Document:

Exhibit

Exhibit 10.1

LONESTAR RESOURCES US INC. 
AMENDED AND RESTATED 
2016 INCENTIVE PLAN 
ARTICLE I. 
PURPOSE 
This Plan is a restatement of the Lonestar Resources US Inc. 2016 Incentive Plan, which was adopted by the Board on March 22, 2016 as a successor to the Lonestar Resources Limited 2012 Employee Share Option Plan for use following the re-domiciliation of Lonestar Resources Limited to the United States by means of the Company’s acquisition of Lonestar Resources Limited. The Plan was further amended and restated on May 24, 2017, and again on May 24, 2018, by a majority in interest of the Company’s stockholders. The Plan’s purpose is to enhance the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership and other incentive opportunities. Capitalized terms used in the Plan are defined in Article XI. 
ARTICLE II. 
ELIGIBILITY 
Service Providers are eligible to be granted Awards under the Plan, subject to the limitations described herein. 
ARTICLE III. 
ADMINISTRATION AND DELEGATION 
3.1 Administration. The Plan is administered by the Administrator. The Administrator has authority to determine which Service Providers receive Awards, grant Awards and set Award terms and conditions, subject to the conditions and limitations in the Plan. The Administrator also has the authority to take all actions and make all determinations under the Plan, to interpret the Plan and Award Agreements and to adopt, amend and repeal Plan administrative rules, guidelines and practices as it deems advisable. The Administrator may correct defects and ambiguities, supply omissions and reconcile inconsistencies in the Plan or any Award as it deems necessary or appropriate to administer the Plan and any Awards. The Administrator’s determinations under the Plan are in its sole discretion and will be final and binding on all persons having or claiming any interest in the Plan or any Award. 
3.2 Appointment of Committees. To the extent Applicable Laws permit, the Board may delegate any or all of its powers under the Plan to one or more Committees or officers of the Company or any of its Subsidiaries. The Board may abolish any Committee or re-vest in itself any previously delegated authority at any time. 
ARTICLE IV. 
STOCK AVAILABLE FOR AWARDS 
4.1 Number of Shares. Subject to adjustment under Article VIII and the terms of this Article IV, Awards may be made under the Plan covering up to the Overall Share Limit. Shares issued under the Plan may consist of authorized but unissued Shares, Shares purchased on the open market or treasury Shares. 
4.2 Share Recycling. If all or any part of an Award (including for the avoidance of doubt an Award granted prior to the Restatement) expires, lapses or is terminated, exchanged for cash, surrendered, repurchased, canceled without having been fully exercised or forfeited, in any case, in a manner that results in the Company acquiring Shares covered by the Award at a price not greater than the price (as adjusted to reflect any Equity Restructuring) paid by the Participant for such Shares or not issuing any Shares covered by the Award, the unused Shares covered by the Award will, as applicable, become or again be available for Award grants under the Plan. Further, Shares delivered (either by actual delivery or attestation) to the Company by a Participant to satisfy the applicable exercise or purchase price of an Award and/or to satisfy any applicable tax withholding obligation (including Shares retained by the Company from the Award being exercised or purchased and/or creating the tax obligation) will, as applicable, become or again be available for Award grants under the Plan. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not count against the Overall Share Limit. 
4.3 Incentive Stock Option Limitations. Notwithstanding anything to the contrary herein, no more than 3,000,000 Shares may be issued pursuant to the exercise of Incentive Stock Options. 

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4.4 Substitute Awards. In connection with an entity’s merger or consolidation with the Company or the Company’s acquisition of an entity’s property or stock, the Administrator may grant Awards in substitution for any options or other stock or stock-based awards granted before such merger or consolidation by such entity or its affiliate. Substitute Awards may be granted on such terms as the Administrator deems appropriate, notwithstanding limitations on Awards in the Plan. Substitute Awards will not count against the Overall Share Limit (nor shall Shares subject to a Substitute Award be added to the Shares available for Awards under the Plan as provided above), except that Shares acquired by exercise of substitute Incentive Stock Options will count against the maximum number of Shares that may be issued pursuant to the exercise of Incentive Stock Options under the Plan. Additionally, in the event that a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan (and Shares subject to such Awards shall not be added to the Shares available for Awards under the Plan as provided above); provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination. 
4.5 Non-Employee Director Compensation. Notwithstanding any provision to the contrary in the Plan, the Administrator may establish compensation for non-employee Directors from time to time, subject to the limitations in the Plan. The Administrator will from time to time determine the terms, conditions and amounts of all such non-employee Director compensation in its discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, provided that the sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor thereto) of Awards granted to a non-employee Director as compensation for services as a non-employee Director during any fiscal year of the Company may not exceed $500,000 increased to $1,000,000 in the fiscal year of his or her initial service as a non-employee Director. The Administrator may make exceptions to this limit for individual non-employee Directors in extraordinary circumstances, as the Administrator may determine in its discretion, provided that the non-employee Director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation decisions involving non-employee Directors. 
ARTICLE V. 
STOCK OPTIONS AND STOCK APPRECIATION RIGHTS 
5.1 General. The Administrator may grant Options or Stock Appreciation Rights to Service Providers subject to the limitations in the Plan, including any limitations in the Plan that apply to Incentive Stock Options. The Administrator will determine the number of Shares covered by each Option and Stock Appreciation Right, the exercise price of each Option and Stock Appreciation Right and the conditions and limitations applicable to the exercise of each Option and Stock Appreciation Right. A Stock Appreciation Right will entitle the Participant (or other person entitled to exercise the Stock Appreciation Right) to receive from the Company upon exercise of the exercisable portion of the Stock Appreciation Right an amount determined by multiplying the excess, if any, of the Fair Market Value of one Share on the date of exercise over the exercise price per Share of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right is exercised, subject to any limitations of the Plan or that the Administrator may impose and payable in cash, Shares valued at Fair Market Value or a combination of the two as the Administrator may determine or provide in the Award Agreement. 
5.2 Exercise Price. The Administrator will establish each Option’s and Stock Appreciation Right’s exercise price and specify the exercise price in the Award Agreement. The exercise price will not be less than 100% of the Fair Market Value on the grant date of the Option or Stock Appreciation Right. Notwithstanding the foregoing, if on the last day of the term of an Option or Stock Appreciation Right the Fair Market Value of one Share exceeds the applicable exercise or base price per Share, the Participant has not exercised the Option or Stock Appreciation Right and remains employed by the Company or one of its Subsidiaries and the Option or Stock Appreciation Right has not expired, the Option or Stock Appreciation Right shall be deemed to have been exercised by the Participant on such day with payment made by withholding Shares otherwise issuable in connection with its exercise. In such event, the Company shall deliver to the Participant the number of Shares for which the Option or Stock Appreciation Right was deemed exercised, less the number of Shares required to be withheld for the payment of the total purchase price and required withholding taxes; provided, however, any fractional Share shall be settled in cash. 

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5.3 Duration. Each Option or Stock Appreciation Right will be exercisable at such times and as specified in the Award Agreement, provided that the term of an Option or Stock Appreciation Right will not exceed ten years. Notwithstanding the foregoing and unless determined otherwise by the Company, in the event that on the last business day of the term of an Option or Stock Appreciation Right (other than an Incentive Stock Option) (i) the exercise of the Option or Stock Appreciation Right is prohibited by Applicable Law, as determined by the Company, or (ii) Shares may not be purchased or sold by the applicable current or former Service Provider due to any Company insider trading policy (including blackout periods) or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the term of the Option or Stock Appreciation Right shall be extended for a period of thirty (30) days following the end of the legal prohibition, black-out period or lock-up agreement, as determined by the Company; provided, however, in no event shall the extension last beyond the ten year term of the applicable Option or Stock Appreciation Right unless the exercise would violate an Applicable Law. Notwithstanding the foregoing, if the Participant, prior to the end of the term of an Option or Stock Appreciation Right, violates the non-competition, non-solicitation or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company or any of its Subsidiaries, the right to exercise the Option or Stock Appreciation Right, as applicable, may be terminated by the Company and the Company may suspend the Participant’s right to exercise the Option or Stock Appreciation Right when it reasonably believes that the Participant has participated in any such violation. In addition, if, prior to the end of the term of an Option or Stock Appreciation Right, the Participant is given notice by the Company or any of its Subsidiaries of the termination of his or her employment or other relationship by the Company or any of its Subsidiaries for Cause, and the effective date of such employment or other termination is subsequent to the date of the delivery of such notice, the right to exercise the Option or Stock Appreciation Right, as applicable, shall be suspended from the time of the delivery of such notice until the earlier of (i) such time as it is determined or otherwise agreed that the Participant’s employment or other relationship shall not be terminated for Cause as provided in such notice or (ii) the effective date of such termination of employment or other relationship (in which case the right to exercise the Option or Stock Appreciation Right, as applicable, shall terminate immediately upon the effective date of such termination of employment or other relationship). 
 
5.4 Exercise. Options and Stock Appreciation Rights may be exercised by delivering to the Company a written notice of exercise, in a form the Administrator approves (which may be electronic), signed by the person authorized to exercise the Option or Stock Appreciation Right, together with, as applicable, payment in full (i) as specified in Section 5.5 for the number of Shares for which the Award is exercised and (ii) as specified in Section 9.5 for any applicable taxes. Unless the Administrator otherwise determines, an Option or Stock Appreciation Right may not be exercised for a fraction of a Share. 
5.5 Payment Upon Exercise. Subject to Section 10.8, any Company insider trading policy (including blackout periods) and Applicable Laws, the exercise price of an Option must be paid by: 
(a) cash, wire transfer of immediately available funds or by check payable to the order of the Company; provided, that, the Company may limit the use of one of the foregoing exercise methods if one or more of the exercise methods below is permitted; 
(b) if there is a public market for Shares at the time of exercise, unless the Company otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company) of a notice that the Participant has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable upon exercise of the Option and that the broker has been directed to deliver promptly to the Company sufficient funds to pay the exercise price, or (B) the Participant’s delivery to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to pay the exercise price; provided that such amount is paid to the Company at such time as may be required by the Administrator; 
(c) to the extent permitted by the Administrator, delivery (either by actual delivery or attestation) of Shares owned by the Participant valued at their Fair Market Value; 
(d) to the extent permitted by the Administrator, surrendering Shares then issuable upon the Option’s exercise valued at their Fair Market Value on the exercise date; 
(e) to the extent permitted by the Administrator, delivery of a promissory note or any other property that the Administrator determines is good and valuable consideration; or 
(f) to the extent permitted by the Company, any combination of the above payment forms approved by the Administrator. 

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ARTICLE VI. 
RESTRICTED STOCK; RESTRICTED STOCK UNITS 
6.1 General. The Administrator may grant Restricted Stock, or the right to purchase Restricted Stock, to any Service Provider, subject to forfeiture or the Company’s right to repurchase all or part of such shares at their issue price or other stated or formula price from the Participant if conditions the Administrator specifies in the Award Agreement are not satisfied before the end of the applicable restriction period or periods that the Administrator establishes for such Award. In addition, the Administrator may grant to Service Providers Restricted Stock Units, which may be subject to vesting and forfeiture conditions during the applicable restriction period or periods, as set forth in an Award Agreement. The Administrator will determine and set forth in the Award Agreement the terms and conditions for each Restricted Stock and Restricted Stock Unit Award, subject to the conditions and limitations contained in the Plan. 
6.2 Restricted Stock. 
(a) Dividends. Participants holding shares of Restricted Stock will be entitled to all ordinary cash dividends paid with respect to such Shares, unless the Administrator provides otherwise in the Award Agreement. In addition, unless the Administrator provides otherwise, if any dividends or distributions are paid in Shares, or consist of a dividend or distribution to holders of Common Stock of property other than an ordinary cash dividend, the Shares or other property will be subject to the same restrictions on transferability and forfeitability as the shares of Restricted Stock with respect to which they were paid. 
(b) Stock Certificates. The Company may require that the Participant deposit in escrow with the Company (or its designee) any stock certificates issued in respect of shares of Restricted Stock, together with a stock power endorsed in blank. 
6.3 Restricted Stock Units. 
(a) Settlement. The Administrator may provide that settlement of Restricted Stock Units will occur upon or as soon as reasonably practicable after the Restricted Stock Units vest or will instead be deferred, on a mandatory basis or at the Participant’s election, in a manner intended to comply with Section 409A. 
(b) Stockholder Rights. A Participant will have no rights of a stockholder with respect to Shares subject to any Restricted Stock Unit unless and until the Shares are delivered in settlement of the Restricted Stock Unit. 
(c) Dividend Equivalents. If the Administrator provides, a grant of Restricted Stock Units may provide a Participant with the right to receive Dividend Equivalents. Dividend Equivalents may be paid currently or credited to an account for the Participant, settled in cash or Shares and subject to the same restrictions on transferability and forfeitability as the Restricted Stock Units with respect to which the Dividend Equivalents are granted and subject to other terms and conditions as set forth in the Award Agreement. 
ARTICLE VII. 
OTHER STOCK OR CASH BASED AWARDS 
Other Stock or Cash Based Awards may be granted to Participants, including Awards entitling Participants to receive Shares to be delivered in the future and including annual or other periodic or long-term cash bonus awards (whether based on specified Performance Criteria or otherwise), in each case subject to any conditions and limitations in the Plan. Such Other Stock or Cash Based Awards will also be available as a payment form in the settlement of other Awards, as standalone payments and as payment in lieu of compensation to which a Participant is otherwise entitled. Other Stock or Cash Based Awards may be paid in Shares, cash or other property, as the Administrator determines. Subject to the provisions of the Plan, the Administrator will determine the terms and conditions of each Other Stock or Cash Based Award, including any purchase price, performance goal (which may be based on the Performance Criteria), transfer restrictions, and vesting conditions, which will be set forth in the applicable Award Agreement. 

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ARTICLE VIII. 
ADJUSTMENTS FOR CHANGES IN COMMON STOCK 
AND CERTAIN OTHER EVENTS 
8.1 Equity Restructuring. In connection with any Equity Restructuring, notwithstanding anything to the contrary in this Article VIII, the Administrator will equitably adjust each outstanding Award as it deems appropriate to reflect the Equity Restructuring, which may include adjusting the number and type of securities subject to each outstanding Award and/or the Award’s exercise price or grant price (if applicable), granting new Awards to Participants, and making a cash payment to Participants. The adjustments provided under this Section 8.1 will be nondiscretionary and final and binding on the affected Participant and the Company; provided that the Administrator will determine whether an adjustment is equitable. 
8.2 Corporate Transactions. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), reorganization, merger, consolidation, combination, amalgamation, repurchase, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or sale or exchange of Common Stock or other securities of the Company, Change in Control, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, other similar corporate transaction or event, other unusual or nonrecurring transaction or event affecting the Company or its financial statements or any change in any Applicable Laws or accounting principles, the Administrator, on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event (except that action to give effect to a change in Applicable Law or accounting principles may be made within a reasonable period of time after such change) and either automatically or upon the Participant’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to (x) prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award granted or issued under the Plan, (y) to facilitate such transaction or event or (z) give effect to such changes in Applicable Laws or accounting principles: 
(a) To provide for the cancellation of any such Award in exchange for either an amount of cash or other property with a value equal to the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s rights under the vested portion of such Award, as applicable; provided that, if the amount that could have been obtained upon the exercise or settlement of the vested portion of such Award or realization of the Participant’s rights, in any case, is equal to or less than zero, then the Award may be terminated without payment; 
(b) To provide that such Award shall vest and, to the extent applicable, be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Award; 
(c) To provide that such Award be assumed by the successor or survivor corporation or entity, or a parent or subsidiary thereof, or shall be substituted for by awards covering the stock of the successor or survivor corporation or entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and/or applicable exercise or purchase price, in all cases, as determined by the Administrator; 
(d) To make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Awards and/or with respect to which Awards may be granted under the Plan (including, but not limited to, adjustments of the limitations in Article IV hereof on the maximum number and kind of shares which may be issued) and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards; 
(e) To replace such Award with other rights or property selected by the Administrator; and/or 
(f) To provide that the Award will terminate and cannot vest, be exercised or become payable after the applicable event. 
8.3 Acceleration Upon a Change in Control. Notwithstanding anything in Section 8.2 to the contrary, and except as may otherwise be provided in any applicable Award Agreement or other written agreement between the Company or any of its Subsidiaries and a Participant, if a Change in Control occurs and Awards are not continued, converted, assumed, or replaced by (i) the Company or a Subsidiary or (ii) a Successor Entity, then immediately prior to the Change in Control such Awards shall become fully exercisable and/or payable, as applicable, and all forfeiture, repurchase and other restrictions on such Awards shall lapse. Upon, or in anticipation of, a Change in Control, the Administrator may cause any and all Awards outstanding hereunder to terminate at a specific time in the future, including but not limited to the date of such Change in Control, and shall give each Participant the right to exercise such Awards during a period of time as the Administrator, in its sole and absolute discretion, shall determine. 

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8.4 Administrative Stand Still. In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other extraordinary transaction or change affecting the Shares or the share price of Common Stock, including any Equity Restructuring or any securities offering or other similar transaction, for administrative convenience, the Administrator may refuse to permit the exercise of any Award for up to sixty days before or after such transaction. 

8.5 General. Except as expressly provided in the Plan or the Administrator’s action under the Plan, no Participant will have any rights due to any subdivision or consolidation of Shares of any class, dividend payment, increase or decrease in the number of Shares of any class or dissolution, liquidation, merger, or consolidation of the Company or other corporation. Except as expressly provided with respect to an Equity Restructuring under Section 8.1 above or the Administrator’s action under the Plan, no issuance by the Company of Shares of any class, or securities convertible into Shares of any class, will affect, and no adjustment will be made regarding, the number of Shares subject to an Award or the Award’s grant or exercise price. The existence of the Plan, any Award Agreements and the Awards granted hereunder will not affect or restrict in any way the Company’s right or power to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, (ii) any merger, consolidation dissolution or liquidation of the Company or sale of Company assets or (iii) any sale or issuance of securities, including securities with rights superior to those of the Shares or securities convertible into or exchangeable for Shares. The Administrator may treat Participants and Awards (or portions thereof) differently under this Article VIII. 
ARTICLE IX. 
GENERAL PROVISIONS APPLICABLE TO AWARDS 
9.1 Transferability. Except as the Administrator may determine or provide in an Award Agreement or otherwise for Awards other than Incentive Stock Options, Awards may not be sold, assigned, transferred, pledged or otherwise encumbered, either voluntarily or by operation of law, except by will or the laws of descent and distribution, or, subject to the Administrator’s consent, pursuant to a domestic relations order, and, during the life of the Participant, will be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, will include references to a Participant’s authorized transferee that the Administrator specifically approves. 
9.2 Documentation. Each Award will be evidenced in an Award Agreement, which may be written or electronic, as the Administrator determines. Each Award may contain terms and conditions in addition to those set forth in the Plan. 
9.3 Discretion. Except as the Plan otherwise provides, each Award may be made alone or in addition or in relation to any other Award. The terms of each Award to a Participant need not be identical, and the Administrator need not treat Participants or Awards (or portions thereof) uniformly. 
9.4 Termination of Status. The Administrator will determine how the disability, death, retirement, authorized leave of absence or any other change or purported change in a Participant’s Service Provider status affects an Award and the extent to which, and the period during which, the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award, if applicable. 
9.5 Withholding. Each Participant must pay the Company, or make provision satisfactory to the Administrator for payment of, any taxes required by law to be withheld in connection with such Participant’s Awards by the date of the event creating the tax liability. The Company may deduct an amount sufficient to satisfy such tax obligations based on the minimum statutory withholding rates (or such other rate as may be determined by the Company after considering any accounting consequences or costs) from any payment of any kind otherwise due to a Participant. Subject to Section 10.8 and any Company insider trading policy (including blackout periods), Participants may satisfy such tax obligations (i) in cash, by wire transfer of immediately available funds, by check made payable to the order of the Company; provided, that, the Company may limit the use of one of the foregoing methods if one or more of the exercise methods below is permitted, (ii) to the extent permitted by the Administrator, in whole or in part by delivery of Shares, including Shares retained from the Award creating the tax obligation, valued at their Fair Market Value, (iii) if there is a public market for Shares at the time the tax obligations are satisfied, unless the Company otherwise determines, (A) delivery (including telephonically to the extent permitted by the Company) of a notice that the Participant has placed a market sell order with a broker acceptable to the Company with respect to Shares then issuable upon exercise of the Award and that the broker has been directed to deliver promptly to the Company sufficient funds to satisfy the tax obligations, or (B) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a broker acceptable to the Company to deliver promptly to the Company cash or a check sufficient to satisfy the tax withholding; provided that such amount is paid to the Company at such time as may be required by the Administrator, or (iv) to the extent permitted by the Company, any combination of the foregoing payment forms approved by the Administrator. If any tax withholding obligation will be satisfied under clause (ii) of the immediately preceding sentence by the Company’s retention of Shares from the Award creating the tax obligation and there is a public market for Shares at the time the tax obligation is satisfied, the Company may elect to instruct any 

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brokerage firm determined acceptable to the Company for such purpose to sell on the applicable Participant’s behalf some or all of the Shares retained and to remit the proceeds of the sale to the Company or its designee, and each Participant’s acceptance of an Award under the Plan will constitute the Participant’s authorization to the Company and instruction and authorization to such brokerage firm to complete the transactions described in this sentence. 
9.6 Amendment of Award; Prohibition on Repricing. The Administrator may amend, modify or terminate any outstanding Award, including by substituting another Award of the same or a different type, changing the exercise or settlement date, and converting an Incentive Stock Option to a Non-Qualified Stock Option. The Participant’s consent to such action will be required unless (i) the action, taking into account any related action, does not materially and adversely affect the Participant’s rights under the Award, or (ii) the change is permitted under Article VIII or pursuant to Section 10.6. Other than pursuant to Sections 8.1 and 8.2, the Administrator shall not without the approval of the Company’s stockholders (a) lower the exercise price per Share of an Option or Stock Appreciation Right after it is granted, (b) cancel an Option or Stock Appreciation Right when the exercise price per Share exceeds the Fair Market Value of one Share in exchange for cash or another Award, or (c) take any other action with respect to an Option or Stock Appreciation Right that the Company determines would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the Shares are listed. 
9.7 Conditions on Delivery of Stock. The Company will not be obligated to deliver any Shares under the Plan or remove restrictions from Shares previously delivered under the Plan until (i) all Award conditions have been met or removed to the Company’s satisfaction, (ii) as determined by the Company, all other legal matters regarding the issuance and delivery of such Shares have been satisfied, including any applicable securities laws and stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Administrator deems necessary or appropriate to satisfy any Applicable Laws. The Company’s inability to obtain authority from any regulatory body having jurisdiction, which the Administrator determines is necessary to the lawful issuance and sale of any securities, will relieve the Company of any liability for failing to issue or sell such Shares as to which such requisite authority has not been obtained. 
9.8 Acceleration. The Administrator may at any time provide that any Award will become immediately vested and fully or partially exercisable, free of some or all restrictions or conditions, or otherwise fully or partially realizable. 
9.9 Additional Terms of Incentive Stock Options. The Administrator may grant Incentive Stock Options only to employees of the Company, any of its present or future parent or subsidiary corporations, as defined in Sections 424(e) or (f) of the Code, respectively, and any other entities the employees of which are eligible to receive Incentive Stock Options under the Code. If an Incentive Stock Option is granted to a Greater Than 10% Stockholder, the exercise price will not be less than 110% of the Fair Market Value on the Option’s grant date, and the term of the Option will not exceed five years. All Incentive Stock Options will be subject to and construed consistently with Section 422 of the Code. By accepting an Incentive Stock Option, the Participant agrees to give prompt notice to the Company of dispositions or other transfers (other than in connection with a Change in Control) of Shares acquired under the Option made within (i) two years from the grant date of the Option or (ii) one year after the transfer of such Shares to the Participant, specifying the date of the disposition or other transfer and the amount the Participant realized, in cash, other property, assumption of indebtedness or other consideration, in such disposition or other transfer. Neither the Company nor the Administrator will be liable to a Participant, or any other party, if an Incentive Stock Option fails or ceases to qualify as an “incentive stock option” under Section 422 of the Code. Any Incentive Stock Option or portion thereof that fails to qualify as an “incentive stock option” under Section 422 of the Code for any reason, including becoming exercisable with respect to Shares having a fair market value exceeding the $100,000 limitation under Treasury Regulation Section 1.422-4, will be a Non-Qualified Stock Option. 
ARTICLE X. 
MISCELLANEOUS 
10.1 No Right to Employment or Other Status. No person will have any claim or right to be granted an Award, and the grant of an Award will not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan or any Award, except as expressly provided in an Award Agreement. 
10.2 No Rights as Stockholder; Certificates. Subject to the Award Agreement, no Participant or Designated Beneficiary will have any rights as a stockholder with respect to any Shares to be distributed under an Award until becoming the record holder of such Shares. Notwithstanding any other provision of the Plan, unless the Administrator otherwise determines or Applicable Laws require, the Company will not be required to deliver to any Participant certificates evidencing Shares issued in connection with any Award and instead such Shares may be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator). The Company may place legends on stock certificates issued under the Plan that the Administrator deems necessary or appropriate to comply with Applicable Laws. 

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10.3 Effective Date and Term of Plan; Effect of Restatement. The Plan was initially adopted by the Board on March 22, 2016 (the “Effective Date”), was first amended and restated in 2017, and again amended and restated in 2018.  Unless earlier terminated by the Board, the Plan will remain in effect until the fifth anniversary of the Restatement Effective Date, but Awards previously granted may extend beyond that date in accordance with the Plan. The Restatement shall become effective on the date that it is approved by the Board in 2019 (the “Restatement Effective Date"), subject to approval by the Company’s stockholders at the Company’s annual meeting of stockholders in 2019. From and after the Restatement Effective Date, the Plan, as restated by the Restatement, shall govern all Awards hereunder, including Awards granted prior to the Restatement Effective Date, provided, however, that to the extent that any provision of the Plan as in effect after the Restatement conflicts with a term of the Plan as in effect prior to the Restatement and the Restatement would adversely affect a Participant’s rights with respect to an Award granted prior to the Restatement Effective Date, the terms of the Plan as in effect prior to the Restatement shall control (but only to such extent). 
10.4 Amendment of Plan. The Administrator may amend, suspend or terminate the Plan at any time; provided that no amendment, other than an increase to the Overall Share Limit, may materially and adversely affect any Award outstanding at the time of such amendment without the affected Participant’s consent. No Awards may be granted under the Plan during any suspension period or after Plan termination. Awards outstanding at the time of any Plan suspension or termination will continue to be governed by the Plan and the Award Agreement, as in effect before such suspension or termination. The Board will obtain stockholder approval of any Plan amendment to the extent necessary to comply with Applicable Laws. 
 
10.5 Provisions for Foreign Participants. The Administrator may modify Awards granted to Participants who are foreign nationals or employed outside the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters. 

10.6 Section 409A. 
(a) General. The Company intends that all Awards be structured to comply with, or be exempt from, Section 409A, such that no adverse tax consequences, interest, or penalties under Section 409A apply. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Administrator may, without a Participant’s consent, amend this Plan or Awards, adopt policies and procedures, or take any other actions (including amendments, policies, procedures and retroactive actions) as are necessary or appropriate to preserve the intended tax treatment of Awards, including any such actions intended to (A) exempt this Plan or any Award from Section 409A, or (B) comply with Section 409A, including regulations, guidance, compliance programs and other interpretative authority that may be issued after an Award’s grant date. The Company makes no representations or warranties as to an Award’s tax treatment under Section 409A or otherwise. The Company will have no obligation under this Section 10.6 or otherwise to avoid the taxes, penalties or interest under Section 409A with respect to any Award and will have no liability to any Participant or any other person if any Award, compensation or other benefits under the Plan are determined to constitute noncompliant “nonqualified deferred compensation” subject to taxes, penalties or interest under Section 409A. 
(b) Separation from Service. If an Award constitutes “nonqualified deferred compensation” under Section 409A, any payment or settlement of such Award upon a termination of a Participant’s Service Provider relationship will, to the extent necessary to avoid taxes under Section 409A, be made only upon the Participant’s “separation from service” (within the meaning of Section 409A), whether such “separation from service” occurs upon or after the termination of the Participant’s Service Provider relationship. For purposes of this Plan or any Award Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment” or like terms means a “separation from service.” 
(c) Payments to Specified Employees. Notwithstanding any contrary provision in the Plan or any Award Agreement, any payment(s) of “nonqualified deferred compensation” required to be made under an Award to a “specified employee” (as defined under Section 409A and as the Administrator determines) due to his or her “separation from service” will, to the extent necessary to avoid taxes under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such “separation from service” (or, if earlier, until the specified employee’s death) and will instead be paid (as set forth in the Award Agreement) on the day immediately following such six-month period or as soon as administratively practicable thereafter (without interest). Any payments of “nonqualified deferred compensation” under such Award payable more than six months following the Participant’s “separation from service” will be paid at the time or times the payments are otherwise scheduled to be made. 
10.7 Limitations on Liability. Notwithstanding any other provisions of the Plan, no individual acting as a director, officer, other employee or agent of the Company or any Subsidiary will be liable to any Participant, former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense incurred in connection with the Plan or any Award, and such individual will not be personally liable with respect to the Plan because of any contract or other instrument executed in his or her capacity as an Administrator, director, officer, other employee or agent of the Company or any Subsidiary. The Company will 

8

indemnify and hold harmless each director, officer, other employee and agent of the Company or any Subsidiary that has been or will be granted or delegated any duty or power relating to the Plan’s administration or interpretation, against any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim with the Administrator’s approval) arising from any act or omission concerning this Plan unless arising from such person’s own fraud or bad faith. 
 
10.8 Lock-Up Period. The Company may, at the request of any underwriter representative or otherwise, in connection with registering the offering of any Company securities under the Securities Act, prohibit Participants from, directly or indirectly, selling or otherwise transferring any Shares or other Company securities, whether subject to outstanding Awards or otherwise, during a period of up to one hundred eighty days following the effective date of a Company registration statement filed under the Securities Act, or such longer period as determined by the underwriter (the “Lock-Up Period”). The Company may impose stop-transfer instructions with respect to Shares subject to the foregoing prohibitions until the end of the Lock-Up Period and these restrictions will be binding on the applicable Participant. Further, each Participant shall, if so requested by any underwriter representative, execute a customary lock-up agreement which shall provide such terms as such underwriter representative may in its discretion request, including, without limitation the prohibition on sale and transfer during the Lock-Up Period described in this Section 10.8. 

10.9 Data Privacy. As a condition for receiving any Award, each Participant explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of personal data as described in this section by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the Participant’s participation in the Plan. The Company and its Subsidiaries and affiliates may hold certain personal information about a Participant, including the Participant’s name, address and telephone number; birthdate; social security, insurance number or other identification number; salary; nationality; job title(s); any Shares held in the Company or its Subsidiaries and affiliates; and Award details, to implement, manage and administer the Plan and Awards (the “Data”). The Company and its Subsidiaries and affiliates may transfer the Data amongst themselves as necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company and its Subsidiaries and affiliates may transfer the Data to third parties assisting the Company with Plan implementation, administration and management. These recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data privacy laws and protections than the recipients’ country. By accepting an Award, each Participant authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s participation in the Plan, including any required Data transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares. The Data related to a Participant will be held only as long as necessary to implement, administer, and manage the Participant’s participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional information about the storage and processing of the Data regarding such Participant, recommend any necessary corrections to the Data regarding the Participant or refuse or withdraw the consents in this Section 10.9 in writing, without cost, by contacting the local human resources representative. The Company may cancel Participant’s ability to participate in the Plan and, in the Administrator’s discretion, the Participant may forfeit any outstanding Awards if the Participant refuses or withdraws the consents in this Section 10.9. For more information on the consequences of refusing or withdrawing consent, Participants may contact their local human resources representative. 
10.10 Severability. If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded, and the illegal or invalid action will be null and void. 
10.11 Governing Documents. If any contradiction occurs between the Plan and any Award Agreement or other written agreement between a Participant and the Company (or any Subsidiary) that the Administrator has approved, the Plan will govern, unless it is expressly specified in such Award Agreement or other written document that a specific provision of the Plan will not apply. 
10.12 Governing Law. The Plan and all Awards will be governed by and interpreted in accordance with the laws of the State of Delaware, disregarding any state’s choice-of-law principles requiring the application of a jurisdiction’s laws other than the State of Delaware. 
 
10.13 Claw-back Provisions. All Awards (including any proceeds, gains or other economic benefit the Participant actually or constructively receives upon receipt or exercise of any Award or the receipt or resale of any Shares underlying the Award) will be subject to any Company claw-back policy, including any claw-back policy adopted to comply with Applicable Laws (including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder) as set forth in such claw-back policy or the Award Agreement. 

9

10.14 Titles and Headings. The titles and headings in the Plan are for convenience of reference only and, if any conflict, the Plan’s text, rather than such titles or headings, will control. 
10.15 Conformity to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with Applicable Laws. Notwithstanding anything herein to the contrary, the Plan and all Awards will be administered only in conformance with Applicable Laws. To the extent Applicable Laws permit, the Plan and all Award Agreements will be deemed amended as necessary to conform to Applicable Laws. 
10.16 Relationship to Other Benefits. No payment under the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except as expressly provided in writing in such other plan or an agreement thereunder. 
10.17 Broker-Assisted Sales. In the event of a broker-assisted sale of Shares in connection with the payment of amounts owed by a Participant under or with respect to the Plan or Awards, including amounts to be paid under the final sentence of Section 9.5: (a) any Shares to be sold through the broker-assisted sale will be sold on the day the payment first becomes due, or as soon thereafter as practicable; (b) such Shares may be sold as part of a block trade with other Participants in the Plan in which all participants receive an average price; (c) the applicable Participant will be responsible for all broker’s fees and other costs of sale, and by accepting an Award, each Participant agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale; (d) to the extent the Company or its designee receives proceeds of such sale that exceed the amount owed, the Company will pay such excess in cash to the applicable Participant as soon as reasonably practicable; (e) the Company and its designees are under no obligation to arrange for such sale at any particular price; and (f) in the event the proceeds of such sale are insufficient to satisfy the Participant’s applicable obligation, the Participant may be required to pay immediately upon demand to the Company or its designee an amount in cash sufficient to satisfy any remaining portion of the Participant’s obligation. 
ARTICLE XI. 
DEFINITIONS 
As used in the Plan, the following words and phrases will have the following meanings: 
11.1 “Administrator” means the Board or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee. 
11.2 “Applicable Laws” means the requirements relating to the administration of equity incentive plans under U.S. federal and state securities, tax and other applicable laws, rules and regulations, the applicable rules of any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws and rules of any foreign country or other jurisdiction where Awards are granted. 
11.3 “Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units or Other Stock or Cash Based Awards. For the avoidance of doubt, Options granted under the Plan prior to the Restatement shall constitute Awards hereunder 
11.4 “Award Agreement” means a written agreement evidencing an Award, which may be electronic, that contains such terms and conditions as the Administrator determines, consistent with and subject to the terms and conditions of the Plan. 
 
11.5 “Board” means the Board of Directors of the Company. 
11.6 “Change in Control” means and includes each of the following: 
(a) A transaction or series of transactions occurring after the Effective Date whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such transaction; or 
(b) During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in subsections (a) or (c)) whose election by the Board or nomination for election by the 

10

Company’s stockholders was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
(c) The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) after the Effective Date of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: 
(i) which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and 
(ii) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (ii) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction. 
Notwithstanding the foregoing, if a Change in Control constitutes a payment event with respect to any Award (or portion of any Award) that provides for the deferral of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event described in subsection (a), (b) or (c) with respect to such Award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such Award if such transaction also constitutes a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5). 
The Administrator shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination of whether a Change in Control is a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) shall be consistent with such regulation. 
 
11.7 “Code” means the Internal Revenue Code of 1986, as amended, and the regulations issued thereunder. 
11.8 “Committee” means one or more committees or subcommittees of the Board, which may include one or more Company directors or executive officers, to the extent Applicable Laws permit. To the extent required to comply with the provisions of Rule 16b-3, it is intended that each member of the Committee will be, at the time the Committee takes any action with respect to an Award that is subject to Rule 16b-3, a “non-employee director” within the meaning of Rule 16b-3; however, a Committee member’s failure to qualify as a “non-employee director” within the meaning of Rule 16b-3 will not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan. 
11.9 “Common Stock” means the Class A common stock of the Company. 
11.10 “Company” means Lonestar Resources US Inc., a Delaware corporation, or any successor. 
11.11 “Consultant” means any person, including any adviser, engaged by the Company or its parent or Subsidiary to render services to such entity if the consultant or adviser: (i) renders bona fide services to the Company; (ii) renders services not in connection with the offer or sale of securities in a capital-raising transaction and does not directly or indirectly promote or maintain a market for the Company’s securities; and (iii) is a natural person. 
11.12 “Designated Beneficiary” means the beneficiary or beneficiaries the Participant designates, in a manner the Administrator determines, to receive amounts due or exercise the Participant’s rights if the Participant dies or becomes incapacitated. Without a Participant’s effective designation, “Designated Beneficiary” will mean the Participant’s estate. 
11.13 “Director” means a Board member. 
11.14 “Disability” means a permanent and total disability under Section 22(e)(3) of the Code, as amended. 

11

11.15 “Dividend Equivalents” means a right granted to a Participant under the Plan to receive the equivalent value (in cash or Shares) of dividends paid on Shares. 
11.16 “Employee” means any employee of the Company or its Subsidiaries. 
11.17 “Equity Restructuring” means a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of Shares (or other Company securities) or the share price of Common Stock (or other Company securities) and causes a change in the per share value of the Common Stock underlying outstanding Awards. 
11.18 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
11.19 “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange, its Fair Market Value will be the closing sales price for such Common Stock as quoted on such exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; (ii) if the Common Stock is not traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; or (iii) without an established market for the Common Stock, the Administrator will determine the Fair Market Value in its discretion. 
 
11.20 “Greater Than 10% Stockholder” means an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or its parent or subsidiary corporation, as defined in Section 424(e) and (f) of the Code, respectively. 
11.21 “Incentive Stock Option” means an Option intended to qualify as an “incentive stock option” as defined in Section 422 of the Code. 
11.22 “Non-Qualified Stock Option” means an Option not intended or not qualifying as an Incentive Stock Option. 
11.23 “Option” means an option to purchase Shares. 
11.24 “Other Stock or Cash Based Awards” means cash awards, awards of Shares, and other awards valued wholly or partially by referring to, or are otherwise based on, Shares or other property. 
11.25 “Overall Share Limit” means the sum of (i) 3,800,000 Shares and (ii) an annual increase on the first day of each calendar year beginning January 1, 2020 and ending on and including January 1, 2024, equal to the lesser of (A) 3% of the aggregate number of shares of Common Stock outstanding on an as-converted basis on the final day of the immediately preceding calendar year and (B) such smaller number of Shares as is determined by the Board. 
11.26 “Participant” means a Service Provider who has been granted an Award. 
11.27 “Performance Criteria” mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance period, which may include but shall not be limited to the following: net earnings (either before or after interest, taxes, depreciation and amortization), sales or revenue, net income (either before or after taxes), operating earnings, cash flow (including, but not limited to, operating cash flow and free cash flow), return on net assets, return on stockholders’ equity, return on assets, return on capital, return on sales, gross or net profit margin, expenses or expense levels, total shareholder return, internal rate of return (IRR), financial ratios (including those measuring liquidity, activity, profitability or leverage), working capital, earnings per Share, price per Share, market capitalization, any GAAP financial performance measures, inventory management, measures related to A/R balance and write-offs, timeliness and/or accuracy of business reporting, approval or implementation of strategic plans, financing and other capital raising transactions, debt levels or reductions, cash levels, acquisition activity, investment sourcing activity, marketing initiatives, projects or processes, achievement of customer satisfaction objectives, net asset value, net asset value per share, capital expenditures, net borrowing, debt leverage levels, credit quality or debt ratings, economic value added, individual business objectives, growth in production, added reserves, growth in reserves, inventory growth, environmental health and safety performance, effectiveness of hedging programs, improvements in internal controls and policies, and retention and recruitment of employees, any of which may be measured in absolute terms or as compared to any incremental increase or decrease. Such performance goals also may be based solely by reference to the Company’s performance or the performance of a Subsidiary, division, business segment or business unit of the Company or a Subsidiary, or based upon performance relative to performance of other companies or upon comparisons of any of the indicators of performance relative to 

12

performance of other companies. Any performance goals that are financial metrics, may be determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), in accordance with accounting principles established by the International Accounting Standards Board (“IASB Principles”), or may be adjusted when established to include or exclude any items otherwise includable or excludable under GAAP or under IASB Principles. The Committee may provide for exclusion of the impact of an event or occurrence which the Committee determines should appropriately be excluded, including (a) restructurings, discontinued operations, extraordinary items, and other unusual, infrequently occurring or non-recurring charges or events, (b) asset write-downs, (c) litigation or claim judgments or settlements, (d) acquisitions or divestitures, (e) reorganization or change in the corporate structure or capital structure of the Company, (f) an event either not directly related to the operations of the Company, Subsidiary, division, business segment or business unit or not within the reasonable control of management, (g) foreign exchange gains and losses, (h) a change in the fiscal year of the Company, (i) the refinancing or repurchase of bank loans or debt securities, (j) unbudgeted capital expenditures, (k) the issuance or repurchase of equity securities and other changes in the number of outstanding shares, (l) conversion of some or all of convertible securities to Common Stock, (m) any business interruption event, (n) the cumulative effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles, or (o) the effect of changes in other laws or regulatory rules affecting reported results. 
11.28 “Plan” means this Amended and Restated 2016 Incentive Plan. 
11.29 “Restatement” means the restatement of the Plan as described in the first sentence of Article I hereof. 
11.30 “Restricted Stock” means Shares awarded to a Participant under Article VI subject to certain vesting conditions and other restrictions. 
11.31 “Restricted Stock Unit” means an unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration determined by the Administrator to be of equal value as of such settlement date, subject to certain vesting conditions and other restrictions. 
11.32 “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act. 
11.33 “Section 409A” means Section 409A of the Code and all regulations, guidance, compliance programs and other interpretative authority thereunder. 
11.34 “Securities Act” means the Securities Act of 1933, as amended. 
11.35 “Service Provider” means an Employee, Consultant or Director. 
11.36 “Shares” means shares of Common Stock. 
11.37 “Stock Appreciation Right” means a stock appreciation right granted under Article V. 
11.38 “Subsidiary” means any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other entities in such chain. 
11.39 “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines. 
11.40 “Termination of Service” means the date the Participant ceases to be a Service Provider. 
* * * * *

13KANAB
CORP.

 

SECURITIES
PURCHASE AGREEMENT

 

BY
AND AMONG

 

KANAB
CORP.

 

AND

 

THE
INVESTOR

 

EFFECTIVE
AS OF MAY 2, 2019

 

 

 

    	 	 	 

    	 

    

 

SECURITIES
PURCHASE AGREEMENT

 

Common
Stock

 

Securities
Purchase Agreement (this “Agreement”),
effective as of May 2, 2019, is entered into by and among KANAB CORP., a Wyoming corporation (the “Company”),
and 2050 Motors, Inc., (the “Investor”). Certain capitalized
terms used in this Agreement are defined in Section 7.1 of this Agreement.

 

RECITALS

 

WHEREAS,
the Investor desires to purchase from the Company, and the Company desires to sell to the Investor, newly-authorized Common Stock,
no par value per share, of the Company (the “Common Stock”) upon the terms and conditions set forth
herein (the “Investment Transaction”); and

 

WHEREAS,
the Company has requested as a condition and an inducement to its willingness to enter into this Agreement and to consummate the
Investment Transaction, that the Company and the Investors shall enter into a Stockholders’ Agreement with industry standard
definitions, language, protections, and stockholder rights and protections (the “Stockholders Agreement”).

 

NOW,
THEREFORE, in consideration of the foregoing, and of the mutual representations, warranties, covenants and agreements contained
in this Agreement and other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto
agree as follows:

 

Section
1. Authorization and Sale of Common Shares.

 

1.1
Authorization. The Company shall adopt and file with the Secretary of State of the State of Wyoming as soon as practicable,
if required by law, a Certificate of Determination or similar document disclosing the issuance of Common shares to the Investor
(the “Amended Certificate”).

 

1.2
Purchase and Sale. On the basis of the representations, warranties, and agreements contained in this Agreement, and subject
to the terms and conditions of this Agreement, the Investor shall purchase from the Company, and the Company shall sell, issue,
and deliver to the Investor 1,000,000 shares of Common Stock (such shares of Common Stock issued to the Investor, the “Acquired
Shares”), at a purchase price of $.01 per share (“Per Share Price”), payable by the Investor
as set forth in Section 1.3 hereof.

 

1.3
Payment of Purchase Price. At the Closing, the Investor is contractually committed to the Aggregate Purchase Price to the
Company for development of KANAB CORP.’s cannabis social network @ www.kanab.club.

 

1.4
Use of Proceeds. The Company shall use the proceeds from the sale of the Common Shares for strategic investments, mergers
and acquisitions, and general corporate purposes.

 

1.5
The Closing. The closing of the purchase and sale of the Acquired Shares (“Closing”) shall take
place at 10:00 a.m., on May 26, 2019.

 

1.6
Deliveries at Closing. At the Closing or as soon as practicable after the Secretary of State of Wyoming approves the Company’s
Certificate of Determination or similar documents for its newly-created Common Shares, (a) the Company shall deliver to the Investor
a certificate or certificates representing the number of Acquired Shares being purchased by the Investor at the Closing, registered
in the name of the Investor, and (b) the Investor shall commit to the Company the capital funding in cash in the manner set forth
in Section 1.3 hereof.

 

    	 	 	 

    	 

    

 

Section
2. Representations and Warranties of the Company. Except as set forth in any required disclosure schedules, dated as
of the date of this Agreement and attached hereto, that have been delivered by the Company to the Investor prior to the execution
and delivery of this Agreement (the “Disclosure Schedule”), which exceptions shall be deemed to part
of the representations and warranties made hereunder (the Disclosure Schedule shall be arranged in sections corresponding to the
numbered and lettered sections contained in Section 2, and each such exception set forth in the Disclosure Schedule however shall
not be deemed a disclosure or an exception with respect to any other section or sections of this Agreement unless reliance of
such items to such other section or sections is specifically referenced to each applicable item in the Disclosure Schedule), the
Company hereby represents and warrants to the Investor as follows:

 

2.1
Organization, Standing, and Power. The Company is a corporation duly incorporated, validly existing, and in good standing
under the Laws of the State of Wyoming and has the requisite corporate power and authority to own, lease, operate and otherwise
hold its properties and assets and to carry on its business as it is now being conducted. The Company is duly qualified or licensed
to do business as a corporation and is in good standing in each jurisdiction in which the character or location of the property
owned, leased, operated, or held by it or the nature of the business transacted by it makes such qualification or license necessary,
except where the failure to be so qualified or licensed would not, individually or in the aggregate, have a Material Adverse Effect
on the Company.

 

2.2
Authority; Due Execution. The Company has all the requisite corporate power and authority to execute and deliver, and to perform
its obligations hereunder and to consummate the Investment Transaction contemplated by, this Agreement. The execution, delivery,
and performance by the Company of this Agreement and the other Transaction Documents and the consummation of the transactions
contemplated hereby and thereby, including the Investment Transaction, have been duly and validly authorized by all necessary
corporate action on the part of the Company. This Agreement and the other Transaction Documents have been duly executed and delivered
by the Company and, assuming due and valid authorization, execution and delivery by the Investor, each will constitute a legal,
valid, and binding obligation of the Company, enforceable against it in accordance with its terms except to the extent enforceability
may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratoriums, or similar Laws affecting creditors’
rights and remedies generally, (ii) the availability of the equitable remedy of specific performance and injunctive relief is
subject to the discretion of the court before which any proceedings may be brought, or (iii) applicable federal and state securities
Laws with respect to indemnification provisions contained in the Stockholders Agreement and Registration Rights Agreement (the
“Bankruptcy and Equity Exceptions”).

 

2.3
No Conflict or Required Approvals.

 

(a)
Except as set forth in the Disclosure Schedule, neither the execution and delivery of this Agreement or any of the other Transaction
Documents, nor the consummation by the Company of Investment Transaction contemplated hereby, or compliance with any of the terms
or provisions herein by the Company will: (i) conflict with or violate any provision of the Articles of Incorporation or Bylaws,
of the Company, assuming the filing of the Amended Certificate of Determination in relation to the consummation of the Investment
Transaction, (ii) conflict with, violate, or constitute or result in a material breach of any term, condition, or provision of,
or constitute a default (with or without due notice or lapse of time or both) under, or give rise to any right of termination,
modification, cancellation, or acceleration of any obligation or the loss of any material benefit under, or require a Consent
pursuant to any of the terms, provisions, or conditions of any material loan or credit agreement, note, mortgage, indenture, deed
of trust, lease, sublease, license, sublicense, agreement, permit, concession, franchise, security interest, instrument of indebtedness,
plan or other instrument, purchase order, or other agreement or contract to which the Company is a party or by which it is bound
or to which its properties or assets are subject, (iii) result in the imposition of any Lien upon any properties or assets of
the Company or in the suspension, revocation, forfeiture or nonrenewal of any material permit or license applicable to the Company,
or (iv) conflict with or violate any judgment, order, writ, injunction, decree of any court, governmental, regulatory or administrative
agency, commission, authority, instrumentality, or other public body, domestic or foreign (a “Governmental Entity”),
or material law applicable to the Company, or any of its respective assets or properties; except in the case of clauses (ii),
(iii), or (iv) of this Section 2.3(a), as would not have a Material Adverse Effect on the Company or its ability to consummate
and perform the terms of this Agreement.

 

    	 	2	 

    	 

    

 

(b)
Assuming the accuracy of the representations made by the Investor in Section 3 of this Agreement, no notice to, registration,
qualification, designation, declaration of, or filing by the Company with, or the Consent or Permit of, or any action by any Governmental
Entity or any other Person is required on the part of the Company in connection with the execution and delivery of this Agreement
or the other Transaction Documents, or the consummation the Investment Transaction, including, without limitation, the offer,
issuance, sale, and delivery of the Acquired Shares, except: (i) the filing of the appropriate Certificate of Determination or
similar document, which shall be filed on closing or as soon as practicable, and (ii) the filings as may be required under applicable
provisions of United States federal securities Laws (including, if applicable, pursuant to Regulation D promulgated under the
Securities Act of 1933, as amended (the “Securities Act”)), and as may be required under applicable
state securities Laws, each of which will be filed timely within the applicable periods therefor.

 

2.4
Capitalization.

 

(a)
The authorized capital stock of the Company as of the Closing Date, after giving effect to the filing of the Articles or Certificate
of Determination or similar document but prior to giving effect to the Investment Transaction contemplated hereby, shall consist
of: (i) ten million (10,000,000) shares of common stock, par value nil per share (“Common Stock”), of
which 2,000,000 shares will be issued and outstanding at closing, and no shares shall have been reserved for issuance pursuant
to outstanding Options, none of which have been issued under an Equity Incentive Plan, and (ii) no shares of preferred stock (“Preferred
Stock”). The Company holds no shares of Common Stock or Preferred Stock as treasury shares. The rights, privileges,
and preferences of the Common Stock are as stated in a Certificate of Determination or similar documents filed with the Secretary
of State of Wyoming or are subject to Wyoming rules of law.

 

(b)
All issued and outstanding shares of Common Stock have been duly authorized and validly issued and are fully paid and nonassessable.
All the issued and outstanding shares of capital stock of the Company have been offered, sold, and issued by the Company in compliance
with all registration or qualification provisions, or exemptions therefrom, under applicable federal securities Laws and the blue
sky and securities Laws of all other applicable jurisdictions.

 

(c)
The Company has reserved no shares of Common Stock for issuance to officers, directors, employees, agents, and consultants pursuant
to any Equity Incentive Plan duly adopted by the Board of Directors and approved by the Company’s stockholders prior to
the date of this Agreement (the “Equity Incentive Plan”). As of the date of this Agreement, no shares
of Common Stock have been issued pursuant to restricted stock purchase agreements or Options granted under an Equity Incentive
Plan.

 

    	 	3	 

    	 

    

 

(d)
Except as provided in other Transaction Documents: (i) no stockholder of the Company or any other Person is entitled to any preemptive
rights with respect to the purchase, sale, or issuance of, or any co-sale rights, rights of first refusal or similar restrictions
with respect to, any equity securities of the Company, (ii) the Company has no outstanding or authorized options, warrants, “phantom”
equity rights, agreements, subscriptions, calls, demands, or other rights, commitments, or arrangements (written or oral, or contingent
or otherwise) of any character to purchase or acquire any capital stock or other equity investments in any security directly or
indirectly convertible into or exchangeable or exercisable for, the capital stock of or other equity interest in the Company,
including, without limitation, any convertible indebtedness obligations (collectively, “Options”), (iii)
the Company has no outstanding obligations (contingent or otherwise) to issue any Options or to issue or distribute any capital
stock of, or other equity interests in, or assets of the Company, (iv) there are no outstanding obligations (contingent or otherwise)
of the Company to purchase, redeem, or otherwise acquire any capital stock of or other equity interests in the Company or any
of the Company’s Subsidiaries, or to pay any dividends or make any other distribution in respect thereof to their respective
securities holders, (v) there are no voting trusts, trusts, proxies or other similar agreements, understandings, or similar arrangements
to which the Company, is a party or by which the Company was bound with respect to the voting of any shares of capital stock of
the Company, and (vi) there are no contractual obligations or commitments of any character to which the Company is a party or
by which the Company is bound requiring the registration for sale of any capital stock of or other equity interests in the Company.

 

(e)
None of the Company’s outstanding Common Stock are subject to a right a first refusal in favor of the Company upon any proposed
transfer.

 

2.5
Issuance of Shares. The issuance, sale, and delivery of the Common Shares to the Investor pursuant to the Investment Transaction
have been duly authorized by all necessary corporate action on the part of the Company. The Common Shares, when issued, sold,
and delivered against payment therefor in accordance with the provisions of this Agreement, will be duly authorized and validly
issued, fully paid and nonassessable, and the Investor will receive full ownership of the Common Shares and, when issued, free
and clear of any Liens, or preemptive or other similar rights, except those set forth in the Transaction Documents. Assuming the
accuracy of the representations of the Investors in Section 3 of this Agreement, and subject to the filings described in Section
2.3(b)(ii) hereof, the offer and sale of the Common Shares to the Investor in accordance with the terms and conditions of, and
as contemplated by, this Agreement and the issuance of the Shares in accordance with their terms and the Articles will be exempt
from the registration under the Securities Act and will be exempt from registration and qualification the securities Laws of all
other applicable jurisdictions.

 

2.6
Subsidiaries. The Company does not have any Subsidiaries and does not currently own or control, directly or indirectly, any
interest in any other corporation, partnership, trust, joint venture, limited liability company, association or other business
entity.

 

2.7
Financial Statements.

 

(a)
The Company is a start-up entity with limited financial history.

 

(b)
The Company has not filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors,
suffered the appointment of a receiver to take possession of substantially all of its assets, or suffered the attachment or other
judicial seizure of substantially all of its assets, or made an assignment for the benefit of creditors or admitted in writing
its inability to pay its debts generally as the same become due.

 

2.8
No Undisclosed Liabilities. The Company does not have any material liabilities or obligations of any nature (whether accrued,
contingent or absolute, unliquidated, matured or unmatured, or known, whether due or to become due and regardless of when asserted)
except for those liabilities and obligations that are: (a) disclosed in the Financial Statements (or in the footnotes thereto),
(b) incurred or arising in the ordinary course of business since the Balance Sheet Date or in connection with the Investment Transaction,
or (c) set forth in the Section 2.8 of the Company’s Disclosure Schedule.

 

    	 	4	 

    	 

    

 

2.9
Absence of Certain Changes or Events. Since the Agreement Date:

 

(a)
the Company has conducted its business in all material respects only in the ordinary course of business,

 

(b)
there has not occurred, and there is not currently existing any circumstance, event, change, development, or occurrence (including,
without limitation, any damage, destruction, or other casualty loss (whether or not covered by insurance)) which has had, or that
is reasonably likely to have individually or in the aggregate, a Material Adverse Effect on the Company,

 

(c)
there has not been any material change in the accounting methods, principals or practices of the Company,

 

(d)
there has not been:

 

(i)
any waiver or compromise or forgiveness by the Company of a valuable right or material debt owed to it, or any satisfaction or
discharge of any Lien, or payment of any obligation by the Company, except in the ordinary course of business consistent with
past practices and which would not have individually or in the aggregate a Material Adverse Effect on the Company;

 

(ii)
any sale, assignment, transfer, disposition, lease, license, mortgage, pledge, transfer of a security interest in, or Lien created
by the Company (except for Permitted Liens), with respect to any material properties or assets of the Company (including any Intellectual
Property Rights of the Company), whether such transfer was by licensure of substantially all of such rights or otherwise, or the
modification of any material indebtedness or other liability of the Company;

 

(iii)
any declaration or setting aside or payment of any dividends or other distributions with respect to any of the Company’s
capital stock or any redemption, purchase or other acquisition of any shares of the Company’s capital stock, or any transaction
or instrument entered into by the Company which includes a right to acquire any of its capital stock;

 

(iv)
any material change to the compensation or benefits payable or to become payable to any of its directors, officers or key employees
or any material amendment or change to any employment, severance, or other compensation agreement or arrangement with any director,
officer, employee, or stockholder of the Company, or any loans or guarantees made by the Company to any directors, officers, employees,
or Affiliates of the Company;

 

(v)
any resignation or termination of employment by any officer or key employee of the Company;

 

(vi)
any material change, modification, amendment or termination of any Contract by which the Company or any of its assets are bound,
or any waiver, release or assignment of any material rights or claims under any of such Contracts or agreements;

 

(vii)
the incurrence of any indebtedness for borrowed money, or the incurrence of any other liabilities (including, without limitation,
any agreement to become liable for or any assumption) in excess of $10,000 individually or in excess of $50,000 in the aggregate;

 

    	 	5	 

    	 

    

 

(viii)
any material commitment or transaction (including, but not limited to, any borrowing, capital expenditure or purchase, sale or
lease of assets or property) other than in the ordinary course of business;

 

(ix)
receipt of notice that there has been a material order cancellation by any major customer of the Company; or

 

(x)
any agreement, contract, commitment or arrangement to do any of the foregoing under this Section 2.9.

 

2.10
Tax Matters. The Company has duly filed or caused to be filed in a timely manner (within applicable extension periods) all
material Tax Returns and forms required to be filed by it and no material penalties or other charges are or will become due with
respect to any of Tax Returns as the result of the late filing thereof. All Tax Returns are true and complete in all material
respects. The Company (i) has paid all Taxes due or claimed to be due by any Taxing authority in connection with any of the Company’s
Tax Returns (without regard to whether or not such Taxes are shown as due on such Tax Returns), as well as all other Taxes, assessments,
and governmental charges which have become due and payable, including, without limitation, all Taxes which the Company is obligated
to withhold from amounts owing to employees, creditors, and third parties, and (ii) has established in its Financial Statements
adequate reserves (in conformity with GAAP consistently applied) for the payment of all Taxes which are accrued but not yet payable.
The amounts set up as reserves for Taxes on the Financial Statements of Company are sufficient for the payment of all unpaid Taxes,
whether or not such Taxes are disputed or are yet due and payable, for or with respect to the period, and for which the Company
may be liable. There is no federal, state, local or foreign action, suit, proceeding, audit, investigation, or claim pending or,
to the Knowledge of the Company, threatened in respect of any Taxes for which the Company is or may become liable, nor has any
deficiency or claim for any such Taxes been proposed, asserted or, to the Knowledge of the Company, threatened by any Taxing authority.
The Company has not consented to any waivers or extensions of any statute of limitations with respect to any taxable year of the
Company. There is no agreement, waiver, or consent providing for an extension of time with respect to the assessment or collection
of any Taxes against the Company, and no power of attorney granted by the Company with respect to any tax matters is currently
in force. There is no Tax Lien (other than for current Taxes not yet due and payable), whether imposed by any federal, state,
county or local Taxing authority, domestic or foreign, outstanding against the assets, properties or business of the Company.
Neither the Company nor any of its present or former stockholders has ever filed an election pursuant to Section 1362 of the Internal
Revenue Code of 1986 (the “Code”), that the Company be taxed as an S corporation.

 

2.11
Assets. The Company has good and, in the case of real property, marketable title, or valid leasehold interests in, its properties
and assets, real and personal, reflected in the most recent Financial Statements or thereafter acquired by the Company (“Company
Assets”), free and clear of all Liens, except for Permitted Liens. All real property owned by the Company is held
in fee simple by the Company and none of the Liens thereon interfere with the enjoyment and use of such real property. All buildings
and all fixtures, equipment, and other assets and properties which are material or necessary to the business of the Company held
under leases or subleases by any of them are held under valid instruments enforceable in accordance within their respective terms
and each such instrument is in full force and effect. The Company is in substantial compliance with the terms of all leases to
which it is a party and enjoys peaceful and undisturbed possession under all such leases. All personal property of the Company
is in good operating condition and repair and is suitable and adequate for the uses for which it is intended or is being used.

 

    	 	6	 

    	 

    

 

2.12
Contracts and Commitments.

 

(a)
The Company is not a party to or subject to or bound by any of the following Contracts or proposed transactions that involve:
(i) an indebtedness obligation (whether incurred, assumed, guaranteed, contingent, or secured by any asset or otherwise granting
of a Lien) in excess of $50,000 in the aggregate, (ii) an obligation (contingent or otherwise) of the Company or a payment to
the Company in excess of $10,000 individually or in excess of $50,000 in the aggregate, (iii) any non-compete or exclusivity provisions
with respect to any line of business or geographic area that restricts the business of the Company, or that otherwise restrict
the ability of the Company to compete in any business or geographic area or with any Person, (iv) the license of any Intellectual
Property Rights, trade secret, or other proprietary right to or from the Company, or (v) indemnification by the Company, including,
without limitation, indemnification with respect to infringements of proprietary rights.

 

(a)
The Company has not: (i) incurred an indebtedness for borrowed money or incurred any other liabilities (whether incurred, assumed,
guaranteed, or secured by any asset or otherwise granting of a Lien) in excess of $10,000 individually or in excess of $50,000
in the aggregate, which is not paid in full, (ii) declared, set aside, or paid any dividends or other distributions with respect
to any of the Company’s capital stock or any redemption, purchase or other acquisition of any shares of the Company’s
capital stock (other than pursuant to a termination of employment or services of an employee or consultant pursuant to any option
agreement or other agreement approved by the Board), (iii) sold, assigned, transferred, licensed mortgaged, pledged, or otherwise
disposed of any of the properties or assets or rights of the Company (other than a sale of inventory in the ordinary course of
business), (iv) made any loans or advances to any Person (other than advances for ordinary travel expenses or trade payables incurred
in the ordinary course of business),or (v) guaranteed or indemnified any indebtedness of any other Person.

 

2.13
Licensing, Manufacturing, and Marketing Rights Agreements. The Company has not granted rights to manufacture, produce, assemble,
license, market, sell or distribute the Company’s products to any other Person and is not bound by any agreement that limits
or restricts the Company’s exclusive right to develop, manufacture, license, market, sell or distribute the Company’s
products.

 

2.14
Customers and Suppliers. No customer or supplier of the Company that accounted for more than 5% of the Company’s total
sales or purchases, as appropriate, during the preceding 12 months has notified the Company that it intends to discontinue its
relationship with the Company.

 

2.15
Permits; No Violations; and Compliance with Laws.

 

(a)
The Company holds all material Permits necessary for them to own, lease, and operate their respective assets and properties and
to lawfully carry on its business as now conducted. All such material Permits are, and at each Closing will be, valid and in full
force and effect, and the Company is, and at each Closing each of them shall be, in substantial compliance with all conditions
and requirements of such Permits and all rules and regulations relating thereto. The Company has not received any written claim
or written notice nor has any Knowledge indicating that the Company is currently not in compliance with the terms of any such
Permits, except where the failure to be in compliance with the terms of any such Permits, have not had and would not reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect on the Company.

 

(b)
The Company (i) is not in conflict with or in violation of any provision of its Articles of Incorporation or Bylaws, (ii) is not
in conflict with or in violation or breach of, or in default under (with or without due notice or lapse of time or both) material
loan or credit agreement, note, mortgage, indenture, deed of trust, lease, sublease, license, sublicense, agreement, Permit, concession,
franchise, security interest, instrument of indebtedness, plan or other instrument, purchase order, or other agreement or Contract
to which the Company or by which it is bound or to which its properties or assets are subject, (iii) is not in conflict with or
in violation of any judgment, order, writ, or decree of any Governmental Entity to which it the Company is a party or by which
it is bound, or, to the Knowledge of the Company, of any provision of any Laws of the United States and of all other jurisdictions
applicable to the Company or any of its assets or properties, and any Governmental Entity in respect of the conduct of its business,
and (iv) to the Knowledge of the Company, has not performed any act, the occurrence of which would result in the Company’s
loss of any right granted under any material license, distribution or other agreement.

 

    	 	7	 

    	 

    

 

2.16
No Litigation. There is not now pending or, to the Knowledge of the Company, threatened in writing, any litigation, suit,
claim, action, or proceeding, including, without limitation, arbitration proceeding, mediation, or other alternative dispute resolution
proceeding, to which the Company is or will be a party (or, as applicable, to the Knowledge of the Company, any of its directors,
officers or employees in their capacities as such is or will be a party) or by which its property or assets will or may be bound
or affected in or before or by any Governmental Entity which: (a) is against the Company or any director, officer, or employee
of the Company, including, without limitation, actions involving the prior employment of any of the Company’s employees,
their services provided in connection with the Company’s business, or any information or actions allegedly proprietary to
any of their prior employers or their obligations under any agreement with prior employers, (b) challenges or seeks to question
the validity of the Investment Transaction or prevent, enjoin, alter or materially delay any of the transactions contemplated
by this Agreement, (c) would be reasonably likely to threaten, impede, impair or adversely affect the obligation of the Company
to consummate the transactions contemplated by the Agreement, or (d) which is reasonably likely to have a Material Adverse Effect
on the Company. In addition to the foregoing, there is no judgment, decree, writ, injunction, rule or order of any Governmental
Entity or arbitrator outstanding against the Company or, to the Knowledge of the Company, against any of its directors, officers,
or employees which would affect the Company. The Company has not received any written notification of, and to the Knowledge of
the Company, there is no, investigation by any Governmental Entity involving the Company or any of its respective assets that
would reasonably be likely to have, individually or in the aggregate, a Material Adverse Effect on the Company. There is no litigation,
suit, claim, action, or proceeding by the Company pending or which the Company intends to initiate.

 

2.17
Intellectual Property Rights.

 

(a)
Section 2.17 of the Disclosure Schedule contains an accurate and complete list of all material Intellectual Property Rights owned
by the Company, setting forth (i) all issued or registered Trademarks, Copyrights, and Mask Works, all Domains, and all issued
or pending Patents that are owned by the Company and (ii) all Licenses to which the Company is a party (other than “shrink-wrap”
or off-the-shelf software and databases and other works of authorship licensed to the Company under non-exclusive Licenses granted
to end-user customers by third parties in the ordinary course of business of such third parties’ businesses but including
any open source and similar license), and such listing accurately states, as to each such License, whether the Company is the
licensee or licensor. True and complete copies of all Licenses have been furnished to the Investor. The capitalized terms used
in this Section 2.17 are defined within the definition of Intellectual Property Rights in Section 7.1(a) hereof.

 

(b)
The Company is the sole and exclusive owner of, or has a valid license or otherwise possesses valid rights to use all Intellectual
Property Rights necessary provide, produce, use, sell and license the services and products currently provided, produced, used,
sold and licensed by the Company and to conduct the business of the Company as it is currently conducted, free and clear of all
Liens.

 

(c)
The Company is not under any obligation to pay any royalty or other compensation to a third party or to obtain any approval or
consent for the use of any Intellectual Property used in or necessary for its business as currently conducted.

 

    	 	8	 

    	 

    

 

(d)
To the Knowledge of the Company, the conduct of the business of the Company as it is currently conducted and the products or services
produced, sold or licensed by or under development by the Company does not infringe, misappropriate or otherwise violate the Intellectual
Property Rights of any third party, or give rise to any obligations to any Person as a result of co-authorship, co-inventorship,
or an express or implied contract for any use or transfer. There are no pending or, to the Knowledge of the Company, threatened
any litigation, suit, claim, action, proceeding, hearing, investigation to demand that challenges the liability, validity, enforceability,
or the use or ownership by the Company of any portion of the Intellectual Property Rights owned by the Company or, to the Knowledge
of the Company, licensed to the Company. The Company has not received any written notice of any infringement or misappropriation
by, or conflict with, any third party with respect to such Intellectual Property Rights, and the Company has not received any
notice of claims of infringement or misappropriation of or other conflict with any Intellectual Property Right of any third party.
None of the Company’s present products (or those under development) or services incorporate, are based upon or are derived
or adapted from, any Intellectual Property Right of any other Person in material violation of any statutory or other legal obligation
or any agreement to which the Company is a party or by which it is bound.

 

(e)
The Company has (i) taken commercially reasonable steps to register or otherwise protect all material Intellectual Property Rights
owned by the Company, and (ii) taken reasonable steps in accordance with normal industry practice to maintain the confidentiality
of its trade secrets and other confidential Intellectual Property Rights, and, to the Knowledge of the Company, there has been
no act or omissions by the Company, the result of which would be to materially impair the rights of the Company to apply for or
enforce appropriate legal protection of such Intellectual Property Rights, with the exception of any public disclosures or offers
of sale that may create prior art with respect to future patent applications. To the Knowledge of the Company, no Intellectual
Property Rights owned by the Company is being infringed, diluted, misappropriated or otherwise violated by any third party and
no litigation, suit, claim, action, or proceeding by the Company is pending against any third party in connection with any Intellectual
Property Rights owned by the Company. Except as set forth in Schedule 2.17(g) of the Disclosure Schedule, none of the Intellectual
Property Rights owned by the Company, or to the Knowledge of the Company, licensed to the Company is subject to any outstanding
judgment, order, decree, stipulation, injunction or charge. No former employees, officers, directors or independent contractors
of the Company has asserted in writing any or, to the Knowledge of the Company, have any, valid claim or valid right to any of
the Intellectual Property Rights used in or necessary for the conduct of the Company’s business as now conducted or as currently
proposed to be conducted.

 

(f)
The Company has taken reasonable steps in accordance with normal industry practice to preserve and maintain, reasonably complete
notes and records (including, without limitation, drawings, flow charts and prototypes) relating to its know-how, inventions,
processes, procedures, drawings, specifications, designs, plans, written proposals, technical data, works of authorship and other
proprietary technical information, sufficient to cause such proprietary information to be readily identified, understood and available.

 

(g)
The Company has valid Licenses for all software used in the conduct of the business of the Company as it is currently conducted
and the Company has not been the subject of, or have been given notice of, any actual or proposed or threatened software license
audit by the Business Software Alliance or any other entity, association or Person. None of the software necessary for the business
of the Company is subject to an open source software license (including without limitation any GNU General Public License, Creative
Commons License, or any similar open source license). Neither execution of this Agreement nor completion of the transaction contemplated
herein will invalidate or violate any License or other agreement with respect to the Intellectual Property Rights owned or used
by the Company or any confidentiality agreement or non-disclosure agreement or provision to which the Company is subject.

 

    	 	9	 

    	 

    

 

2.18
Employee Matters and Benefit Plans.

 

(a)
Employment Matters. The Company is in material compliance with all applicable Laws relating to the employment and employment
practices, including Laws regarding discrimination, harassment, affirmative action, terms and conditions of employment, wage and
hour requirements (including the proper classification of, compensation paid to, and related withholding with respect to employees,
leased employees, consultants, and independent contractors), leaves of absence, equal opportunity, reasonable accommodation of
disabilities, occupational health and safety requirements, collective bargaining, workers’ compensation insurance and the
payment of social security and other Taxes. The Company is not delinquent in payments to any of its employees, consultants, and
independent contractors for wages, salaries, commissions, bonuses, or other direct compensation for service performed through
the date hereof or any required reimbursements. The Company is not a party to, nor to the Knowledge of the Company is threatened
with, any material litigation, action, suit, or proceeding by any current or former employee, including without limitation in
respect to deferred salary, benefits or severance.

 

(b)
Labor Matters. The Company is not, and has never been, a party to any union contract, collective bargaining agreement,
or similar Contract, and there is no past or pending labor union organizing activity or, to the Knowledge of the Company, any
such activity threatened with respect to the Company or any employees. No work stoppage, slowdown, labor strike or other labor
trouble against the Company (including, without limitation, any organizational drive) is pending or, to the Knowledge of the Company,
threatened, nor has there been any such activity.

 

2.19
Related-Party Transactions. The Company stipulates that:

 

(a)
the Company is not indebted, directly or indirectly, to any directors, officers, employees or stockholders of the Company or to
the Immediate Family Members of any such Person, or to any Affiliate of the foregoing, other than amounts payable in connection
with advances of expenses incurred in the ordinary course of business or for employee benefits made available to all employees.
None of the directors, officers, employees or stockholders of the Company or the Immediate Family Members of any such Person are
indebted, directly or indirectly, to the Company.

 

(b)
to the Knowledge of the Company, no employee, officer or director of the Company or Immediate Family Members of such Person, or
any Affiliate of the foregoing has any direct or indirect ownership interest in any firm or corporation with which the Company
is affiliated or with which the Company has a business relationship or any firm or corporation that competes with the Company
(other than the ownership of less than 2% of the common equity of publicly-traded companies that may compete with the Company).

 

(c)
with the exception of Vikram Grover, President and Founder of KANAB CORP., no employee, officer or director of the Company or
immediate family member of such Person, or any Affiliate of the foregoing (i) is directly or indirectly interested in any material
Contract or proposed transaction with the Company, other than standard employment agreements, Options granted under the Equity
Incentive Plan approved by the Board of Directors, and indemnification agreements with officers and directors of the Company approved
by the Board of Directors (all of such approvals reflected in the written minutes of the Board of Directors previously provided
to the Investor), or (ii) has a material relationship (including, without limitation, commercial, banking, industrial, legal,
accounting, consulting, charitable or familial relationship) with any customer, service provider, supplier, licensee or licensor,
or joint venture partner of the Company.

 

    	 	10	 

    	 

    

 

2.20
Environmental Matters.

 

(a)
Except as would not have, individually or in the aggregate, a Material Adverse Effect on the Company: (i) to the Knowledge of
the Company, no Hazardous Materials have been generated, transported, used, disposed, stored or treated by the Company and no
Hazardous Materials have been released, discharged, disposed, transported, placed or otherwise caused to enter the soil or water
in violation with any Environmental Law in, under, or affecting any current or previously owned or lease real properties of the
Company, or any Participation Facility or any Owned Property of the Company; (ii) to the Knowledge of the Company, the Company
and the operation of its business, and all of its current and previously owned or operated Participation Facilities and its Owned
Properties are, and have been, in compliance in all material respects with all applicable Environmental Laws; and (iii) there
is no suit, claim, action, or proceeding pending or, to the Knowledge of the Company, threatened before any Governmental Entity
or other forum in which the Company, or any current or previously owned or operated Participation Facility or Owned Property has
been or, to the Knowledge of the Company with respect to threatened proceedings, may be named as a defendant or a potentially
responsible party (x) for alleged noncompliance (including by any predecessor) with any Environmental Law, or (y) relating to
the release into the environment of any Hazardous Material in violation of applicable Law, whether or not occurring at, on, under,
or involving a site owned, leased, or operated by the Company, or any of its Participation Facilities or Owned Properties (or
the Company in respect of any Participation Facility or Owned Property).

 

(b)
The Company has provided to the Investors, true and complete copies of all material environmental records, reports, notifications,
engineering studies, environmental studies and assessments, Permits and pending Permit applications, certificates of need, and
related correspondence.

 

2.21
Corporate Documents; Minute Book and Records. A copy of the minute books of the Company, which have been furnished or otherwise
made available to the Investor, contains the minutes of all meetings (or written consents without a meeting) of the Board of Directors
and of the stockholders of the Company since the Company’s date of incorporation, and accurately reflects (in all material
respects) all actions by the Board of Directors and stockholders with respect to all transactions referred to in such minutes.
The books of account, ledger, order books, records and documents of the Company, each of which have been furnished or otherwise
made available to the Investor, accurately and completely reflect all material information relating to the business of the Company,
the nature, acquisition, maintenance and, location and collection of each of, its assets, and the nature of all transactions giving
rise to the obligations or accounts receivable of the Company.

 

2.22
Full Disclosure. The Company has made available or provided to the Investor all information reasonably available to the Company
that the Investor have requested in connection with their decision whether to purchase the Acquired Shares, including certain
of the Company’s projections describing the proposed business plan. No representation or warranty of the Company contained
in this Agreement, the exhibits hereto, any certificate furnished at Closing or in the other Transaction Documents contain any
untrue statement of a material fact nor, to the Knowledge of the Company, omit to state a material fact necessary in order to
make the statements contained herein or therein not misleading.

 

2.23
Certain Business Practices. Neither the Company nor, to the Knowledge of the Company, any director, officer, agent or employee
of the Company acting on behalf of the Company has: (a) used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity regarding the business of the Company, or (b) made, offered, promised, or authorized
any unlawful payment or gift of any money or anything of value to or for the benefit of foreign or domestic government officials
or employees or to foreign or domestic political parties or campaigns, in each case in violation of the Foreign Corrupt Practices
Act of 1977, as amended (“FCPA”). Neither the Company nor, to the Knowledge of the Company, any director,
officer, agent or employee of the Company have made or authorized any bribe, payoff, kickback, payment for influence, rebate or
other unlawful payment of funds or received or retained such funds in violation of any Law.

 

    	 	11	 

    	 

    

 

2.24
Real Property Holding Corporation. The Company is not now and has never been a “United States real property holding
corporation” as defined in Section 897(c)(2) of the Code and regulations promulgated thereunder.

 

2.25
Qualified Small Business Stock. As of and immediately following the Closing, the Company meets and will meet all of the requirements
for qualification as a “qualified small business” set forth in Section 1202(d) of the Code, including without limitation
the following: (i) the Company will be a domestic C corporation, (ii) the Company’s (and any predecessor’s) aggregate
gross assets, as defined by Section 1202(d)(2) of the Code, at no time between the date of its incorporation and the Closing,
have exceeded U.S. $50 million, taking into account the assets of any corporations required to be aggregated with the Company
in accordance with Section 1202(d)(3)of the Code, (iii) the Company has not made any purchases of its own stock described in Section
1202(c)(3)(B) of the Code during the one year period preceding the Closing, and (iv) the Company is an eligible corporation as
defined by Section 1202(e)(4) of the Code; provided, however, that in no event shall the Company be liable to the Investor or
any other party for damages arising from subsequently proven or identified error in the Company’s determination with respect
to the applicability or interpretation of Section 1202 of the Code, unless the Company is grossly negligent or fraudulent in its
determination.

 

2.26
Small Business Concern. The Company is a “small business concern” under the Small Business Investment Act of 1958
(the “Small Business Act”) as defined in Section 121.301 of Title 13 of the Code of Federal Regulations
promulgated thereunder.

 

2.27
No Investment Company. The Company is not an “investment company” within the meaning of the Investment Company
Act of 1940, as amended.

 

Section
3. Representations and Warranties of the Investors. Each of the Investors, severally and not jointly, the Investor
hereby represents and warrants to the Company as follows:

 

3.1
Organization, Standing, and Power. Each such Investor which is not an individual (an “Entity Investor”)
is a limited partnership, limited liability company, or a corporation which has been duly organized and is validly existing and
in good standing under the laws of its jurisdiction of formation, organization, or incorporation, as the case may be, and has
the requisite power an authority to own, lease, operate and otherwise hold its properties and assets and to carry on its business
as it is now being conducted.

 

3.2
Authority; Due Execution.

 

(a)
Each such Entity Investor has all the requisite power and authority to execute and deliver, and to perform its obligations hereunder
and to consummate the Investment Transaction contemplated by, this Agreement. The execution, delivery, and performance by each
such Entity Investor of this Agreement and the other Transaction Documents to which they are a party, and the consummation of
the transactions contemplated hereby and thereby, including the Investment Transaction, have been duly and validly authorized
by all necessary action on the part of each such Entity Investor. This Agreement and other Transaction Documents to which they
are a party have been duly executed and delivered by each such Entity Investor and, assuming valid authorization, execution and
delivery hereof by the Company and each other Investors to this Agreement, each will constitute a legal, valid and binding obligation
of such Equity Investor enforceable against it in accordance with its terms (except to the extent enforceability may be limited
by the Bankruptcy and Equity Exceptions).

 

(b)
Each such Investor has the full legal capacity to execute and deliver, and to perform its obligations hereunder and to consummate
the Investment Transaction contemplated by this Agreement. This Agreement and the other Transaction Documents to which they are
a party have been duly executed and delivered by such non-Entity Investor and, assuming valid authorization, execution and delivery
hereof by the Company, and each other Investors to this Agreement, will constitute a legal, valid and binding obligation of such
Investor enforceable against it in accordance with its terms (except to the extent enforceability may be limited by the Bankruptcy
and Equity Exceptions).

 

    	 	12	 

    	 

    

 

3.3
No Conflict or Required Approvals. Neither the execution and delivery of this Agreement and the other Transaction Documents
to which they are a party, nor the consummation by the Investor of Investment Transaction contemplated hereby, or compliance with
any of the terms or provisions herein by the Investor will (a) if an Entity Investor, conflict with or violate any provision of,
or require a Consent under such Entity Investor’s organizational, operating, and governance documents, (b) conflict with,
violate, or constitute or result in a material breach of any term, condition, or provision of, or constitute a default (with or
without due notice or lapse of time or both) under, or require a Consent pursuant to any of the terms, provisions, or conditions
any credit agreement, note, indenture, lease, or other instrument to which such Investor or by which any of its properties or
assets are subject bound, or (c) conflict with or violate any judgment, order, writ, injunction, decree of any Governmental Entity
or material Law applicable to such Investor or any of its assets or properties is subject. No notice, registration, qualification,
designation, declaration, or filing with, or the Consent or Permit of, or any action by any Governmental Entity is required on
the part of an Investor in connection with the execution and delivery of this Agreement or the other Transaction Documents, or
the consummation the Investment Transaction.

 

3.4
Investment Intent. Such Investor: (a) is the sole and true party in interest, and is acquiring its respective portion of the
Common Shares, and will acquire the Shares solely for its own account, not as a nominee or agent, for investment purposes only,
and not with an intent or a view to the sale or distribution of any part thereof within the meaning of Section 2(a)(11) of the
Securities Act, (b) does not have any present intent of making a Transfer of, granting a participation in, or otherwise distributing
the Shares (collectively, the “Securities”) in a manner contrary to the Securities Act or the securities
Laws of any other applicable jurisdiction, (c) does not have any contract, undertaking, agreement, or arrangement with any Person
to Transfer, grant any participation in, or otherwise distribute any of the Securities to such Person, and (d) does not presently
have any reason to anticipate any change in circumstances or other particular occasion or event which would cause such Investor
to need to sell the Securities, except in accordance with the terms of this Agreement and in compliance with all applicable federal
and state securities Laws.

 

3.5
Restricted Securities; Transfer Restrictions.

 

(a)
Such Investor affirms that it has been advised and understands that (i) none of the Securities have been registered under the
Securities Act or registered or qualified under the securities Laws of any other jurisdiction and are being sold in reliance upon
an exemption from registration under such Laws, (ii) such Investor may not Transfer the Securities unless they are subsequently
registered and qualified under such Laws or, in the opinion of counsel reasonably satisfactory to the Company, an exemption from
such registration and qualification is available, (iii) if an exemption from registration or qualification is available, it may
be conditioned on various legal, procedural and other requirements which are outside of the Investor’s control and which
the Company has no obligation and may not be able to satisfy, and (iv) such Investor is familiar with Rule 144 and Rule 144A as
presently in effect and recognizes that in the future the Company may not satisfy the requirements which would permit it to sell
the Securities pursuant to Rule 144 or Rule 144A promulgated under the Securities Act.

 

(b)
Such Investor understands and acknowledges that only the Company can register the Securities under applicable securities Laws,
and that the Company has no obligation to register or qualify the Securities under the Securities Act or the securities Laws of
any other jurisdiction except as set forth in the Registration Rights Agreement.

 

    	 	13	 

    	 

    

 

3.6
Knowledge, Experience, and Financial Capability.

 

(a)
Such Investor has sufficient knowledge and experience in financial and business matters and investing in companies similar to
the Company so that it is capable of evaluating the merits and risks of the investment contemplated by this Agreement and understands
and acknowledges that an investment in the Securities and the Company involves certain risks. Such Investor recognizes that no
public market for the Securities exists and none is expected to develop and, as result, when considered in relation to the Transfer
restrictions identified in Section 3.5 hereof, that an investment in the Securities may not be liquid and that such Investor must
bear the economic risk of the investment indefinitely. Such Investor is a sophisticated investor and has carefully considered
and evaluated the risks and benefits of an investment in the Securities and the Company and such Investor has taken full cognizance
of, understands, and is willing to bear the risks related to the purchase of the Securities.

 

(b)
Such Investor further represents that it has adequate means of providing for its current needs and possible contingencies, it
can afford to bear the economic risk of holding the Securities for an indefinite period of time, it has no need for liquidity
in its investment in the Securities, and it has the net worth sufficient to bear the risks of and to sustain a complete loss of
such Investor’s entire investment in the Company. Such Investor has been represented by counsel and other advisors of its
choosing.

 

3.7
Accredited Investor; Not a Bad Actor. Such Investor is: (a) an “accredited investor” as such term is defined in
Rule 501(a) promulgated under the Securities Act, and (b) is not subject to any “bad actor” disqualification as set
forth in Rule 506(d) of Regulation D or any similar disqualification provision that could adversely affect the Company’s
reliance on any federal or state securities registration exemption or that could otherwise adversely affect the offering of the
Securities.

 

3.8
Information Disclosed to Investor. Such Investor represents, acknowledges and confirms that prior to the sale of the Acquired
Shares to such Investor pursuant to this Agreement, such Investor (a) has been given an the opportunity to ask questions of, and
receive answers from, representatives of the Company concerning Company and the terms and conditions of the sale of the Acquired
Shares by the Company to such Investor and (b) has been given the opportunity to obtain any additional information which such
Investor deemed necessary to verify the accuracy of the information supplied to it. Such Investor confirms that it has been furnished
with all such requested information and all questions asked by such Investor have been answered to its full satisfaction. Such
Investor represents that in connection with its purchase of the Securities, it has not relied on any statement or representation
by the Company, or any of its officers and directors, or any of their attorneys or agents, except as specifically set forth herein
or provided pursuant to this Section 3.8. Such Investor confirms that it is aware and understands that no federal or state agency
has made any finding or determination as to the fairness of this offering nor has made any recommendation or endorsement of the
Securities. None of the representations or warranties of the Investor in this Section 3.8 shall limit or modify the representations
and warranties of the Company set forth in Section 2 hereof or the right of the Investors to rely thereon.

 

3.9
No General Solicitation. Such Investor represents and certifies that such Investor is not acquiring the Securities as a result
of any form of “general solicitation” or “general advertising” as those terms are used in Rule 502(c)
of Regulation D promulgated under the Securities Act.

 

3.10
Reliance on Investor’s Representations. Such Investor acknowledges and understands that the representations, warranties,
and covenants contained in this Section 3 of the Agreement are being furnished, in part, and will be relied on by the Company
in determining whether this offering of the Securities is exempt from registration under the Securities Act and the securities
laws of all other applicable jurisdictions and, accordingly, confirms that all such statements contained herein are true, complete,
and accurate as of the date hereof, and shall be true, accurate, and complete as of the date that this Agreement is executed and
delivered, and shall survive the Closing. If any events occur or circumstances exist prior to the issuance of the Acquired Shares
to such Investor which would make any of the representations, warranties, agreements, or other information of an Investor set
forth herein untrue or inaccurate, such Investor agrees to immediately notify the Company in writing of such fact specifying which
representations, warranties, or covenants are not true, correct, or accurate, and the reasons therefor.

 

    	 	14	 

    	 

    

 

3.11
Investor Source of Funds.

 

(a)
Compliance with International Trade Control Laws and OFAC Regulations. Such Investor represents and warrants that such
Investor is not now nor shall it be at any time hereafter an individual, corporation, partnership, joint venture, association,
joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of entity with whom a United States citizen, entity
organized under the Laws of the United States or its territories or entity having its principal place of business within the United
States or any of its territories (collectively, a “U.S. Person”), is prohibited from transacting business
of the type contemplated by this Agreement, whether such prohibition arises under United States Law, executive orders and lists
published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”) (including
those executive orders and lists published by OFAC with respect to Persons that have been designated by executive order or by
the sanction regulations of OFAC as Persons with whom U.S. Persons may not transact business or must limit their interactions
to types approved by OFAC “Specially Designated Nationals and Blocked Persons”) or otherwise. Neither
such Investor nor any Person who owns an interest in the Investor, if an Entity (collectively, a “Purchaser Party”),
is now nor shall be at any time hereafter a Person with whom a U.S. Person, including a “financial institution” as
defined in 31 U.S.C. § 5312(a)(2) (“Financial Institution”), is prohibited from transacting business
of the type contemplated by this Agreement, whether such prohibition arises under United States Law, regulation, executive orders
and lists published by the OFAC (including those executive orders and lists published by OFAC with respect to Specially Designated
Nationals and Blocked Persons) or otherwise.

 

(b)
Investor’s Funds. Such Investor represents and warrants that such Investor has taken, and shall continue to take
hereafter, such measures as are required by Law to assure that the funds used to pay to the Company any portion of the Aggregate
Purchase Price are derived from: (i) transactions that do not violate United States Law nor, to the extent such funds originate
outside the United States, do not violate the laws of the jurisdiction in which they originated; and (ii) permissible sources
under United States Law and to the extent such funds originate outside the United States, under the laws of the jurisdiction in
which they originated.

 

(c)
Anti-Money Laundering Laws. Such Investor represents and warrants that neither such Investor nor any Person providing funds
to the Investor: (i) is under investigation by any governmental authority for, or has been charged with, or convicted of, money
laundering, drug trafficking, terrorist related activities, any crimes which in the United States would be predicate crimes to
money laundering, or any violation of any Anti Money Laundering Laws; (ii) has been assessed civil or criminal penalties under
any Anti-Money Laundering Laws; or (iii) has had any of its funds seized or forfeited in any action under any Anti Money Laundering
Laws.

 

3.12
Foreign Investors. If such Investor is not a U.S. Person, such Investor hereby represents and warrants that it has satisfied
the full observance of the Laws of its jurisdiction in connection with this Agreement and the other Transaction Documents and
the subscription for the Acquired Shares, including, without limitation, the receipt of any Consents from or actions to be taken
by any Governmental Entity in such jurisdiction required as a condition to the Investment Transaction and the satisfaction of
any other applicable legal requirements within such jurisdiction for the purchase of the Acquired Shares. The subscription and
payment by the Investors for, and the continued beneficial ownership of, the Securities will not violate any applicable securities
of other Laws of the Investor’s jurisdiction.

 

    	 	15	 

    	 

    

 

3.13
No Litigation. There is not now pending or, to the Knowledge of such Investor, threatened, any material litigation, suit,
claim, action, or proceeding, including, without limitation, arbitration proceeding, mediation, or other alternative dispute resolution
proceeding, to which such Investor, is or will be a party or by which its property or assets will or may be bound or affected
which (a) challenges or seeks to question, prevent, enjoin, alter or materially delay any of the transactions contemplated by
this Agreement, or (b) would be reasonably likely to threaten, impede, impair or adversely affect the obligation of such Investor
to consummate the transactions contemplated by the Agreement.

 

Section
4. Additional Agreements.

 

4.1
Transfer Restrictions. The Investor hereby agrees that such Investor will not, directly or indirectly, Transfer or offer to
Transfer any of the Securities, or any of its interests therein (or solicit any offers to buy, purchase, or otherwise acquire
or take a pledge of the Securities), except in compliance with this Agreement and the Securities Act, the securities laws of all
other applicable jurisdictions, and the rules and regulations promulgated thereunder.

 

4.2
Legends. The Investor confers full authority upon the Company to affix, when issued, appropriate legends relating to applicable
Transfer restrictions to the face of the certificate or certificate representing the Securities or on any other document representing
the Securities, including, without limitation, the following:

 

(a)
“THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
THE SECURITIES LAWS OF ANY OTHER JURISDICTION AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED,
OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE SECURITIES LAWS
OF ALL OTHER APPLICABLE JURISDICTIONS UNLESS, IN THE OPINION OF COUNSEL TO THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED.”

 

(b)
any legend set forth in, or required by, the Other Transaction Documents and the securities Laws of any other applicable jurisdiction,
if any.

 

4.3
Investor’s Indemnification Agreement. The Investor acknowledges that understands the meaning and legal consequences
of the representations, warranties and covenants contained in Section 3 of this Agreement, especially as it relates to the reliance
referenced in Section 3.10 hereof, and agrees to indemnify and hold harmless the Company and its agents, employees, and representatives
from and against any and all losses (including reasonable attorney’s fees), damage or liabilities due to or arising out
of any misrepresentations, misstatements, or omissions with respect to any of the representations or warranties, or a breach of
any of the covenants or agreements, contained in this Agreement by the Investor.

 

4.4
Reservation of Shares. The Company hereby agrees that:

 

(a)
It will make best efforts to have authorized and will reserve and keep available, solely for issuance and delivery to the holder
of the Shares, that number of shares of its Common Stock (or other securities and property) that may be required from time to
time for issuance and delivery of the Shares.

 

    	 	16	 

    	 

    

 

(b)
it shall take all necessary steps to ensure that the Shares, when issued in accordance with this Agreement, shall be duly and
validly issued, shall be fully paid and nonassessable, free and clear of any Liens of any kind whatsoever, and free from all preemptive
rights of any security holders of the Company.

 

(c)
it shall take all action as may be necessary to assure that such Shares (and any other securities and property) may be issued
and delivered as provided herein and as set forth in the Articles without violation of any applicable Law, or of any requirements,
of any domestic securities exchange or inter dealer quotation system upon which the Common Stock may then be listed; provided,
however, that the Company shall not be required to effect a registration under federal or state securities Laws.

 

4.5
Information Rights.

 

(a)
The Company covenants and agrees with the Investor that for so long as the Investor continues to own beneficially any shares of
Common Stock (subject to adjustment to reflect stock splits, stock dividends, and other combinations or subdivisions of the Common
Stock), the Company shall (i) permit such Investor to visit and inspect the properties of the Company and to discuss the Company’s
business and finances with officers of the Company, in each case during normal business hours following reasonable notice, which
right may be exercised through any agent or employee of such Investor designated by it or by a certified public accountant designated
by such Investor and (ii) promptly upon request, furnish to such Investor such other information bearing on the financial condition
and operations of the Company as the Investor may from time to time reasonably request; provided, however, that in each
case the Company shall not be obligated pursuant to this Section 4.5(a) to provide access to any information that the Company
reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality
agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege
between the Company and its counsel.

 

(b)
The Company covenants and agrees with the Investor that for so long as the Investor continues to own beneficially or of record
any shares of Common Stock (subject to adjustment to reflect stock splits, stock dividends, and other combinations or subdivisions
of the Common Stock or the Common Stock), the Company shall provide to such Investor its financial statements and exhibits.

 

(i)
a certificate of compliance at the time of delivery of each monthly and annual statement, executed by the chief financial officer
(or other financial manager or controller) in the case of monthly statements, stating that such officer has caused this Agreement
and the terms of the Common Stock to be reviewed and has no knowledge of any default by the Company in the performance or observance
of any of the provisions of this Agreement or the terms of the Common Stock or, if such officer has such knowledge, specifying
such default and the nature thereof;

 

(ii)
notice of changes that are reasonably likely to have a Material Adverse Effect promptly after the Company obtains knowledge thereof;

 

(iii)
promptly after the Company’s Knowledge thereof, notice of all material any litigation, suit, claim, action, or proceeding,
including, without limitation, arbitration proceeding, mediation, or other alternative dispute resolution proceeding, before any
Governmental Entity to which the Company is a party;

 

(iv)
such other notices, information and data with respect to the Company as the Company delivers to the holders of its capital stock
at the same time it delivers such items to such holders; and

 

    	 	17	 

    	 

    

 

(c)
Except as otherwise agreed to by the Company, all information received by such Investor with respect to the Company pursuant to
this Section 4.5 shall be subject to, the Investor shall be bound by, the terms of confidentiality by and between the Company
and the Investor to be signed under separate cover if required.

 

4.6
Nondisclosure Agreements. Following the Closing Date, the Company shall cause all employees, officers, directors and independent
contractors of the Company to execute and deliver PIIA Agreements and Non-Competition Agreements substantially in a form provided
to the Investor or as approved by the Board of Directors of the Company after the Closing Date.

 

4.7
Books and Records. The Company shall keep proper books of record and account in which true and complete entries will be made
of all transactions in accordance with GAAP applied on a basis consistent with prior periods.

 

4.8
Further Assurances. On or after the Closing, each of the parties shall execute and deliver, or cause to be executed and delivered,
such further documents, certificates, and instruments and to perform such further acts as may be reasonably required to issue
and convey the Securities to the Investors, all on terms contained herein, and otherwise to comply with the terms of this Agreement
and consummate the transactions herein provided.

 

Section
5. Conditions to the Obligations of the Purchaser at the Closing. The obligation of the Investor to purchase the Acquired
Shares at the Closing is subject to the fulfillment, or the waiver by the Investor, of each of the following conditions on or
before the Closing Date.

 

5.1
Accuracy of Representations and Warranties. Each of the representations and warranties of the Company contained in Section
2 of this Agreement shall be true and correct in all material respects on and as of the Closing with the same effect as though
such representations and warranties had been made on and as of that date.

 

5.2
Performance. The Company shall have performed and complied in all material respects with all covenants, agreements and conditions
contained in this Agreement required to be performed or complied with by the Company prior to or at the Closing.

 

5.3
No Litigation. There shall be no action, suit or proceeding pending, or, to the Knowledge of the Company, threatened, which
(a) seeks to restrain, enjoin, or prevent the consummation of the transactions contemplated by this Agreement or the other Transaction
Documents, (b) challenges the validity of, or seeks to recover damages or to obtain other relief in connection with the transactions
contemplated by this Agreement or the other Transaction Documents, (c) affects adversely the right of the Investor to acquire
the Acquired Shares, or (d) affects adversely the business, assets, properties, operation (financial or otherwise), or prospects
of the Company (and no such injunction, judgment, order, decree, ruling or charge shall be in effect).

 

5.4
No Material Adverse Change. Since the Balance Sheet Date, there shall have been no change in the financial condition, results
of operations, business, business prospects, personnel, assets, or liabilities (whether contingent or absolute, matured or unmatured,
known or otherwise) of the Company which has or may cause a Material Adverse Effect.

 

5.5
Compliance Certificate. The Company shall deliver to the Investor a certificate, executed by the chief executive officer and
chief financial officer of the Company, dated as of the Closing Date, certifying the fulfillment of the conditions specified in
Section 5.1 through 5.4 of this Agreement.

 

    	 	18	 

    	 

    

 

5.6
Qualifications. All material notices, registrations, qualifications, designations, declarations, or filings with, Consents
or Permits of, or any action by any Governmental Entity of the United States or of any other jurisdiction that are required prior
to the Closing in connection with the lawful issuance and sale of the Acquired Shares pursuant to this Agreement shall be duly
obtained and effective as of the Closing.

 

5.7
Amended Articles. The Company shall have filed the Certificate of Determination or such appropriate and required documents
for this Offering with the Secretary of State of the State of Wyoming (“State Secretary”) on Closing
or as soon as practicable, which shall continue to be in full force and effect as of the Closing.

 

5.8
Secretary Certificate and Documents. The Company shall have delivered to the Investor a certificate of the Secretary of the
Company, certifying: (a) the Articles of Incorporation of the Company, as amended and restated by the Amended Articles, certified
by the State Secretary, (b) the Bylaws of the Company as of the Closing, (c) resolutions or written consents of the Board of Directors
of the Company evidencing the taking of all corporate action necessary to authorize and approve the execution and delivery of
the Transaction Documents, and the transactions contemplated under the Transaction Documents, including the consummation of the
Investment Transaction, (d) resolutions or written consents of the stockholders of the Company, if required, approving the Amended
Articles, (e) certificates, as of a recent date, as to the corporate good standing of the Company issued by the State Secretary,
and as to the corporate good standing and qualification as a foreign corporation of the Company issued by the Secretary of State
of each jurisdiction in which the nature of the business transacted by it or the character or location of its properties requires
such qualification, and (f) the incumbency of each individual authorized to sign, in the name and on behalf of the Company, this
Agreement and the other Transaction Documents.

 

5.9
Stockholders Agreement. The Company and the Investor shall have executed and delivered the Stockholders Agreement as soon
as practicable after closing. While any such Agreement is pending, industry standard protections for the Company and the Investor
shall apply subject to the rule(s) of law in the State of Wyoming and the United States.

 

5.10
Stockholder Rights. The Company shall have obtained enforceable waivers or shall have fully satisfied (including, without
limitation, timely notification) in respect of any rights of first refusal, preemptive rights, and similar rights directly or
indirectly affecting any of its securities.

 

5.11
Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to the
Investor, and the Investor shall have received all such counterpart originals or certified or other copies of such documents as
it may reasonably request.

 

Section
6. Condition to the Obligations of the Company. The obligations of the Company to issue, sell, and deliver the Acquired
Shares to the Investor at the Closing are subject to fulfillment, or the waiver by the Company, of each of the following conditions
on or before the Closing Date:

 

6.1
Accuracy of Representations and Warranties. Each of the representations and warranties of the Investor contained in Section
3 shall be true in all material respects on and as of the Closing with the same effect as though such representations and warranties
had been made on and as of that date.

 

    	 	19	 

    	 

    

 

6.2
Performance. The Investor shall have performed and complied, in all material respects, with all covenants, agreements and
conditions contained in the Agreement required to be performed or complied with by the Investor prior to or at the Closing.

 

6.3
No Litigation. There shall be no action, suit, investigation or proceeding pending, or to the Knowledge of any of the Investor
threatened, which (a) seeks to restrain, enjoin, or prevent the consummation of the transactions contemplated by this Agreement
or the other Transaction Documents, (b) challenges the validity of, or seeks to recover damages or to obtain other relief in connection
with the transactions contemplated by this Agreement or the other Transaction Documents.

 

6.4
Qualifications. All material notices, registrations, qualifications, designations, declarations, or filings with, Consents
or Permits of, or any action by any Governmental Entity of the United States or of any other jurisdiction that are required prior
to the Closing in connection with the lawful issuance and sale of the Acquired Shares pursuant to this Agreement shall be duly
obtained and effective as of the Closing.

 

6.5
Stockholders Agreement. The Company and the Investor shall have executed and delivered the Stockholders Agreement as soon
as practicable after closing. While any such Agreement is not in effect, industry standard protections for the Company and the
Investor shall apply subject to the rule of law.

 

6.6
Registration Rights Agreement. Not applicable.

 

6.7
Payment of Purchase Price. Th Investor shall have paid to the Company the Aggregate Purchase Price for the Acquired Shares
as set forth in Section 1.3 of this Agreement.

 

Section
7. General Provisions.

 

7.1
Definitions.

 

(a)
Except as otherwise provided herein, the capitalized terms set forth below shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, (i) a Person that directly, or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the first-mentioned Person, and (ii) an “associate”
as that term is defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 as in effect on the date of this Agreement.
For purposes of this definition, the term “control” (including the term “controlling,”
“controlled by” and “under common control,” or correlative terms) means the
possession, direct or indirect, of the power to direct the management and policies of a Person, whether as an officer or director,
through the ownership of voting securities, by contract or otherwise.

 

“Anti-Money
Laundering Laws” shall mean Laws and sanctions, state and federal, criminal and civil, that: (i) limit the use of
and/or seek the forfeiture of proceeds from illegal transactions; (ii) limit commercial transactions with designated countries
or individuals believed to be terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests of the
United States; (iii) require identification and documentation of the parties with whom a Financial Institution conducts business;
or (iv) are designed to disrupt the flow of funds to terrorist organizations. Such laws, regulations and sanctions shall be deemed
to include the USA PATRIOT Act of 2001, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. §§ 5311 et seq., the Trading
with the Enemy Act, 50 U.S.C. App. §§ 1 et seq., the International Emergency Economic Powers Act, 50 U.S.C. §§
1701 et seq., and the sanction regulations promulgated pursuant thereto by the OFAC, as well as laws relating to prevention and
detection of money laundering in 18 U.S.C. §§ 1956 and 1957.

 

    	 	20	 

    	 

    

 

“Board
of Directors” or “Board” means the board of directors of the Company.

 

“Business
Day” shall mean any day other than a Saturday, Sunday, or other day on which commercial banks in the State of Wyoming
are authorized or required by Law or executive order to close.

 

“Bylaws”
means, unless the context otherwise requires, the bylaws of the Company, as amended through and in effect on the Closing Date.

 

“Consent”
shall mean any consent, order, approval, authorization, clearance, exemption, exception, waiver, ratification, or similar affirmation
by any Person.

 

“Contract”
means any oral or written agreement, contract, debenture, note, bond, mortgage, license, instrument, franchise or other obligation,
commitment, arrangement or understanding.

 

“Employee
Benefit Plan” means employee benefit plan, agreement or arrangement that is a pension, profit-sharing, post-retirement,
supplemental retirement, vacation, sick leave, disability, death benefit, group insurance, hospitalization, medical, dental, life,
Section 125 of the Code “cafeteria” or “flexible” benefit, employee loan, education assistance or fringe
benefit plan, whether written or oral, including, without limitation, any “employee benefit plan” (within the meaning
of Section 3(3) of ERISA, inclusive of any “employee pension benefit plan” as defined in Section 3(2) of ERISA, and
any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), any “multi-employer plan” (as
defined in Section 3(37) of ERISA), or other Contracts or employee benefit plan, whether or not subject to ERISA and whether or
not funded, to which Company is a party, for the benefit of any current or former employee, director, officer, consultant or independent
contractor of the Company have any present or future rights to benefits, or with respect to which Company or any of its ERISA
Affiliates has any current or future liability or which are maintained, contributed to or sponsored by Company.

 

“Environmental
Laws” means all Laws relating to pollution or protection of human health or the environment (including ambient air,
surface water, ground water, land surface or subsurface strata) and which are administered, interpreted, or enforced by the United
States Environmental Protection Agency and state, local, and foreign agencies with jurisdiction over, and including common law
in respect of, pollution or protection of the environment, including the Comprehensive Environmental Response Compensation and
Liability act, as amended, 42 U.S.C. 9601 et seq., the Resource Conservation and Recovery act, as amended, 42 U.S.C. 6901 et seq.,
and other Laws relating to emissions, discharges, releases, or threatened releases of any Hazardous Material, or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of any Hazardous Material.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means any Person that is a member of a “controlled group of corporations” with, or is under
“common control” with, or is a member of the same “affiliated service group” with Seller, as defined in
Section 414 of the Code.

 

“Hazardous
Materials” means (i) any hazardous substance, hazardous material, hazardous waste, regulated substance, or toxic
substance (as those terms are defined by any applicable Environmental Laws) and (ii) any chemicals, pollutants, contaminants,
petroleum, petroleum products, or oil and (specifically shall include asbestos requiring abatement, removal, or encapsulation
pursuant to the requirements of Governmental Entities and any polychlorinated biphenyls).

 

    	 	21	 

    	 

    

 

“Immediate
Family Member” means a Person’s spouse, parents, children, siblings, mothers and fathers-in-law, sons and
daughters-in-law, and brothers and sisters-in-law

 

“Intellectual
Property” means all of the following: (i) U.S. and foreign registered and unregistered trademarks, trade dress,
service marks, logos, trade names, corporate names and all registrations and applications to register the same jurisdiction, including
any extension, modification or renewal of any such registration or application (the “Trademarks”); (ii)
issued U.S. and foreign patents and pending patent applications, patent disclosures, and any and all divisions, continuations,
continuations in part, continuing prosecution applications, reissues, reexaminations, and extensions thereof, any counterparts
claiming priority therefrom or from which priority may be claimed, utility models, patents of importation or confirmation, certificates
of invention and like statutory rights (the “Patents”); (iii) U.S. and foreign registered and unregistered
copyrights (including any work of authorship in which copyright does or may subsist under the law of any jurisdiction), rights
of publicity, database rights and moral rights in both published works and unpublished works and all registrations and applications
to register the same (the “Copyrights”); (iv) U.S. and foreign rights in any semiconductor chip product
works or “mask works” as such term is defined in 17 U.S.C. § 901, et seq., and any registrations or applications
therefor (the “Mask Works”); (v) all categories of trade secrets as defined in the Uniform Trade Secrets
Act including, but not limited to, technology, inventions, and business information and other confidential information, and rights
to limit the use or disclosure thereof by a Third party, including such rights in inventions, discoveries and ideas, whether patented,
patentable or not in any jurisdiction; know-how, customer lists, technical information, proprietary information, technologies,
processes and formulae, software, data, plans, drawings and blue prints, whether tangible or intangible and whether stored, compiled,
or memorialized physically, electronically, photographically or otherwise (the “Trade Secrets”); all
licenses and agreements pursuant to which the Company or any of the Company’s Subsidiaries has acquired rights in or to
any Trademarks, Patents, Copyrights or Mask Works, or licenses and agreements pursuant to which the Company has licensed or transferred
the right to use any of the foregoing (the “Licenses”); (vi) all United States and foreign Internet
domain name applications and registrations, social media identifiers, and advertising keyword rights owned or used by the Company
or any of the Company’s Subsidiaries or otherwise used in conjunction with the business of the Company or any of the Company’s
Subsidiaries (the “Domains”); and (vii) any similar intellectual property or proprietary rights similar
to any of the foregoing, licenses, immunities, covenants not to sue and the like relating to the foregoing, and any claims or
causes of action arising out of or related to any infringement, misuse or misappropriation of any of the foregoing.

 

“Knowledge”
means (i) with respect to a Stockholder, the knowledge of the Shareholder that is obtained or would have been obtained after
reasonable investigation, (ii) with respect to the Company, all matters known or that should have been known by the chief executive
officer, chief financial officer, and each of the other executive officers of the Company after reasonable investigation, and
(iii) with respect to the Investor, the actual knowledge of the Investor.

 

“Law”
means any code, law, ordinance, regulation, reporting or licensing requirement, rule, or statute applicable to a Person or its
assets, properties, liabilities, or business, including those promulgated, interpreted, or enforced by any Governmental Entity.

 

“Liens”
shall mean all liens, encumbrances, charges, pledges, claims, security interests, equities, options, warrants, rights to purchase
or acquire, and other defects in title.

 

    	 	22	 

    	 

    

 

“Material
Adverse Effect” means any change, effect, event, occurrence, or state of facts (each, an “Event”)
which individually, or together with other changes, effects, events, occurrences, or states of facts, that has, or would be reasonably
expected to, materially and adversely affect: (a) the Company’s ability to consummate Investment Transaction without material
delay, or (b) the financial condition, business, properties, assets, operations, results of operations, or prospects of the Company
and its Subsidiaries, taken as a whole[; provided, however, that none of the following shall be deemed either alone or
in combination to constitute, and none of the following shall be taken into account in determining whether there has been or would
be, a Material Adverse Effect: (i) any Event resulting from general economic or political conditions or generally affecting financial,
credit, foreign exchange, securities or capital markets (including changes in interest rates or exchange rates), including any
disruption thereof, in the United States or elsewhere in the world market, (ii) any Events affecting in the general conditions
in the industry of such Person and its Subsidiaries, taken as a whole, and (iii) any Events resulting from business conditions
in the United States generally or in the geographic regions in which the Company or its Subsidiaries operate.

 

“Owned
Properties” means any property owned, leased, or operated by the Company or in which the Company holds a security
or other interest (including an interest in a fiduciary capacity) and, when required by the context, this term also includes the
owner or operation of such property, but only with respect to such property.

 

“Participation
Facilities” means any facility or property in which the Company participates in the management and, where required
by the context, said term means the owner or operator of such facility or property, but only with respect to such facility or
property.

 

“Permitted
Liens” means (i) Liens or imperfections of title which are not, individually or in the aggregate, material in character,
amount, or extent and which do not materially detract from the value or interfere with the contemplated use of assets subject
thereto or affected thereby, (ii) mechanics’, materialmen’s, carrier’s, warehousemen’s, landlord’s
and similar Liens securing obligations not yet delinquent, and (iii) Liens for current Taxes not yet due and payable.

 

“Permits”
shall mean all permits, licenses, variances, certificates, filings, franchises, notices, rights, and Consents of and from all
Governmental Entities.

 

“Person”
shall mean an individual, corporation, general partnership, limited partnership, joint venture, limited liability company, limited
liability partnership, unincorporated organization, business trust, association, corporations, or other entity.

 

“Subsidiaries”
or “Subsidiary” means all corporations, limited liability companies, limited partnerships, and other
entities in which the entity in question owns or controls 50% or more of the outstanding equity or voting securities or interests
either directly or through an unbroken chain of entities as to each of which 50% or more of the outstanding equity or voting securities
or interests are owned directly or indirectly by such entity in question.

 

“Taxes”
means all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, license, withholding, payroll, employment, excise, stamp, occupation, property, or other taxes, fees, assessments
or other charges imposed by a Governmental Authority, together with any interest and any penalties, additions to tax or additional
amounts with respect thereto, and the term “tax” means any of the foregoing taxes..

 

“Tax
Return” means all reports, estimates, declarations of estimated tax, information statements and returns relating
to, or required to be filed in connection with, any Taxes, including information returns or reports with respect to withholding
and other payments to third parties.

 

    	 	23	 

    	 

    

 

“Transfer”
shall be construed broadly and shall include to mean, in the context of a transfer of any of the Securities, any sale, assignment,
participation, gift, bequest, distribution, exchange, pledge, hypothecation, placement of a lien thereon or a grant of a security
interest therein or other encumbrances thereon, judicial attachment, contribution to a trust or other Person, or other transfer
or disposition (voluntarily or involuntarily, by operation of law or otherwise, and whether as security or otherwise) by a holder
of all or a portion of its Securities or any right or interest therein. For purposes of this definition, a “Transfer”
shall include the sale, assignment, participation, gift, bequest, distribution, exchange, pledge, hypothecation, placement of
a lien thereon or a grant of a security interest therein or other encumbrances thereon, judicial attachment, contribution to a
trust or other Person, or other transfer or disposition (voluntarily or involuntarily, by operation of law or otherwise, and whether
as security or otherwise) of a controlling equity interest in any Person which owns of record any of the Securities.

 

“Transaction
Documents” means, collectively, this Agreement, the Amended Articles, and the Stockholders Agreement.

 

7.2
Survival of Representations. Unless otherwise set forth in this Agreement, the representations, warranties, 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 and shall in no way be affected by any investigation of the subject matter thereof made by or on behalf
of the Company or the Investor. The representations and warranties in this Agreement and in any certificate delivered pursuant
hereto shall survive the Closing.

 

7.3
Expenses. Except as otherwise provided in this Agreement, whether or not the transactions contemplated herein are consummated,
each party hereto shall bear and pay its own fees, costs and expenses incident to preparing, entering into and carrying out this
Agreement and to consummating the transactions contemplated hereby. Notwithstanding the foregoing, the Company agrees to pay the
reasonable fees and expenses of counsel for the Investor.

 

7.4
No Brokers or Finders. The Company, and the Investor (a) each represent and warrant to the other party hereto that he or it
has neither retained a finder or broker nor is or will be obligated for any finder’s fees or commissions, in connection
with the transactions contemplated by this Agreement, and (b) each agree that they will indemnify and save the other party harmless
from and against any and all claims, liabilities or obligations with respect to brokerage or finders’ fees or commissions,
or consulting fees in connection with the transactions contemplated by this Agreement asserted by any Person on the basis of any
statement or representation alleged to have been made by such indemnifying party.

 

7.5
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable Law, the parties agree
to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible
to that under the provision rendered unenforceable. In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement
shall be interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance
with its terms.

 

7.6
Entire Agreement. This Agreement, which includes the Disclosure Schedule and exhibits hereto, together with the other Transaction
Documents, constitutes the entire agreement among the parties hereto with respect the subject matter hereof, and supersedes all
prior arrangements or understandings with respect to the subject matter hereof between the parties, both written and oral.

 

7.7
Amendment and Modification. Except as otherwise expressly set forth in this Agreement, subject to the corporation laws of
the State of Wyoming, any term of this Agreement may be amended, modified, or terminated and the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written
consent of the Company and (a) the holders of at least 80% of the then-outstanding Common Stock, or (b) for any amendment, modification,
termination or waiver effected prior to the Closing, Investor obligated to purchase 80% of the Common Stock to be issued at such
Closing. Any amendment, modification, termination or waiver effected in accordance with this Section 7.7 shall be binding upon
the Investor, each transferee of the Securities even if they do not execute such consent, and each future holder of the Securities,
and the Company. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

    	 	24	 

    	 

    

 

7.8
Successors and Assigns. This terms and conditions of this Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties to this Agreement or their respective successors and permitted assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. The Investor’s
rights to purchase the Acquired Shares shall not be assignable except to its Subsidiaries, parent, or Affiliates.

 

7.9
Notices. All notices or other communications given or made pursuant to this Agreement shall be in writing and shall be (a)
delivered by registered or certified mail, return receipt requested, postage prepaid, (b) by expedited mail or package delivery
service guaranteeing next Business Day delivery, (or, for international deliveries, the earliest Business Day that such delivery
service can guarantee delivery if so requested and paid for), or (c) delivered personally, by hand, to the Persons at the addresses
set forth below (or at such other address as may be provided hereunder):

 

If
to Company:

 

KANAB
CORP.

LEGALINC
CORPORATE SERVICES INC.

5830
E 2nd St. Suite 8

Casper,
WY 82609

 

If
to Investor:

 

2050
Motors, Inc.

25
N River Lane Suite 2050

Geneva,
IL 60134

 

Any
notice or other communications to be given or that may be given pursuant to this Agreement shall be deemed to have been given:
(x) three calendar days after the deposit of such notice or communication in the United States Mail, registered or certified,
return receipt requested, with proper postage affixed thereto; (y) on the first Business Day after depositing such notice of communication
with Federal Express, Express Mail, or other expedited mail or package delivery service guaranteeing delivery no later than the
next Business Day if next Business Day delivery service has been requested and paid for (or on such Business Day as such delivery
service has been requested, guaranteed, and paid for); or (z) upon delivery if hand delivered or telecopied to the appropriate
address and Person as provided hereinabove or to the Person to whose attention the notice is to be given to the other parties
in the manner set forth in this Section 7.9.

 

7.10
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Wyoming without
giving effect to the choice of law principles thereof that would result in the application of the Laws of any other jurisdiction.

 

    	 	25	 

    	 

    

 

7.11
Jurisdiction; Venue. Any action, litigation, suit or proceeding arising out of or relating to this Agreement or any transaction
contemplated hereby shall be brought solely in federal or state courts of competent jurisdiction in the courts of the State of
Wyoming located in a venue to be mutually determined by both parties and/or their counsel(s) or, if it has or can acquire jurisdiction,
in the United States District Court for the Central District, and each of the parties hereto hereby irrevocably consents and submits
to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such action, litigation,
suit or proceeding and waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all
claims in respect of the action, litigation, suit or proceeding shall be heard and determined only in any such court and agrees
not to bring any action or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby in any
other court. Process in any action or proceeding referred to in the first sentence of this Section 7.11 may be served on any party
anywhere in the world.

 

7.12
WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THAT FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.12. EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT SUCH
PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

7.13
Attorney Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of
any Transaction Document, the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements
in addition to any other relief to which such party may be entitled.

 

7.14
No Commitment for Additional Financing. The Company acknowledges and agrees that the Investor has not made any representation,
warranty, undertaking, commitment or agreement to provide or assist the Company in obtaining any investment, financing or other
capital raising activities other than the purchase of the Acquired Shares pursuant to the terms and conditions of this Agreement.
No obligation, agreement, or obligation to provide or assist the Company in obtaining any investment, financing or other capital
raising activities will created only by a written definitive agreement executed and delivered by the Investor and the Company,
and any such agreement will be binding only on those Investors executing such agreement.

 

7.15
Section Headings. The section headings are for the convenience of the parties and in no way alter, modify, amend, limit, or
restrict the contractual obligations of the parties.

 

7.16
Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same instrument. A party may deliver this Agreement
by transmitting a facsimile or other electronic signature of this Agreement signed by such party (via PDF, TIFF, JPEG or the like)
to the other party, which facsimile or other electronic signature shall be deemed an original for all purposes.

 

[Remainder
of Page Intentionally Blank. Signatures on Next Page.]

 

    	 	26	 

    	 

    

 

IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its respective officer(s) thereunto
duly authorized, all as of the date first written above.

 

	 	KANAB
    CORP.
	 	 	 
	 	By:	
	 	Date:
    	05-26-2019
	 	Name:	KANAB
    CORP.
	 	Title:	CEO

 

Signature
Page to

Securities
Purchase Agreement

 

    	Page 1 of 2	 	 

    	 

    

 

	 	2050
    MOTORS, INC.
	 	 	 
	 	By:	
	 	Date:	05-26-2019
	 	Name:	Vikram
    Grover, CEO
	 	Title:	Investor

 

Signature
Page to

Securities
Purchase Agreement

 

    	Page 2 of 2

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