Document:

Exhibit 10.10

    

    

    RW HOLDINGS NNN REIT, INC.

    PRE-OFFERING AGREEMENT

    

    

    October 18, 2019

    

    

    North Capital Private Securities Corporation

    623 E. Fort Union Boulevard

    Suite 101

    Midvale, Utah 84047

    

    

    Ladies and Gentlemen:

    

    

    RW Holdings NNN REIT, Inc., a Maryland corporation (the “Company”), wishes to engage North Capital Private Securities Corporation, a Delaware corporation (the “NCPS”), to provide certain services to
      the Company set forth in Schedule A hereto (“Services”) in preparation for the Company’s registration for public sale (the “Offering” ) a maximum of up to $800,000,000 in shares of its Class C common stock, $0.001 par value per share. The
      Company hereby agrees with NCPS, as follows:

    

    

    
      
        	

              	1.	
                REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

              

      

    

    

    

    The Company represents and warrants to NCPS that, as of the effective date of this Pre-Offering Agreement and through the term hereof (provided that, to the extent such representations and warranties
      are given only as a specified date or dates, the Company only makes such representations and warranties as of such date or dates):

    

    

    1.1          The Company has been duly organized and is validly existing as a corporation under the laws of the State of Maryland and has the power and authority to conduct its business.

    

    

    1.2          No consent, approval, authorization or other order of any governmental authority is required in connection with the execution or delivery by the Company of this Pre-Offering Agreement.

    

    

    1.3          There are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened against the Company at law or in equity or before or by any federal or state
      commission, regulatory body or administrative agency or other governmental body, domestic or foreign, which would be reasonably expected to have a material adverse effect on the Company or the ability of the Company to perform its obligations under
      this Agreement.

    

    

    1.4          The execution and delivery of this Pre-Offering Agreement, the consummation of the transactions herein contemplated and compliance with the terms of this Pre-Offering Agreement by the
      Company will not conflict with or constitute a default under any charter, bylaw, indenture, mortgage, deed of trust, lease, rule, regulation, writ, injunction or decree of any government, governmental instrumentality or court, domestic or foreign,
      having jurisdiction over the Company, except (i) to the extent that the enforceability of the indemnity and/or contribution provisions contained in Section 4 of this Pre-Offering Agreement may be limited under applicable securities laws, and (ii) for
      such conflicts or defaults that would not reasonably be expected to have a material adverse effect on the business or property of the Company.

    

    

    1.5          The Company has full legal right, power and authority to enter into this Pre-Offering Agreement and to perform the transactions contemplated hereby, except to the extent that the
      enforceability of the indemnity and/or contribution provisions contained in Section 4 of this Pre-Offering Agreement may be limited under applicable securities laws.

    

    

    1.6          The Company is not in violation of its Articles of Incorporation or its Bylaws.

    
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    1.7          The financial statements of the Company filed with the SEC in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q present fairly in all material
      respects the financial position of the Company as of the date indicated and the results of its operations for the periods indicated; and said financial statements have been prepared in conformity with generally accepted accounting principles applied
      on a consistent basis.

    

    

    1.8          The Company does not intend to conduct its business so as to be an “investment company” as that term is defined in the Investment Company Act of 1940, as amended, and the rules and
      regulations thereunder, and it will exercise reasonable diligence to ensure that it does not become an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

    

    

    1.9          The Company has qualified to do business and is in good standing in every jurisdiction in which the conduct of its business requires such qualification, except where such failure to do
      so would not have a material adverse effect on the business or property of the Company.

    

    

    
      
        	

              	2.	
                COVENANTS OF THE COMPANY.

              

      

    

    

    

    The Company covenants and agrees with NCPS that:

    

    

    2.1          It will furnish such information and execute and file such documents as may be necessary for NCPS to perform the Services. All such information and documents shall be true, correct and
      complete in all material respects.

    

    

    2.2          Each of the representations and warranties contained in this Pre-Offering Agreement are true and correct as of the date of this Pre-Offering Agreement and the Company will comply with
      each covenant and agreement contained in this Pre-Offering Agreement.

    

    

    2.3          It will be duly qualified to do business as a foreign corporation in each jurisdiction in which it will own or lease property of a nature, or transact business of a type, that will make
      such qualification necessary.

    

    

    2.4          It has satisfied the requirements of the Internal Revenue Code of 1986, as amended, for qualification of the Company as a real estate investment trust and will exercise reasonable
      diligence to operate the business of the Company so as to comply with such requirements.

    

    

    
      
        	

              	3.	
                OBLIGATIONS AND COMPENSATION OF NCPS.

              

      

    

    

    

    3.1          The Company hereby appoints NCPS, and NCPS accepts the Company’s appointment as the Company’s agent to provide the Services. NCPS represents to the Company that it is a member of FINRA
      and that it and its employees and representatives have all required licenses and registrations to act under this Pre-Offering Agreement.

    

    

    3.2          The Company agrees to pay all costs and expenses incident to the Offering, whether or not the transactions contemplated hereunder are consummated or this Pre-Offering Agreement is
      terminated.  As compensation for the services rendered by NCPS, the Company agrees that it will pay to NCPS the compensation set forth in Schedule B hereto (“Fee”).

    

    

    3.3          NCPS is a duly incorporated and validly existing corporation under the laws of the State of Delaware. NCPS is not in violation of its Certificate of Incorporation or its Bylaws.

    

    

    3.4          No consent, approval, authorization or other order of any governmental authority is required in connection with the execution or delivery by NCPS of this Pre-Offering Agreement, except
      such as may be required under the Securities Act or applicable state securities laws.

    

    

    3.5          There are no actions, suits or proceedings pending or to the knowledge of NCPS, threatened against NCPS at law or in equity or before or by any federal or state commission, regulatory
      body or administrative agency or other governmental body, domestic or foreign, which could be reasonably expected to have a material adverse effect on NCPS or the ability of NCPS to perform its obligations under this Agreement.

    
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    3.6          The execution and delivery of this Pre-Offering Agreement, the consummation of the transactions herein contemplated and compliance with the terms of this Pre-Offering Agreement by NCPS will not conflict with
      or constitute a default under any operating agreement or other similar agreement, indenture, mortgage, deed of trust, lease, rule, regulation, writ, injunction or decree of any government, governmental instrumentality or court, domestic or foreign,
      having jurisdiction over NCPS, except to the extent that the enforceability of the indemnity and/or contribution provisions contained in Section 4 of this Pre-Offering Agreement may be limited under applicable securities laws.

    

    

    3.7          NCPS has full legal right, power and authority to enter into this Pre-Offering Agreement and to perform the transactions contemplated hereby, except to the extent that the enforceability
      of the indemnity and/or contribution provisions contained in Section 4 of this Pre-Offering Agreement may be limited under applicable securities laws.

    

    

    
      
        	

              	4.	
                INDEMNIFICATION.

              

      

    

    

    

    4.1          The Company will indemnify and hold harmless NCPS, its affiliates and their employees, officers and directors and each person, if any, who controls NCPS within the meaning of Section 15
      of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against any losses, claims, damages or liabilities, joint or several, to which NCPS, its affiliates, and their employees, officers
      and directors, or such controlling person may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (a) any
      material violation of this Pre-Offering Agreement, or (b) any failure to comply with applicable laws governing money laundering abatement and anti-terrorist financing efforts, including applicable FINRA rules, SEC rules and the USA PATRIOT Act of
      2001, or (c) any other failure to comply with applicable FINRA rules or SEC rules. The Company will reimburse NCPS, as appropriate, and its affiliates and their employees, officers and directors and controlling persons, for any reasonable legal or
      other expenses reasonably incurred by NCPS, its affiliates and their employees, officers and directors and controlling persons, in connection with investigating or defending such loss, claim, damage, liability or action; provided that the Company
      will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of, or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity
      with written information furnished to the Company by NCPS. This indemnity agreement will be in addition to any liability which the Company may otherwise have.

    

    

    4.2          NCPS will indemnify and hold harmless the Company, its affiliates and their employees, officers and directors and each person, if any, who controls the Company within the meaning of
      Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities to which any of the aforesaid parties may become subject, under the Securities Act or the Exchange Act or otherwise,
      insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (a) any material violation of this Pre-Offering Agreement, or (b) any failure to comply with applicable laws governing money
      laundering abatement and anti-terrorist financing efforts, including applicable FINRA rules, SEC rules and the USA PATRIOT Act of 2001, or (c) any other failure to comply with applicable FINRA rules or SEC rules; provided that NCPS will not be liable
      in any such case to the extent that any such loss, claim, damage or liability arises out of, or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written
      information furnished to NCPS by or on behalf of the Company. NCPS will reimburse the aforesaid parties, in connection with investigation or defending such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any
      liability which NCPS may otherwise have.

    

    

    4.3          Notwithstanding the foregoing, the Company may not indemnify or hold harmless NCPS or any of its affiliates in any manner that would be inconsistent with the provisions of the Company’s
      charter in effect as of the date of this Pre-Offering Agreement or any amended and restated charter (such charter not to be changed by the Company to affect the Company’s indemnity obligations hereunder) or Section II.G. of the Statement of Policy
      Regarding Real Estate Investment Trusts of the North American Securities Administrators Association. No party shall indemnify or hold harmless any other party for liabilities arising from or out of an alleged violation of federal or state securities
      laws, unless one or more of the following conditions are met: (1) there has been a successful adjudication on the merits of each count involving alleged securities law violations; (2) such claims have been dismissed with prejudice on the merits by a
      court of competent jurisdiction; or (3) a court of competent jurisdiction approves a settlement of the claims against the indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the
      request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which the securities were offered or sold as to indemnification for violations of securities laws.

    

    

    4.4          Promptly after receipt by an indemnified party under this Section 4 of notice of the commencement of any action (but in no event in excess of 30 days after receipt of actual notice),
      such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 4, notify in writing the indemnifying party of the commencement thereof and the omission so to notify the indemnifying party
      will relieve it from any liability under this Section 4 as to the particular item for which indemnification is then being sought, but not from any other liability which it may have to any indemnified party. In case any such action is brought against
      any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled, to the extent it may wish, jointly with any other indemnifying party similarly notified, to participate in the defense
      thereof, with separate counsel. Such participation shall not relieve such indemnifying party of the obligation to reimburse the indemnified party for reasonable legal and other expenses (subject to Section 4.5) incurred by such indemnified party in
      defending itself, except for such expenses incurred after the indemnifying party has deposited funds sufficient to effect the settlement, with prejudice, of the claim in respect of which indemnity is sought. Any such indemnifying party shall not be
      liable to any such indemnified party on account of any settlement of any claim or action effected without the consent of such indemnifying party.

    

    

    4.5          The indemnifying party shall pay all reasonable legal fees and expenses of the indemnified party in the defense of such claims or actions; provided, however, that the indemnifying party
      shall not be obliged to pay legal expenses and fees to more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions giving rise to such claims notwithstanding that such actions or claims
      are alleged or brought by one or more parties against more than one indemnified party. If such claims or actions are alleged or brought against more than one indemnified party, then the indemnifying party shall only be obligated to reimburse the
      expenses and fees of the one law firm that has been selected by a majority of the indemnified parties against which such action is finally brought; and in the event a majority of such indemnified parties is unable to agree on which law firm for which
      expenses or fees will be reimbursable by the indemnifying party, then payment shall be made to the first law firm of record representing an indemnified party against the action or claim. Such law firm shall be paid only to the extent of services
      performed by such law firm and no reimbursement shall be payable to such law firm on account of legal services performed by another law firm.

    

    

    4.6          The indemnity agreements contained in this Section 4 shall remain operative and in full force and effect regardless of (a) any investigation made by or on behalf of the Company, NCPS,
      any affiliate or any employee officer or director thereof, or by or on behalf of the Company or NCPS, and (b) any termination of this Pre-Offering Agreement. A successor of any of the parties to this Pre-Offering Agreement, as the case may be, shall
      be entitled to the benefits of the indemnity agreements contained in this Section 4.

    

    

    
      
        	

              	5.	
                SURVIVAL OF PROVISIONS.

              

      

    

    

    

    The respective agreements, representations and warranties of the Company and NCPS set forth in this Pre-Offering Agreement shall remain operative and in full force and effect regardless of (a) any
      termination of this Pre-Offering Agreement, and (b) any investigation made by or on behalf of NCPS or any person controlling NCPS or by or on behalf of the Company or any person controlling the Company.

    
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              	6.	
                APPLICABLE LAW AND VENUE.

              

      

    

    

    

    This Pre-Offering Agreement and any claim, counterclaim or dispute of any kind or nature whatsoever arising out of or in any way relating to this Pre-Offering Agreement shall be construed under the
      laws of the State of Delaware without regard to the conflicts of laws principles and rules thereof to the extent such principles would require or permit the application of the laws of another jurisdiction; provided, however, the governing law for
      causes of action for violations of federal or state securities law shall be governed by applicable federal or state securities law. The Company and NCPS hereby acknowledge and agree that venue for any action brought hereunder shall lie exclusively in
      New York, New York.

    

    

    
      
        	

              	7.	
                COUNTERPARTS.

              

      

    

    

    

    This Pre-Offering Agreement may be executed in any number of counterparts. Each counterpart, when executed and delivered, shall be an original contract, but all counterparts, when taken together,
      shall constitute one and the same agreement.

    

    

    
      
        	

              	8.	
                SUCCESSORS AND AMENDMENT.

              

      

    

    

    

    8.1          This Pre-Offering Agreement shall inure to the benefit of and be binding upon NCPS and the Company and their respective successors. Nothing in this Pre-Offering Agreement is intended or
      shall be construed to give to any other person any right, remedy or claim, except as otherwise specifically provided herein.

    

    

    8.2          This Pre-Offering Agreement may only be amended by the written agreement of NCPS and the Company.

    

    

    
      
        	

              	9.	
                TERM.

              

      

    

    

    

    This Pre-Offering Agreement may be terminated by either party (a) immediately upon notice to the other party in the event that the other party shall have materially failed to comply with any of the
      material provisions of this Pre-Offering Agreement on its part to be performed during the term of this Pre-Offering Agreement or if any of the representations, warranties, covenants or agreements of such party contained herein shall not have been
      materially complied with or satisfied within the times specified or (b) by either party on 60 days’ written notice; provided no party may terminate this Pre-Offering Agreement under clause (a) of this paragraph unless such failure or breach is or not
      cured within 30 days after such party has delivered notice of intent to terminate.

    

    

    In any case, this Pre-Offering Agreement shall expire at the close of business on the effective date of the Offering. The provisions of Sections 4 and 6 hereof shall survive such termination. NCPS,
      at its sole expense, may make and retain copies of all such records and documents, but shall keep all such information confidential (except such disclosure as may be required by applicable law, rule, regulation or judicial order or legal process or
      in connection with ordinary course legal, financial, tax or regulatory filings, audits or examinations). NCPS (at the Company’s sole cost and expense) shall use its best efforts to cooperate with the Company to accomplish any orderly transfer of
      management of the Offering to a party designated by the Company.

    
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              	13.	
                NOTICE.

              

      

    

    

    

    Any notice in this Pre-Offering Agreement permitted to be given, made or accepted by either party to the other, must be in writing and may be given or served by (1) overnight courier, (2) depositing
      the same in the United States mail, postpaid, certified, return receipt requested, or (3) facsimile transfer. Notice deposited in the United States mail shall be deemed given when mailed. Notice given in any other manner shall be effective when
      received at the address of the addressee. For purposes hereof the addresses of the parties, until changed as hereafter provided, shall be as follows:

    

    

    	 	
            To the Company:

          	
            RW Holdings NNN REIT, Inc.

          
	 	 	
            Attention: Aaron S. Halfacre, Chief Executive Officer

          
	 	 	
            3090 Bristol Street, Suite 550

          
	 	 	
            Costa Mesa, California 92626

          
	 	 	
            Fax: 949-386-2554

          
	 	 	 
	 	
            To NCPS:

          	
            North Capital Private Securities Corporation

          
	 	 	
            Attention: James P. Dowd

          
	 	 	
            623 E. Fort Union Boulevard

          
	 	 	
            Suite 101

            

          
	 	 	
            Midvale, Utah 84047

          
	 	 	 
	 	
            With a copy to (which shall not constitute notice):

          	
            jdowd@northcapital.com

            stomasetti@northcapital.com

            gnelson@northcapital.com

          

    

    

    
      
        	

              	14.	
                SEVERABILITY.

              

      

    

    

    

    In the event that any court of competent jurisdiction declares any provision of this Pre-Offering Agreement invalid, such invalidity shall have no effect on the other provisions hereof, which shall
      remain valid and binding and in full force and effect, and to that end the provisions of this Pre-Offering Agreement shall be considered severable.

    

    

    
      
        	

              	15.	
                NO WAIVER.

              

      

    

    

    

    Failure by either party to promptly insist upon strict compliance with any of the obligations of the other party under this Pre-Offering Agreement shall not be deemed to constitute a waiver of the
      right to enforce strict compliance with respect to any obligation hereunder.

    

    

    
      
        	

              	16.	
                ASSIGNMENT.

              

      

    

    

    

    This Pre-Offering Agreement may not be assigned by either party, except with the prior written consent of the other party. This Pre-Offering Agreement shall be binding upon the parties hereto, their
      heirs, legal representatives, successors and permitted assigns.

    

    

    
      
        	

              	17.	
                NO PARTNERSHIP.

              

      

    

    

    

    Nothing in this Pre-Offering Agreement shall be construed or interpreted to constitute NCPS as an employee, agent or representative of, or in association with or in partnership with, the Company;
      instead, this Pre-Offering Agreement shall only constitute NCPS as an independent contractor engaged by the Company to provide the Services.

    

    

    If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this letter and your acceptance shall
      constitute a binding agreement between us effective as of the date first above written.

    

    

    	 	
            Very truly yours,

          
	 	 
	 	
            RW HOLDINGS NNN REIT, INC.

          
	 	 
	 	
            By:

          	
            /s/ AARON S. HALFACRE

          
	 	 	
            Aaron S. Halfacre, Chief Executive Officer

          

    

    

    Accepted and agreed as of the date first above written.

    

    

    	
            NORTH CAPITAL PRIVATE SECURITIES CORPORATION

          
	 
	
            By:

          	
            /s/ JAMES P. DOWD

          
	 	
            James P. Dowd, President

          

    
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    Schedule A – Services

    

    

    Subject to the terms and conditions of the Pre-Offering Agreement and for the Fee, NCPS hereby agrees to provide the following services to the Company:

    

    

    
      
        	

              	1.	
                assistance with the development of the plan of distribution and subscription process;

              

      

    

    

    

    
      
        	

              	2.	
                assistance with the technology implementation and review of all prospectus materials and advertising;

              

      

    

    

    

    
      
        	

              	3.	
                assistance in drafting the “Plan of Distribution” section of the prospectus; and

              

      

    

    

    

    
      
        	

              	4.	
                assistance with FINRA filings and liaising with FINRA.

              

      

    

    
      
        

    

    Schedule B – Fee

    

    

    The Company hereby agrees to pay a one-time upfront fee of $180,000.00 to be paid by the Company to NCPS to NCPS’s account set forth below within one business day upon execution of this Agreement:Exhibit 10.1

 

FA Sanara, LLC

 

SUBSCRIPTION AGREEMENT

 

Sanara MedTech Inc.

1200 Summit Ave., Suite 414

Fort Worth, Texas 76102

 

Gentlemen:

 

The undersigned understands
that Sanara MedTech Inc., a Texas corporation (the “Company”), is offering to sell shares of its Common
Stock, par value $0.001 per share, in a private placement without registration under the Securities Act of 1933, as amended (the
 “Securities Act”), or any securities law of any state of the United States, only to “accredited
investors” (as defined in Rule 501 of Regulation D under the Securities Act). This subscription agreement (this “Subscription
Agreement”) is intended to set forth certain representations, covenants and agreements of the undersigned and the
Company with respect to such offer and sale.

 

1.       Subscription.
Subject to the terms and conditions hereof, the undersigned hereby irrevocably subscribes
for 963,856 shares of Common Stock (the “Shares”) at a purchase price of $8.30 per Share for an aggregate
purchase price of $8,000,004.80.

 

2.       Acceptance
of Subscription: Delivery of the Shares. The undersigned understands and agrees that
this subscription is made subject to the following terms and conditions:

 

(a)       The
Company shall have the sole right, at its complete discretion, to accept or reject this subscription, in whole or in part, for
any reason, and this subscription shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer
of the Company and delivered to the undersigned at the Closing referred to below. The Company shall have no obligation to issue
any Shares to any person who is a resident of a jurisdiction in which the issuance of Shares to such person would constitute a
violation of the securities or other similar laws of such jurisdiction;

 

(b)       The
closing of the purchase and sale of the Shares pursuant to this subscription (the “Closing”) shall take
place at the executive offices of the Company at such time and date as the Company may designate by notice to the undersigned;
provided that the Closing shall occur not later than November 1, 2019;

 

(c)       Payment
for the Shares shall be received by the Company from the undersigned by wire transfer of immediately available funds or other
means approved by the Company at or prior to the Closing in the amount as set forth herein. The Shares issued and delivered at
the Closing will only be issued in the name of, and delivered to, the undersigned; and

 

(d)       The
representations and warranties of the Company set forth herein shall be true and correct as of the date that the Company accepts
this subscription.

 

3.       Representations,
Warranties and Covenants of the Undersigned. The undersigned hereby represents, warrants
and covenants to the Company as follows:

 

     

     

    

 

(a)       The
undersigned is purchasing the Shares for the undersigned’s own account, and not for the account of any other person.

 

(b)       The
undersigned is purchasing the Shares for investment only, and is not purchasing the Shares with a view towards the current or
future resale, assignment or distribution of the Shares.

 

(c)       The
undersigned understands that (A) the Shares (1) have not been registered under the Securities Act or any federal or state securities
laws, (2) will be issued in reliance on an exemption from the registration and prospectus delivery requirements of the Securities
Act pursuant Section 4(a)(2) and/or Regulation D thereunder, (3) will be issued in reliance on exemptions from the registration
and prospectus delivery requirements of state securities laws that relate to private offerings and (4) must be held by the undersigned
for an indefinite period; and (B) the undersigned must therefore bear the economic risk of such investment until a subsequent
disposition thereof is registered under the Securities Act and applicable state securities laws or is exempt therefrom. The
undersigned further understands that such exemptions depend on, among other things, the bona fide nature of the investment intent
of the undersigned expressed herein.

 

(d)       The
undersigned acknowledges and understands that as a result of the Shares being sold to the undersigned in reliance upon an exemption
from registration under the Securities Act, the resale of the Shares will be subject to restrictions on transfer. Certificates
representing the Shares will bear a legend that the Shares may not be transferred, sold or otherwise disposed of except in compliance
with the registration provisions of applicable federal and state securities laws or exemptions from such registration requirements.

 

(e)       The
undersigned acknowledges and understands that the Company has a limited operating history with its current management.

 

(f)       The
undersigned has adequate means of providing for its current needs and possible personal contingencies, and has no need, and anticipates
no need in the foreseeable future, to sell or transfer the Shares for which it hereby subscribes. In deciding to purchase the
Shares, the undersigned has carefully evaluated its financial resources and investment position and the risks associated with
an investment in the Company and can bear the economic risks of this investment and, consequently, without limiting the generality
of the foregoing, it can hold the Shares for an indefinite period and has a sufficient net worth to sustain a loss of its entire
investment in the Shares if such a loss should occur. The undersigned’s overall commitments to investments that are not
readily marketable are not disproportionate to its net worth and financial circumstances, and the undersigned’s investment
in the Shares will not cause its commitment to become excessive.

 

(g)       The
undersigned has knowledge, skill and experience in financial, business and investment matters relating to an investment of this
type and is capable of evaluating the merits and risks of such investment and protecting the undersigned’s interest in connection
with the acquisition of the Shares. The undersigned understands that the acquisition of the Shares is a speculative investment
and involves a high degree of risk that could result in the loss the undersigned’s entire investment in the Shares. To the
extent deemed necessary by the undersigned, the undersigned has retained, at its own expense, and relied upon, appropriate professional
advice regarding the investment, tax and legal merits and consequences of purchasing and owning the Shares.

 

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(h)       The
Company has furnished the undersigned all information (or provided access to all information) regarding the business and financial
condition of the Company, its expected plans for future business activities, the attributes of the Shares and the merits and risks
of an investment in the Company that the undersigned has requested to evaluate the investment in the Shares.

 

(i)       The
Company has made available to the undersigned the opportunity to ask questions of officers of the Company, and to obtain additional
information from the Company (or any person acting on its behalf), concerning business and financial matters of the Company and
the terms and conditions of this investment, and all such questions have been answered to the full satisfaction of the undersigned
to enable the undersigned to evaluate the merits and risks of this investment.

 

(j)       In
making the proposed investment decision, the undersigned is relying solely on investigations made by the undersigned and the undersigned’s
representatives (if any). At no time was the undersigned presented with or solicited by or through any leaflet, public promotional
meeting, television advertisement or any other form of general or public advertising or solicitation.

 

(k)      All
of the information provided to the Company by the undersigned is true, correct and complete. The undersigned has no present intention
of becoming a resident of any other state or jurisdiction. If the undersigned is a corporation, partnership, trust or other form
of business organization, it represents and warrants that it was formed under the laws of, and its principal place of business
is within that state.

 

(l)       The
undersigned understands that neither the United States Securities and Exchange Commission nor the securities administrator of
any state has made any finding or determination relating to the fairness of an investment in the Shares, and neither the United
States Securities and Exchange Commission nor the securities administrator of any state has or will recommend or endorse any offering
of securities.

 

(m)      The
undersigned has never been a debtor in bankruptcy proceedings, and there are no suits pending or judgments outstanding against
the undersigned that individually or in the aggregate could impair the undersigned’s ability to fulfill its obligations
under this Agreement.

 

(n)      The
undersigned is not relying on the advice of a purchaser representative in making the undersigned’s decision to invest in
the Shares. The undersigned believes that it has sufficient knowledge and experience in financial and business matters to be capable
of evaluating the merits and risks of an investment in the Shares.

 

(o)      The
shares are subject to restrictions on transferability and resale and may be transferred or resold only in compliance with the
Securities Act and applicable state securities laws pursuant to registration or exemption therefrom. The undersigned is aware
that the undersigned may be required to bear the financial risks of this investment for an indefinite period of time. The undersigned
acknowledges that the Company is not under an obligation to register the Shares under the Securities Act or the securities laws
of any state

 

    	 	 	3

     

    

 

(p)      The
undersigned acknowledges and agrees that there has never been any representation, guarantee or warranty made by the Company or
any officer, manager, employee, agent or representative of the Company, expressly or by implication, as to (i) the approximate
or exact length of time that the undersigned will be required to remain an owner of the Shares; (ii) the amount of any profit
and/or amount of or type of any consideration, profit or loss that might be realized, if any, as a result of this investment;
or (iii) past performance or experience on the part of the Company, or any future expectations of management, that in any way
would provide an indication of future results of ownership of the Shares or of the overall financial performance of the Company.

 

(q)     
The undersigned is a business entity incorporated or organized under the laws of the State of Texas. The undersigned was organized
or formed on September 3, 2019.

 

(r)       The
undersigned further represents and warrants that the undersigned is an “Accredited Investor” within the meaning
of Regulation D, as promulgated by the Securities and Exchange Commission, and is an entity in which all of the equity owners
are Accredited Investors.

 

(s)      The
foregoing representations, warranties and covenants, and undertakings, are made by or on behalf of the undersigned with the intent
that they be relied on in determining the undersigned’s suitability as an investor to purchase the Shares, and the undersigned
hereby agrees that such representations and warranties shall survive the purchase of the Shares.

 

(t)       The
undersigned agrees to furnish the Company such other information as the Company may reasonably request to verify the accuracy
of the information contained herein and agrees to notify the Company immediately of any material change in the information provided
herein that occurs prior to the Company’s acceptance of this Subscription Agreement.

 

(u)      The
undersigned represents that it understands the meaning and legal consequences of the representations, warranties and covenants
of the undersigned contained in this Subscription Agreement and acknowledges that the Company is relying on such representations,
warranties and covenants, and the undersigned hereby agrees to indemnify and hold harmless the Company and its subsidiaries (collectively,
the “Companies”), and each of the Companies’ respective officers, directors, managers, controlling
persons, agents, attorneys, accountants and employees, from and against any and all loss, damage or liability due to or arising
out of any breach of any such representation, warranty or covenant of the undersigned. Notwithstanding the foregoing, however,
no representation, warranty, acknowledgment or agreement made herein by the undersigned shall in any manner be deemed to constitute
a waiver of any rights granted to the undersigned under federal or state securities laws. All representations, warranties and
covenants contained in this Subscription Agreement and this indemnification shall survive the acceptance by the Company of the
subscription by the undersigned and the issuance by the Company of the Shares to the undersigned.

 

    	 	 	4

     

    

 

(v)      The
undersigned further represents, warrants and covenants that the representations and warranties set forth herein shall remain true
and accurate from the time that the undersigned executes this Agreement until the issuance of the Shares to the undersigned, and
that it will neither take any action nor permit any action to be taken during that period that would cause its representations
and warranties to be no longer true; and that if any representation or warranty set forth herein shall be untrue or misleading
during that period, the undersigned immediately shall deliver to the Company a written statement to that effect and such other
information as may be requested by the Company.

 

4.       Representations
and Warranties of the Company. The Company hereby represents and warrants to the
undersigned as follows:

 

(a)       The
Company is duly organized, validly existing and in good standing under the laws of the State of Texas, and is duly qualified to
do business as a foreign corporation in all jurisdictions in which the failure to be so qualified would materially and adversely
affect the business or financial condition, properties or operations of the Company in the aggregate. The Company has all requisite
corporate power and authority (i) to own and lease the properties and assets it currently owns and leases (if any) and that it
contemplates owning and leasing; and (ii) to conduct its activities as such activities are currently conducted and as currently
contemplated to be conducted.

 

(b)       The
Company has filed or furnished with the Securities and Exchange Commission all forms, reports and other documents required to
be filed or furnished by it under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
since December 31, 2017 (such documents, the “Company Reports”). At the time filed or furnished
(or, if amended or superseded, on the date of such filing), each Company Report (i) complied as to form in all material respects
with the applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder, and (ii) did not,
at the time it was filed or furnished (or, if amended or superseded, as of the date of such filing) contain any untrue statement
of a material fact, or omit to state a material fact, required to be stated therein or necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading.

 

(c)       The
Company has duly authorized the issuance and sale of the Shares in accordance with the terms of this Subscription Agreement (as
described herein) by all requisite corporate action, including the authorization of the Company’s Board of Directors for
the issuance and sale of the Shares in accordance herewith, and the execution, delivery and performance of any other agreements
and instruments executed in connection herewith.

 

(d)       The
Shares, when issued and paid for in accordance with this Subscription Agreement, will be validly issued and fully paid and nonassessable,
and the issuance thereof will not conflict with the Certificate of Formation or Bylaws of the Company.

 

(e)       There
is no litigation or governmental proceeding pending or threatened against the Company that would materially and adversely affect
the business or financial condition, properties or operations of the Company, taken as a whole. The Company has complied with
all laws, rules, regulations and orders applicable to its business, operations, properties, assets, products and services, and
the Company has all necessary permits, licenses and other authorizations required to conduct its business as presently conducted,
except in all cases for those laws, rules, regulations and orders and those permits, licenses and authorizations the failure to
comply with or the failure to hold or obtain would not have a material adverse effect on the business or financial condition,
properties or operations of the Company taken as a whole.

 

    	 	 	5

     

    

 

(f)       The
Company is not in default in the performance of any obligation, agreement or condition contained in any agreement of the Company
or in any agreement by which the Company or any of its property is bound, except for those defaults that would not have a material
adverse effect on the business or financial condition, properties or operations of the Company taken as a whole.

 

(g)       The
execution and delivery of this Subscription Agreement, the fulfillment of the terms set forth herein, and the consummation of
the transactions contemplated herein by the Company (i) will not violate, or constitute a breach of or default under, any agreement,
indenture or instrument by which the Company is bound or any decree of any court, governmental body or administrative agency to
which the Company is subject or (ii) assuming the accuracy of the representations and the performance of the agreements herein
of the undersigned investor in this Subscription Agreement, violate any law, administrative rule or regulation applicable to the
Company.

 

(h)       This
Agreement does not contain, as of the date hereof, an untrue statement by the Company of a material fact nor omit to state a material
fact relating to the Company necessary to make the statements contained herein not misleading. 

 

5.       Miscellaneous.

 

(a)       The
undersigned acknowledges and agrees that the execution and delivery of this Subscription Agreement shall constitute a contractual
binding obligation of the undersigned to purchase the Shares from the Company.

 

(b)       This
Agreement shall be governed by and construed in accordance with the laws of the State of Texas, excluding the principles of conflict
of laws.

 

(c)       This
Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and may be amended
only by a writing executed by all parties hereto.

 

(d)       Neither
this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable
by either the Company or the undersigned without the prior written consent of the other party.

 

(e)       This
Subscription Agreement and the representations and warranties contained herein shall be binding upon and accrue to the benefit
of the parties hereto and their respective heirs, executors, legal representatives, administrators, successors and permitted assigns.

 

(f)       This
Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original but all of which
together shall constitute one and the same instrument.

 

    	 	 	6

     

    

 

Signature Pages Follow

 

 

 

 

 

 

 

 

 

    	 	 	7

     

    

 

The undersigned has executed this Subscription
Agreement as of October 14, 2019.

 

Number of Shares Subscribed For: 963,856

 

Total Subscription Price: $8,000,004.80

	 	FA SANARA, LLC
	 	 
	 	 
	 	/s/ Brad Gurasich
	 	Brad Gurasich
	 	Vice President
	 	 
	 	84-2941365
	 	Employer Identification Number
	 	 
	 	 
	 	Address:
	 	 
	 	7500 Rialto Blvd
	 	 
	 	Building II, Suite 220
	 	 
	 	Austin, TX 78735

 

 

 

 

 

 

    	 	 	8

     

    

 

	 	The Company hereby accepts the foregoing subscription subject to the terms and
    conditions hereof as of October ____, 2019.
	 	 	 
	 	 	 
	 	SANARA MEDTECH INC.
	 	 	a Texas corporation
	 	 
	 	 
	 	By	   
	 	 	J. Michael Carmena
	 	 	Vice Chairman

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	9

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