Company or any of its Affiliates in effect, "Change in Control" of the Company shall be deemed to have occurred upon any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. The acquisition by any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of either (i) the then-outstanding shares of Common Stock (the "Outstanding Company Common Stock") or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (a) any acquisition directly from the Company, (b) any acquisition by the Company, (c) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (d) any acquisition by any corporation pursuant to a transaction which complies with clauses (a), (b) and (c) of subsection (ii) of this Section 10(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Consummation of a reorganization, merger, consolidation, or sale, or other disposition of all or substantially all of the assets of the Company (a "Business Combination"), in each case, unless, following such Business Combination, (a) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be; (b) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination, or the combined voting power of the then-outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination; and (c) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

11. <u>Termination of Employment or Membership on the Board</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Membership on the Board</u>. A non-employee director's membership on the Board is considered "terminated" in the event of his or her (i) Removal; (ii) not being re-nominated for membership on the Board for the next succeeding period; (iii) being nominated for membership on the Board for the next succeeding period but not being reelected for membership on the Board for such period by the Company's shareholders; or (iv) resignation from the Board, in any such case, prior to the actual vesting or lapse of any other forfeiture restrictions, as may be determined by the Committee, in its sole discretion. "Removal" for purposes of this provision shall mean the removal of a non-employee director from the Board, with or without cause, in accordance with the Company's Certificate of Incorporation, bylaws, or the Nevada General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Death or Disability</u>. Subject to any written agreement between the Participant and the Company or any of its Affiliates, if a Participant's employment or membership on the Board is terminated due to death or Disability (as defined 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;i. all unvested Stock Awards held by the Participant on the date of the Participant's termination of employment or membership on the Board due to death or the date of the termination of his or her employment or membership on the Board related to Disability, as the case may be, shall immediately be forfeited as of such date; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. all unearned and/or unvested Performance Awards held by the Participant on the date of the Participant's termination of employment due to death or the date of the termination of his or her employment related to Disability, as the case may be, shall be treated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Unearned and/or unvested Performance Awards with performance periods of greater than one year for which the Participant has completed a minimum of at least one year into a performance period shall immediately become earned or vested as of such date and shall be paid out and/or settled based on the Company's and/or Participant's performance immediately prior to the date of the Participant's termination of employment or membership on the Board due to death or the date of the termination of his or her employment or membership on the Board related to Disability on a pro-rated basis; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. All other unearned and/or unvested Performance Awards shall immediately be forfeited by such Participant as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Termination</u>. Subject to any written agreement between the Participant and the Company or any of its Affiliates, if a Participant's employment or membership on the Board is terminated for any reason, including without limitation, retirement, other than due to death or Disability, all unearned or unvested Awards held by the Participant on the date of the termination of his or her employment or membership on the Board shall immediately be forfeited by such Participant as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Discretionary Accelerated Vesting</u>. Notwithstanding anything contained in the Plan to the contrary, the Committee may, in its discretion, provide that any or all unvested Stock Awards held by the Participant on the date of the Participant's death and/or the date of the termination of the Participant's employment or membership on the Board shall immediately become vested as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disability Definition</u>. For the purposes of this Section 11, (i) if there is an employment agreement, at will offer letter, or director agreement between the Participant and the Company or any of its Affiliates in effect (for the avoidance of doubt, any Change of Control Agreement between the Participant and the Company shall not be considered an employment agreement, offer letter, or director agreement for the purposes of this Plan), "Disability" shall have the same definition as the definition of "Disability" contained in such employment agreement, at will offer letter, or director agreement; or (ii) if "Disability" is not defined in such employment agreement, at will offer letter, or director agreement or if there is no employment agreement, at will offer letter, or director agreement between the Participant and the Company or any of its Affiliates in effect, "Disability" shall mean the following, as may be further modified or supplemented by the Committee in its sole discretion: As a result of the Participant's physical or mental illness, the Participant is absent from the Participant's duties with the Company on a full-time basis for three consecutive months, and within 30 days after written Notice of Termination (as defined below) is given, the Participant does not return to the full-time performance of the Participant's duties. For purposes of this Plan, a "Notice of Termination" shall mean a written notice from the Company which indicates that the Participant has been determined to have Disability within the definition of this Section 11(e) and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for such determination.

12. <u>Section 409A of the Code</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Awards under the Plan are intended either to be exempt from the rules of Section 409A of the Code or to satisfy those rules and shall be construed accordingly. However, the Company shall not be liable to any Participant or other holder of an Award with respect to any Award-related adverse tax consequences arising under Section 409A or other provision of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any provision of the Plan or an Award agreement contravenes any regulations or Treasury guidance promulgated under Code Section 409A or could cause an Award to be subject to the interest and penalties under Code Section 409A, such provision of the Plan or Award shall be deemed automatically modified to maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Code Section 409A. Moreover, any discretionary authority that the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject to Code Section 409A to the extent such discretionary authority will contravene Section 409A or the regulations or guidance promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provisions of this Plan or any Award granted hereunder to the contrary, no acceleration shall occur with respect to any Award to the extent such acceleration would cause the Plan or an Award granted hereunder to fail to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any provisions of this Plan or any applicable Award agreement to the contrary, no payment shall be made with respect to any Award granted under this Plan to a "specified employee" (as such term is defined for purposes of Code Section 409A) prior to the six-month anniversary of the employee's separation of service to the extent such six-month delay in payment is required to comply with Code Section 409A.

13. <u>Transferability</u>

Each Award granted under the Plan to a Participant shall not be transferable otherwise than by will or the laws of descent and distribution. Notwithstanding the foregoing, at the discretion of the Committee, an Award may permit the transferability of such Award by a Participant solely to members of the Participant's immediate family or trusts or family partnerships for the benefit of such persons, subject to any restriction included in the Award agreement.

14. <u>Other Provisions</u>

Awards granted under the Plan may also be subject to such other provisions (whether or not applicable to the Award granted to any other Participant) as the Committee determines on the date of grant to be appropriate, including without limitation, for the forfeiture of, or restrictions on resale or other disposition of, Common Stock acquired under any form of the Award, for the acceleration of vesting of Awards, or to comply with federal and state securities laws, or understandings or conditions as to the Participant's employment or membership on the Board, in addition to those specifically provided for under the Plan. The Committee shall have the authority to retract any Award granted under the Plan in case of a material restatement of the financial statements of the Company or if it is otherwise determined by the Committee that the previously granted Award was not earned by the Participant.

15. <u>Fair Market Value</u>

For purposes of this Plan and any Awards granted hereunder, "Fair Market Value" shall mean, as of any given date, the closing price of a share of Common Stock on The Nasdaq Stock Market LLC or such other public trading market on which shares of Common Stock are listed or quoted on that date. If there is no regular public trading market for shares of Common Stock, the Fair Market Value of a share of Common Stock shall be determined by the Committee in good faith. In each case, the Fair Market Value shall be determined without regard to whether shares of Common Stock are restricted or represent a minority interest.

16. <u>Withholding</u>

All payments or distributions of Awards made pursuant to the Plan shall be net of any amounts required to be withheld pursuant to applicable federal, state, and local tax withholding requirements. If the Company proposes or is required to distribute Common Stock pursuant to the Plan, it may require the Participant receiving such Common Stock to remit to it or to the Affiliate that employs such Participant an amount sufficient to satisfy such tax withholding requirements prior to the delivery of any certificates for such Common Stock. In lieu thereof, the Company or the Affiliate employing the Participant shall have the right to withhold the amount of such taxes from any other sums due or to become due from the Company or the Affiliate, as the case may be, to the Participant receiving Common Stock, as the Committee shall prescribe. The Committee may, in its discretion, and subject to such rules as the Committee may adopt (including any as may be required to satisfy applicable tax and/or non-tax regulatory requirements), permit a Participant to pay all or a portion of the federal, state and local withholding taxes arising in connection with any Award consisting of shares of Common Stock by electing to have the Company withhold shares of Common Stock having a Fair Market Value equal to the amount of tax to be withheld, such tax calculated at rates required by statute or regulation.

17. <u>Tenure</u>

A Participant's right, if any, to continue to serve the Company as an executive officer, non-employee director, other key employee, or otherwise shall not be enlarged or otherwise affected by his or her designation as a Participant under the Plan.

18. <u>Unfunded Plan</u>

Participants shall have no right, title, or interest whatsoever in or to any investments which the Company may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other person. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

19. <u>No Fractional Shares</u>

No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, or Awards, or other property shall be issued or paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

20. <u>Duration</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination</u>. No Award shall be granted more than ten years after the Effective Date; provided, however, that the terms and conditions applicable to any Award granted prior to such date may thereafter be amended or modified by mutual agreement between the Company and the Participant or such other persons as may then have an interest therein. The Board or the Committee may amend the Plan from time to time or suspend or terminate the Plan at any time. However, no action authorized by this Section 20 shall reduce the amount of any existing Award or change the terms and conditions thereof without the Participant's consent, except as otherwise provided for in Section 9. No amendment of the Plan shall, without approval of the shareholders of the Company, (i) increase the total number of shares which may be issued under the Plan; (ii) modify the requirements as to eligibility for Awards under the Plan; or (iii) otherwise materially amend the Plan as provided in Nasdaq Marketplace Rules or the rules of another public trading market on which shares of Common Stock are then listed or quoted.

21. <u>Governing Law</u> 

THIS PLAN, AWARDS GRANTED HEREUNDER AND ACTIONS TAKEN IN CONNECTION HEREWITH SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA (REGARDLESS OF THE LAW THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE NEVADA PRINCIPLES OF CONFLICT OF LAWS).

22. <u>Severability</u>

In case any provision of this Plan shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

23. <u>Effective Date; Termination; Days</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan shall be effective as of the date on which the Plan is approved by the shareholders of the Company at an annual meeting or any special meeting of shareholders of the Company (the "Effective Date") and such approval of shareholders shall be a condition to the right of each Participant to receive Awards hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Plan shall terminate on the tenth anniversary of the Effective Date (unless sooner terminated by the Board).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any reference to the word "day" or "days" herein shall mean calendar day or calendar days, respectively, unless otherwise expressly provided.

The foregoing 2022 Restricted Stock Plan was duly adopted and approved by the Board of Directors of the Company on October 26, 2022, and by a majority of the Shareholders on December 14, 2022.

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| | | |
|:---|:---|:---|
| **COLABS INT'L, CORP.,** | **COLABS INT'L, CORP.,** |  |
| **a Nevada corporation** | **a Nevada corporation** |  |
| */s/ William Cohen* | */s/ William Cohen* | |
| By: | William Cohen |  |
| Its: | Chief Financial Officer |  |

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**<u>Exhibit A</u>**

**RESTRICTED STOCK AGREEMENT**

---

| | |
|:---|:---|
| **GRANTED TO:** | **[ ]** |
| **DATE OF GRANT:** | **[ ]** |
| **GRANTED PURSUANT TO:** | **CoLabs Int'l, Corp. 2022 Restricted Stock Plan** |
| **NUMBER OF SHARES:** | **[ ]** |
| **VESTING SCHEDULE:** | **[ ]** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Restricted Stock Agreement</u>. This Restricted Stock Agreement (this "Agreement") is made and entered into as of [ ] (the "Date of Grant") between CoLabs Int'l, Corp., a Nevada corporation (the "Company"), and [ ], as a participant (the "Participant") in the CoLabs Int'l, Corp. 2022 Restricted Stock Plan (the "Plan"), a copy of which is enclosed herewith. Capitalized terms not defined herein shall have the meanings ascribed thereto in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Grant of Restricted Stock</u>. The Participant is granted [ ] shares of Common Stock of the Company (the "Restricted Stock"). The Restricted Stock is granted as provided for under the Plan and is subject to the terms and conditions set forth in the Plan and this Agreement. The Restricted Stock granted hereunder is a matter of separate inducement and is not in lieu of salary or other compensation for the services of a Participant to the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting</u>. This grant of Restricted Stock shall vest in accordance with the following schedule:

[*The Committee may provide for any vesting schedule it deems appropriate, from immediate vesting to any daily, monthly or yearly vesting up to seven years and in combination with any or none of the performance measures permitted to be used under the Plan, either individually or in any combination and with or without acceleration. Sample vesting language as follows:*

 

*"Subject to the provisions of Section 8 of this Agreement, the Restricted Stock shall vest during the term of Participant's employment in four equal annual installments of 25% of the shares of Restricted Stock covered by this Agreement, the first installment to be exercisable on the 12 month anniversary of the date of this Option (the "Initial Vesting Date"), with an additional 25% of such shares vesting on each of the three successive 12 month periods following the Initial Vesting Date."*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Restrictions Prior to Vesting</u>. The Restricted Stock granted hereunder shall be promptly issued and evidenced by a certificate or other document which may be electronic for such shares issued in the Participant's name or by book entry at the Company's option. The Participant shall have all of the rights of a shareholder with respect to the shares of Restricted Stock that are vested, including, but not limited to, the right to vote such shares and to receive all dividends and other distributions paid with respect to them; provided, however, that the shares shall be subject to the restrictions on transferability in Sections 6 and 7 below. Unless otherwise provided in this Section 4, the Company shall hold the certificate or other evidence of such shares until the date the restrictions on transferability are removed in accordance with Section 6 below. The Company may, in its sole discretion and at any time prior to the date the restrictions on transferability are removed in accordance with Sections 6 and 8 below, require (i) that the stock certificate or other evidence representing such shares shall be imprinted with a legend stating that the shares represented thereby are restricted shares subject to the terms and conditions of this Agreement and, as such, may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with the terms of this Agreement, and/or (ii) that the Participant shall, upon receipt of the certificate or other evidence therefor, deposit such certificate or other evidence together with a stock power or other like instrument of transfer, appropriately endorsed in blank, with an escrow agent designated by the Company, which may be the Company, its outside counsel, or its transfer agent under a deposit agreement containing such terms and conditions as the Company shall approve, with the expenses of such escrow to be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Adjustment Provisions</u>. If under Section 9 of the Plan the Participant, as the owner of the shares of the Restricted Stock, shall be entitled to new, additional, or different shares of stock or securities, (i) the Company may require that the certificate or certificates for, or other evidences of, such new, additional, or different shares or securities, together with a stock power or other instrument of transfer appropriately endorsed, shall be imprinted with a legend as provided in Section 4 above, be deposited by the Participant under the deposit agreement provided for therein, and (ii) such certificate or certificates for, or other evidences of, such new, additional, or different shares or securities shall be subject to the restrictions on transferability as provided in Sections 6 and 7 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Removal of Transfer Restrictions</u>. The shares of the Restricted Stock shall be subject to restrictions on transferability. Subject to Section 8 below, such restrictions shall be removed from such shares according to the vesting schedule set forth above. Notwithstanding anything contained in this Agreement to the contrary, if there is a Change in Control of the Company, all unvested shares of Restricted Stock granted under this Agreement shall become fully vested immediately upon the occurrence of the Change in Control and such vested shares of Restricted Stock shall be paid out or settled, as applicable, within 60 days upon the occurrence of the Change in Control, subject to requirements of applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>No Transfer</u>. During the period when the Restricted Stock is subject to the restrictions on transferability, none of the shares of the Restricted Stock subject to such restrictions shall be sold, exchanged, transferred, pledged, hypothecated, or otherwise disposed of except by will or the laws of descent and distribution. Any attempt by the Participant to dispose of any shares of the Restricted Stock in any such manner shall result in the immediate forfeiture of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Employment or Membership on the Board</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Death or Disability</u>. If the Participant's employment or membership on the Board, as applicable, is terminated due to death or Disability all unvested shares of Restricted Stock held by the Participant on the date of the Participant's termination of employment or membership on the Board due to death or the date of the termination of his or her employment related to Disability, as the case may be, shall immediately be forfeited as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Other Termination</u>. If a Participant's employment or membership on the Board, as applicable, is terminated for any reason, including, without limitation, retirement, other than due to death or Disability, all unvested shares of Restricted Stock held by the Participant on the date of the termination of his or her employment or membership on the Board, as applicable, shall immediately be forfeited by such Participant as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Discretionary Accelerated Vesting</u>. Notwithstanding anything contained in this Agreement to the contrary, the Committee may, in its discretion, provide that any or all unvested shares of Restricted Stock held by the Participant on the date of the Participant's death and/or the date of the termination of the Participant's employment or membership on the Board, as applicable, shall immediately become vested as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Tax Withholding</u>. All payments or distributions of an Award made pursuant to this Agreement shall be net of any amounts required to be withheld pursuant to applicable federal, state, and local tax withholding requirements. If the Company proposes or is required to distribute Common Stock pursuant to this Agreement, it may require the Participant receiving such Common Stock to remit to it or to the Affiliate that employs such Participant an amount sufficient to satisfy such tax withholding requirements prior to the delivery of any certificates for such Common Stock. In lieu thereof, the Company or the Affiliate employing the Participant shall have the right to withhold the amount of such taxes from any other sums due or to become due from the Company or the Affiliate, as the case may be, to the Participant receiving Common Stock, as the Committee shall prescribe. The Committee may, in its discretion, and subject to such rules as the Committee may adopt (including any as may be required to satisfy applicable tax and/or non-tax regulatory requirements), permit a Participant to pay all or a portion of the federal, state, and local withholding taxes arising in connection with this Award consisting of shares of Common Stock by electing to have the Company withhold shares of Common Stock having a Fair Market Value equal to the amount of tax to be withheld, such tax calculated at rates required by statute or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Legend</u>. If the Company, in its sole discretion, shall determine that it is necessary, to comply with applicable securities laws, the certificate or other evidence representing any shares of Common Stock delivered to the Participant under this Agreement shall bear an appropriate legend in form and substance, as determined by the Company, giving notice of applicable restrictions on transfer under or with respect to such laws. Unless and until the shares of Common Stock delivered to the Participant under this Agreement are registered under the Securities Act of 1933, as amended (the "Securities Act"), all certificates representing such shares and any certificates subsequently issued in substitution therefor and any certificate for any securities issued pursuant to any stock split, share reclassification, stock dividend, or other similar capital event shall bear legends in substantially the following form:

THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER THE APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO EXEMPTIONS THEREFROM. THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO THE RESTRICTED STOCK AGREEMENT, DATED ____________, BETWEEN THE COMPANY AND THE HOLDER WHICH RESTRICTS THE TRANSFER OF THESE SHARES WHICH ARE SUBJECT TO FORFEITURE TO THE COMPANY UNDER CERTAIN CONDITIONS.

Appropriate stop transfer instructions with respect to such shares may be placed with the Company's transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Securities Act</u>. The Participant covenants and agrees with the Company that if, with respect to any shares of Common Stock delivered to the Participant pursuant to this Agreement, there does not exist a registration statement on an appropriate form under the Securities Act, which registration statement shall have become effective and shall include, or shall be accompanied by, as applicable, a prospectus that is current with respect to the shares of Common Stock subject to this Agreement, (i) he or she takes the shares of Common Stock for his or her own account and not with a view to the resale or distribution thereof, (ii) any subsequent offer for sale or sale of any such shares shall be made either pursuant to (x) a registration statement on an appropriate form under the Securities Act, which registration statement shall have become effective and shall be current with respect to the shares being offered and sold, or (y) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption, the Participant shall, prior to any offer for sale or sale of such shares, obtain a favorable written opinion from counsel for or approved by the Company as to the applicability of such exemption and (iii) the certificate or other evidence of such shares shall bear a legend to the effect of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Conflicts</u>. This Agreement is subject to all terms, conditions, limitations, and restrictions contained in the Plan, which shall be controlling in the event of any conflicting or inconsistent provisions. In the event, however, of any conflict between the provisions of this Agreement or the Plan and the provisions of an employment or change-in-control agreement between the Company and the Participant, as applicable, the provisions of the latter shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>No Employment Contract</u>. This Agreement is not a contract of employment and the terms of the Participant's employment or membership on the Board shall not be affected hereby or by any agreement referred to herein except to the extent specifically so provided herein or therein. Nothing herein shall be construed to impose any obligation on the Company to continue the Participant's employment or membership on the Board, and it shall not impose any obligation on the Participant's part to remain in the employ of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Governing Law</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORD WITH THE LAWS OF THE STATE OF NEVADA, EXCLUDING PRINCIPLES OF CONFLICTS OF LAW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Headings</u>. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts with the same effect as if all signing parties had signed the same document. All counterparts will be construed together and constitute the same instrument.

**IN WITNESS WHEREOF**, the undersigned have executed this Restricted Stock Agreement as of the date first written above.

---

| | |
|:---|:---|
| **COLABS INT'L, CORP.,** | **COLABS INT'L, CORP.,** |
| **a Nevada corporation** | **a Nevada corporation** |
| By: |  |
| Name: | William Cohen |
| Title: | Chief Financial Officer |
| **ACCEPTED:** | **ACCEPTED:** |
| By: |  |
| Name: |  |
|  | Print name of Participant |

---

## Exhibit 10.3

**Exhibit 10.3**

**Executive Employment Agreement**

This EXECUTIVE EMPLOYMENT AGREEMENT ("**Agreement**") is made as October 1, 2022 (the "**Effective Date**"), by and between CoLabs Int'l, Corp, a Nevada corporation (together with its successors and assigns, the "**Company**"), and Laura Cohen, M.D. ("**Executive**").

**RECITALS**

WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, as the Company's Chief Executive Officer.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and conditions herein, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows:

**AGREEMENT**

**1.** **Employment and Term**. The Company hereby agrees to employ Executive, and Executive hereby accepts
 employment by the Company, on the terms and conditions hereinafter set forth. Executive's
 term of employment by the Company under this Agreement (the "Term") shall commence
 on the Effective Date and end on the first anniversary thereof, subject to automatic renewal
 of the Term for additional one-year periods unless either the Company or Executive gives
 the other party written notice of intent not to renew the Term not less than 60 days before
 the date on which the Term otherwise would automatically renew. Notwithstanding the foregoing,
 the Term may be terminated earlier in accordance with Section 5.

**2.** **Position, Duties and Responsibilities**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Position and Duties**. During the Term, the Company shall employ Executive as Chief Executive Officer.
 Executive shall have, subject to the general direction of the Company's Board of Directors
 (the "Board"), such duties, powers, and authority as are commensurate with her
 position as Chief Executive Officer and such other duties and responsibilities that are commensurate
 with her positions as reasonably delegated to her from time to time by the Board. In this
 position, Executive shall report directly to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Exclusive Services and Efforts**. Executive agrees to devote her efforts, energies, and skill to
 the discharge of the duties and responsibilities attributable to her position and, except
 as set forth herein, agrees to devote substantially all of her professional time and attention
 to the business and affairs of the Company. Notwithstanding the foregoing, Executive shall
 be entitled to engage in (a) service on the board of directors of two for-profit companies,
 businesses or trade organizations at any time during the Term; provided that she shall not
 serve on the board of any entity that materially competes with the Company, (b) service on
 the board of directors of not-for-profit organizations, (c) other charitable activities and
 community affairs, and (d) management of her personal and family investments and affairs,
 in each case to the extent such activities do not, either individually or in the aggregate,
 materially interfere with the performance of her duties and responsibilities to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Compliance with Company Policies**. To the extent not inconsistent with the terms and conditions of
 this Agreement and with due regard for her position, Executive shall be subject to the Bylaws,
 policies, practices, procedures, and rules of the Company, including those policies and procedures
 set forth in the Company's Code of Conduct and Ethics, but in no event shall anything
 in such documents be construed to expand the definition of Cause hereunder.

**3.** **Compensation**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Base Salary**. During the first year of the Term, the Company shall pay to the Executive an
 annual salary of $120,000 ()"**Base Salary** "). Thereafter, the Compensation
 Committee of the Board (the "**Committee**") shall consider increases in Base
 Salary for subsequent years in connection with performance and a review of compensation provided
 at peer companies, which companies shall be subject to review on a continuing basis (the
 "**Peer Group** "), taking into account Company and individual performance
 objectives; provided, however, that Base Salary shall be increased as of each anniversary
 of the Effective Date by a minimum of the greater of 3% or the annual increase in the Federal
 Consumer Price Index.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Annual Cash Bonus**. The Committee shall award Executive's annual cash bonus based on an
 evaluation of performance and Peer Group compensation practices, taking into account Company
 and individual performance objectives. Notwithstanding the foregoing, the Committee may grant
 a special bonus at any time. Annual cash bonuses shall be deemed "earned" if
 Executive is employed on the last day of the year to which the bonus relates and shall be
 paid no later than March 15th of the year immediately following the year to which the annual
 bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Incentive Plan Participation**. During the Term, Executive shall be eligible to participate in Company
 equity incentive plans according to the recommendation of the Committee and approval of the
 Board.

**4.** **Employee Benefits and Perquisites**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Benefits**.
 Executive shall be entitled to participate in such health, group insurance, welfare, pension,
 and other employee benefit plans, programs, and arrangements as are made generally available
 from time to time to senior executives of the Company (which shall include customary health,
 life insurance, and disability plans), such participation in each case to be on terms and
 conditions no less favorable to Executive than to other senior executives of the Company
 generally.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Fringe Benefits, Perquisites, and Paid Time Off**. During the Term, Executive shall be entitled
 to participate in all fringe benefits and perquisites made available to other senior executives
 of the Company, such participation to be at levels, and on terms and conditions, that are
 commensurate with her position and responsibilities at the Company and that are no less favorable
 than those applicable to other senior executives of the Company. In addition, Executive shall
 be eligible for paid time off ()"**PTO**") per calendar year in accordance
 with the Company's vacation and PTO policy, inclusive of vacation days and sick days
 and excluding standard paid Company holidays, in the same manner as PTO days for employees
 of the Company generally accrue.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Reimbursement of Expenses**. The Company shall reimburse Executive for all reasonable business and travel
 expenses incurred in the performance of her job duties and the promotion of the Company's
 business, promptly upon presentation of appropriate supporting documentation and otherwise
 in accordance with the expense reimbursement policy of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Attorneys' Fees**. The Company shall reimburse Executive, promptly upon presentation of appropriate
 supporting documentation, for all reasonable attorneys' fees incurred by Executive
 in connection with the negotiation and execution of this Agreement, but in no event shall
 such reimbursement exceed $10,000.

**5.** **Termination; Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **General**.
 The Company may terminate Executive's employment for Cause. Executive may terminate
 her employment at any time for any reason other than Good Reason. The Company may terminate
 Executive's employment without Cause, or Executive may terminate Executive's
 employment with Good Reason, in each case, upon providing the other party at least 30 days'
 written notice thereof. Upon termination of Executive's employment, Executive shall
 be entitled to the compensation and benefits described in this Section 5 to the extent applicable
 and shall have no further rights to any compensation or benefits from the Company. For purposes
 of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Accrued Benefits**" shall mean: (i) accrued but unpaid Base Salary through the Termination
 Date, payable within 30 days following the Termination Date; (ii) any annual cash bonus earned
 but unpaid with respect to the year preceding the year in which the Termination Date occurs,
 payable in accordance with Section 3(c) above; (iii) any long-term incentive award earned
 but unpaid with respect to performance periods that ended in the year preceding the year
 in which Termination Date occurs, payable in accordance with Section 3(d) above; (iv) reimbursement
 for any unreimbursed business expenses incurred through the Termination Date and any expenses
 incurred through the Termination Date under Section 2(d) above (including any related tax
 gross-up payments), payable within 30 days following the Termination Date; (v) accrued but
 unused PTO days; and (vi) all other payments, benefits, or fringe benefits to which Executive
 shall be entitled as of the Termination Date under the terms of any applicable compensation
 arrangement or benefit, equity, or fringe benefit plan or program or grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Cause** "
 shall mean: (i) Executive's refusal to perform, or repeated failure to undertake good
 faith efforts to perform, the duties or responsibilities reasonably assigned to Executive
 by the Board, which, if curable, is not cured within 30 days after Executive's written
 receipt of notice thereof from the Company; (ii) Executive's engagement in willful
 gross misconduct or willful gross negligence in and the course of carrying out her duties
 that results in material economic or reputational harm to the Company; (iii) Executive's
 conviction of or plea of guilty or nolo contendere to a felony; or (iv) a material breach
 by Executive of Section 2(b) of this Agreement, which, if curable, is not cured within 30
 days after Executive's receipt of written notice thereof from the Company. Termination
 of Executive's employment shall not be deemed to be for Cause unless Executive has
 had a reasonable opportunity, together with counsel. to respond to all relevant allegations
 upon which a contemplated termination for Cause is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Good Reason**" shall mean any of the following that has not been approved in writing in
 shall mean any of the following circumstances that, if curable, has not been cured by the
 Company within 30 days of the Company's receipt of notice thereof from Executive, which
 notice was provided within 90 days of the date on which the circumstance or event constituting
 Good Reason first came into existence: (i) a material reduction in Executive's Base
 Salary; (ii) a material diminution of Executive's titles, duties, responsibilities,
 or authorities as set forth in this Agreement or Executive being required to report to another
 person other than the Board; (iii) a material diminution in the budget over which Executive
 retains authority; (iv) a material change in the location of the Company's offices;
 or (v) a material breach by the Company of this Agreement. Executive's resignation
 will not be treated as being for Good Reason unless Executive's employment terminates
 after the end of the cure period (if curable) and no later than six months after the occurrence
 of the event(s) giving rise to the termination for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Change in Control**" shall mean a liquidation, merger, acquisition, sale of voting control
 or sale of substantially all of the assets of the Company in which the shareholders of the
 Company do not own a majority of the outstanding shares of the surviving corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Change-in-Control Severance Payments**" shall mean (i) a pro-rated annual cash bonus for the year in
 which the Termination Date occurs (calculated based on the annual target cash bonus opportunity
 for the year of termination), payable when bonuses are paid to other executives of the Company
 in the year following the year of the Termination Date; (ii) a lump sum cash payment, payable
 on the Termination Date, equal to three times the sum of the following: (x) one year's
 Base Salary at the annualized rate then in effect (or the rate that should be in effect but
 for any Base Salary diminution), (y) the greater of the annual target cash bonus opportunity
 for the year of termination or the highest actual annual cash bonus paid during the three
 preceding completed years, and (z) the target long-term incentive award for the year of the
 Termination Date; (iii) Medical Payment Amounts payable each month, commencing on the first
 day of the month following the Termination Date and continuing until the earlier of 36 months
 following the Termination Date or the date on which Executive becomes employed by a third
 party and becomes eligible to participate in such third party's group health plan;
 (iv) to the extent permissible under applicable law and under any insurance policy insuring
 the Company's health plan (if any), access to continued coverage under the Company's
 health plan with the full cost payable by Executive for a period of up to 36 months commencing
 on the first day of the month following the Termination Date; and (v) any unpaid Sign-On
 Bonus, payable on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "**Disability** "
 shall mean that Executive has been unable, with or without reasonable accommodation and due
 to physical or mental incapacity, to substantially perform her duties and responsibilities
 hereunder for at least six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "**Medical Payment Amounts**" shall mean an amount, payable on a monthly basis commencing on
 the first day of the month following the Termination Date, equal to (i) the monthly amount
 of the Consolidated Omnibus Budget Reconciliation Act continuation coverage premium for such
 month under the Company's group medical plans for executives of the Company less the
 monthly amount of Executive's portion of the premium for such month as if Executive
 was still an active employee, plus (ii) a tax gross-up payment so Executive shall have no
 after-tax consequences with respect to the monthly amount described in clause (i) or the
 related tax gross-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "**Severance Payments**" shall mean (i) a lump sum cash payment, payable on the Termination Date,
 equal to two times the sum of the following: (x) one year's Base Salary at the annualized
 rate then in effect (or the rate that should be in effect but for any Base Salary diminution),
 (y) the greater of (I) the annual target cash bonus opportunity for the year of termination
 or (II) the average annual cash bonus for the three preceding completed years (provided,
 however, that if Executive has not been employed for at least three years in which an annual
 cash bonus was paid, such calculation will assume that an annual cash bonus equal to the
 target annual cash bonus opportunity was paid in the missing years), and (z) the target long-term
 incentive award for the year of the Termination Date; (ii) Medical Payment Amounts, payable
 each month, commencing on the first day of the month following the Termination Date and continuing
 until the earlier of twenty-four months following the Termination Date or the date on which
 Executive becomes employed by a third party and becomes eligible to participate in such third
 party's group health plan; (iii) to the extent permissible under applicable law and
 under any insurance policy insuring the Company's health plan (if any), access to continued
 coverage under the Company's health plan with the full cost payable by Executive for
 a period of up to twenty-four months commencing on the first day of the month following the
 Termination Date; and (iv) any unpaid Sign-On Bonus, payable on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "**Termination Date**" shall mean the date on which Executive's employment hereunder terminates
 in accordance with this Agreement (which, in the case of a notice of non-renewal of the Term
 in accordance with Section 1 hereof, shall mean the date on which the Term expires).

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Termination for Cause or Termination by Executive Without Good Reason**. In the event that Executive's
 employment hereunder is terminated by the Company for Cause or by Executive without Good
 Reason, which shall include a non-renewal of the Term by Executive, Executive shall be entitled
 to receive the Accrued Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Termination Without Cause or Termination by Executive for Good Reason**. In the event that Executive's
 employment hereunder is terminated by the Company without Cause or by Executive for Good
 Reason, Executive shall be entitled to receive the Accrued Benefits and the Severance Payments,
 except as otherwise provided pursuant to Section 5(d).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Termination Without Cause or Termination by Executive for Good Reason Due to a Change in Control**.
 In the event that Executive's employment hereunder is terminated by the Company without
 Cause or by Executive for Good Reason within two years following or six months prior to a
 Change in Control, Executive shall receive the benefits described in Section 5(c), except
 that Executive shall receive the Change-in-Control Severance Payments in lieu of the Severance
 Payments.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Termination Due to Death or Disability**. In the event that Executive's employment hereunder
 is terminated due to Executive's death or Disability, Executive shall receive the Accrued
 Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Return of Company Property**. Upon termination of Executive's employment for any reason
 or under any circumstances, Executive shall promptly return any and all of the property of
 the Company and any Affiliates (including, without limitation, all computers, keys, credit
 cards, identification tags, documents, data, confidential information, work product, and
 other proprietary materials), and other materials. Executive may retain Executive's
 rolodex and similar address books provided that such items only include contact information.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Post-Termination Reasonable Cooperation**. Executive agrees and covenants that, following the Term, she
 shall, to the extent reasonably requested by the Company, cooperate in good faith with the
 Company to assist the Company in the pursuit or defense of (except if Executive is adverse
 with respect to) any claim, administrative charge, or cause of action by or against the Company
 as to which Executive, by virtue of her employment with the Company or any other position
 that Executive holds that is affiliated with or was held at the request of the Company or
 its Affiliates, has relevant knowledge or information, including by acting as the Company's
 representative in any such proceeding and, without the necessity of a subpoena, providing
 truthful testimony in any jurisdiction or forum. The Company shall reimburse Executive for
 her reasonable out-of-pocket expenses incurred in compliance with this Section 5(g), including
 any reasonable travel expenses and reasonable attorneys' fees incurred by Executive
 and, in the event that Executive is required to spend substantial time on such matters, the
 Company shall compensate Executive at an hourly rate of $250 per hour. The Company shall
 use reasonable business efforts to provide Executive with reasonable advance written notice
 of its need for Executive's reasonable cooperation and shall attempt to coordinate
 with Executive the time and place at which Executive's reasonable cooperation shall
 be provided with the goal of minimizing the impact of such reasonable cooperation on any
 other material pre-scheduled business commitment that Executive may have. Executive's
 cooperation described in this Section 5(g) shall be subject to the maintenance of the indemnification
 and D&O insurance policy provided under Sections 6(a) and 6(b) hereof.

**6.** **Indemnification; D&O Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Indemnification**.
 If Executive is made a party, is threatened to be made a party, or reasonably anticipates
 being made a party, to any Proceeding (as hereinafter defined) by reason of the fact that
 Executive is or was a director, officer, shareholder, employee, agent, trustee, consultant,
 or representative of the Company or any of its Affiliates or is or was serving at the request
 of the Company or any of its Affiliates, or in connection with her service hereunder as a
 director, officer, shareholder, employee, agent, trustee, consultant, or representative of
 another Person, or if any Claim (as hereinafter defined) is made, is threatened to be made,
 or is reasonably anticipated to be made, that arises out of or relates to Executive's
 service in any of the foregoing capacities, then Executive shall promptly be indemnified
 and held harmless to the fullest extent permitted or authorized by any Company arrangement,
 or if greater, by applicable law, against any and all costs, expenses, liabilities, and losses
 (including, without limitation, advancement and payment of attorneys' and other professional
 fees and charges, judgments, interest, expenses of investigation, penalties, fines, ERISA
 excise taxes or penalties, and amounts paid or to be paid in settlement, with such legal
 fees advanced to the maximum extent permitted by law) incurred or suffered by Executive in
 connection therewith or in connection with seeking to enforce her rights under this Section
 6(a), and such indemnification shall continue even if Executive has ceased to be a director,
 officer, shareholder, employee, agent, trustee, consultant, or representative of the Company
 or other Person and shall inure to the benefit of her heirs, executors, and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **D&O Insurance**. A directors' and officers' liability insurance policy (or policies)
 shall be kept in place, during the Term and thereafter until the sixth anniversary of the
 Termination Date, providing coverage to Executive that is no less favorable to her in any
 respect than the coverage then being provided to any other current or former director or
 officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Definitions**.
 For purposes of this Agreement, the following terms shall have the following meanings: "**Affiliate** "
 of a Person shall mean any Person that directly or indirectly controls, is controlled by,
 or is under common control with, such Person; "**Claim**" shall mean any claim,
 demand, request, investigation, dispute, controversy, threat, discovery request, or request
 for testimony or information; "**Person**" shall mean any individual, corporation,
 partnership, limited liability company, joint venture, trust, estate, board, committee, agency,
 body, employee benefit plan, or other person or entity; and "**Proceeding** "
 shall mean any threatened or actual action, suit, or proceeding, whether civil, criminal,
 administrative, investigative, appellate, formal, informal, or other.

**7.** **Other Tax Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Withholding**.
 The Company shall withhold all applicable federal, state, and local taxes, social security,
 and workers' compensation contributions and other amounts as may be required by law
 with respect to compensation payable to Executive pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Section 409A**. Notwithstanding anything herein to the contrary, this Agreement is intended to
 be interpreted and applied so that the payment of the benefits set forth herein shall either
 be exempt from, or in the alternative, comply with, the requirements of Section 409A of the
 Internal Revenue Code of 1986, as amended (the "**Code** "), and the published
 guidance thereunder ()"**Section 409A** "). A termination of employment shall
 not be deemed to have occurred for purposes of any provision of this Agreement providing
 for the payment of any amounts or benefits upon or following a termination of employment
 that are considered "nonqualified deferred compensation" under Section 409A unless
 such termination is also a "separation from service" within the meaning of Section
 409A and, for purposes of any such provision of this Agreement, references to a "termination,"
 "Termination Date" or like terms shall mean "separation from service."
 Notwithstanding any provision of this Agreement to the contrary, if Executive is a "specified
 employee" within the meaning of Section 409A on the date of her "separation from
 service," any payments or arrangements due upon a termination of Executive's
 employment under any arrangement that constitutes a "nonqualified deferral of compensation"
 within the meaning of Section 409A and which do not otherwise qualify under the exemptions
 under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral
 exemption or the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall
 be delayed and paid or provided on the earlier of (a) the date which is six months after
 Executive's "separation from service" for any reason other than death,
 or (b) the date of Executive's death. All tax gross-up payments provided under this
 Agreement or any other agreement with Executive shall be made or provided by the end of Executive's
 taxable year next following Executive's taxable year in which Executive remits the
 related taxes, in accordance with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Section 409A Gross-Up**. The Company acknowledges and agrees that if any payment, award, benefit,
 or distribution (or any acceleration of any payment, award, benefit, or distribution) made
 or provided to Executive or for Executive's benefit in connection with this Agreement,
 or Executive's employment with the Company or the termination thereof (the "**Payments** ")
 are determined to be subject to the additional taxes, interest, or penalties imposed by Section
 409A, or any interest or penalties with respect to such additional taxes, interest, or penalties
 (such additional taxes, together with any such interest and penalties, are referred to collectively
 as the "**Section 409A Tax** "), then Executive will be entitled to receive
 an additional payment (a "**409A Gross-Up Payment**") from the Company such
 that the net amount Executive retains after paying any applicable Section 409A Tax and any
 federal, state, or local income or FICA taxes on such 409A Gross-Up Payment, shall be equal
 to the amount Executive would have received if the Section 409A Tax were not applicable to
 the Payments. Unless otherwise agreed in writing by Executive and the Company, all determinations
 of the Section 409A Tax and 409A Gross-Up Payment, if any, will be made by an independent
 "big four" accounting firm designated by the Company, and such accounting firm
 shall be instructed to provide the Company and Executive with a written opinion of any determination
 such accounting firm has been requested to provide. The Company shall be responsible for
 such accounting firm's fees. For purposes of determining the amount of the 409A Gross-Up
 Payment, if any, Executive will be deemed to pay federal income tax at the actual marginal
 rate of federal income taxation in the calendar year in which the total Payments are made
 and state and local income taxes at the actual marginal rate of taxation in the state and
 locality of Executive's residence on the date the total Payments are made, net of the
 maximum reduction in federal income taxes that could be obtained from deduction of such state
 and local taxes. If the Section 409A Tax is determined by the Internal Revenue Service, on
 audit or otherwise, to exceed the amount taken into account hereunder in calculating the
 409A Gross-Up Payment (including by reason of any payment the existence or amount of which
 cannot be determined at the time of the 409A Gross-Up Payment), the Company shall make another
 409A Gross-Up Payment in respect of such excess (plus any interest, penalties, or additions
 payable by Executive with respect to such excess). The Company and Executive shall each reasonably
 cooperate with the other in connection with any administrative or judicial proceedings concerning
 the existence or amount of liability for Section 409A Tax with respect to the total Payments.
 The 409A Gross-Up Payments provided to Executive shall be made no later than the tenth business
 day following the last date the Payments are made but in all events within the time period
 specified in Section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Separation from Service**. After any Termination Date, Executive shall have no duties or responsibilities
 that are inconsistent with having a "separation from service" within the meaning
 of Section 409A as of the Termination Date and, notwithstanding anything in the Agreement
 to the contrary, distributions upon termination of employment of nonqualified deferred compensation
 may only be made upon a "separation from service" as determined under Section
 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment
 under this Agreement or otherwise shall be treated as a separate payment for purposes of
 Section 409A. In no event may Executive, directly or indirectly, designate the calendar year
 of any payment to be made under this Agreement which constitutes a "nonqualified deferral
 of compensation" within the meaning of Section 409A and to the extent an amount is
 payable within a time period, the time during which such amount is paid shall be in the discretion
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Reimbursements**.
 All reimbursements and in-kind benefits provided under this Agreement shall be made or provided
 in accordance with the requirements of Section 409A. To the extent that any reimbursements
 are taxable to Executive, such reimbursements shall be paid to Executive on or before the
 last day of Executive's taxable year following the taxable year in which the related
 expense was incurred. Reimbursements shall not be subject to liquidation or exchange for
 another benefit and the amount of such reimbursements that Executive receives in one taxable
 year shall not affect the amount of such reimbursements that Executive receives in any other
 taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Parachute Payments; Gross-Up**. Anything in this Agreement to the contrary notwithstanding, in the
 event that Executive shall become entitled to payments and/or benefits provided by this Agreement
 or any other amounts in the "nature of compensation" (whether pursuant to the
 terms of this Agreement or any other plan, arrangement, or agreement with the Company, or
 any arrangement or agreement with any person whose actions result in a change of ownership
 or effective control or a change in the ownership of a substantial portion of the assets
 of the corporation covered by Code Section 280G(b)(2) (a "**280G Change in Control** "),
 or any person affiliated with the Company or such person) as a result of a 280G Change in
 Control (collectively the "**Company Payments** "), and such Company Payments
 will be subject to the tax (the "**Excise Tax**") imposed by Code Section
 4999, the Company shall pay to Executive at the time specified below (i) an additional amount
 (the "**Gross-Up Payment**") such that the net amount retained by Executive,
 after deduction of any Excise Tax on the Company Payments and any U.S. federal, state, and
 for local income or payroll tax upon the Gross-Up Payment provided for by this paragraph,
 but before deduction for any U.S. federal, state, and local income or payroll tax on the
 Company Payments, shall be equal to the Company Payments and (ii) an amount equal to the
 product of any deductions disallowed for federal, state, or local income tax purposes because
 of the inclusion of the Gross-Up Payment in Executive's adjusted gross income multiplied
 by Executive's actual marginal rate of federal, state, or local income taxation, respectively,
 for the calendar year in which the Gross-Up Payment is to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless
 otherwise agreed in writing by Executive and the Company, all determinations of the Company
 Payments and the Gross-Up Payments, if any, will be made by an independent "big four"
 accounting firm designated by the Company with Executive's approval (the "**Accountant** "),
 and the Accountant shall be instructed to provide the Company and Executive with a written
 opinion of any determination the Accountant has been requested to provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For
 purposes of determining the amount of the Gross-Up Payment, Executive's actual U.S.
 federal income tax rate in the calendar year in which the Gross-Up Payment is to be made
 and state and local income taxes at Executive's actual rate of taxation in the state
 and locality of Executive's residence for the calendar year in which the Company Payment
 is to be made, net of the maximum reduction in U.S. federal income taxes which could be obtained
 from deduction of such state and local taxes if paid in such year, shall be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event that the Excise Tax is later determined by the Accountant or the Internal Revenue
 Service to exceed the amount taken into account hereunder at the time the Gross-Up Payment
 is made (including by reason of any payment the existence or amount of which cannot be determined
 at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment
 in respect of such excess (plus any interest or penalties payable with respect to such excess)
 at the time that the amount of such excess is finally determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 Gross-Up Payment or portion thereof provided for above shall be paid not later than the sixtieth
 day following a 280G Change in Control which subjects Executive to the Excise Tax; provided,
 however, that if the amount of such Gross-Up Payment or portion thereof cannot be finally
 determined on or before such day, the Company shall pay to Executive on such day an estimate,
 as determined in good faith by the Accountant, of the minimum amount of such payments and
 shall pay the remainder of such payments, as soon as the amount thereof can reasonably be
 determined, but in no event later than the ninetieth day after the occurrence of the event
 subjecting Executive to the Excise Tax. Notwithstanding any other provision of this Agreement,
 all Gross-Up Payments under this Section 7(f)(iv) shall be paid pursuant to Section 7(b)
 of the Agreement. In the event that the amount of the estimated payments exceeds the amount
 subsequently determined to have been due, such excess shall constitute a loan by the Company
 to Executive, payable on the fifth day after demand by the Company (together with interest
 at the rate provided in Code Section 1274(b)(2)(B)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The
 Company shall be responsible for all charges of the Accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The
 Company and Executive shall promptly deliver to each other copies of any written communications,
 and summaries of any verbal communications, with any taxing authority regarding the Excise
 Tax covered by this provision.

**8.** **Notices**.
 Except as otherwise specifically provided herein, any notice, consent, demand, or other communication
 to be given under or in connection with this Agreement shall be in writing and shall be deemed
 duly given when delivered personally, when transmitted by facsimile transmission, one day
 after being deposited with Federal Express or other nationally recognized overnight delivery
 service, or five days after being mailed by first class mail, charges or postage prepaid,
 properly addressed, if to the Company, at its principal office, and, if to Executive, at
 her address set forth following her signature below. Either party may change such address
 from time to time by notice to the other.

**9.** **Governing Law; Forum; Attorneys' Fees and Costs**. This Agreement shall be governed by and
 construed and interpreted in accordance with the laws of California, without giving effect
 to any choice of law rules or other conflicting provision or rule that would cause the laws
 of any jurisdiction to be applied. The parties each submit to the exclusive jurisdiction
 of the federal courts (or state courts if federal jurisdiction is lacking) located within
 Orange County, California. In the event of a lawsuit or other legal proceeding arising out
 of or related to this Agreement in which Executive prevails (as determined by the deciding
 court), the Company shall reimburse Executive for her reasonable attorneys' fees and
 costs incurred in connection with such lawsuit or legal proceeding, in addition to any other
 relief to which Executive may be entitled.

**10.** **Amendments; Waivers**. This Agreement may not be modified or amended or terminated except by an instrument
 in writing, signed by Executive and a duly authorized officer of the Company (other than
 Executive). By an instrument in writing similarly executed (and not by any other means),
 either party may waive compliance by the other party with any provision of this Agreement
 that such other party was or is obligated to comply with or perform; provided, however, that
 such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
 failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder
 shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
 remedy, or power hereunder preclude any other or further exercise thereof or the exercise
 of any other right, remedy, or power provided herein or by law or in equity. To be effective,
 any written waiver must specifically refer to the condition(s) or provision(s) of this Agreement
 being waived.

**11.** **Inconsistencies**.
 In the event of any inconsistency between any provision of this Agreement and any provision
 of any Company arrangement, the provisions of this Agreement shall control, unless Executive
 and the Company otherwise agree in a writing that expressly refers to the provision of this
 Agreement that is being waived.

**12.** **Assignment**.
 Except as otherwise specifically provided herein, neither party shall assign or transfer
 this Agreement nor any rights hereunder without the consent of the other party, and any attempted
 or purported assignment without such consent shall be void; provided, however, that any assignment
 or transfer pursuant to a merger or consolidation, or the sale or liquidation of all or substantially
 all of the business and assets of the Company shall be valid, so long as the assignee or
 transferee (a) is the successor to all or substantially all of the business and assets of
 the Company, and (b) assumes the liabilities, obligations and duties of the Company, as contained
 in this Agreement, either contractually or as a matter of law. Executive's consent
 shall be required for any such transaction. This Agreement shall otherwise bind and inure
 to the benefit of the parties hereto and their respective successors, penalties, assigns,
 heirs, legatees, devisees, executors, administrators, and legal representatives.

**13.** **Voluntary Execution; Representations**. Executive acknowledges that (a) she has consulted with or
 has had the opportunity to consult with independent counsel of her own choosing concerning
 this Agreement and has been advised to do so by the Company, and (b) she has read and understands
 this Agreement, is competent and of sound mind to execute this Agreement, is fully aware
 of the legal effect of this Agreement, and has entered into it freely based on her own judgment
 and without duress. The Company represents and warrants that it is fully authorized, by any
 person or body whose authorization is required, to enter into this Agreement and to perform
 its obligations hereunder.

**14.** **Headings**.
 The headings of the Sections and subsections contained in this Agreement are for convenience
 only and shall not be deemed to control or affect the meaning or construction of any provision
 of this Agreement.

**15.** **Construction**.
 The language used in this Agreement shall be deemed to be the language chosen by the parties
 to express their mutual intent, and no rule of strict construction shall be applied against
 any party.

**16.** **Beneficiaries/References**.
 Executive shall be entitled, to the extent permitted under applicable law, to select and
 change a beneficiary or beneficiaries to receive any compensation or benefit hereunder following
 Executive's death by giving written notice thereof. In the event of Executive's
 death or a judicial determination of her incompetence, references in this Agreement to Executive
 shall be deemed, where appropriate, to refer to her beneficiary, estate, or other legal representative.

**17.** **Survivorship**.
 Except as otherwise set forth in this Agreement, the respective rights and obligations of
 the parties shall survive any termination of Executive's employment.

**18.** **Severability**.
 It is the desire and intent of the parties hereto that the provisions of this Agreement be
 enforced to the fullest extent permissible under the laws and public policies applied in
 each jurisdiction in which enforcement is sought. Accordingly, if any particular provision
 of this Agreement shall be adjudicated by a court of competent jurisdiction or arbitrator
 to be invalid, prohibited, or unenforceable for any reason, such provision, as to such jurisdiction,
 shall be ineffective, without invalidating the remaining provisions of this Agreement or
 affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding
 the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited,
 or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
 drawn, without invalidating the remaining provisions of this Agreement or affecting the validity
 or enforceability of such provision in any other jurisdiction.

**19.** **No Mitigation/No Offset**. Executive shall be under no obligation to seek other employment
 or to otherwise mitigate the obligations of the Company under this Agreement, and there shall
 be no offset against amounts or benefits due to Executive under this Agreement or otherwise
 on account of any claim (other than any preexisting debts then due in accordance with their
 terms) the Company may have against her or any remuneration or other benefit earned or received
 by Executive after such termination.

**20.** **Counterparts**.
 This Agreement may be executed in any number of counterparts, each of which shall be deemed
 an original, but all such counterparts shall together constitute one and the same instrument.
 Signatures delivered by facsimile or PDF shall be effective for all purposes.

**21.** **Entire Agreement**. This Agreement contains the entire agreement of the parties and supersedes
 all prior or contemporaneous negotiations, correspondence, understandings, and agreements
 between the parties, regarding the subject matter of this Agreement.

**[SIGNATURE PAGE TO FOLLOW]**

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **COMPANY** | **COMPANY** |
| CoLabs Int'l, Corp., a Nevada corporation | CoLabs Int'l, Corp., a Nevada corporation |
| By: | */s/ Peter Barton Hutt* |
| Name: | Peter Barton Hutt |
| Title: | Compensation Committee Chairman |
| **EXECUTIVE** | **EXECUTIVE** |
| By: | */s/ Laura Cohen, M.D.* |
| Name: | Laura Cohen, M.D. |

---

Address for Notices: 18593 Main Street <br> Huntington Beach, CA 92648

## Exhibit 10.4

**Exhibit 10.4**

**Executive Employment Agreement**

This EXECUTIVE EMPLOYMENT AGREEMENT ("**Agreement**") is made as October 1, 2022 (the "**Effective Date**"), by and between CoLabs Int'l, Corp, a Nevada corporation (together with its successors and assigns, the "**Company**"), and Lisa LeBlanc. ("**Executive**").

**RECITALS**

WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, as the Company's President.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and conditions herein, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows:

**AGREEMENT**

**1.** **Employment and Term**. The Company hereby agrees to employ Executive, and Executive hereby accepts
 employment by the Company, on the terms and conditions hereinafter set forth. Executive's
 term of employment by the Company under this Agreement (the "Term") shall commence
 on the Effective Date and end on the first anniversary thereof, subject to automatic renewal
 of the Term for additional one-year periods unless either the Company or Executive gives
 the other party written notice of intent not to renew the Term not less than 60 days before
 the date on which the Term otherwise would automatically renew. Notwithstanding the foregoing,
 the Term may be terminated earlier in accordance with Section 5.

**2.** **Position, Duties and Responsibilities**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Position and Duties**. During the Term, the Company shall employ Executive as President. Executive
 shall have, subject to the general direction of the Company's Board of Directors (the
 "Board"), such duties, powers, and authority as are commensurate with her position
 as President and such other duties and responsibilities that are commensurate with her positions
 as reasonably delegated to her from time to time, including, but not limited to: managing
 A/P and A/R, payroll, customer service for both retail and wholesale channels of distribution,
 social marketing, operational management of product production, and overseeing all logistical
 operations for both manufacturing and all domestic and international carriage. In this position,
 Executive shall report directly to the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Exclusive Services and Efforts**. Executive agrees to devote her efforts, energies, and skill to
 the discharge of the duties and responsibilities attributable to her position and, except
 as set forth herein, agrees to devote substantially all of her professional time and attention
 to the business and affairs of the Company. Notwithstanding the foregoing, Executive shall
 be entitled to engage in (a) service on the board of directors of two for-profit companies,
 businesses or trade organizations at any time during the Term; provided that she shall not
 serve on the board of any entity that materially competes with the Company, (b) service on
 the board of directors of not-for-profit organizations, (c) other charitable activities and
 community affairs, and (d) management of her personal and family investments and affairs,
 in each case to the extent such activities do not, either individually or in the aggregate,
 materially interfere with the performance of her duties and responsibilities to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Compliance with Company Policies**. To the extent not inconsistent with the terms and conditions of
 this Agreement and with due regard for her position, Executive shall be subject to the Bylaws,
 policies, practices, procedures, and rules of the Company, including those policies and procedures
 set forth in the Company's Code of Conduct and Ethics, but in no event shall anything
 in such documents be construed to expand the definition of Cause hereunder.

**3.** **Compensation**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Base Salary**. During the first year of the Term, the Company shall pay to the Executive an
 annual salary of $114,000 ()"**Base Salary** "). Thereafter, the Compensation
 Committee of the Board (the "**Committee**") shall consider increases in Base
 Salary for subsequent years in connection with performance and a review of compensation provided
 at peer companies, which companies shall be subject to review on a continuing basis (the
 "**Peer Group** "), taking into account Company and individual performance
 objectives; provided, however, that Base Salary shall be increased as of each anniversary
 of the Effective Date by a minimum of the greater of 3% or the annual increase in the Federal
 Consumer Price Index.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Annual Cash Bonus**. The Committee shall award Executive's annual cash bonus based on an
 evaluation of performance and Peer Group compensation practices, taking into account Company
 and individual performance objectives. Notwithstanding the foregoing, the Committee may grant
 a special bonus at any time. Annual cash bonuses shall be deemed "earned" if
 Executive is employed on the last day of the year to which the bonus relates and shall be
 paid no later than March 15th of the year immediately following the year to which the annual
 bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Incentive Plan Participation**. During the Term, Executive shall be eligible to participate in Company
 equity incentive plans according to the recommendation of the Committee and approval of the
 Board.

**4.** **Employee Benefits and Perquisites**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Benefits**.
 Executive shall be entitled to participate in such health, group insurance, welfare, pension,
 and other employee benefit plans, programs, and arrangements as are made generally available
 from time to time to senior executives of the Company (which shall include customary health,
 life insurance, and disability plans), such participation in each case to be on terms and
 conditions no less favorable to Executive than to other senior executives of the Company
 generally.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Fringe Benefits, Perquisites, and Paid Time Off**. During the Term, Executive shall be entitled
 to participate in all fringe benefits and perquisites made available to other senior executives
 of the Company, such participation to be at levels, and on terms and conditions, that are
 commensurate with her position and responsibilities at the Company and that are no less favorable
 than those applicable to other senior executives of the Company. In addition, Executive shall
 be eligible for paid time off ()"**PTO**") per calendar year in accordance
 with the Company's vacation and PTO policy, inclusive of vacation days and sick days
 and excluding standard paid Company holidays, in the same manner as PTO days for employees
 of the Company generally accrue.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Reimbursement of Expenses**. The Company shall reimburse Executive for all reasonable business and travel
 expenses incurred in the performance of her job duties and the promotion of the Company's
 business, promptly upon presentation of appropriate supporting documentation and otherwise
 in accordance with the expense reimbursement policy of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Attorneys' Fees**. The Company shall reimburse Executive, promptly upon presentation of appropriate
 supporting documentation, for all reasonable attorneys' fees incurred by Executive
 in connection with the negotiation and execution of this Agreement, but in no event shall
 such reimbursement exceed $10,000.

**5.** **Termination; Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **General**.
 The Company may terminate Executive's employment for Cause. Executive may terminate
 her employment at any time for any reason other than Good Reason. The Company may terminate
 Executive's employment without Cause, or Executive may terminate Executive's
 employment with Good Reason, in each case, upon providing the other party at least 30 days'
 written notice thereof. Upon termination of Executive's employment, Executive shall
 be entitled to the compensation and benefits described in this Section 5 to the extent applicable
 and shall have no further rights to any compensation or benefits from the Company. For purposes
 of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Accrued Benefits**" shall mean: (i) accrued but unpaid Base Salary through the Termination
 Date, payable within 30 days following the Termination Date; (ii) any annual cash bonus earned
 but unpaid with respect to the year preceding the year in which the Termination Date occurs,
 payable in accordance with Section 3(c) above; (iii) any long-term incentive award earned
 but unpaid with respect to performance periods that ended in the year preceding the year
 in which Termination Date occurs, payable in accordance with Section 3(d) above; (iv) reimbursement
 for any unreimbursed business expenses incurred through the Termination Date and any expenses
 incurred through the Termination Date under Section 2(d) above (including any related tax
 gross-up payments), payable within 30 days following the Termination Date; (v) accrued but
 unused PTO days; and (vi) all other payments, benefits, or fringe benefits to which Executive
 shall be entitled as of the Termination Date under the terms of any applicable compensation
 arrangement or benefit, equity, or fringe benefit plan or program or grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Cause** "
 shall mean: (i) Executive's refusal to perform, or repeated failure to undertake good
 faith efforts to perform, the duties or responsibilities reasonably assigned to Executive
 by the Board, which, if curable, is not cured within 30 days after Executive's written
 receipt of notice thereof from the Company; (ii) Executive's engagement in willful
 gross misconduct or willful gross negligence in and the course of carrying out her duties
 that results in material economic or reputational harm to the Company; (iii) Executive's
 conviction of or plea of guilty or nolo contendere to a felony; or (iv) a material breach
 by Executive of Section 2(b) of this Agreement, which, if curable, is not cured within 30
 days after Executive's receipt of written notice thereof from the Company. Termination
 of Executive's employment shall not be deemed to be for Cause unless Executive has
 had a reasonable opportunity, together with counsel. to respond to all relevant allegations
 upon which a contemplated termination for Cause is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Good Reason**" shall mean any of the following circumstances that, if curable, has not
 been cured by the Company within 30 days of the Company's receipt of notice thereof
 from Executive, which notice was provided within 90 days of the date on which the circumstance
 or event constituting Good Reason first came into existence: (i) a material reduction in
 Executive's Base Salary; (ii) a material diminution of Executive's titles, duties,
 responsibilities, or authorities as set forth in this Agreement or Executive being required
 to report to another person other than the Board; (iii) a material diminution in the budget
 over which Executive retains authority; (iv) a material change in the location of the Company's
 offices; or (v) a material breach by the Company of this Agreement. Executive's resignation
 will not be treated as being for Good Reason unless Executive's employment terminates
 after the end of the cure period (if curable) and no later than six months after the occurrence
 of the event(s) giving rise to the termination for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Change in Control**" shall mean a liquidation, merger, acquisition, sale of voting control
 or sale of substantially all of the assets of the Company in which the shareholders of the
 Company do not own a majority of the outstanding shares of the surviving corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Change-in-Control Severance Payments**" shall mean (i) a pro-rated annual cash bonus for the year in
 which the Termination Date occurs (calculated based on the annual target cash bonus opportunity
 for the year of termination), payable when bonuses are paid to other executives of the Company
 in the year following the year of the Termination Date; (ii) a lump sum cash payment, payable
 on the Termination Date, equal to three times the sum of the following: (x) one year's
 Base Salary at the annualized rate then in effect (or the rate that should be in effect but
 for any Base Salary diminution), (y) the greater of the annual target cash bonus opportunity
 for the year of termination or the highest actual annual cash bonus paid during the three
 preceding completed years, and (z) the target long-term incentive award for the year of the
 Termination Date; (iii) Medical Payment Amounts payable each month, commencing on the first
 day of the month following the Termination Date and continuing until the earlier of 36 months
 following the Termination Date or the date on which Executive becomes employed by a third
 party and becomes eligible to participate in such third party's group health plan;
 (iv) to the extent permissible under applicable law and under any insurance policy insuring
 the Company's health plan (if any), access to continued coverage under the Company's
 health plan with the full cost payable by Executive for a period of up to 36 months commencing
 on the first day of the month following the Termination Date; and (v) any unpaid Sign-On
 Bonus, payable on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "**Disability** "
 shall mean that Executive has been unable, with or without reasonable accommodation and due
 to physical or mental incapacity, to substantially perform her duties and responsibilities
 hereunder for at least six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "**Medical Payment Amounts**" shall mean an amount, payable on a monthly basis commencing on
 the first day of the month following the Termination Date, equal to (i) the monthly amount
 of the Consolidated Omnibus Budget Reconciliation Act continuation coverage premium for such
 month under the Company's group medical plans for executives of the Company less the
 monthly amount of Executive's portion of the premium for such month as if Executive
 was still an active employee, plus (ii) a tax gross-up payment so Executive shall have no
 after-tax consequences with respect to the monthly amount described in clause (i) or the
 related tax gross-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "**Severance Payments**" shall mean (i) a lump sum cash payment, payable on the Termination Date,
 equal to two times the sum of the following: (x) one year's Base Salary at the annualized
 rate then in effect (or the rate that should be in effect but for any Base Salary diminution),
 (y) the greater of (I) the annual target cash bonus opportunity for the year of termination
 or (II) the average annual cash bonus for the three preceding completed years (provided,
 however, that if Executive has not been employed for at least three years in which an annual
 cash bonus was paid, such calculation will assume that an annual cash bonus equal to the
 target annual cash bonus opportunity was paid in the missing years), and (z) the target long-term
 incentive award for the year of the Termination Date; (ii) Medical Payment Amounts, payable
 each month, commencing on the first day of the month following the Termination Date and continuing
 until the earlier of twenty-four months following the Termination Date or the date on which
 Executive becomes employed by a third party and becomes eligible to participate in such third
 party's group health plan; (iii) to the extent permissible under applicable law and
 under any insurance policy insuring the Company's health plan (if any), access to continued
 coverage under the Company's health plan with the full cost payable by Executive for
 a period of up to twenty-four months commencing on the first day of the month following the
 Termination Date; and (iv) any unpaid Sign-On Bonus, payable on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "**Termination Date**" shall mean the date on which Executive's employment hereunder terminates
 in accordance with this Agreement (which, in the case of a notice of non-renewal of the Term
 in accordance with Section 1 hereof, shall mean the date on which the Term expires).

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Termination for Cause or Termination by Executive Without Good Reason**. In the event that Executive's
 employment hereunder is terminated by the Company for Cause or by Executive without Good
 Reason, which shall include a non-renewal of the Term by Executive, Executive shall be entitled
 to receive the Accrued Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Termination Without Cause or Termination by Executive for Good Reason**. In the event that Executive's
 employment hereunder is terminated by the Company without Cause or by Executive for Good
 Reason, Executive shall be entitled to receive the Accrued Benefits and the Severance Payments,
 except as otherwise provided pursuant to Section 5(d).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Termination Without Cause or Termination by Executive for Good Reason Due to a Change in Control**.
 In the event that Executive's employment hereunder is terminated by the Company without
 Cause or by Executive for Good Reason within two years following or six months prior to a
 Change in Control, Executive shall receive the benefits described in Section 5(c), except
 that Executive shall receive the Change-in-Control Severance Payments in lieu of the Severance
 Payments.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Termination Due to Death or Disability**. In the event that Executive's employment hereunder
 is terminated due to Executive's death or Disability, Executive shall receive the Accrued
 Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Return of Company Property**. Upon termination of Executive's employment for any reason
 or under any circumstances, Executive shall promptly return any and all of the property of
 the Company and any Affiliates (including, without limitation, all computers, keys, credit
 cards, identification tags, documents, data, confidential information, work product, and
 other proprietary materials), and other materials. Executive may retain Executive's
 rolodex and similar address books provided that such items only include contact information.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Post-Termination Reasonable Cooperation**. Executive agrees and covenants that, following the Term, she
 shall, to the extent reasonably requested by the Company, cooperate in good faith with the
 Company to assist the Company in the pursuit or defense of (except if Executive is adverse
 with respect to) any claim, administrative charge, or cause of action by or against the Company
 as to which Executive, by virtue of her employment with the Company or any other position
 that Executive holds that is affiliated with or was held at the request of the Company or
 its Affiliates, has relevant knowledge or information, including by acting as the Company's
 representative in any such proceeding and, without the necessity of a subpoena, providing
 truthful testimony in any jurisdiction or forum. The Company shall reimburse Executive for
 her reasonable out-of-pocket expenses incurred in compliance with this Section 5(g), including
 any reasonable travel expenses and reasonable attorneys' fees incurred by Executive
 and, in the event that Executive is required to spend substantial time on such matters, the
 Company shall compensate Executive at an hourly rate of $225 per hour. The Company shall
 use reasonable business efforts to provide Executive with reasonable advance written notice
 of its need for Executive's reasonable cooperation and shall attempt to coordinate
 with Executive the time and place at which Executive's reasonable cooperation shall
 be provided with the goal of minimizing the impact of such reasonable cooperation on any
 other material pre-scheduled business commitment that Executive may have. Executive's
 cooperation described in this Section 5(g) shall be subject to the maintenance of the indemnification
 and D&O insurance policy provided under Sections 6(a) and 6(b) hereof.

**6.** **Indemnification; D&O Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Indemnification**.
 If Executive is made a party, is threatened to be made a party, or reasonably anticipates
 being made a party, to any Proceeding (as hereinafter defined) by reason of the fact that
 Executive is or was a director, officer, shareholder, employee, agent, trustee, consultant,
 or representative of the Company or any of its Affiliates or is or was serving at the request
 of the Company or any of its Affiliates, or in connection with her service hereunder as a
 director, officer, shareholder, employee, agent, trustee, consultant, or representative of
 another Person, or if any Claim (as hereinafter defined) is made, is threatened to be made,
 or is reasonably anticipated to be made, that arises out of or relates to Executive's
 service in any of the foregoing capacities, then Executive shall promptly be indemnified
 and held harmless to the fullest extent permitted or authorized by any Company arrangement,
 or if greater, by applicable law, against any and all costs, expenses, liabilities, and losses
 (including, without limitation, advancement and payment of attorneys' and other professional
 fees and charges, judgments, interest, expenses of investigation, penalties, fines, ERISA
 excise taxes or penalties, and amounts paid or to be paid in settlement, with such legal
 fees advanced to the maximum extent permitted by law) incurred or suffered by Executive in
 connection therewith or in connection with seeking to enforce her rights under this Section
 6(a), and such indemnification shall continue even if Executive has ceased to be a director,
 officer, shareholder, employee, agent, trustee, consultant, or representative of the Company
 or other Person and shall inure to the benefit of her heirs, executors, and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **D&O Insurance**. A directors' and officers' liability insurance policy (or policies)
 shall be kept in place, during the Term and thereafter until the sixth anniversary of the
 Termination Date, providing coverage to Executive that is no less favorable to her in any
 respect than the coverage then being provided to any other current or former director or
 officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Definitions**.
 For purposes of this Agreement, the following terms shall have the following meanings: "**Affiliate** "
 of a Person shall mean any Person that directly or indirectly controls, is controlled by,
 or is under common control with, such Person; "**Claim**" shall mean any claim,
 demand, request, investigation, dispute, controversy, threat, discovery request, or request
 for testimony or information; "**Person**" shall mean any individual, corporation,
 partnership, limited liability company, joint venture, trust, estate, board, committee, agency,
 body, employee benefit plan, or other person or entity; and "**Proceeding** "
 shall mean any threatened or actual action, suit, or proceeding, whether civil, criminal,
 administrative, investigative, appellate, formal, informal, or other.

**7.** **Other Tax Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Withholding**.
 The Company shall withhold all applicable federal, state, and local taxes, social security,
 and workers' compensation contributions and other amounts as may be required by law
 with respect to compensation payable to Executive pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Section 409A**. Notwithstanding anything herein to the contrary, this Agreement is intended to
 be interpreted and applied so that the payment of the benefits set forth herein shall either
 be exempt from, or in the alternative, comply with, the requirements of Section 409A of the
 Internal Revenue Code of 1986, as amended (the "**Code** "), and the published
 guidance thereunder ()"**Section 409A** "). A termination of employment shall
 not be deemed to have occurred for purposes of any provision of this Agreement providing
 for the payment of any amounts or benefits upon or following a termination of employment
 that are considered "nonqualified deferred compensation" under Section 409A unless
 such termination is also a "separation from service" within the meaning of Section
 409A and, for purposes of any such provision of this Agreement, references to a "termination,"
 "Termination Date" or like terms shall mean "separation from service."
 Notwithstanding any provision of this Agreement to the contrary, if Executive is a "specified
 employee" within the meaning of Section 409A on the date of her "separation from
 service," any payments or arrangements due upon a termination of Executive's
 employment under any arrangement that constitutes a "nonqualified deferral of compensation"
 within the meaning of Section 409A and which do not otherwise qualify under the exemptions
 under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral
 exemption or the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall
 be delayed and paid or provided on the earlier of (a) the date which is six months after
 Executive's "separation from service" for any reason other than death,
 or (b) the date of Executive's death. All tax gross-up payments provided under this
 Agreement or any other agreement with Executive shall be made or provided by the end of Executive's
 taxable year next following Executive's taxable year in which Executive remits the
 related taxes, in accordance with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Section 409A Gross-Up**. The Company acknowledges and agrees that if any payment, award, benefit,
 or distribution (or any acceleration of any payment, award, benefit, or distribution) made
 or provided to Executive or for Executive's benefit in connection with this Agreement,
 or Executive's employment with the Company or the termination thereof (the "**Payments** ")
 are determined to be subject to the additional taxes, interest, or penalties imposed by Section
 409A, or any interest or penalties with respect to such additional taxes, interest, or penalties
 (such additional taxes, together with any such interest and penalties, are referred to collectively
 as the "**Section 409A Tax** "), then Executive will be entitled to receive
 an additional payment (a "**409A Gross-Up Payment**") from the Company such
 that the net amount Executive retains after paying any applicable Section 409A Tax and any
 federal, state, or local income or FICA taxes on such 409A Gross-Up Payment, shall be equal
 to the amount Executive would have received if the Section 409A Tax were not applicable to
 the Payments. Unless otherwise agreed in writing by Executive and the Company, all determinations
 of the Section 409A Tax and 409A Gross-Up Payment, if any, will be made by an independent
 "big four" accounting firm designated by the Company, and such accounting firm
 shall be instructed to provide the Company and Executive with a written opinion of any determination
 such accounting firm has been requested to provide. The Company shall be responsible for
 such accounting firm's fees. For purposes of determining the amount of the 409A Gross-Up
 Payment, if any, Executive will be deemed to pay federal income tax at the actual marginal
 rate of federal income taxation in the calendar year in which the total Payments are made
 and state and local income taxes at the actual marginal rate of taxation in the state and
 locality of Executive's residence on the date the total Payments are made, net of the
 maximum reduction in federal income taxes that could be obtained from deduction of such state
 and local taxes. If the Section 409A Tax is determined by the Internal Revenue Service, on
 audit or otherwise, to exceed the amount taken into account hereunder in calculating the
 409A Gross-Up Payment (including by reason of any payment the existence or amount of which
 cannot be determined at the time of the 409A Gross-Up Payment), the Company shall make another
 409A Gross-Up Payment in respect of such excess (plus any interest, penalties, or additions
 payable by Executive with respect to such excess). The Company and Executive shall each reasonably
 cooperate with the other in connection with any administrative or judicial proceedings concerning
 the existence or amount of liability for Section 409A Tax with respect to the total Payments.
 The 409A Gross-Up Payments provided to Executive shall be made no later than the tenth business
 day following the last date the Payments are made but in all events within the time period
 specified in Section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Separation from Service**. After any Termination Date, Executive shall have no duties or responsibilities
 that are inconsistent with having a "separation from service" within the meaning
 of Section 409A as of the Termination Date and, notwithstanding anything in the Agreement
 to the contrary, distributions upon termination of employment of nonqualified deferred compensation
 may only be made upon a "separation from service" as determined under Section
 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment
 under this Agreement or otherwise shall be treated as a separate payment for purposes of
 Section 409A. In no event may Executive, directly or indirectly, designate the calendar year
 of any payment to be made under this Agreement which constitutes a "nonqualified deferral
 of compensation" within the meaning of Section 409A and to the extent an amount is
 payable within a time period, the time during which such amount is paid shall be in the discretion
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Reimbursements**.
 All reimbursements and in-kind benefits provided under this Agreement shall be made or provided
 in accordance with the requirements of Section 409A. To the extent that any reimbursements
 are taxable to Executive, such reimbursements shall be paid to Executive on or before the
 last day of Executive's taxable year following the taxable year in which the related
 expense was incurred. Reimbursements shall not be subject to liquidation or exchange for
 another benefit and the amount of such reimbursements that Executive receives in one taxable
 year shall not affect the amount of such reimbursements that Executive receives in any other
 taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Parachute Payments; Gross-Up**. Anything in this Agreement to the contrary notwithstanding, in the
 event that Executive shall become entitled to payments and/or benefits provided by this Agreement
 or any other amounts in the "nature of compensation" (whether pursuant to the
 terms of this Agreement or any other plan, arrangement, or agreement with the Company, or
 any arrangement or agreement with any person whose actions result in a change of ownership
 or effective control or a change in the ownership of a substantial portion of the assets
 of the corporation covered by Code Section 280G(b)(2) (a "**280G Change in Control** "),
 or any person affiliated with the Company or such person) as a result of a 280G Change in
 Control (collectively the "**Company Payments** "), and such Company Payments
 will be subject to the tax (the "**Excise Tax**") imposed by Code Section
 4999, the Company shall pay to Executive at the time specified below (i) an additional amount
 (the "**Gross-Up Payment**") such that the net amount retained by Executive,
 after deduction of any Excise Tax on the Company Payments and any U.S. federal, state, and
 for local income or payroll tax upon the Gross-Up Payment provided for by this paragraph,
 but before deduction for any U.S. federal, state, and local income or payroll tax on the
 Company Payments, shall be equal to the Company Payments and (ii) an amount equal to the
 product of any deductions disallowed for federal, state, or local income tax purposes because
 of the inclusion of the Gross-Up Payment in Executive's adjusted gross income multiplied
 by Executive's actual marginal rate of federal, state, or local income taxation, respectively,
 for the calendar year in which the Gross-Up Payment is to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless
 otherwise agreed in writing by Executive and the Company, all determinations of the Company
 Payments and the Gross-Up Payments, if any, will be made by an independent "big four"
 accounting firm designated by the Company with Executive's approval (the "**Accountant** "),
 and the Accountant shall be instructed to provide the Company and Executive with a written
 opinion of any determination the Accountant has been requested to provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For
 purposes of determining the amount of the Gross-Up Payment, Executive's actual U.S.
 federal income tax rate in the calendar year in which the Gross-Up Payment is to be made
 and state and local income taxes at Executive's actual rate of taxation in the state
 and locality of Executive's residence for the calendar year in which the Company Payment
 is to be made, net of the maximum reduction in U.S. federal income taxes which could be obtained
 from deduction of such state and local taxes if paid in such year, shall be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In
 the event that the Excise Tax is later determined by the Accountant or the Internal Revenue
 Service to exceed the amount taken into account hereunder at the time the Gross-Up Payment
 is made (including by reason of any payment the existence or amount of which cannot be determined
 at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment
 in respect of such excess (plus any interest or penalties payable with respect to such excess)
 at the time that the amount of such excess is finally determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 Gross-Up Payment or portion thereof provided for above shall be paid not later than the sixtieth
 day following a 280G Change in Control which subjects Executive to the Excise Tax; provided,
 however, that if the amount of such Gross-Up Payment or portion thereof cannot be finally
 determined on or before such day, the Company shall pay to Executive on such day an estimate,
 as determined in good faith by the Accountant, of the minimum amount of such payments and
 shall pay the remainder of such payments, as soon as the amount thereof can reasonably be
 determined, but in no event later than the ninetieth day after the occurrence of the event
 subjecting Executive to the Excise Tax. Notwithstanding any other provision of this Agreement,
 all Gross-Up Payments under this Section 7(f)(iv) shall be paid pursuant to Section 7(b)
 of the Agreement. In the event that the amount of the estimated payments exceeds the amount
 subsequently determined to have been due, such excess shall constitute a loan by the Company
 to Executive, payable on the fifth day after demand by the Company (together with interest
 at the rate provided in Code Section 1274(b)(2)(B)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The
 Company shall be responsible for all charges of the Accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The
 Company and Executive shall promptly deliver to each other copies of any written communications,
 and summaries of any verbal communications, with any taxing authority regarding the Excise
 Tax covered by this provision.

**8.** **Notices**.
 Except as otherwise specifically provided herein, any notice, consent, demand, or other communication
 to be given under or in connection with this Agreement shall be in writing and shall be deemed
 duly given when delivered personally, when transmitted by facsimile transmission, one day
 after being deposited with Federal Express or other nationally recognized overnight delivery
 service, or five days after being mailed by first class mail, charges or postage prepaid,
 properly addressed, if to the Company, at its principal office, and, if to Executive, at
 her address set forth following her signature below. Either party may change such address
 from time to time by notice to the other.

**9.** **Governing Law; Forum; Attorneys' Fees and Costs**. This Agreement shall be governed by and
 construed and interpreted in accordance with the laws of California, without giving effect
 to any choice of law rules or other conflicting provision or rule that would cause the laws
 of any jurisdiction to be applied. The parties each submit to the exclusive jurisdiction
 of the federal courts (or state courts if federal jurisdiction is lacking) located within
 Orange County, California. In the event of a lawsuit or other legal proceeding arising out
 of or related to this Agreement in which Executive prevails (as determined by the deciding
 court), the Company shall reimburse Executive for her reasonable attorneys' fees and
 costs incurred in connection with such lawsuit or legal proceeding, in addition to any other
 relief to which Executive may be entitled.

**10.** **Amendments; Waivers**. This Agreement may not be modified or amended or terminated except by an instrument
 in writing, signed by Executive and a duly authorized officer of the Company (other than
 Executive). By an instrument in writing similarly executed (and not by any other means),
 either party may waive compliance by the other party with any provision of this Agreement
 that such other party was or is obligated to comply with or perform; provided, however, that
 such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
 failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder
 shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
 remedy, or power hereunder preclude any other or further exercise thereof or the exercise
 of any other right, remedy, or power provided herein or by law or in equity. To be effective,
 any written waiver must specifically refer to the condition(s) or provision(s) of this Agreement
 being waived.

**11.** **Inconsistencies**.
 In the event of any inconsistency between any provision of this Agreement and any provision
 of any Company arrangement, the provisions of this Agreement shall control, unless Executive
 and the Company otherwise agree in a writing that expressly refers to the provision of this
 Agreement that is being waived.

**12.** **Assignment**.
 Except as otherwise specifically provided herein, neither party shall assign or transfer
 this Agreement nor any rights hereunder without the consent of the other party, and any attempted
 or purported assignment without such consent shall be void; provided, however, that any assignment
 or transfer pursuant to a merger or consolidation, or the sale or liquidation of all or substantially
 all of the business and assets of the Company shall be valid, so long as the assignee or
 transferee (a) is the successor to all or substantially all of the business and assets of
 the Company, and (b) assumes the liabilities, obligations and duties of the Company, as contained
 in this Agreement, either contractually or as a matter of law. Executive's consent
 shall be required for any such transaction. This Agreement shall otherwise bind and inure
 to the benefit of the parties hereto and their respective successors, penalties, assigns,
 heirs, legatees, devisees, executors, administrators, and legal representatives.

**13.** **Voluntary Execution; Representations**. Executive acknowledges that (a) she has consulted with or
 has had the opportunity to consult with independent counsel of her own choosing concerning
 this Agreement and has been advised to do so by the Company, and (b) she has read and understands
 this Agreement, is competent and of sound mind to execute this Agreement, is fully aware
 of the legal effect of this Agreement, and has entered into it freely based on her own judgment
 and without duress. The Company represents and warrants that it is fully authorized, by any
 person or body whose authorization is required, to enter into this Agreement and to perform
 its obligations hereunder.

**14.** **Headings**.
 The headings of the Sections and subsections contained in this Agreement are for convenience
 only and shall not be deemed to control or affect the meaning or construction of any provision
 of this Agreement.

**15.** **Construction**.
 The language used in this Agreement shall be deemed to be the language chosen by the parties
 to express their mutual intent, and no rule of strict construction shall be applied against
 any party.

**16.** **Beneficiaries/References**.
 Executive shall be entitled, to the extent permitted under applicable law, to select and
 change a beneficiary or beneficiaries to receive any compensation or benefit hereunder following
 Executive's death by giving written notice thereof. In the event of Executive's
 death or a judicial determination of her incompetence, references in this Agreement to Executive
 shall be deemed, where appropriate, to refer to her beneficiary, estate, or other legal representative.

**17.** **Survivorship**.
 Except as otherwise set forth in this Agreement, the respective rights and obligations of
 the parties shall survive any termination of Executive's employment.

**18.** **Severability**.
 It is the desire and intent of the parties hereto that the provisions of this Agreement be
 enforced to the fullest extent permissible under the laws and public policies applied in
 each jurisdiction in which enforcement is sought. Accordingly, if any particular provision
 of this Agreement shall be adjudicated by a court of competent jurisdiction or arbitrator
 to be invalid, prohibited, or unenforceable for any reason, such provision, as to such jurisdiction,
 shall be ineffective, without invalidating the remaining provisions of this Agreement or
 affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding
 the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited,
 or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
 drawn, without invalidating the remaining provisions of this Agreement or affecting the validity
 or enforceability of such provision in any other jurisdiction.

**19.** **No Mitigation/No Offset**. Executive shall be under no obligation to seek other employment
 or to otherwise mitigate the obligations of the Company under this Agreement, and there shall
 be no offset against amounts or benefits due to Executive under this Agreement or otherwise
 on account of any claim (other than any preexisting debts then due in accordance with their
 terms) the Company may have against her or any remuneration or other benefit earned or received
 by Executive after such termination.

**20.** **Counterparts**.
 This Agreement may be executed in any number of counterparts, each of which shall be deemed
 an original, but all such counterparts shall together constitute one and the same instrument.
 Signatures delivered by facsimile or PDF shall be effective for all purposes.

**21.** **Entire Agreement**. This Agreement contains the entire agreement of the parties and supersedes
 all prior or contemporaneous negotiations, correspondence, understandings, and agreements
 between the parties, regarding the subject matter of this Agreement.

**[SIGNATURE PAGE TO FOLLOW]**

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **COMPANY** | **COMPANY** |
| CoLabs Int'l, Corp., a Nevada corporation | CoLabs Int'l, Corp., a Nevada corporation |
| By: | */s/ Peter Barton Hutt* |
| Name: | Peter Barton Hutt |
| Title: | Compensation Committee Chairman |
| **EXECUTIVE** | **EXECUTIVE** |
| By: | */s/ Lisa LeBlanc* |
| Name: | Lisa LeBlanc |

---

Address for Notices: 18593 Main Street <br> Huntington Beach, CA 92648

## Exhibit 10.5

**Exhibit 10.5**

**Executive Employment Agreement**

This EXECUTIVE EMPLOYMENT AGREEMENT ("**Agreement**") is made as October 1, 2022 (the "**Effective Date**"), by and between CoLabs Int'l, Corp, a Nevada corporation (together with its successors and assigns, the "**Company**"), and William Cohen ("**Executive**").

**RECITALS**

WHEREAS, the Company desires to employ Executive, and Executive desires to be employed by the Company, as the Company's Chief Financial Officer.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and conditions herein, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows:

**AGREEMENT**

**1.** **Employment and Term**. The Company hereby agrees to employ Executive, and Executive hereby accepts
 employment by the Company, on the terms and conditions hereinafter set forth. Executive's
 term of employment by the Company under this Agreement (the "Term") shall commence
 on the Effective Date and end on the first anniversary thereof, subject to automatic renewal
 of the Term for additional one-year periods unless either the Company or Executive gives
 the other party written notice of intent not to renew the Term not less than 60 days before
 the date on which the Term otherwise would automatically renew. Notwithstanding the foregoing,
 the Term may be terminated earlier in accordance with Section 5.

**2.** **Position, Duties and Responsibilities**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Position and Duties**. During the Term, the Company shall employ Executive as Chief Financial Officer.
 Executive shall have, subject to the general direction of the Company's Board of Directors
 (the "Board"), such duties, powers, and authority as are commensurate with his
 position as Chief Financial Officer and such other duties and responsibilities that are commensurate
 with his positions as reasonably delegated to him from time to time by the Board. In this
 position, Executive shall report directly to the Chief Executive Officer.

**(b)** **Exclusive Services and Efforts**. Executive agrees to devote his efforts, energies, and skill to
 the discharge of the duties and responsibilities attributable to his position and, except
 as set forth herein, agrees to devote substantially all of his professional time and attention
 to the business and affairs of the Company. Notwithstanding the foregoing, Executive shall
 be entitled to engage in (a) service on the board of directors of two for-profit companies,
 businesses or trade organizations at any time during the Term; provided that he shall not
 serve on the board of any entity that materially competes with the Company, (b) service on
 the board of directors of not-for-profit organizations, (c) other charitable activities and
 community affairs, and (d) management of his personal and family investments and affairs,
 in each case to the extent such activities do not, either individually or in the aggregate,
 materially interfere with the performance of his duties and responsibilities to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Compliance with Company Policies**. To the extent not inconsistent with the terms and conditions of
 this Agreement and with due regard for his position, Executive shall be subject to the Bylaws,
 policies, practices, procedures, and rules of the Company, including those policies and procedures
 set forth in the Company's Code of Conduct and Ethics, but in no event shall anything
 in such documents be construed to expand the definition of Cause hereunder.

**3.** **Compensation**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Base Salary**. During the first year of the Term, the Company shall pay to the Executive an
 annual salary of $$108,000 ()"**Base Salary** "). Thereafter, the Compensation
 Committee of the Board (the "**Committee**") shall consider increases in Base
 Salary for subsequent years in connection with performance and a review of compensation provided
 at peer companies, which companies shall be subject to review on a continuing basis (the
 "**Peer Group** "), taking into account Company and individual performance
 objectives; provided, however, that Base Salary shall be increased as of each anniversary
 of the Effective Date by a minimum of the greater of 3% or the annual increase in the Federal
 Consumer Price Index.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Annual Cash Bonus**. The Committee shall award Executive's annual cash bonus based on an
 evaluation of performance and Peer Group compensation practices, taking into account Company
 and individual performance objectives. Notwithstanding the foregoing, the Committee may grant
 a special bonus at any time. Annual cash bonuses shall be deemed "earned" if
 Executive is employed on the last day of the year to which the bonus relates and shall be
 paid no later than March 15th of the year immediately following the year to which the annual
 bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Incentive Plan Participation**. During the Term, Executive shall be eligible to participate in Company
 equity incentive plans according to the recommendation of the Committee and approval of the
 Board.

**4.** **Employee Benefits and Perquisites**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Benefits**.
 Executive shall be entitled to participate in such health, group insurance, welfare, pension,
 and other employee benefit plans, programs, and arrangements as are made generally available
 from time to time to senior executives of the Company (which shall include customary health,
 life insurance, and disability plans), such participation in each case to be on terms and
 conditions no less favorable to Executive than to other senior executives of the Company
 generally.

**(b)** **Fringe Benefits, Perquisites, and Paid Time Off**. During the Term, Executive shall be entitled
 to participate in all fringe benefits and perquisites made available to other senior executives
 of the Company, such participation to be at levels, and on terms and conditions, that are
 commensurate with his position and responsibilities at the Company and that are no less favorable
 than those applicable to other senior executives of the Company. In addition, Executive shall
 be eligible for days of paid time off ()"**PTO**") per calendar year in accordance
 with the Company's vacation and PTO policy, inclusive of vacation days and sick days
 and excluding standard paid Company holidays, in the same manner as PTO days for employees
 of the Company generally accrue.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Reimbursement of Expenses**. The Company shall reimburse Executive for all reasonable business and travel
 expenses incurred in the performance of his job duties and the promotion of the Company's
 business, promptly upon presentation of appropriate supporting documentation and otherwise
 in accordance with the expense reimbursement policy of the Company.

**(d)** **Attorneys' Fees**. The Company shall reimburse Executive, promptly upon presentation of appropriate
 supporting documentation, for all reasonable attorneys' fees incurred by Executive
 in connection with the negotiation and execution of this Agreement, but in no event shall
 such reimbursement exceed $10,000.

**5.** **Termination; Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **General**.
 The Company may terminate Executive's employment for Cause. Executive may terminate
 his employment at any time for any reason other than Good Reason. The Company may terminate
 Executive's employment without Cause, or Executive may terminate Executive's
 employment with Good Reason, in each case, upon providing the other party at least 30 days'
 written notice thereof. Upon termination of Executive's employment, Executive shall
 be entitled to the compensation and benefits described in this Section 5 to the extent applicable
 and shall have no further rights to any compensation or benefits from the Company. For purposes
 of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Accrued Benefits**" shall mean: (i) accrued but unpaid Base Salary through the Termination
 Date, payable within 30 days following the Termination Date; (ii) any annual cash bonus earned
 but unpaid with respect to the year preceding the year in which the Termination Date occurs,
 payable in accordance with Section 3(c) above; (iii) any long-term incentive award earned
 but unpaid with respect to performance periods that ended in the year preceding the year
 in which Termination Date occurs, payable in accordance with Section 3(d) above; (iv) reimbursement
 for any unreimbursed business expenses incurred through the Termination Date and any expenses
 incurred through the Termination Date under Section 2(d) above (including any related tax
 gross-up payments), payable within 30 days following the Termination Date; (v) accrued but
 unused PTO days; and (vi) all other payments, benefits, or fringe benefits to which Executive
 shall be entitled as of the Termination Date under the terms of any applicable compensation
 arrangement or benefit, equity, or fringe benefit plan or program or grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Cause** "
 shall mean: (i) Executive's refusal to perform, or repeated failure to undertake good
 faith efforts to perform, the duties or responsibilities reasonably assigned to Executive
 by the Board, which, if curable, is not cured within 30 days after Executive's written
 receipt of notice thereof from the Company; (ii) Executive's engagement in willful
 gross misconduct or willful gross negligence in and the course of carrying out his duties
 that results in material economic or reputational harm to the Company; (iii) Executive's
 conviction of or plea of guilty or nolo contendere to a felony; or (iv) a material breach
 by Executive of Section 2(b) of this Agreement, which, if curable, is not cured within 30
 days after Executive's receipt of written notice thereof from the Company. Termination
 of Executive's employment shall not be deemed to be for Cause unless Executive has
 had a reasonable opportunity, together with counsel. to respond to all relevant allegations
 upon which a contemplated termination for Cause is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Good Reason**" shall mean any of the following that has not been approved in writing in
 shall mean any of the following circumstances that, if curable, has not been cured by the
 Company within 30 days of the Company's receipt of notice thereof from Executive, which
 notice was provided within 90 days of the date on which the circumstance or event constituting
 Good Reason first came into existence: (i) a material reduction in Executive's Base
 Salary; (ii) a material diminution of Executive's titles, duties, responsibilities,
 or authorities as set forth in this Agreement or Executive being required to report to another
 person other than the Board; (iii) a material diminution in the budget over which Executive
 retains authority; (iv) a material change in the location of the Company's offices;
 or (v) a material breach by the Company of this Agreement. Executive's resignation
 will not be treated as being for Good Reason unless Executive's employment terminates
 after the end of the cure period (if curable) and no later than six months after the occurrence
 of the event(s) giving rise to the termination for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Disability** "
 shall mean that Executive has been unable, with or without reasonable accommodation and due
 to physical or mental incapacity, to substantially perform his duties and responsibilities
 hereunder for at least six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Medical Payment Amounts**" shall mean an amount, payable on a monthly basis commencing on
 the first day of the month following the Termination Date, equal to (i) the monthly amount
 of the Consolidated Omnibus Budget Reconciliation Act continuation coverage premium for such
 month under the Company's group medical plans for executives of the Company less the
 monthly amount of Executive's portion of the premium for such month as if Executive
 was still an active employee, plus (ii) a tax gross-up payment so Executive shall have no
 after-tax consequences with respect to the monthly amount described in clause (i) or the
 related tax gross-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "**Severance Payments**" shall mean (i) a lump sum cash payment, payable on the Termination Date,
 equal to two times the sum of the following: (x) one year's Base Salary at the annualized
 rate then in effect (or the rate that should be in effect but for any Base Salary diminution),
 (y) the greater of (I) the annual target cash bonus opportunity for the year of termination
 or (II) the average annual cash bonus for the three preceding completed years (provided,
 however, that if Executive has not been employed for at least three years in which an annual
 cash bonus was paid, such calculation will assume that an annual cash bonus equal to the
 target annual cash bonus opportunity was paid in the missing years), and (z) the target long-term
 incentive award for the year of the Termination Date; (ii) Medical Payment Amounts, payable
 each month, commencing on the first day of the month following the Termination Date and continuing
 until the earlier of twenty-four months following the Termination Date or the date on which
 Executive becomes employed by a third party and becomes eligible to participate in such third
 party's group health plan; (iii) to the extent permissible under applicable law and
 under any insurance policy insuring the Company's health plan (if any), access to continued
 coverage under the Company's health plan with the full cost payable by Executive for
 a period of up to twenty-four months commencing on the first day of the month following the
 Termination Date; and (iv) any unpaid Sign-On Bonus, payable on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "**Termination Date**" shall mean the date on which Executive's employment hereunder terminates
 in accordance with this Agreement (which, in the case of a notice of non-renewal of the Term
 in accordance with Section 1 hereof, shall mean the date on which the Term expires).

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Termination Without Cause or Termination by Executive for Good Reason**. In the event that Executive's
 employment hereunder is terminated by the Company without Cause or by Executive for Good
 Reason, Executive shall be entitled to receive the Accrued Benefits and the Severance Payments.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Termination Due to Death or Disability**. In the event that Executive's employment hereunder
 is terminated due to Executive's death or Disability, Executive shall receive the Accrued
 Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Return of Company Property**. Upon termination of Executive's employment for any reason
 or under any circumstances, Executive shall promptly return any and all of the property of
 the Company and any Affiliates (including, without limitation, all computers, keys, credit
 cards, identification tags, documents, data, confidential information, work product, and
 other proprietary materials), and other materials. Executive may retain Executive's
 rolodex and similar address books provided that such items only include contact information.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Post-Termination Reasonable Cooperation**. Executive agrees and covenants that, following the Term, he shall,
 to the extent reasonably requested by the Company, cooperate in good faith with the Company
 to assist the Company in the pursuit or defense of (except if Executive is adverse with respect
 to) any claim, administrative charge, or cause of action by or against the Company as to
 which Executive, by virtue of his employment with the Company or any other position that
 Executive holds that is affiliated with or was held at the request of the Company or its
 Affiliates, has relevant knowledge or information, including by acting as the Company's
 representative in any such proceeding and, without the necessity of a subpoena, providing
 truthful testimony in any jurisdiction or forum. The Company shall reimburse Executive for
 his reasonable out-of-pocket expenses incurred in compliance with this Section 5(e), including
 any reasonable travel expenses and reasonable attorneys' fees incurred by Executive
 and, in the event that Executive is required to spend substantial time on such matters, the
 Company shall compensate Executive at an hourly rate of $225 per hour. The Company shall
 use reasonable business efforts to provide Executive with reasonable advance written notice
 of its need for Executive's reasonable cooperation and shall attempt to coordinate
 with Executive the time and place at which Executive's reasonable cooperation shall
 be provided with the goal of minimizing the impact of such reasonable cooperation on any
 other material pre-scheduled business commitment that Executive may have. Executive's
 cooperation described in this Section 5(e) shall be subject to the maintenance of the indemnification
 and D&O insurance policy provided under Sections 6(a) and 6(b) hereof.

**6.** **Indemnification; D&O Insurance**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Indemnification**.
 If Executive is made a party, is threatened to be made a party, or reasonably anticipates
 being made a party, to any Proceeding (as hereinafter defined) by reason of the fact that
 Executive is or was a director, officer, shareholder, employee, agent, trustee, consultant,
 or representative of the Company or any of its Affiliates or is or was serving at the request
 of the Company or any of its Affiliates, or in connection with his service hereunder as a
 director, officer, shareholder, employee, agent, trustee, consultant, or representative of
 another Person, or if any Claim (as hereinafter defined) is made, is threatened to be made,
 or is reasonably anticipated to be made, that arises out of or relates to Executive's
 service in any of the foregoing capacities, then Executive shall promptly be indemnified
 and held harmless to the fullest extent permitted or authorized by any Company arrangement,
 or if greater, by applicable law, against any and all costs, expenses, liabilities, and losses
 (including, without limitation, advancement and payment of attorneys' and other professional
 fees and charges, judgments, interest, expenses of investigation, penalties, fines, ERISA
 excise taxes or penalties, and amounts paid or to be paid in settlement, with such legal
 fees advanced to the maximum extent permitted by law) incurred or suffered by Executive in
 connection therewith or in connection with seeking to enforce his rights under this Section
 6(a), and such indemnification shall continue even if Executive has ceased to be a director,
 officer, shareholder, employee, agent, trustee, consultant, or representative of the Company
 or other Person and shall inure to the benefit of his heirs, executors, and administrators.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **D&O Insurance**. A directors' and officers' liability insurance policy (or policies)
 shall be kept in place, during the Term and thereafter until the sixth anniversary of the
 Termination Date, providing coverage to Executive that is no less favorable to his in any
 respect than the coverage then being provided to any other current or former director or
 officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Definitions**.
 For purposes of this Agreement, the following terms shall have the following meanings: "**Affiliate** "
 of a Person shall mean any Person that directly or indirectly controls, is controlled by,
 or is under common control with, such Person; "**Claim**" shall mean any claim,
 demand, request, investigation, dispute, controversy, threat, discovery request, or request
 for testimony or information; "**Person**" shall mean any individual, corporation,
 partnership, limited liability company, joint venture, trust, estate, board, committee, agency,
 body, employee benefit plan, or other person or entity; and "**Proceeding** "
 shall mean any threatened or actual action, suit, or proceeding, whether civil, criminal,
 administrative, investigative, appellate, formal, informal, or other.

**7.** **Other Tax Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Withholding**.
 The Company shall withhold all applicable federal, state, and local taxes, social security,
 and workers' compensation contributions and other amounts as may be required by law
 with respect to compensation payable to Executive pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Section 409A**. Notwithstanding anything herein to the contrary, this Agreement is intended to
 be interpreted and applied so that the payment of the benefits set forth herein shall either
 be exempt from, or in the alternative, comply with, the requirements of Section 409A of the
 Internal Revenue Code of 1986, as amended (the "**Code** "), and the published
 guidance thereunder ()"**Section 409A** "). A termination of employment shall
 not be deemed to have occurred for purposes of any provision of this Agreement providing
 for the payment of any amounts or benefits upon or following a termination of employment
 that are considered "nonqualified deferred compensation" under Section 409A unless
 such termination is also a "separation from service" within the meaning of Section
 409A and, for purposes of any such provision of this Agreement, references to a "termination,"
 "Termination Date" or like terms shall mean "separation from service."
 Notwithstanding any provision of this Agreement to the contrary, if Executive is a "specified
 employee" within the meaning of Section 409A on the date of his "separation from
 service," any payments or arrangements due upon a termination of Executive's
 employment under any arrangement that constitutes a "nonqualified deferral of compensation"
 within the meaning of Section 409A and which do not otherwise qualify under the exemptions
 under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral
 exemption or the permitted payments under Treas. Regs. Section 1.409A-1(b)(9)(iii)(A)), shall
 be delayed and paid or provided on the earlier of (a) the date which is six months after
 Executive's "separation from service" for any reason other than death,
 or (b) the date of Executive's death. All tax gross-up payments provided under this
 Agreement or any other agreement with Executive shall be made or provided by the end of Executive's
 taxable year next following Executive's taxable year in which Executive remits the
 related taxes, in accordance with the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Section 409A Gross-Up**. The Company acknowledges and agrees that if any payment, award, benefit,
 or distribution (or any acceleration of any payment, award, benefit, or distribution) made
 or provided to Executive or for Executive's benefit in connection with this Agreement,
 or Executive's employment with the Company or the termination thereof (the "**Payments** ")
 are determined to be subject to the additional taxes, interest, or penalties imposed by Section
 409A, or any interest or penalties with respect to such additional taxes, interest, or penalties
 (such additional taxes, together with any such interest and penalties, are referred to collectively
 as the "**Section 409A Tax** "), then Executive will be entitled to receive
 an additional payment (a "**409A Gross-Up Payment**") from the Company such
 that the net amount Executive retains after paying any applicable Section 409A Tax and any
 federal, state, or local income or FICA taxes on such 409A Gross-Up Payment, shall be equal
 to the amount Executive would have received if the Section 409A Tax were not applicable to
 the Payments. Unless otherwise agreed in writing by Executive and the Company, all determinations
 of the Section 409A Tax and 409A Gross-Up Payment, if any, will be made by an independent
 "big four" accounting firm designated by the Company, and such accounting firm
 shall be instructed to provide the Company and Executive with a written opinion of any determination
 such accounting firm has been requested to provide. The Company shall be responsible for
 such accounting firm's fees. For purposes of determining the amount of the 409A Gross-Up
 Payment, if any, Executive will be deemed to pay federal income tax at the actual marginal
 rate of federal income taxation in the calendar year in which the total Payments are made
 and state and local income taxes at the actual marginal rate of taxation in the state and
 locality of Executive's residence on the date the total Payments are made, net of the
 maximum reduction in federal income taxes that could be obtained from deduction of such state
 and local taxes. If the Section 409A Tax is determined by the Internal Revenue Service, on
 audit or otherwise, to exceed the amount taken into account hereunder in calculating the
 409A Gross-Up Payment (including by reason of any payment the existence or amount of which
 cannot be determined at the time of the 409A Gross-Up Payment), the Company shall make another
 409A Gross-Up Payment in respect of such excess (plus any interest, penalties, or additions
 payable by Executive with respect to such excess). The Company and Executive shall each reasonably
 cooperate with the other in connection with any administrative or judicial proceedings concerning
 the existence or amount of liability for Section 409A Tax with respect to the total Payments.
 The 409A Gross-Up Payments provided to Executive shall be made no later than the tenth business
 day following the last date the Payments are made but in all events within the time period
 specified in Section 7(b).

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Separation from Service**. After any Termination Date, Executive shall have no duties or responsibilities
 that are inconsistent with having a "separation from service" within the meaning
 of Section 409A as of the Termination Date and, notwithstanding anything in the Agreement
 to the contrary, distributions upon termination of employment of nonqualified deferred compensation
 may only be made upon a "separation from service" as determined under Section
 409A and such date shall be the Termination Date for purposes of this Agreement. Each payment
 under this Agreement or otherwise shall be treated as a separate payment for purposes of
 Section 409A. In no event may Executive, directly or indirectly, designate the calendar year
 of any payment to be made under this Agreement which constitutes a "nonqualified deferral
 of compensation" within the meaning of Section 409A and to the extent an amount is
 payable within a time period, the time during which such amount is paid shall be in the discretion
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Reimbursements**.
 All reimbursements and in-kind benefits provided under this Agreement shall be made or provided
 in accordance with the requirements of Section 409A. To the extent that any reimbursements
 are taxable to Executive, such reimbursements shall be paid to Executive on or before the
 last day of Executive's taxable year following the taxable year in which the related
 expense was incurred. Reimbursements shall not be subject to liquidation or exchange for
 another benefit and the amount of such reimbursements that Executive receives in one taxable
 year shall not affect the amount of such reimbursements that Executive receives in any other
 taxable year.

**8.** **Notices**.
 Except as otherwise specifically provided herein, any notice, consent, demand, or other communication
 to be given under or in connection with this Agreement shall be in writing and shall be deemed
 duly given when delivered personally, when transmitted by facsimile transmission, one day
 after being deposited with Federal Express or other nationally recognized overnight delivery
 service, or five days after being mailed by first class mail, charges or postage prepaid,
 properly addressed, if to the Company, at its principal office, and, if to Executive, at
 his address set forth following his signature below. Either party may change such address
 from time to time by notice to the other.

**9.** **Governing Law; Forum; Attorneys' Fees and Costs**. This Agreement shall be governed by and
 construed and interpreted in accordance with the laws of California, without giving effect
 to any choice of law rules or other conflicting provision or rule that would cause the laws
 of any jurisdiction to be applied. The parties each submit to the exclusive jurisdiction
 of the federal courts (or state courts if federal jurisdiction is lacking) located within
 Orange County, California. In the event of a lawsuit or other legal proceeding arising out
 of or related to this Agreement in which Executive prevails (as determined by the deciding
 court), the Company shall reimburse Executive for his reasonable attorneys' fees and
 costs incurred in connection with such lawsuit or legal proceeding, in addition to any other
 relief to which Executive may be entitled.

**10.** **Amendments; Waivers**. This Agreement may not be modified or amended or terminated except by an instrument
 in writing, signed by Executive and a duly authorized officer of the Company (other than
 Executive). By an instrument in writing similarly executed (and not by any other means),
 either party may waive compliance by the other party with any provision of this Agreement
 that such other party was or is obligated to comply with or perform; provided, however, that
 such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent
 failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder
 shall operate as a waiver thereof, nor shall any single or partial exercise of any right,
 remedy, or power hereunder preclude any other or further exercise thereof or the exercise
 of any other right, remedy, or power provided herein or by law or in equity. To be effective,
 any written waiver must specifically refer to the condition(s) or provision(s) of this Agreement
 being waived.

**11.** **Inconsistencies**.
 In the event of any inconsistency between any provision of this Agreement and any provision
 of any Company arrangement, the provisions of this Agreement shall control, unless Executive
 and the Company otherwise agree in a writing that expressly refers to the provision of this
 Agreement that is being waived.

**12.** **Assignment**.
 Except as otherwise specifically provided herein, neither party shall assign or transfer
 this Agreement nor any rights hereunder without the consent of the other party, and any attempted
 or purported assignment without such consent shall be void; provided, however, that any assignment
 or transfer pursuant to a merger or consolidation, or the sale or liquidation of all or substantially
 all of the business and assets of the Company shall be valid, so long as the assignee or
 transferee (a) is the successor to all or substantially all of the business and assets of
 the Company, and (b) assumes the liabilities, obligations and duties of the Company, as contained
 in this Agreement, either contractually or as a matter of law. Executive's consent
 shall be required for any such transaction. This Agreement shall otherwise bind and inure
 to the benefit of the parties hereto and their respective successors, penalties, assigns,
 heirs, legatees, devisees, executors, administrators, and legal representatives.

**13.** **Voluntary Execution; Representations**. Executive acknowledges that (a) he has consulted with or
 has had the opportunity to consult with independent counsel of his own choosing concerning
 this Agreement and has been advised to do so by the Company, and (b) he has read and understands
 this Agreement, is competent and of sound mind to execute this Agreement, is fully aware
 of the legal effect of this Agreement, and has entered into it freely based on his own judgment
 and without duress. The Company represents and warrants that it is fully authorized, by any
 person or body whose authorization is required, to enter into this Agreement and to perform
 its obligations hereunder.

**14.** **Headings**.
 The headings of the Sections and subsections contained in this Agreement are for convenience
 only and shall not be deemed to control or affect the meaning or construction of any provision
 of this Agreement.

**15.** **Construction**.
 The language used in this Agreement shall be deemed to be the language chosen by the parties
 to express their mutual intent, and no rule of strict construction shall be applied against
 any party.

**16.** **Beneficiaries/References**.
 Executive shall be entitled, to the extent permitted under applicable law, to select and
 change a beneficiary or beneficiaries to receive any compensation or benefit hereunder following
 Executive's death by giving written notice thereof. In the event of Executive's
 death or a judicial determination of his incompetence, references in this Agreement to Executive
 shall be deemed, where appropriate, to refer to his beneficiary, estate, or other legal representative.

**17.** **Survivorship**.
 Except as otherwise set forth in this Agreement, the respective rights and obligations of
 the parties shall survive any termination of Executive's employment.

**18.** **Severability**.
 It is the desire and intent of the parties hereto that the provisions of this Agreement be
 enforced to the fullest extent permissible under the laws and public policies applied in
 each jurisdiction in which enforcement is sought. Accordingly, if any particular provision
 of this Agreement shall be adjudicated by a court of competent jurisdiction or arbitrator
 to be invalid, prohibited, or unenforceable for any reason, such provision, as to such jurisdiction,
 shall be ineffective, without invalidating the remaining provisions of this Agreement or
 affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding
 the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited,
 or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly
 drawn, without invalidating the remaining provisions of this Agreement or affecting the validity
 or enforceability of such provision in any other jurisdiction.

**19.** **No Mitigation/No Offset**. Executive shall be under no obligation to seek other employment
 or to otherwise mitigate the obligations of the Company under this Agreement, and there shall
 be no offset against amounts or benefits due to Executive under this Agreement or otherwise
 on account of any claim (other than any preexisting debts then due in accordance with their
 terms) the Company may have against his or any remuneration or other benefit earned or received
 by Executive after such termination.

**20.** **Counterparts**.
 This Agreement may be executed in any number of counterparts, each of which shall be deemed
 an original, but all such counterparts shall together constitute one and the same instrument.
 Signatures delivered by facsimile or PDF shall be effective for all purposes.

**21.** **Entire Agreement**. This Agreement contains the entire agreement of the parties and supersedes
 all prior or contemporaneous negotiations, correspondence, understandings, and agreements
 between the parties, regarding the subject matter of this Agreement.

**[SIGNATURE PAGE TO FOLLOW]**

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **COMPANY** | **COMPANY** |
| CoLabs Int'l, Corp., a Nevada corporation | CoLabs Int'l, Corp., a Nevada corporation |
| By: | */s/ Peter Barton Hutt* |
| Name: | Peter Barton Hutt |
| Title: | Compensation Committee Chairman |
| **EXECUTIVE** | **EXECUTIVE** |
| By: | */s/ William Cohen* |
| Name: | William Cohen |

---

Address for Notices: 18593 Main Street <br> Huntington Beach, CA 92648

## Exhibit 10.6

**Exhibit 10.6**

Recipient Name:<u> </u>

Document Number:<u> </u>

**COLABS INT'L, CORP.**

**A NEVADA CORPORATION**

**SERIES A PREFERRED STOCK OFFERING DOCUMENTS**

**Documents included in this package:**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Instructions for Payment** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Subscription Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Investor Representations and Warranties Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Securities Purchase Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Disclosure Documents** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Term Sheet for the Series A Preferred Stock Offering (attached herein);** 

**b.** **Certificate of Designation of the Series A Convertible Preferred Stock (attached herein); and** 

**c.** **Other such referenced Disclosure Documents may be found as publicly filed with the Securities and Exchange Commission at:** 

**<u>https://www.sec.gov/edgar/browse/?CIK=1584879</u>**

**<u>SUBSCRIPTION AGREEMENT</u>**

This Subscription Agreement is made by and between CoLabs Int'l, Corp., a Nevada corporation (the "Company") and the name of the investor set forth on the signature page of this Agreement (the "Investor") (the Company and the Investor may be referred to individually as a "Party" or collectively as the "Parties") as of the date set forth on the signature page of this Agreement.

**RECITALS**

WHEREAS, the Company is offering up to a maximum of $300,000 of its Series A Convertible Preferred Stock (the "Series A Preferred Stock") at a purchase price of $5.00 per share (the "Purchase Price") of Series A Preferred Stock (the "Offering");

WHEREAS, the Investor desires to subscribe for that number of shares of Series A Preferred Stock for the Purchase Price as set forth on the signature page of this Agreement; and

WHEREAS, this Subscription Agreement is part of a package of documents, including Instructions for Payment, a Securities Purchase Agreement, Investor Representations and Warranties Agreement, and Disclosure Documents, all of which are incorporated herein by reference (the "Transaction Documents").

NOW THEREFORE, in consideration of the promises and respective mutual agreements herein contained, it is agreed by and between the Parties hereto as follows:

**ARTICLE 1**

**THE SERIES A PREFERRED STOCK** 

<u>Section 1.01. THE PURCHASE OF THE SERIES A PREFERRED STOCK</u>.

The Investor is subscribing for the number of shares of Series A Preferred Stock set forth in the signature page of this Agreement (the "Series A Shares"). The purchase of the Series A Shares shall be evidenced by a Securities Purchase Agreement which shall be in the form attached hereto, the terms of which are hereby incorporated herein as if such Securities Purchase Agreement were fully set forth herein. The Parties agree and acknowledge that the Company has the right to reject any subscription it is sole discretion.

<u>Section 1.02. CLOSING</u>.

Upon acceptance of the Investor's subscription (the "Closing"), all subscription proceeds will be deposited directly into the Company's bank account and such funds will be immediately available for the Company's use. The Company will conduct multiple closings for other or additional subscriptions in the Offering, if any, up to the maximum offering of $300,000 or when the Company makes a determination to close the Offering. The "Closing" will occur subject to the conditions in Articles III and IV having been satisfied.

<u>Section 1.03. DELIVERY</u>.

Concurrently with the execution of this Agreement, the Investor shall deliver to the Company the Purchase Price for the Series A Shares and all documents in the Transaction Package signed by the Investor. On the Closing, the Company shall deliver to the Investor all documents in this package counter-signed by the Company. In the event that the Company does not accept the Investor's subscription, in the Company's sole and absolute discretion, such funds will be returned to the Investor.

<u>Section 1.04. LEGENDS; SECURITIES NOT REGISTERED UNDER THE SECURITIES ACT OF 1933</u>.

The Series A Shares have not been registered under the Securities Act of 1933, as amended (the "Act"). Each of the certificates of the Series A Preferred Stock shall bear substantially the following legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

The Offering is not a public offering and is intended to be made pursuant to exemptions from registration as set forth in Section 4(2) of the Act and Regulation D as promulgated by the Securities and Exchange Commission ("SEC") under the Act. This Offering is also intended to be exempt from the registration requirements of various state securities laws as may be applicable.

**ARTICLE II**

**REPRESENTATIONS AND WARRANTIES**

<u>Section 2.01. INVESTOR REPRESENTATIONS AND WARRANTIES</u>.

The Investor makes each and every one of the representations and warranties set forth in the document entitled Investor Representations and Warranties Agreement attached hereto and incorporated herein by this reference as if such document were set forth herein in its entirety.

<u>Section 2.02. COMPANY REPRESENTATIONS AND WARRANTIES</u>.

The Company hereby represents, warrants, and covenants to the Investor as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has been duly organized and validly existing as a corporation in good standing under the laws of the state of its incorporation. The Company is duly qualified or licensed and in good standing as a foreign corporation in each jurisdiction in which its ownership or leasing of any properties or the character of its operations requires such qualification or licensing and where failure to so qualify would have a material effect on the Company. The Company has all requisite corporate power and authority, and all material and necessary authorizations, approvals, orders, licenses, certificates, and permits of and from all governmental regulatory officials and bodies to own or lease its properties and conduct its businesses as described in the Disclosure Documents (as hereinafter defined) and the Company is doing business in compliance with all such authorizations, approvals, orders, licenses, certificates, and permits and all federal, state, and local laws, rules, and regulations concerning the business in which it is engaged except where the failure so to do business in compliance would not have a material adverse effect on the business of the Company. The disclosures herein and in the Disclosure Documents concerning the effects of federal, state, and local regulation on the Company's business as currently conducted and as contemplated are correct in all material respects and do not omit to state a material fact. The Company has all corporate power and authority to enter into this Agreement and the Securities Purchase Agreement and to carry out the provisions and conditions hereof and thereof, and all consents, authorizations, approvals, and orders required in connection herewith and therewith have been obtained or will have been obtained prior to the Closing Date. No consent, authorization, or order of, and no filing with any court, government agency, or other body is required for the issuance of the Series A Shares pursuant to this Agreement except with respect to applicable federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement and the Transaction Package have been duly and validly authorized, executed, and delivered by the Company and are valid and binding agreements of the Company, enforceable in accordance with their respective terms, except to the extent that the enforceability hereof or thereof may be limited by (A) bankruptcy, insolvency, reorganization, moratorium, or similar laws from time to time in effect and affecting the rights of creditors generally; (B) limitations upon the power of a court to grant specific performance or any other equitable remedy; or (C) a finding by a court of competent jurisdiction that the indemnification provisions herein are in violation of public policy. The Series A Shares have been duly authorized and are validly issued, fully paid, and non-assessable; all corporate action required to be taken for the authorization, issue, and sale of such securities has been duly and validly taken; and to the best knowledge of the Company, the Series A Shares are not and will not be subject to the preemptive rights of any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company has good and marketable title to, or valid and enforceable leasehold estates in, all items of real and personal property owned or leased by it, free and clear of all liens, claims, encumbrances, security interests, and defects of any material nature whatsoever, except for Permitted Liens. "Permitted Liens" means liens, claims, encumbrances, security interests, and defects of any material nature whatsoever that are described in the Disclosure Documents or otherwise disclosed to the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There is no litigation or governmental proceeding pending or threatened against or involving the properties or business of the Company which the Company believes would materially adversely affect the value or the operation of the properties or the business of the Company, except as set forth in the Disclosure Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There has been no material adverse change in the condition or prospects for commercialization of the Company, financial or otherwise, as of the latest dates as of which such condition or prospects, respectively, are set forth in this Agreement and the Disclosure Documents; and the outstanding debt, property, and the business of the Company conform in all material respects to the descriptions thereof contained herein and therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Series A Shares shall conform in all respects to all statements in relation thereto contained herein or in the Disclosure Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company is not in material violation of its Articles of Incorporation or its 2<sup>nd</sup> Amended and Restated Bylaws. Neither the execution and delivery of this Agreement or the Securities Purchase Agreement, nor the issuance of the Series A Shares, nor the consummation of any of the transactions contemplated herein or in the Securities Purchase Agreement, nor the compliance by the Company with the terms and provisions contained herein, or in the Securities Purchase Agreement, has conflicted with or will conflict with, or has resulted in or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge, or encumbrance upon any property or assets of the Company pursuant to the terms of any indenture, mortgage, deed of trust, note, loan or credit agreement, or any other agreement or instrument evidencing an obligation for borrowed money, or any other agreement or instrument to which the Company is subject; nor will such action result in any violation of the provisions of the Articles of Incorporation or the 2<sup>nd</sup> Amended and Restated Bylaws of the Company, or any statute or any order, rule, or regulation applicable to the Company of any court or of any federal, state, or other regulatory authority or other government body having jurisdiction over the Company; except for any conflict, breach, default, lien, charge, or encumbrance which does not have a material and adverse effect on the Company, any of its business, property, or assets or any transactions contemplated hereby or by the Securities Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subsequent to the dates as of which information is given in this Agreement or the Disclosure Documents, and except as may otherwise be indicated or contemplated herein or therein, the Company has not entered into any transaction other than in the ordinary course of business or declared or paid any dividend or made any other distribution on or in respect of its capital stock. The Investor acknowledges that the Company may conduct financing activities in the future which would result in the issuance of securities of the Company to third parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company owns or possesses, free and clear of all liens or encumbrances and rights thereto or therein by third parties, other than Permitted Liens, the requisite licenses or other rights to use all trademarks, service marks, copyrights, service names, trade names, patents, patents applications, and licenses necessary to conduct and material to their businesses (including, without limitation any such licenses or rights described herein as being owned or possessed by the Company), and there is no material claim or action by any person pertaining to, or proceeding, pending or threatened, which challenges the exclusive rights of the Company with respect to any trademarks, service marks, copyrights, service names, trade names, patents, patent applications, and licenses used in the conduct of the Company's business (including, without limitation, any such licenses or rights described herein or in the Disclosure Documents as being owned or possessed by the Company); the Company's current products, services, and processes do not and will not infringe on any patents currently held by third parties, to the best knowledge of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Neither the Disclosure Documents nor any of the documents contained in this package contain any untrue statement of a material fact or omits to state any material fact required to be stated herein or therein or necessary to make the statements herein or therein, considering the circumstances under which they were made, not misleading. All statements of material facts herein or therein (including, without limitation, any attachment, exhibit, or schedule hereto or thereto) are true and correct as of the date hereof and will be true and correct on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company shall use the proceeds from this Offering for general operating capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Neither the Company, nor any of its respective officers, directors, employees, or agents, nor any other person acting on behalf of the Company has, directly or indirectly, given or agreed to give any money, gift, or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee, or agent of a customer or supplier, or official or employee of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign), or other person who is or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) which (A) might subject the Company to any damage or penalty in any civil, criminal, or governmental litigation or proceeding; (B) if not given in the past, might have had a materially adverse effect on the assets, business, or operations of the Company as reflected in the financial statements delivered to the Investor, if any; or (C) if not continued in the future, might adversely affect the assets, business, operations, or prospects of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company has not paid or promised to pay any form of compensation to any unlicensed finders, whether in the form of finder's fees, origination fees, referral fees, or otherwise, in connection with this Offering.

**ARTICLE III**

**CONDITIONS TO THE INVESTOR'S OBLIGATIONS**

The obligation of the Investor to purchase the Series A Shares at Closing is subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The representations and warranties of the Company contained herein shall be true and correct in all material respects on and as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There shall be no preliminary or permanent injunction or other order, decree, or ruling issued by a court of competent jurisdiction or by a governmental, regulatory, or administrative agency or commission, nor any statute, rule, regulation, or order promulgated or enacted by any governmental authority, prohibiting, or otherwise restraining the sale or purchase of the Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or prior to the Closing Date, the Investor shall have been furnished such documents, certificates, and opinions as they may reasonably require for the purpose of enabling them to review or pass upon the matters set forth herein, or in order to evidence the accuracy, completeness, or satisfaction of any of the representations, warranties, or conditions herein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to the Closing, (i) there shall have been no material adverse change nor development involving a prospective change in the condition, prospects, or the business activities, financial or otherwise, of the Company as a whole, from the latest dates as of which such condition is set forth in this Subscription Agreement and the Disclosure Documents; (ii) there shall have been no transaction, not in the ordinary course of business, entered into by the Company from the latest date as of which the financial condition of the Company is set forth in this Subscription Agreement which is material to the Company and which has not been disclosed to the Investor in writing; (iii) the Company shall not be in default in any material respect under any provision of any instrument relating to any outstanding indebtedness; (iv) no material amount of the assets of the Company shall have been pledged or mortgaged; and (v) no action, suit, or proceeding, at law or in equity, shall have been pending or threatened against the Company or affecting any of its respective properties or businesses before or by any court of federal or state commission, board, or other administrative agency wherein an unfavorable decision, ruling, or finding could materially adversely affect the business, operations, prospects, or financial condition or income of the Company.

**ARTICLE IV**

**CONDITIONS TO THE COMPANY'S OBLIGATIONS**

The obligation of the Company to sell the Series A Shares under this Agreement at the Closing is subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The representations and warranties of the Investor contained in the document entitled Investor Representations and Warranties Agreement attached hereto shall be true and correct in material respects on and as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There shall be no preliminary or permanent injunction or other order, decree, or ruling issued by a court of competent jurisdiction or by a governmental, regulatory, or administrative agency or commission, nor any statute, rule, regulation, or order promulgated or enacted by any governmental authority, prohibiting, or otherwise restraining the sale or purchase of the Series A Shares.

**ARTICLE V**

**INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company hereby agrees to defend, indemnify, and hold harmless the Investor, their stockholders, directors, partners, employees, agents, attorneys, and each person, if any, who controls such Investor within the meaning of the Act against any and all losses, claims, damages, or liabilities to which such Investor or any such stockholder, director, partner, employee, agent, attorney, or controlling person may become subject under the Act or otherwise, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained herein, in the Disclosure Documents, or in any statement made to or in any filing with the Securities and Exchange Commission ("SEC") or to or with any state securities commission, bureau, or office (including any amendments thereto), or arise out of or based upon the omission or alleged omission to state herein or therein a material fact required to be stated herein or therein or necessary to make the statements herein or therein not misleading (unless such statements are made or omitted in reliance upon and in conformity with written information furnished to the Company with respect to such Investor by such Investor expressly for use herein or therein or any amendment hereof or supplement hereto), or any violation by the Company of the Act or state "blue sky" laws, or any breach by the Company of their obligations, representations, or warranties hereunder or with respect to the Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor hereby agrees to defend, indemnify, and hold harmless the Company and its respective stockholders, directors, employees, agents, and each person, if any, who controls any of the foregoing within the meaning of the Act against any and all losses, claims, damages, or liabilities to which the Company or any of the Company's stockholders, directors, employees, agents, or controlling persons may become subject under the Act or otherwise, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any written statement as it relates to the Offering, as made by the Investor, its stockholders, directors, partners, agents, or employees or any breach by such Investor of its obligations, representations, or warranties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under either subparagraph (a) or (b), as the case may be, of the notice of commencement of any action covered by subparagraph (a) or (b), such indemnified party shall within five business days notify the indemnifying party of the commencement thereof; the omission by one indemnified party to so notify such indemnifying party shall not relieve the indemnifying party of its obligations hereunder except to the extent such indemnifying party has been materially prejudiced by such omission, shall not relieve the indemnifying party of its obligation to indemnify any other indemnified party that has given such notice and shall not relieve the indemnifying party of any liability outside of this indemnification. If any action is brought against the indemnified party, it shall notify the indemnifying party in a timely manner, the indemnifying party will be entitled to participate in such action and, to the extent it may desire, to assume and control the defense thereof with counsel chosen by it. After notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party will not be liable to such indemnified party under such subparagraph for any legal or other expense subsequently incurred by such indemnified party in connection with the defense thereof, but the indemnified party may, at its own expenses, participate in such defense by counsel chosen by it without, however, impairing the indemnifying party's control of the defense. Notwithstanding anything to the contrary contained herein, the indemnified party shall have the right to choose its own counsel and control the defense of any action, all at the reasonable expense of the indemnifying party, if (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such action at the expense of the indemnifying party; (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to such indemnified party to have charge of the defense of such action within a reasonable time after notice of commencement of the action; or (iii) such indemnified party shall have reasonably concluded that there may be defenses available to such indemnified party that differ from the defenses available to the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party), in any of which events such reasonable fees and expenses of one additional counsel (for all indemnified parties) shall be borne by the indemnifying party (in the case of the Investor, one additional counsel for Investor). No settlement of any action or proceeding against an indemnified party shall be made without the consent of the indemnified party, which consent shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In order to provide for just and equitable contribution under the Act in any case in which (i) any indemnified party makes a claim for indemnification pursuant to this paragraph but it is judicially determined (by entry of a final judgment or decree by a court of competent jurisdiction and the expiration of the time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact the this paragraph provides for indemnification in such case, or (ii) contribution under the Act is required on the part of any such person in circumstances for which indemnification is provided under this paragraph, then, in each such case, the relevant Investor shall contribute to the aggregate losses, claims, damages, or liabilities to which it may be subject (after any contributions from others) in the same proportion as the amount of the Series A Preferred Stock purchased by such Investor pursuant to the Subscription Agreement bears to the aggregate Offering of the Series A Preferred Stock, and the Company shall be responsible for the remaining portion thereof; provided, that in any such case, no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

**ARTICLE VI**

**NOTICES**

Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the Parties hereto to be desirable, to be given to any other Party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by electronic mail (with receipt confirmed) to the addresses of the Parties as follows:

---

| | |
|:---|:---|
| Company: | CoLabs Int'l Corp. |
|  | 18593 Main St. |
|  | Huntington Beach, California 92648 |
|  | wayne@klenskin.com |
|  | Attn: Wayne Thaler, |
|  | Manager, Investor Relations and Marketing |
| With Copy to: | FitzGerald Kreditor Bolduc Risbrough LLP |
|  | 2 Park Plaza, Suite 850 |
|  | Irvine, California 92614 |
|  | lbolduc@fkbrlegal.com |
|  | Attn: Lynne Bolduc, Esq. |
| Investor: | At the address below Investor's signature on this Agreement |

---

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with the provisions of this Article, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice is given by electronic mail transmission in accordance with the provisions of this Article, such notice shall be conclusively deemed given at the time of delivery if during business hours and if not during business hours, at the next business day after delivery, provided a confirmation is obtained by the sender.

**ARTICLE VII**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California applicable to contracts made and to be performed entirely therein, without giving effect to the rules of conflicts of law. The Parties agree that the courts of the County of Orange, State of California shall have sole and exclusive jurisdiction and venue for the resolution of all disputes arising under the terms of this Agreement and the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement represents the entire agreement between the Parties relating to the subject matter hereof, superseding any and all prior to contemporaneous oral and prior written agreements and understandings. This Agreement may not be modified or amended, nor may any right be waived except by a writing signed by the party against whom the modification or waiver is sought to be enforced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The warranties, representations, and covenants of the Company and the Investor contained in or made pursuant to 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;(e) The captions and headings contained herein are solely for convenience of reference and do not constitute a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each of the Transaction Documents is hereby incorporated herein as if each of such attachments were fully set forth herein in its entirety. Each of such attachments is hereby expressly made a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The Parties agree that this Agreement may be executed by facsimile signatures and such signatures shall be deemed originals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All Parties to this Agreement have been given the opportunity to consult with counsel of their choice regarding their rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The term "days," as used in this Agreement and in all documents contained in this package, refers to calendar days unless otherwise clearly indicated.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF**, intending to be legally bound, the Parties hereto have executed this Agreement as of the ___ day of February, 2023.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| CoLabs Int'l, Corp., | CoLabs Int'l, Corp., |
| a Nevada corporation | a Nevada corporation |
| By: | Laura Cohen |
| Its: | Chief Executive Officer |

---

---

| |
|:---|
| **INVESTOR:** |
| ________________________________________________ |
| Name:___________________________________________ |
| Address:_________________________________________ |
| Address:_________________________________________ |
| Email: ___________________________________________ |
| Social Security/Tax I.D. Number:_______________________ |
| Number of Shares of Series A Preferred Stock Being Subscribed:_______________________________________ |
| Purchase Price ($5.00 per share):_______________________ |
| Date: ___________________________________________ |

---

**INVESTOR REPRESENTATIONS AND WARRANTIES AGREEMENT**

This INVESTOR REPRESENTATIONS AND WARRANTIES AGREEMENT ("Agreement"), dated as of the date set forth on the signature page of this Agreement, is by and between CoLabs Int'l, Corp., a Nevada corporation (the "Company") and the purchaser set forth on the signature page of this Agreement, or assigns (the "Investor") (the Company and the Investor may be referred to individually as a "Party" and collectively as the "Parties").

**RECITALS:**

This Agreement is being made pursuant to an Offering of up to a maximum of $300,000 of the Series A Preferred Stock of the Company. The Series A Shares are being issued on the Closing (as defined in the Subscription Agreement) pursuant to a Subscription Agreement of even date herewith between the Company and the Investor which contains representations and warranties and additional covenants of the Company with respect to the sale of the Series A Shares. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Subscription Agreement. THE PROVISIONS OF THE SUBSCRIPTION AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE.

**ARTICLE 1**

**REPRESENTATIONS AND WARRANTIES OF THE INVESTOR**

The Investor hereby represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investor acknowledges that the Series A Shares are "restricted securities" (as such term is defined in Rule 144 promulgated under the Securities Act of 1933, as amended ("Rule 144"), that the Series A Shares will include the restrictive legend set forth in Section 1.04 of the Subscription Agreement, and, except as otherwise set forth in the Subscription Agreement, that the Series A Shares cannot be sold unless registered with the United States Securities and Exchange Commission ("SEC") and qualified by appropriate state securities regulators, or unless Investor otherwise complies with an exemption from such registration and qualification (including, without limitation, compliance with Rule 144).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investor has adequate means of providing for current needs and contingencies, has no need for liquidity in the investment, and is able to bear the economic risk of an investment in the Series A Shares. Investor represents that Investor is able to bear the economic risk of the investment and at the present time could afford a complete loss of such investment. Investor has reviewed the Transaction Documents with care. Additionally, Investor has had a full opportunity to inspect the Disclosure Documents and to make any and all inquiries of Company officers and directors regarding the Company and its business as Investor has deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investor is an "Accredited Investor" as defined in Regulation D of the Act. Investor, either alone or with Investor's professional advisers who are unaffiliated with, have no equity interest in, and are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly, has sufficient knowledge and experience in financial and business matters that Investor is capable of evaluating the merits and risks of an investment in the Series A Shares offered by the Company and of making an informed investment decision with respect thereto and has the capacity to protect Investor's own interests in connection with Investor's proposed investment in the Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Investor is acquiring the Series A Shares solely for Investor's own account as principal, for investment purposes only and not with a view to the resale or distribution thereof, in whole or in part, and no other person or entity has a direct or indirect beneficial interest in such Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investor will not sell or otherwise transfer the Series A Shares without registration under the Act or an exemption therefrom and fully understands and agrees that Investor must bear the economic risk of Investor's purchase for an indefinite period of time because, among other reasons, the Series A Shares have not been registered under the Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned, or otherwise disposed of unless they are subsequently registered under the Act and under the applicable securities laws of such states or unless an exemption from such registration is available.

**ARTICLE 2**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California applicable to contracts made and to be performed entirely therein, without giving effect to the rules of conflicts of law. The Parties agree that the courts of the County of Orange, State of California shall have sole and exclusive jurisdiction and venue for the resolution of all disputes arising under the terms of this Agreement and the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The warranties and representations of the Investor contained in or made pursuant to 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;(d) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The Parties agree that this Agreement may be executed by facsimile signatures and such signatures shall be deemed originals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All Parties to this Agreement have been given the opportunity to consult with counsel of their choice regarding their rights under this Agreement.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF**, intending to be legally bound, the Parties hereto have executed this Agreement as of the ___ day of February, 2023.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| CoLabs Int'l, Corp., | CoLabs Int'l, Corp., |
| a Nevada corporation | a Nevada corporation |
| By: | Laura Cohen |
| Its: | Chief Executive Officer |

---

**INVESTOR:**

**PLEASE CHECK ONE:**

I. **If Investor is an individual**:

I certify that I am an "accredited investor" because:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** ☐ I
 had an individual income of more than $200,000 in each of the two most recent calendar years,
 and I reasonably expect to have an individual income in excess of $200,000 in the current
 calendar year; or my spouse and I had joint income in excess of $300,000 in each of the two
 most recent calendar years, and we reasonably expect to have a joint income in excess of
 $300,000 in the current calendar year; **or** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.** ☐ I
have an individual net worth, or my spouse and I have a joint net worth, in excess of $1,000,000 (excluding my (our) primary residence); **or** 

**3.** ☐ I
hold, in good standing, a Series 7, Series 65, or Series 82 license.

II. **If Investor is a corporation, partnership, employee benefit plan or IRA**, it certifies as
 follows:

&nbsp;&nbsp;&nbsp;&nbsp;A. Has
 the subscribing entity been formed for the specific purpose of investing in the Securities?

☐ **YES** ☐ **NO**

If your answer to question A is "No" CHECK whichever of the following statements (1-5) is applicable to you. If your answer to question A is "Yes" the subscribing entity must be able to certify to statement **(B)** below in order to qualify as an "accredited investor."

The undersigned entity certifies that it is an "accredited investor" because it is:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** ☐ an
employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, provided that the investment
decision is made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is a bank, savings and loan association,
insurance company or registered investment adviser; **or** 

**2.** ☐ an
employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 that has total assets in excess
of $5,000,000; **or** 

**3.** ☐ each
of its shareholders, partners, or beneficiaries meets at least one of the following conditions described above under Individual
Accredited Investor Status . Please also CHECK the appropriate space in that section; **or** 

**4.** ☐ the
plan is a self directed employee benefit plan and the investment decision is made solely by a person that meets at least one of the conditions
described above under Individual Accredited Investor Status ; **or** 

**5.** ☐ a
corporation, a partnership or a Massachusetts or similar business trust with total assets in excess of $5,000,000; **or** 

&nbsp;&nbsp;&nbsp;&nbsp;**6.** ☐ all
equity owners are Accredited Investors.

&nbsp;&nbsp;&nbsp;&nbsp;B. If
 the answer to Question A above is "Yes," please certify the statement below is
 true and correct:

☐ The undersigned entity certifies that it is an accredited investor because each of its shareholder or beneficiaries meets at least one of the following conditions described above under Individual Accredited Investor Status. Please also CHECK the appropriate space in that section.

III. **If Investor is a Trust**, it certifies as follows:

Has the subscribing entity been formed for the specific purpose of investing in the Securities?

☐ **YES** ☐ **NO**

If your answer to question A is "No" CHECK whichever of the following statements (1-3) is applicable to the subscribing entity. If your answer to question A is "Yes" the subscribing entity must be able to certify to the statement **(3)** below in order to qualify as an "accredited investor."

The undersigned trustee certifies that the trust is an "accredited investor" because:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** ☐ the
trust has total assets in excess of $5,000,000 and the investment decision has been made by a "sophisticated person"; **or** 

**2.** ☐ the
trustee making the investment decision on its behalf is a bank (as defined in Section 3(a)(2) of acc), a saving and loan association
or other institution as defined in Section 3(a)(5)(A) of the Securities Act, acting in its fiduciary capacity; **or** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.** ☐ the
undersigned trustee certifies that the trust is an accredited investor because the grantor(s) of the trust may revoke the trust at any
time and regain title to the trust assets and has (have) retained sole investment control over the assets of the trust and the (each)
grantor(s) meets at least one of the following conditions described above under Individual Accredited
Investor Status . Please also CHECK the appropriate space in that section.

Date:   <br>Print Name:  

---

| |
|:---|
| [Signature] |
| [Individual name and title if signing on behalf of an entity] |
| Address |
| Address |
| Email Address |
| Social Security/Tax I.D. Number |

---

**SECURITIES PURCHASE AGREEMENT**

This SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of February ____, 2023, is by and between CoLabs Int'l, Corp., a Nevada corporation (the "Company") and the name of the purchaser as set forth on the signature page of this Agreement (the "Purchaser") (each a "Party" and collectively, the "Parties").

**RECITALS:**

WHEREAS, the Company is offering a maximum of $300,000 of their Series A Preferred Convertible Preferred Stock (the "Series A Preferred Stock") at a purchase price of $5.00 per share of Series A Preferred Stock; and

WHEREAS, the Company desires to sell to Purchaser and Purchaser desires to purchase from the Company _______ shares of Series A Preferred Stock (the "Series A Shares") for the purchase price of $_________ (the "Purchase Price"), upon the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the promises and respective mutual agreements herein contained, it is agreed by and between the Parties hereto as follows:

**ARTICLE 1**

**SALE AND PURCHASE OF THE SHARES**

1.1 <u>Sale of the Series A Shares</u>. Upon execution of this Agreement, subject to the terms and conditions herein set forth, and on the basis of the representations, warranties and agreements herein contained, the Company shall sell to Purchaser, and Purchaser shall purchase from the Company, the Series A Shares.

1.2 <u>Consideration and Payment for the Series A Shares</u>. In consideration for the Series A Shares, Purchaser shall pay the Purchase Price.

1.3 <u>Issuance of the Series A Shares; Restrictive Legend</u>. As soon as practicable after the full execution of this Agreement, receipt and clearing of the Purchase Price (as defined below), and the Authorization (the "Closing"), Company shall deliver to Purchaser a certificate or other documentary proof of the issuance of the Series A Shares of Company to Purchaser, which shall contain the following restrictive legend:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

**ARTICLE 2**

**REPRESENTATIONS AND COVENANTS OF THE COMPANY AND PURCHASER**

2.1 The Company hereby represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Series A Shares issued hereunder have been duly authorized by the appropriate corporate action of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Series A Shares issued hereunder are free and clear of all liens, security interests, pledges, encumbrances, charges, restrictions, demands and claims, of any kind and nature whatsoever, whether direct or indirect or contingent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Purchaser acknowledges and agrees that the Company makes no other representations or warranties with respect to the Series A Shares or the Company.

2.2 Purchaser represents and warrants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser has adequate means of providing for current needs and contingencies, has no need for liquidity in the investment, and is able to bear the economic risk of an investment in the Shares offered by the Company of the size contemplated. Purchaser represents that Purchaser is able to bear the economic risk of the investment and at the present time could afford a complete loss of such investment. Purchaser has had a full opportunity to inspect the Disclosure Documents (attached hereto) of the Company and to make any and all inquiries of the Company officers and directors regarding the Company and its business as Purchaser has deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchaser is an "Accredited Investor" as defined in Regulation D of the Securities Act of 1933 (the "Act") or Purchaser, either alone or with Purchaser's professional advisers who are unaffiliated with, have no equity interest in and are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly, has sufficient knowledge and experience in financial and business matters that Purchaser is capable of evaluating the merits and risks of an investment in the Series A Shares offered by the Company and of making an informed investment decision with respect thereto and has the capacity to protect Purchaser's own interests in connection with Purchaser's proposed investment in the Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Purchaser is acquiring the Series A Shares solely for Purchaser's own account, as principal, for investment purposes only and not with a view to the resale or distribution thereof, in whole or in part, and no other person or entity has a direct or indirect beneficial interest in such Series A Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Purchaser will not sell or otherwise transfer the Series A Shares without registration under the Act or an exemption therefrom and fully understands and agrees that Purchaser must bear the economic risk of Purchaser's purchase for an indefinite period of time because, among other reasons, the Shares have not been registered under the Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Act and under the applicable securities laws of such states or unless an exemption from such registration is available.

**ARTICLE 3**

**MISCELLANEOUS**

3.1 <u>Entire Agreement.</u> This Agreement sets forth the entire agreement and understanding of the Parties hereto with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements, and understandings related to the subject matter hereof. No understanding, promise, inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any Party hereto which is not embodied in this Agreement or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no Party hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant, or condition not so set forth.

3.2 <u>Notices</u>. Any notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the Parties hereto to be desirable, to be given to any other Party hereto shall be in writing and shall be given by personal delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent by electronic mail (with receipt confirmed) to the addresses of the Parties as follows:

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| | |
|:---|:---|
| Company: | CoLabs Int'l Corp. |
|  | 18593 Main St. |
|  | Huntington Beach, California 92648 |
|  | wayne@klenskin.com |
|  | Attn: Wayne Thaler, |
|  | Manager, Investor Relations and Marketing |
| With Copy to: | FitzGerald Kreditor Bolduc Risbrough LLP |
|  | 2 Park Plaza, Suite 850 |
|  | Irvine, California 92614 |
|  | lbolduc@fkbrlegal.com |
|  | Attn: Lynne Bolduc, Esq. |

---

Investor: At the address below Investor's signature on this Agreement, or as provided to the Company from time to time.

The persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal delivery or overnight delivery in accordance with the provisions of this Section 3.2, such notice shall be conclusively deemed given at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with the provisions of this Section 3.2, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice is given by electronic mail transmission in accordance with the provisions of this Section 3.2, such notice shall be conclusively deemed given at the time of delivery if during business hours and if not during business hours, at the next business day after delivery, provided a confirmation is obtained by the sender.

3.3 <u>Waiver and Amendment</u>. Any term, provision, covenant, representation, warranty, or condition of this Agreement may be waived, but only by a written instrument signed by the Party entitled to the benefits thereof. The failure or delay of any Party at any time or times to require performance of any provision hereof or to exercise its rights with respect to any provision hereof shall in no manner operate as a waiver of or affect such Party's right at a later time to enforce the same. No waiver by any Party of any condition, or of the breach of any term, provision, covenant, representation or warranty contained in this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or waiver of any other condition or of the breach of any other term, provision, covenant, representation or warranty. No modification or amendment of this Agreement shall be valid and binding unless it be in writing and signed by all Parties hereto.

3.4 <u>Choice of Law; Jurisdiction</u>. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California applicable to contracts made and to be performed entirely therein, without giving effect to the rules of conflicts of law. The Parties agree that the courts of the County of Orange, State of California shall have sole and exclusive jurisdiction and venue for the resolution of all disputes arising under the terms of this Agreement and the transactions contemplated herein.

3.6 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same instrument.

3.7 <u>Attorneys' Fees</u>. Except as otherwise provided herein, if a dispute should arise between the Parties including, but not limited to arbitration, the prevailing Party shall be reimbursed by the non-prevailing Party for all reasonable expenses incurred in resolving such dispute, including reasonable attorneys' fees exclusive of such amount of attorneys' fees as shall be a premium for result or for risk of loss under a contingency fee arrangement.

3.8 <u>Taxes</u>. Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by the Party required to make such payment. Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and the Party required to withhold such tax shall furnish to the Party receiving such payment all documentation necessary to prove the proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding.

**IN WITNESS WHEREOF**, the Parties hereto have executed this Agreement, as of the date first written above.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| CoLabs Int'l, Corp., | CoLabs Int'l, Corp., |
| a Nevada corporation | a Nevada corporation |
| By: | Laura Cohen |
| Its: | Chief Executive Officer |

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| |
|:---|
| **INVESTOR:** |
| Name: |
| Address: |
| Address: |
| Email: |

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**DISCLOSURE DOCUMENTS** 

a. Term
 Sheet for the Series A Preferred Stock Offering (attached herein);

b. Certificate
 of Designation of the Series A Convertible Preferred Stock (attached herein); and

c. The
 following Disclosure Documents may be found as publicly filed with the Securities and Exchange
 Commission at <u>https://www.sec.gov/edgar/browse/?CIK=1584879</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Annual
 Report on Form 1-K for the fiscal year ended December 31, 2021, as filed with the SEC on
 October 7, 2022, as amended on Form 1-K/A on December 29, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Semi-Annual
 Report on Form 1-SA for the six months ended June 30, 2021, as filed with the SEC on October
 7, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Semi-Annual
 Report on Form 1-SA for the six months ended June 30, 2020, as filed with the SEC on September
 28, 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Current
 Report on Form 1-U dated December 14, 2022, as filed with the SEC on December 20, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Current
 Report on Form 1-U dated October 20, 2021, as filed with the SEC on October 25, 2021; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Offering
 Circular on Form 253G2, as filed with the SEC on May 26, 2021; and Supplement to the Offering
 Circular on Form 253G2, as filed with the SEC on September 30, 2021.

## Exhibit 23.1

**Exhibit 23.1**

**Independent Registered Public Accounting Firm's Consent**

We consent to the inclusion in the foregoing Registration Statement on Form S-1 of our report dated March 24, 2023 relating to the financial statements of CoLabs Int'l, Corp. as of December 31, 2022 and 2021 and for the years then ended (which report contains an explanatory paragraph describing conditions that raise substantial doubt about CoLabs Int'l, Corp.'s ability to continue as a going concern). We also consent to the reference to our firm under the caption "Experts."

*/s/ Weinberg & Company, P.A.*

Los Angeles, California

March 24, 2023

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Table**

Form S-1

(Form Type)

**CoLabs Int'l, Corp.** 

(Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered and Carry Forward Securities</u>

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| | | | | |
|:---|:---|:---|:---|:---|
| **Security Type** | **Fee Calculation<br> or Carry <br> Forward Rule** | **Proposed <br> Maximum<br> Aggregate <br> Offering Price<sup>(1)</sup>** | **Fee Rate** | **Amount of<br> Registration Fee** |
| Equity Common Stock, par value $0.001 per share<sup>(23)</sup> | 457(o) | 7475000 | 0.0001102 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;824 |
| Equity Representative's Warrants<sup>(4)</sup> | 457(g) | – | 0.0001102 | – |
| Equity Common Stock Underlying Representative's Warrants<sup>(34)</sup> | 457(g) | 700781 | 0.0001102 | 77 |
| Total Offering Amounts | Total Offering Amounts | $8175781 | 0.0001102 | $901 |
| Total Fees Previously Paid | Total Fees Previously Paid |  |  | $0 |
| Total Fee Offsets | Total Fee Offsets |  |  | $0 |
| Net Fee Due | Net Fee Due |  |  | $901 |

---

(1) Estimated solely for the
 purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

(2) Includes shares of common
 stock that may be purchased by the underwriters pursuant to their over-allotment option.

(3) Pursuant to Rule 416 under
 the Securities Act of 1933, as amended, there is also being registered hereby such indeterminate number of additional shares as may
 be issued or issuable because of stock splits, stock dividends and similar transactions.

(4) We have agreed to issue
 to the representative of the underwriter warrants to purchase the number of shares of common stock in the aggregate equal to 7.5% of the shares of common stock to be issued and sold in this offering (including any shares of common stock sold upon
 exercise of the over-allotment option). The warrants are exercisable for a price per share equal to 125% of the public offering price.
 The warrants are exercisable at any time and from time to time, in whole or in part, during the five-year period commencing six months from the date of commencement of sales of the offering. This registration statement also covers shares of common stock issuable
 upon the exercise of the representative's warrants. As estimated solely for the purpose of calculating the registration fee
 pursuant to Rule 457(g) under the Securities Act, the proposed maximum aggregate offering price of the representative's warrants
 is $700,781, which is equal to 125% of $560,625 (7.5% of $7,475,000). See "Underwriting."