Document:

Exhibit
10.28

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT, dated as of August 23, 2022 (this “Agreement”), is among Adamas One Corp., a Nevada corporation (the
“Company”), John G. Grdina (the “Guarantor” and together jointly and severally with the Company, the “Debtor”)
and the holder(s) of the Company’s eight percent (8%) Senior Secured Convertible Promissory Note, due August 23, 2023, in the original
aggregate principal amount of $4,100,000.00 (collectively, the “Notes”) signatory hereto, their endorsees, transferees and
assigns (each holder a “Secured Party,” and collectively, the “Secured Parties”). Each of the Company, the Guarantors
and the Secured Parties are a “party” to this Agreement, and one or more of them are the “parties” hereto as
the context may require.

 

WITNESSETH:

 

WHEREAS,
pursuant to The Senior Secured Convertible Note Purchase Agreement dated of even date herewith (the “Purchase Agreement”)
and the Notes, the Secured Parties have severally agreed to extend loans to the Company evidenced by the Notes; and

 

WHEREAS,
in order to induce the Secured Parties to extend the loans evidenced by the Notes, the Debtor has agreed to execute and deliver to the
Secured Parties this Agreement and to grant the Secured Parties a priority first lien security interest in all of the assets of the Company
to secure the prompt payment, performance and discharge in full of all of the Company’s obligations ( whether at the stated maturity,
by acceleration or otherwise) under the Purchase Agreement and the Notes and the Guarantors’ obligations under the Guarantee (together,
the “Obligations”).

 

NOW,
THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.       Certain
Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel paper”,
“commercial tort claim”, “deposit account”, “document”, “equipment”, “fixtures”,
“general intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “proceeds”, “securities”, and “supporting obligations”) shall
have the respective meanings given such terms in Article 9 of the UCC.

 

(a)       “Collateral”
means the collateral in which the Secured Parties are granted a priority first lien security interest by this Agreement and which shall
include all personal property and Fixtures of the Company wherever located and whether now or hereafter existing and whether now owned
or hereafter acquired, of every kind and description, tangible or intangible, including without limitation, the following:

 

(i)       All
assets of the Company, wherever located or deemed located, now owned or at any time hereafter acquired by the Company or in which the
Company now has or at any time in the future may acquire any right, title or interest including, without limitation, all machinery, equipment,
fixtures, goods, inventory, furnishings, computers, software, motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
and general tools, fixtures, test and quality control devices and other equipment of every kind and nature, together with all attachments,
components, parts, equipment and accessories installed thereon or affixed thereto, wherever situated, all Intellectual Property, together
with all documents of title and documents representing the same, all additions and accessions thereto, replacements therefor, all parts
therefor, and all substitutes for any of the foregoing and all other items used and useful in connection with any Company’s businesses
and all improvements thereto; and

 

		(ii)	All
                                            accounts of the Company; and

 

		(iii)	All
                                            chattel paper (whether tangible or electronic) of the Company; and

 

		(iv)	all
                                            commercial tort claims of the Company; and

     

     

    

(v)       all,
general intangibles, including: (A) all rights of the Company to receive moneys due and to become due to it thereunder or in connection
therewith, (B) all rights of the Company to receive proceeds of any insurance, indemnity, warranty or guarantee with respect thereto,
(D) all claims of the Company for damages arising out of any breach of or default thereunder, and (E) all rights of the Company to terminate,
amend, supplement, modify or exercise rights or options thereunder; and

 

(vi)       all
documents, goods, instruments, investment property (including all securities, security entitlements and commodity contracts), and letter
of credit rights; and

 

(vii)      all
deposit accounts, all cash and all other property from time to time deposited therein or otherwise credited thereto; and

 

(viii)     all
books and records pertaining to the Collateral; and

 

(ix)        and
all Proceeds and products of any of the foregoing, and all substitutions or replacements of any Collateral.

 

Notwithstanding
the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes
void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent
that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided,
however, that to the extent permitted by applicable law, this Agreement shall create a valid priority first lien security interest in
such asset and, to the extent permitted by applicable law, this Agreement shall create a valid priority first lien security interest
in the proceeds of such asset.

 

(b)       “Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to the intellectual property of the
Company, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights
arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered
and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent of
the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications
for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, (iii)
all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service marks, logos,
domain names, business listings, trade secrets, know-how, inventions (whether or not patentable), algorithms, software programs (including
source code and object code), processes, product designs, industrial designs, blueprints, drawings, data, customer lists, URLs and domain
names, specifications, documentations, reports, catalogs, literature, and any other forms of technology or proprietary information of
any kind, and other source or business identifiers, and all goodwill associated therewith, including all rights therein and all applications
for registration or registrations thereof, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and
all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency
of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common law rights
related thereto, (iv) all trade secrets arising under the laws of the United States, any other country or any political subdivision thereof,
(v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii)
all causes of action for infringement of the foregoing.

     

     

    

(c)       “Obligations”
means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) of any Debtor due or to
become due, or that are now or may be hereafter contracted or acquired, or owing to, the Secured Parties, including, without limitation,
all obligations under this Agreement, the Purchase Agreement, the Notes, the Warrants, the Guarantee and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary
or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and
whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations
or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from any of
the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended
or modified from time to time. Without limiting the generality of the foregoing, the term “Obligations” shall include, without
limitation: (i) principal of, and interest on and all expenses related to, the Notes and the loans extended pursuant thereto; (ii) any
and all other fees, indemnities, costs, obligations and liabilities of the Debtor from time to time under or in connection with this
Agreement, the Purchase Agreement, the Notes, the Guarantee and any other instruments, agreements or other documents executed and/or
delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect
of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable due
to the existence of a bankruptcy, reorganization or similar proceeding involving any Debtor.

 

(d)       “Permitted
Liens” shall mean, with respect to any Person: (a) pledges or deposits by such Person under workmen’s compensation laws,
unemployment insurance laws, or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for
the payment of Indebtedness), or leases to which such Person is a party, or deposits to secure public or statutory obligations of such
Person or deposits of cash or U.S. government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as
security for the payment of rent or deposits made to secure obligations arising from contractual or warranty refunds, in each case, Incurred
in the ordinary course of business; (b) liens imposed by law, such as carriers’, warehousemen’s, materialmen’s, repairmen’s,
and mechanics’ liens, in each case, incurred in the ordinary course of business on an arms’ length basis and securing obligations
which are not yet delinquent; (c) liens for taxes, assessments, or other governmental charges, not yet delinquent; (d) liens in favor
of issuers of performance, surety, bid, indemnity, warranty, release, appeal, or similar bonds or with respect to other regulatory requirements
or letters of credit or bankers’ acceptances issued, and completion guarantees provided for, in each case pursuant to the request
of and for the account of such Person in the ordinary course of its business on an arms’ length basis; (e) minor survey exceptions,
minor encumbrances, ground leases, easements, or reservations of, or rights of others for, licenses, rights-of-way, servitudes, sewers,
electric lines, drains, telegraph and telephone and cable television lines, gas and oil pipelines, and other similar purposes, or zoning,
building codes, or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances)
as to the use of real properties or liens incidental, to the conduct of the business of such Person or to the ownership of its properties
in each case which were not incurred in connection with the Notes and which do not materially interfere with the business of the Company;
(f) leases, subleases, licenses, or sublicenses (including of Intellectual Property) granted to others in the ordinary course of business
and which do not materially interfere with the business of the Company; (g) deposits made or other security provided to secure liabilities
to insurance carriers under insurance or self-insurance arrangements in the ordinary course of business; (h) restrictive covenants affecting
the use to which real property may be put; provided that the covenants are complied with in all material respects; (i) security given
to a public utility or any municipality or governmental authority when required by such utility or authority in connection with the operations
of that Person in the ordinary course of business; (j) zoning by-laws and other land use restrictions, including, without limitation,
site plan agreements, development agreements, and contract zoning agreements; (k) liens arising out of conditional sale, title retention,
consignment, or similar arrangements for sale of goods entered into by the Company in the ordinary course of business; (l) liens arising
under this Agreement or documents or instruments related to the Notes; and (m) with respect to any mortgaged property, the matters listed
as exceptions to title on Schedule B of a standard title policy covering such mortgaged property and the matters disclosed in any survey
delivered to the lender with respect to such mortgaged property to the extent such matters are reasonably acceptable to the lender or.
For purposes of this definition, the term “indebtedness” shall be deemed to include interest on, and fees, expenses and other
obligations payable with respect to, such indebtedness.

 

(e)       “Proceeds”
shall mean all “proceeds” as such term is defined in Article 9 of the UCC and, in any event, shall include with respect to
the Company, any consideration received from the sale, exchange, license, lease or other disposition of any asset or property that constitutes
Collateral, any value received as a consequence of the possession of any Collateral and any payment received from any insurer or other
person or entity (“Person”) as a result of the destruction, loss, theft, damage or other involuntary conversion of whatever
nature of any asset or property that constitutes Collateral, and shall include: (a) all cash and negotiable instruments received by or
held (by the Company or any other Person) on behalf of the Secured Parties; (b) any claim of any Debtor against any third party for (and
the right to sue and recover for and the rights to damages or profits due or accrued arising out of or in connection with) (i) past,
present or future infringement or other violation of any patent now or hereafter owned by any Debtor, (ii) past, present or future infringement
or dilution or other violation of any trademark now or hereafter owned by any Debtor or injury to the goodwill of the business connected
with the use thereof or symbolized thereby, (iii) past, present or future infringement or other violation of any copyright now or hereafter
owned by any Debtor, (iv) past, present or future infringement, misappropriation or misuse or other violation or impairment of any other
Intellectual Property now or hereafter owned by any Debtor; and (c) any and all other amounts from time to time paid or payable under
or in connection with any of the Collateral.

     

     

    

(f)       “UCC”
means the Uniform Commercial Code of the State of New York, or any other applicable law of any state or states which has jurisdiction
with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that defined
terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed in its broadest
sense. Accordingly, if there are from time to time, changes to defined terms in the UCC that broaden the definitions, they are incorporated
herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones shall be controlling.

 

2.       Grant
of Security Interest in Collateral. (a) As an inducement for the Secured Parties to extend the loans as evidenced by the Notes
and to secure the complete and timely payment, performance and discharge in full of all of the Obligations as set forth in the
Purchase Agreement and the Notes, as the case may be, of all of the o ther Obligations, Debtor hereby unconditionally and
irrevocably pledges, grants and hypothecates to the Secured Parties a priority security interest in and to, a first lien upon and a
right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral
as defined above (the “Security Interest” and, collectively, the “Collateral”).

 

(a)       Each
Debtor hereby agrees to provide to the Secured Parties or the Collateral Agent promptly upon request, any information reasonably necessary
to effectuate the filings or recordings authorized by this Agreement.

 

(b)       The
Security Interest is granted as security only and shall not subject the Secured Parties to, or in any way alter or modify, any obligation
or liability of any Debtor with respect to or arising out of the Collateral.

 

3.       Delivery
of Certain Collateral. Contemporaneously or prior to the execution of this Agreement, Debtor shall deliver or cause to be delivered
to the Collateral Agent any and all documents, instruments, certificates and all other physical evidence representing any of the other
Collateral, in each case, together with all necessary endorsements.

 

4.       Representations,
Warranties, Covenants and Agreements of the Debtors. Each Debtor represents and warrants to, and covenants and agrees with, the Secured
Parties as follows:

 

(a)       Debtor
has the requisite corporate, partnership, limited liability company or other power and authority to enter into this Agreement and otherwise
to carry out its obligations hereunder. The execution, delivery and performance by Debtor of this Agreement and the filings contemplated
therein have been duly authorized by all necessary action on the part of Debtor and no further action is required by Debtor. This Agreement
has been duly executed by Debtor. This Agreement constitutes the legal, valid and binding obligation of Debtor, enforceable against Debtor
in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar
laws of general application relating to or affecting the rights and remedies of creditors and by general principles of equity.

 

(b)       Except
for the Security Interest granted to the Secured Parties pursuant to this Agreement, and Permitted Liens, Debtor owns, or has valid leaseholds
in or the right to use, each item of the Collateral free and clear of any and all liens or other encumbrances. No security agreement,
financing statement or other public notice with respect to all or any part of the Collateral that evidences a lien securing any indebtedness
is on file or of record in any public office, except such as: (i) have been filed in favor of and for the benefit of the Secured Parties
pursuant to this Agreement and (ii) relate to obligations no longer outstanding or are in respect of commitments to lend which have been
terminated. No written claim has been received that any Collateral or any Debtor's use of any Collateral violates the rights of any third
party. There has been no adverse decision to any Debtor's claim of ownership rights in or exclusive rights to use the Collateral in any
jurisdiction or to any Debtor's right to keep and maintain such Collateral in full force and effect, and there is no proceeding involving
said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative or regulatory
agency, arbitrator or other governmental authority.

     

     

    

(c)       Debtor
shall at all times maintain its books of account and records relating to the Collateral at its principal place of business and its Collateral
at the locations set forth on Schedule A attached hereto and may not relocate such books of account and records or tangible Collateral
unless it delivers to the Secured Parties at least thirty (30) days prior to such relocation: (i) written notice of such relocation and
the new location thereof (which must be within the United States), and (ii) evidence that appropriate financing statements under the
UCC and other necessary documents have been filed and recorded and other steps have been taken to perfect the Collateral to create in
favor of the Secured Parties a valid, perfected and continuing perfected first priority lien in the Collateral.

 

(d)       This Agreement is effective to create in favor of the Secured Parties a valid and perfected first lien security interest in the
Collateral, subject only to Permitted Liens, securing the payment and performance of the Obligations. Upon making the filings
described in the immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected
by filing Uniform Commercial Code financing statements shall have been duly perfected. Except for the filing of the Uniform
Commercial Code financing statements referred to in the immediately following paragraph, and the delivery of the certificates and
other instruments provided in Section 3, no action is necessary to create, perfect or protect the security interests created
hereunder.

 

(e)       Debtor
hereby authorizes the Collateral Agent to file one or more financing statements under the UCC, with respect to the Collateral, with the
proper filing and recording agencies in any jurisdiction deemed proper by it. Debtor agrees that at any time and from time to time, at
the expense of the Debtor, it will execute any and all further documents, financing statements, agreements and instruments, and take
all such further actions (including the filing and recording of financing statements and other documents), which may be required under
any applicable law, or which the Collateral Agent may reasonably request, in order: (i) to grant, preserve, protect and perfect the validity
and priority of the Security Interest created or intended to be created hereby, or (ii) to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral, including the filing of any financing or continuation statements
under the UCC in effect in any jurisdiction with respect to the Security Interest created hereby, all at the expense of such Debtor.

 

(f)       The
execution, delivery and performance of this Agreement by the Debtor does not (i) violate any of the provisions of any articles or certificate
of incorporation or bylaws or other organizational documents (“Organizational Documents”) of any Debtor or any judgment,
decree, order or award of any court, governmental body or arbitrator or any applicable law, rule or regulation applicable to any Debtor,
or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both)
of, any agreement, credit facility, debt or other instrument (evidencing any Debtor's debt or otherwise) or other understanding to which
any Debtor is a party or by which any property or asset of any Debtor is bound or affected. If any, all required consents (including,
without limitation, from stockholders or creditors of any Debtor) necessary for any Debtor to enter into and perform its obligations
hereunder have been obtained.

 

(g)       Debtor
shall at all times maintain the liens and Collateral provided for hereunder as valid and perfected first priority liens and security
interests in the Collateral in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated
pursuant to Section 14 hereof. Each Debtor hereby agrees to defend the same against the claims of any and all Persons and entities. Each
Debtor shall safeguard and protect all Collateral and hold it in trust for the account of the Secured Parties. At the request of the
Collateral Agent, Debtor will sign and deliver to the Collateral Agent on behalf of the Secured Parties at any time or from time to time
one or more financing statements pursuant to the UCC in form reasonably satisfactory to the Collateral Agent and will pay the cost of
filing the same in all public offices wherever filing is, or is deemed by the Collateral Agent to be, necessary or desirable to effect
the rights and obligations provided for herein. Without limiting the generality of the foregoing, Debtor shall pay all fees, taxes and
other amounts necessary to maintain the Collateral and the Collateral hereunder, and Debtor shall obtain and furnish to the Collateral
Agent from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority
of the Collateral hereunder.

     

     

    

(h)       Debtor
will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive
licenses granted by a Debtor in its ordinary course of business and sales of inventory by a Debtor in its ordinary course of business,
in both cases, to independent third parties on an arms’ length basis) without the prior written consent of a Majority in Interest
(as hereinafter defined).

 

(i)       Debtor
shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall not operate
or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage or outside the reach
of the Collateral Agent.

 

(j)       Debtor
shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral
hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established
reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances
by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover
the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and the
insurer issuing such policy to certify to the Collateral Agent, that (a) the Collateral Agent or the Secured Parties will be named
as lender loss payee and additional insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or
materially changed for any reason whatsoever, such insurer will promptly notify the Collateral Agent and such cancellation or change
shall not be effective as to the Collateral Agent for at least thirty (30) days after receipt by the Collateral Agent of such
notice, unless the effect of such change is to extend or increase coverage under the policy; and (c) the Collateral Agent will have
the right (but no obligation) at its election to remedy any default in the payment of premiums within thirty (30) days of notice
from the insurer of such default at the expense of the Debtor. If no Event of Default (as defined in the Notes) exists and if the
proceeds arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied
by the applicable Debtor to the repair and/or replacement of property with respect to which the loss was incurred to the extent
reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the
applicable Debtor; provided, however, that payments received by any Debtor after an Event of Default occurs and is continuing or in
excess of $100,000 for any occurrence or series of related occurrences shall be paid to the Collateral Agent on behalf of the
Secured Parties and, if received by Debtor, shall be held in trust for the Secured Parties and immediately paid over to the
Collateral Agent unless otherwise directed in writing by the Collateral Agent. Copies of such policies or the related certificates,
in each case, naming the Collateral Agent as lender loss payee and additional insured shall be delivered to the Collateral Agent
upon the execution of this Agreement and at least annually and at the time any new policy of insurance is issued.

 

(k)       Debtor
shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of any material
adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of the Collateral
or on the Secured Parties’ security interest, through the Collateral Agent, therein.

 

(l)       Debtor
shall permit the Collateral Agent and its representatives and agents to, during normal business hours and upon reasonable prior notice,
(A) to examine and make copies of and abstracts from such Debtor’s books and records, (B) to visit and inspect its properties,
(C) to verify materials, leases, notes, Accounts, Inventory and other assets or Collateral of such Debtor from time to time, (D) to conduct
audits, appraisals and valuations or examinations at the locations of such Debtor and (E) to discuss such Debtor’s affairs, finances
and accounts with any of its directors, officers, managerial employees, independent accountants or any of its other representatives

 

(m)       Debtor
shall, sua sponte, take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights,
claims, causes of action and accounts receivable in respect of the Collateral without the need for a request therefore from the Collateral
Agent.

     

     

    

(n)       Debtor
shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment, execution or other
legal process levied against any Collateral and of any other information received by Debtor that may materially affect the value of the
Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder and shall promptly take all necessary or
appropriate action to remediate, mitigate or eliminate such adverse action at its own expense.

 

(o)       All
information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of Debtor with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(p)       The
Debtor shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any rights
and franchises material to its business.

 

(q)       At
any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require or permit
possession by the Secured Parties to perfect the security interest created hereby, the applicable Debtor shall deliver such Collateral
to the Collateral Agent upon demand.

 

(r)       Debtor,
in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Collateral Agent regarding the Collateral
consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106 (or any successor
section) of the UCC. Further, Debtor agrees that it shall not enter into a similar agreement (or one that would confer “control”
within the meaning of Article 8 of the UCC) with any other Person or entity.

 

(s)       Debtor
shall cause all tangible chattel paper constituting Collateral to be delivered to the Collateral Agent, or, if such delivery is not possible,
then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created by this Agreement.
To the extent that any Collateral consists of electronic chattel paper, the applicable Debtor shall cause the underlying chattel paper
to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

 

(t)       Debtor
shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts with any governmental
authority and, to the extent necessary to perfect or continue the perfected status of the Collateral in such accounts and proceeds thereof,
shall execute and deliver to the Collateral Agent an assignment of claims for such accounts and cooperate with the Collateral Agent in
taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute
or rule to perfect or continue the perfected status of the Collateral in such accounts and proceeds thereof.

 

(u)
Debtor will from time to time, at the joint and several expense of the Debtor, promptly execute and deliver all such further
instruments and documents, and take all such further action as may be necessary or desirable, or as the Collateral Agent may
reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the
Secured Parties to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry
out the purposes of this Agreement.

 

5.       Effect
of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership interests
(regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests upon the occurrence
of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets of the issuer), it is
agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement of any of Collateral Agent’s
rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights notwithstanding any provisions
in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor is party.

     

     

    

		6.	Defaults.
                                            The following events shall be “Events of Default”:

 

		(a)	The
                                            occurrence of an Event of Default (as defined in the Notes) under the Notes;

 

(b)       Any
representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)       The
failure by any Debtor to observe or perform any of its obligations hereunder for five (5) days after delivery to Debtor of notice of
such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame and
Debtor is using best efforts to cure same in a timely fashion, provided that if no cure is provided to the satisfaction of the Secured
Parties within ten (10) days after such notice, then the failure shall be deemed an Event of Default; or

 

(d)       If
any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability
thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having
jurisdiction over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any
Debtor has any liability or obligation purported to be created under this Agreement.

 

		7.	Duty
                                            To Hold In Trust.

 

(a)       Upon
the occurrence of any Event of Default and at any time thereafter, Debtor shall, upon receipt of any revenue, income, dividend, interest
or other sums subject to the Collateral, whether payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance
or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Parties and shall forthwith
endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata in proportion to their respective
then-currently outstanding principal amount of Notes for application to the satisfaction of the Obligations (and if any No t e is not
outstanding, pro-rata in proportion to the initial purchases of the remaining Notes).

 

(b)       If
any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares
of pledged securities or instruments representing pledged securities acquired after the date hereof, or any options, warrants,
rights or other similar property or certificates representing a dividend, or any distribution in connection with any
recapitalization, reclassification or increase or reduction of capital, or issued in connection with any reorganization of Debtor or
any of its direct or indirect subsidiaries) in respect of the pledged securities (whether as an addition to, in substitution of, or
in exchange for, such pledged securities or otherwise), Debtor agrees to: (i) accept the same as the Collateral Agent of the Secured
Parties; and (ii) hold the same in trust on behalf of and for the benefit of the Secured
Parties; and (iii) to deliver any and all certificates or instruments evidencing the same to Collateral Agent on or before the close
of business on the fifth business day following the receipt thereof by Debtor, in the exact form received together with the
necessary endorsements, to be held by Collateral Agent subject to the terms of this Agreement as Collateral.

 

		8.	Rights
                                            and Remedies Upon Default.

 

(a)       Upon
the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Collateral Agent, shall have
the right to exercise all of the remedies conferred hereunder and under the Purchase Agreement and the Notes, and the Secured Parties
shall have all the rights and remedies of a secured party under the UCC. Without limitation, the Collateral Agent, for the benefit of
the Secured Parties, shall have the following rights and powers:

 

(i)       take absolute control of the Collateral, including without limitation, transfer into the Collateral Agent’s name or into the name
of its nominee or nominees (to the extent the Collateral Agent has not theretofore done so) and thereafter receive, for the benefit of
each Secured Party, all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with
respect thereto as though it were the outright owner thereof.

     

     

    

(ii)       The
Collateral Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance
of any Person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and require that Debtor
to, and each Debtor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble the Collateral
and make it available to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at Debtor's premises
or elsewhere, and make available to the Collateral Agent, without rent, all of Debtor’s respective premises and facilities for
the purpose of the Collateral Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

 

(iii)       The
Collateral Agent shall have the right without notice except as specified below and without any obligation to prepare or process the Collateral
for sale, (A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s
offices, at any exchange or broker’s board or elsewhere, for cash, on credit or for future delivery, and at such price or prices
and upon such other terms as the Collateral Agent may deem commercially reasonable or (B) lease, license or otherwise dispose of the
Collateral or any part thereof upon such terms as the Collateral Agent may deem commercially reasonable. Each Debtor agrees that, to
the extent notice of sale or any other disposition of the Collateral shall be required by Law, at least three (3) days’ prior notice
to the applicable Debtor of the time and place of any public sale or the time after which any private sale or other disposition of the
Collateral is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale or other
disposition of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale
from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. Each Debtor hereby waives any claims against each Secured Party arising by reason of the fact
that the price at which the Collateral may have been sold at a private sale was less than the price which might have been obtained at
a public sale or was less than the aggregate amount of the Obligations, even if the Collateral Agent accepts the first offer received
and does not offer the Collateral to more than one offeree, and waives all rights that such Debtor may have to require that all or any
part of the Collateral be marshaled upon any sale (public or private) thereof. Each Debtor hereby acknowledges that (i) any such sale
of the Collateral by the Collateral Agent shall be made without warranty, (ii) the Collateral Agent may specifically disclaim any warranties
of title, possession, quiet enjoyment or the like, (iii) the Collateral Agent may bid (which bid may be, in whole or in part, in the
form of cancellation of indebtedness), if permitted by Law, for the purchase, lease, license or other disposition of the Collateral or
any portion thereof for the account of the Collateral Agent (on behalf of itself and each Secured Party) and (iv) such actions set forth
in clauses (i), (ii) and (iii) above shall not adversely affect the commercial reasonableness of any such sale of the Collateral.

 

(iv)       Upon
notice to the Debtor by Collateral Agent, all rights of Debtor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise and all rights of Debtor to receive the dividends and interest which it would otherwise be
authorized to receive and retain, shall cease. Upon such notice, Collateral Agent shall have the right to receive, for the benefit
of the Secured Parties, any interest, cash dividends or other payments on the Collateral and, at the option of Collateral Agent, to
exercise in such Collateral Agent’s discretion all voting rights pertaining thereto. Without limiting the generality of the
foregoing, Collateral Agent shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as
it were the sole and absolute owner thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any
or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment
concerning or involving the Collateral or any Debtor or any of its direct or indirect subsidiaries.

 

(v)       The
Collateral Agent shall have the right to operate the business of Debtor using the Collateral and shall have the right to assign, sell,
lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without
special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times
and at such place or places, and upon such terms and conditions as the Collateral Agent may deem commercially reasonable, all without
(except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right
of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral,
the Collateral Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot be waived, purchase
all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of any
Debtor, which are hereby waived and released.

     

     

    

(vi)       The
Collateral Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts
to make payments directly to the Collateral Agent, on behalf of the Secured Parties, and to enforce the Debtor’s rights against
such account debtors and obligors. Anything herein to the contrary notwithstanding, each Debtor shall remain liable under each of the
accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with
the terms of any agreement giving rise thereto. Unless the Collateral Agent has expressly in writing assumed the obligations and liabilities
with respect thereto, and released the Debtors therefrom, neither the Collateral Agent nor any Secured Party shall have any obligation
or liability under any account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by
the Collateral Agent or any Secured Party of any payment relating thereto, nor shall the Collateral Agent or any Secured Party be obligated
in any manner to perform any of the obligations of any Debtor under or pursuant to any account (or any agreement giving rise thereto),
to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of
any performance by any party thereunder, to present or file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times.

 

(v)       The
Collateral Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other
Person or entity holding any investment property to transfer the same to the Collateral Agent, on behalf of the Secured Parties, or its
designee and all Proceeds received by any Debtor consisting of cash, checks and other near cash items shall be held by such Debtor in
trust for the Collateral Agent and the Secured Parties, segregated from other funds of such Debtor, and shall, forthwith upon receipt
by such Debtor, be turned over to the Collateral Agent in the exact form received by such Debtor (duly endorsed by such Debtor to the
Collateral Agent, if required). All Proceeds received by the Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral
Account maintained under its dominion and control and on terms and conditions reasonably satisfactory to the Collateral Agent. All Proceeds
while held by the Collateral Agent in a Collateral Account (or by such Debtor in trust for the Collateral Agent and the Secured Parties)
shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof until applied.

 

(vi)       The
Collateral Agent may upon written notice to any Debtor, (A) require such Debtor to cease any use of the Intellectual Property or any
trademark, patent or copyright similar thereto for any purpose described in such notice, (B) license, whether general, special or otherwise,
and whether on an exclusive or non-exclusive basis, any of the Intellectual Property, throughout the universe for such term or terms,
on such conditions, and in such manner, as the Collateral Agent shall in its sole discretion determine, and (C) execute and deliver on
behalf of a Debtor, one or more instruments of assignment of the Intellectual Property (or any application or registration thereof),
in form suitable for filing, recording or registration in any country.

 

9.       Applications
of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on account
of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding, storing,
processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in
connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Collateral Agent in enforcing
the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction
of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of Notes at the time of any
such determination), and to the payment of any other amounts required by applicable law, after which the Secured Parties shall pay to
the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are
insufficient to pay all amounts to which the Secured Parties are legally entitled, the Debtors will be personally liable, jointly and
severally, for the deficiency, together with interest thereon, at the rate of 15% per annum or the lesser amount permitted by applicable
law (the “Default Rate”), and the reasonable fees and expenses of any attorneys employed by the Secured Parties to collect
such deficiency. To the extent permitted by applicable law, Debtor waives all claims, damages and demands against the Secured Parties
arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct
of the Secured Parties as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

     

     

    

10.       Securities
Law Provision. Each Debtor recognizes that Collateral Agent may be limited in its ability to effect a sale to the public of all or
part of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state
securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales to a restricted
group of purchasers who may be required to agree to acquire the pledged securities set forth in Schedule H (the “Pledged Securities”)
for their own account, for investment and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made
may be at prices and on terms less favorable than if the Pledged Securities were sold to the public, and that Collateral Agent has no
obligation to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to
the public under the Securities Laws. Each Debtor shall cooperate with Collateral Agent in its attempt to satisfy any requirements under
the Securities Laws (including, without limitation, registration thereunder if requested by Collateral Agent) applicable to the sale
of the Pledged Securities by Collateral Agent.

 

11.       Costs
and Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing
required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements, partial releases
and/or termination statements related thereto or any expenses of any searches reasonably required by the Collateral Agent. The Debtor
shall also pay all other claims and charges which in the reasonable opinion of the Collateral Agent is reasonably likely to prejudice,
imperil or otherwise affect the Collateral or the Collateral therein. The Debtor will also, upon demand, pay to the Collateral Agent
the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and Collateral
Agents, which the Collateral Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection,
satisfaction, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance, amendment
or enforcement of this Agreement and pay to the Collateral Agent the amount of any and all reasonable expenses, including the reasonable
fees and expenses of its counsel and of any experts and Collateral Agents, which the Collateral Agent, for the benefit of the Secured
Parties, and the Secured Parties may incur in connection with: (i) the enforcement of this Agreement, (ii) the custody or preservation
of, or the sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of
the rights of the Secured Parties under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of
the Notes and shall bear interest at the Default Rate.

 

12.       Responsibility
for Collateral. The Debtor assumes all liabilities and responsibility in connection with all Collateral, and the Obligations shall
in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability
for any reason. Without limiting the generality of the foregoing, (a) neither the Collateral Agent nor any Secured Party (i) has any
duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating
to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) Debtor shall remain obligated
and liable under each contract or agreement included in the Collateral to be observed or performed by Debtor thereunder. Neither the
Collateral Agent nor any Secured Party shall have any obligation or liability under any such contract or agreement by reason of or arising
out of this Agreement or the receipt by the Collateral Agent or any Secured Party of any payment relating to any of the Collateral, nor
shall the Collateral Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Debtor under or pursuant
to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by the Collateral Agent or
any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement,
to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been
assigned to the Collateral Agent or to which the Collateral Agent or any Secured Party may be entitled at any time or times.

     

     

    

13.       Collateral
Absolute. All rights of the Secured Parties and all obligations of the Debtor hereunder, shall be absolute and unconditional, irrespective
of: (a) any lack of validity or enforceability of this Agreement, the Purchase Agreement, the Notes or any agreement entered into in
connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from
the Purchase Agreement, the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release or
non-perfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for,
or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust,
settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any
other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all or any
part of the Collateral granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Parties
shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations
or bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance.
In the event that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be deemed
by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy
or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then, in
any such event, Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied
by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance
with the terms and provisions hereof. Each Debtor waives all right to require the Secured Parties to proceed against any other person
or entity or to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy.
Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

 

14.       Term
of Agreement. This Agreement and the Collateral shall terminate on the date on which all payments under the Notes have been indefeasibly
paid in full and all other Obligations under the Purchase Agreement have been paid or discharged; provided, however, that all indemnities
of the Debtor contained in this Agreement shall survive and remain operative and in full force and effect regardless of the termination
of this Agreement.

 

		15.	Power
                                            of Attorney; Further Assurances.

 

(a)
      Each Debtor authorizes the Collateral Agent, and does hereby make, constitute and appoint the Collateral Agent and its officers,
Collateral Agents, successors or assigns with full power of substitution, as Debtor’s true and lawful attorney-in-fact, with
power, in the name of the Collateral Agent or Debtor, to, after the occurrence and during the continuance of an Event of Default,
(i) endorse any note, checks, drafts, money orders or other instruments of payment (including payments payable under or in respect
of any policy of insurance) in respect of the Collateral that may come into possession of the Collateral Agent; (ii) to sign and
endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse
receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating
to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied or placed on
or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of
the Collateral; (v) to transfer any Intellectual Property or provide licenses respecting any Intellectual Property; and (vi)
generally, at the option of the Collateral Agent, and at the expense of the Debtor, at any time, or from time to time, to execute
and deliver any and all documents and instruments and to do all acts and things which the Collateral Agent deems necessary to
protect, preserve and realize upon the Collateral and the Collateral granted therein in order to effect the intent of this Agreement
and the Notes all as fully and effectually as the Debtor might or could do; and Debtor hereby ratifies all that said attorney shall
lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable for
the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding. The designation set forth herein
shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents or agreements
to which any Debtor is subject or to which any Debtor is a party. Without limiting the generality of the foregoing, after the
occurrence and during the continuance of an Event of Default, each Secured Party is specifically authorized to execute and file any
applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property
with the United States Patent and Trademark Office and the United States Copyright Office.

     

     

    

(b)
      On a continuing basis, Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing and
recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C attached hereto, all
such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by the Collateral
Agent, to perfect the Collateral granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring
and confirming to the Collateral Agent the grant or perfection of a perfected security interest in all the Collateral under the UCC.

 

(c)
      Each Debtor hereby irrevocably appoints the Collateral Agent as Debtor’s attorney-in-fact, with full authority in the place and
instead of Debtor and in the name of Debtor, from time to time in the Collateral Agent’s discretion, to take any action and to
execute any instrument which the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement,
including the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative
to any of the Collateral without the signature of Debtor where permitted by law, which financing statements may (but need not)
describe the Collateral as “all assets, ” “all assets now owned or hereafter acquired” or “all personal
property” or words of like import, and ratifies all such actions taken by the Collateral Agent. Each Debtor hereby also
authorizes the Collateral Agent, at any time and from time to time, to file continuation statements with respect to previously filed
financing statements.

 

(d)
      This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as
any of the Obligations shall be outstanding.

 

16.       Notices.
All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement.

 

17.       Other
Security. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other Person, firm, corporation or other entity, then the Collateral Agent shall have the right, in its
sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying
or affecting any of the Secured Parties’ rights and remedies hereunder.

 

18.       Appointment
of Collateral Agent. The Secured Parties may appoint a Person to act on their behalf with respect to the Collateral pledged hereby
(the “Collateral Agent”) and any action to be taken hereunder by the Secured Parties may be taken by the Collateral Agent on
their behalf and in their place and stead without further action on the part of the Secured Parties. The name and contact information
of the Collateral Agent and any replacement Collateral Agent shall be provided in writing to the Debtor at any time or from time to time
and shall be binding upon the parties hereto without more. Any reference herein to the Collateral Agent or to the Secured Parties may
apply to either or both as the context may require. The fees and reasonable expenses of the Collateral Agent shall be the obligation
of the Debtor which hereby agrees to pay such fees and expenses upon demand. Any such appointment shall continue until revoked in writing
by a majority of the then outstanding principal balance in interest of the Notes (the “Majority in Interest”), at which time
a Majority in Interest shall appoint a new Collateral Agent. The Collateral Agent, if any, shall have the rights, responsibilities and
immunities set forth in Schedule B hereto.

 

19.       Miscellaneous.

 

(a)       Guarantors
hereby irrevocably and unconditionally guarantees to the Secured Parties and their successors and assigns the payment and performance
of the Obligations as and when the same shall be due and payable, whether by lapse of time, by acceleration of maturity or otherwise
and the performance of this Agreement.

 

(b)       No
course of dealing between the Debtor and the Secured Parties or the Collateral Agent, nor any failure to exercise, nor any delay in exercising,
on the part of the Secured Parties or the Collateral Agent, any right, power or privilege hereunder or under the Purchase Agreement or
the Notes shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder
preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

(c)       All
of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Notes or by any
other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

     

     

    

(d)       This
Agreement, the Purchase Agreement and the Notes, together with the exhibits and schedules hereto and thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No
provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an
amendment, by the Debtor and the Secured Parties holding 67% or more of the principal amount of Notes then outstanding, or, in the case
of a waiver, by the party against whom enforcement of any such waived provision is sought.

 

(e)       If
any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(f)       No
waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any
delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(g)       This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company and the
Guarantors may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Secured Party
(other than by merger). Any Secured Party may assign any or all of its rights under this Agreement to any Person (as defined in the Purchase
Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee agrees in writing to be bound, with
respect to the transferred Obligations, by the provisions of this Agreement that apply to the “Secured Parties.”

 

(h)       Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order to carry
out the provisions and purposes of this Agreement.

 

(i)       Except
to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York, without regard to the principles of conflicts of law thereof. Except to the extent mandatorily governed
by the jurisdiction or situs where the Collateral is located, Debtor agrees that all proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement, the Purchase Agreement and the Notes (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or Collateral Agents) shall be commenced
exclusively in the state and federal courts sitting in Maricopa County. Except to the extent mandatorily governed by the jurisdiction
or situs where the Collateral is located, Debtor hereby irrevocably submits to the jurisdiction of the state and federal courts sitting
in the Maricopa County, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under the Purchase Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives,
to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby.

     

     

    

(i)       This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of
which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile or electronic
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed)
the same with the same force and effect as if such facsimile signature were the original thereof.

 

(j)       Debtor
shall indemnify, reimburse and hold harmless the Collateral Agent and the Secured Parties and their respective partners, members, shareholders,
officers, directors, employees and agents, including Alexander Capital, L.P., the Company’s placement agent for the Notes (and any
other persons with other titles that have similar functions) (collectively, “Indemnitees”) from and against any and all losses,
claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating
and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from
or alleged to arise from the Purchase Agreement, the Notes, this Agreement or the Collateral, except any such losses, claims, liabilities,
damages, penalties, suits, costs and expenses which result from the gross negligence or willful misconduct of the Indemnitee as determined
by a final, non-appealable decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in
limitation of, any other indemnification provision in the Notes, the Purchase Agreement (as such term is defined in the Notes) or any
other agreement, instrument or other document executed or delivered in connection herewith or therewith.

 

(k)       Nothing
in this Agreement shall be construed to subject Collateral Agent or any Secured Party to liability as a fiduciary, joint venturer,
agent or partner in any Debtor or any if its direct or indirect subsidiaries that is a partnership or as a member in any Debtor or
any of its direct or indirect subsidiaries that is a limited liability company, nor shall Collateral Agent or any Secured Party be
deemed to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any
Debtor or any of its direct or indirect subsidiaries or otherwise, unless and until any such Secured Party exercises its right to be
substituted for Debtor as a partner or member, as applicable, pursuant hereto.

 

(l)       To
the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent, approval
or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or compliance with
any provisions of any of the Organizational Documents, the Debtor hereby grants such consent and approval and waives any such noncompliance
with the terms of said documents.

 

(m)       Debtor
further agrees that, if any payment made by the Company or other Person and applied to the Obligations is at any time annulled, avoided,
set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the proceeds
of Collateral are required to be returned by any Secured Party to the Company, its estate, trustee, receiver or any other Person, including
any Debtor, under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or repayment,
any lien or other Collateral securing such liability shall be and remain in full force and effect, as fully as if such payment had never
been made or, if prior thereto the lien granted hereby or other Collateral securing such liability hereunder shall have been released
or terminated by virtue of such cancellation or surrender, such lien or other Collateral shall be reinstated in full force and effect,
and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect any lien or other Collateral
securing the obligations of any debtor in respect of the amount of such payment.

 

[signature
page follows]

     

     

    

IN
WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

ADAMAS
ONE CORP.

 

	By: 	/s/
    John Grdina

Name:
John Grdina

Title:
CEO

 

GUARANTOR

 

	By: 	/s/
    John Grdina

Name:
John Grdina

 

DIGITAL
POWER LENDING, LLC

 

	By: 	/s/
    David J. Katzoff

Name:
David J. Katzoff

Title:
ManagerExhibit 10.29

 

FORM

OF

SECURITIES PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as ________, by and among Adamas One Corp., a Nevada
corporation, with headquarters located at 101545 N. Tatum Road, Phoenix, Arizona 85028 (the “Company”) and the investors
listed on the Schedule of Buyers attached hereto (each individually, a “Buyer,” and collectively the “Buyers”).

 

WHEREAS:

 

A.            The
Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Regulation D (“Regulation
D”) promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.            The
Company has authorized a new series of unsecured convertible promissory notes of the Company (the “Notes”).

 

C.            Each
Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, that aggregate principal
amount of Notes, in substantially the form attached hereto as Exhibit A set forth opposite such Buyer’s name in column
(3) or (4) on the Schedule of Buyers (which aggregate amount for all Buyers shall not exceed $__________).

 

D.            The
Notes are convertible into shares (collectively, the “Conversion Shares”) of the Company’s Common Stock at a
20% discount to the initial public offering price per share of the Company’s Common Stock.

 

E.             The
Notes bear interest, which will be paid in additional shares (collectively, the “Interest Shares”) of the Company’s
Common Stock.

 

F.             The
Notes, the Conversion Shares and the Interest Shares are collectively referred to herein as the “Securities.”

 

NOW,
THEREFORE, the Company and each Buyer hereby agree as follows:

 

1.             PURCHASE
AND SALE OF NOTES.

 

(a)           Initial
Closing.

 

(i)                
Subject to and in reliance upon the representations and warranties set forth in Section 3 below, and the satisfaction (or waiver) of
the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not
jointly, agrees to purchase from the Company on the Initial Closing Date (as defined below), a principal amount of Notes as is set forth
opposite such Buyer’s name in column (3) on the Schedule of Buyers. The aggregate purchase price (the “Initial Purchase
Price”) of the Notes to be purchased by the Buyers at the Initial Closing shall be equal to $__________. The closing (the “Initial
Closing”) of the purchase of the Notes by the Buyers shall occur at the offices of _________________. The date and time of
the Closing (the “Initial Closing Date”) shall be 10:00 a.m., Pacific Standard Time, on the date hereof.

     

     

    

(ii)              
On the Initial Closing Date, (i) each Buyer shall pay its aggregate Initial Purchase Price to the Company for the Notes sold to such
Buyer at the Initial Closing, by wire transfer of immediately available funds in accordance with Company’s written wire instructions,
and (ii) the Company shall deliver to each Buyer (A) the Notes (in the denominations as such Buyer shall have requested prior to the
Closing) which such Buyer is then purchasing, duly executed on behalf of the Company and registered in the name of such Buyer or its
designee.

 

(b)           Subsequent Closings.

 

(i)                
Subject to and in reliance upon the representations and warranties set forth in Section 3 below, and the satisfaction (or waiver) of
the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to each additional Buyer, and each additional Buyer
severally, but not jointly, agrees to purchase from the Company on the Subsequent Closing Date (as defined below), a principal amount
of Notes as is set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers. The aggregate purchase
price (the “Subsequent Purchase Price”) of the Notes to be purchased by the Buyers at the Second Closing shall be
up to __________. Each subsequent closing (a “Subsequent Closing”) of the purchase of the Notes by the Buyers shall
occur at the offices of __________. The date and time of the Closing (the “Subsequent Closing Date”) shall be 10:00
a.m., Pacific Standard Time, from time to time after the date of this Agreement with the final Subsequent Closing Date to be no later
than May 18, 2014.

 

(ii)          
    On a Subsequent Closing Date, (i) each Buyer shall pay its aggregate Subsequent Purchase Price to the Company for
the Notes to be issued and sold to such Buyer at such Subsequent Closing, by wire transfer of immediately available funds in
accordance with Company’s written wire instructions, and (ii) the Company shall deliver to each Buyer (A) the Notes (in
the denominations as such Buyer shall have requested prior to the Closing) which such Buyer is then purchasing, duly executed on
behalf of the Company and registered in the name of such Buyer or its designee.

    2

     

    

2.             BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each
Buyer represents and warrants with respect to only itself that:

 

(a)           No
Public Sale or Distribution. Such Buyer is acquiring (i) the Notes, (ii) upon the receipt of any Conversion Shares, will acquire
such Conversion Shares, and (iii) upon the receipt of any Interest Shares, will acquire such Interest Shares, for its own account and
not with a view towards, or for resale in connection with, the public sale or distribution thereof in a manner that would violate the
1933 Act, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations
herein, such Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose
of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. Such Buyer
is acquiring the Securities hereunder in the ordinary course of its business. Such Buyer does not presently have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Securities.(b)Investor Status. Such Buyer is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D.

 

(b)           Reliance
on Exemptions. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from
the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth
and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire
the Securities.

 

(c)           Information.
Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the
Company and materials relating to the offer and sale of the Securities which have been requested by such Buyer. Such Buyer and its advisors,
if any, have been afforded the opportunity to ask questions of the Company. Such Buyer understands that its investment in the Securities
involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an
informed investment decision with respect to its acquisition of the Securities.

 

(d)           No
Governmental Review. Such Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in
the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(e)           Transfer
or Resale. Such Buyer understands that the Securities have not been and are not being registered under the 1933 Act or any state
securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such
Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Securities to
be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) such Buyer
provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule
144A promulgated under the 1933 Act (or, in each case, a successor rule thereto); provided, however, that the Securities may be
pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge
of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of
Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to
this Agreement or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(f).

    3

     

    

(f)            Legends.
Such Buyer understands that the certificates or other instruments representing the Notes, the stock certificates representing the Conversion
Shares, and the Interest Shares, except as set forth below, shall bear any legend as required by the “blue sky” laws of any
state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such
stock certificates):THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE
OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES
LAWS, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE
STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES
MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities
upon which it is stamped, if (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment
or other transfer, such holder provides the Company with an opinion of counsel, in a generally acceptable form, to the effect that such
sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act, or
(iii) such Securities are sold, assigned or transferred pursuant to Rule 144, or such holder provides the Company with reasonable assurance
that the Securities can be sold, assigned or transferred pursuant to Rule 144.

 

(g)           Residency.
Such Buyer is a resident of that jurisdiction specified below its address on the Schedule of Buyers.

    4

     

    

3.             REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

 

As
an inducement to the Buyers to enter into this Agreement and to consummate the transactions contemplated hereby, the Company represents
and warrants to each of the Buyers that each and all of the following representations and warranties (as modified by the disclosure schedules
delivered to the Buyers contemporaneously with the execution and delivery of this Agreement (the “Schedules”)) are
true and correct as of the Initial Closing Date and any Subsequent Closing Date (each a “Closing Date”). The Schedules
shall be arranged by the Company in paragraphs corresponding to the sections and subsections contained in this Section 3.

 

(a)            Organization
and Qualification. The Company and its “Subsidiaries” (which for purposes of this Agreement means any entity in
which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest) are entities duly organized and
validly existing in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization
to own their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified
as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of
the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good
standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material
adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects
of the Company and its Subsidiaries, taken as whole, or on the transactions contemplated hereby and by the other Transaction Documents,
or on the authority or ability of the Company to perform its obligations under the Transaction Documents. The Company has no Subsidiaries,
except as set forth on Schedule 3(a).

 

(b)           Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement,
the Notes, and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this
Agreement (collectively, the “Transaction Documents”) and to issue the Securities in accordance with the terms hereof
and thereof. The execution and delivery of the Transaction Documents by the Company has been duly authorized by the Company’s Board
of Directors and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation,
the issuance of the Notes, the Conversion Shares, and the Interest Shares by the Company, has been or will be at the time of issuance
duly authorized by the Company’s Board of Directors and (other than the filing with the SEC of a Form D and other than filings
with “Blue Sky” authorities as required therein) no further filing, consent, or authorization is required by the Company,
its Board of Directors or its stockholders. This Agreement and the other Transaction Documents of even date herewith have been duly executed
and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company
in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.

    5

     

    

(c)           Issuance
of Securities. The issuance of the Notes is duly authorized and free from all taxes, liens and charges with respect to the issue
thereof. Upon issuance on the Initial Closing Date or any Subsequent Closing Date, the Company shall have reserved from its duly authorized
capital stock not less than the maximum number of shares of Common Stock issuable as Conversion Shares and Interest Shares. Upon issuance,
(i) the Conversion Shares, and (ii) the Interest Shares, will be, validly issued, fully paid and nonassessable and free from all preemptive
or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded
to a holder of Common Stock. Assuming the accuracy of the representations made by each Buyer in Section 2, the offer and issuance
by the Company of the Securities is exempt from registration under the 1933 Act.

 

(d)           No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes, the Conversion Shares,
and the Interest Shares) will not (i) result in a violation of the Company’s Articles of Incorporation, or the Company’s
Bylaws (each as defined in Section 3(r)) or the governing documents of any of the Company’s Subsidiaries or the terms of any
capital stock of the Company or any of its Subsidiaries; (ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both, would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party; or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Company or any
of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.

 

(e)           Consents.
The Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental
agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations
under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof (other than (w) filing
with the SEC of a Form D, and (x) filings with “Blue Sky” authorities). All consents, authorizations, orders, filings and
registrations which the Company are required to obtain pursuant to the preceding sentence have been obtained or effected on or prior
to the Closing Date, and the Company and its Subsidiaries are unaware of any facts or circumstances which might prevent the Company from
obtaining or effecting any of the application or filings pursuant to the preceding sentence.

 

(f)            Acknowledgment
Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting solely in the capacity
of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and
that no Buyer is (i) an officer or director of the Company, (ii) to the knowledge of the Company, an “affiliate” of the Company
(as defined in Rule 144) or (iii) to the knowledge of the Company, a “beneficial owner” of more than 10% of the shares of
Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)).
The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any
of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is
merely incidental to such Buyer’s purchase of the Securities. The Company further represents to each Buyer that the Company’s
decisions to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.

    6

     

    

(g)           No
General Solicitation: Placement Agent’s Fees. None of the Company, nor any of its affiliates, nor any Person acting on its
behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Securities. The Company shall be responsible for the payment of any placement agent’s fees, financial
advisory fees, or brokers’ commissions (other than for Persons engaged by the Buyers or their investment advisors) relating to
or arising out of the transactions contemplated hereby. The Company shall pay, and hold each Buyer harmless against, any liability, loss
or expense (including, without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with any such claim.
The Company has not engaged any placement agent or other agent in connection with the sale of the Securities.

 

(h)           No
Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, or any Person acting on their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require
registration of any of the Securities under the 1933 Act or cause this offering of the Securities to be integrated with prior offerings
by the Company for purposes of the 1933 Act or any applicable stockholder approval provisions. None of the Company, its Subsidiaries,
their affiliates or any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would
require registration of any of the Securities under the 1933 Act or cause the offering of the Securities to be integrated with other
offerings.

 

(i)            U.S.
Real Property Holding Corporation. The Company is not, nor has it ever been, a U.S. real property holding corporation within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company will so certify upon the request of any Buyer.

 

(j)            Conduct
of Business: Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default under
its Articles of Incorporation or Bylaws or other governing documents. Neither the Company nor any of its Subsidiaries is in violation
of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or its Subsidiaries.

    7

     

    

(k)           Foreign
Corrupt Practices. Neither the Company nor any of its Subsidiaries nor any director, officer, agent, employee or other Person acting
on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company or any
of its Subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating
to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee
from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended;
or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

 

(l)            Equity
Capitalization. As of the date hereof, the authorized capital stock of the Company consists of one hundred million (100,000,000)
shares of common stock, $0.001 par value per share, of which, as of the date hereof, 12,294,000 shares are issued and outstanding, and
ten million (10,000,000) shares of preferred stock, $0.001 par value per share, of which no shares were issued and outstanding
on the date hereof. All of such outstanding shares of the Company have been validly issued and are fully paid and nonassessable. Except
as disclosed on Schedule 3(1): (i) none of the Company’s share capital is subject to preemptive rights or any other
similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any share capital of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional share capital of the Company or any of its
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any share capital of the Company or any of its Subsidiaries; (iii) there
are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing
Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv)
there are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection
with the Company or any of its Subsidiaries; (v) there are no agreements or arrangements under which the Company or any of its Subsidiaries
is obligated to register the sale of any of its securities under the 1933 Act; (vi) there are no outstanding securities or instruments
of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company
or any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be
triggered by the issuance of the Securities; and (viii) neither the Company nor any of its Subsidiaries has any stock appreciation rights
or “phantom stock” plans or agreements or any similar plan or agreement. Schedule 3(1) contains true, correct and
complete copies of (i) the Company’s Articles of Incorporation, as amended and as in effect on the date hereof (“the Company’s
Articles of Incorporation”), (ii) the Company’s Bylaws, as in effect on the date hereof (“the Company’s
Bylaws”), and (iii) the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common
Stock and the material rights of the holders thereof in respect thereto.

    8

     

    

(m)          Indebtedness
and Other Contracts. Except as disclosed on Schedule 3(m), neither the Company nor any of its Subsidiaries (i) has any
outstanding Indebtedness, (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which,
by the other party(ies) to such contract, agreement or instrument would result in a Material Adverse Effect, (iii) is in violation of
any term of or in default under any contract, agreement or instrument relating to any Indebtedness, or (iv) is a party to any contract,
agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or
is expected to have a Material Adverse Effect, except as otherwise disclosed in Schedule 3(m). Schedule 3(m)
provides a detailed description of the material terms of any such outstanding Indebtedness. For purposes of this Agreement: (x) “Indebtedness”
of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with
generally accepted accounting principles) (other than trade payables entered into in the ordinary course of business), (C) all reimbursement
or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced
by notes, bonds, Notes or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred
as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the
rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property),
(F) all monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles,
consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses
(A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become
liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of
the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation” means, as to any Person,
any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof,
is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect
thereto; and (z) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization and a government or any department or agency thereof.

    9

     

    

(n)           Absence
of Litigation. Except as set forth in Schedule 3(n), there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency (including the SEC), self-regulatory organization or body pending or, to the knowledge
of the Company, threatened against or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or any of the
Company’s or its Subsidiaries’ officers or directors.

 

(o)           Insurance.
The Company its Subsidiaries are insured or will be insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and
its Subsidiaries are engaged including, without limitation, directors’ and officers’ liability insurance. Neither the Company
nor any such Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary
has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse
Effect.

 

(p)           Employee
Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member
of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No executive officer of the
Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or
any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. No executive officer
of the Company or any of its Subsidiaries, to the knowledge of the Company or any such Subsidiary, is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement,
or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not
subject the Company or any such Subsidiary to any liability, other than general unemployment compensation, with respect to any of the
foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

 

(q)           Title.
The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of
all liens, encumbrances and defects except Permitted Liens (as defined in the Notes) and such as do not materially affect the value of
such property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries.
Any real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting
and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and facilities by the Company and its Subsidiaries.

    10

     

    

(r)            Intellectual
Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and other intellectual property rights (“Intellectual Property Rights”) necessary to
conduct their respective businesses as now conducted. None of the Company’s or any of its Subsidiaries’ Intellectual Property
Rights have expired or terminated, or are expected to expire or terminate, within three years from the date of this Agreement. Neither
the Company nor the Company has any knowledge of any infringement by the Company or its Subsidiaries of Intellectual Property Rights
of others. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company, being threatened, against
the Company or its Subsidiaries regarding its Intellectual Property Rights. The Company is unaware of any facts or circumstances which
might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and its Subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties.

 

(s)           Environmental
Laws. The Company and each of its Subsidiaries (i) are in compliance with any and all Environmental Laws (as hereinafter defined),
(ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing
clauses (i), (ii) andthe failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution
or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface
or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices
or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(t)            Investment
Company. The Company is not, or is not an affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(u)           Tax
Status. The Company and each of its Subsidiaries (i) has made or will file all foreign, federal and state income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject on a timely basis, (ii) has paid or will pay
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations on a timely basis, except those being contested in good faith and (iii) has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers
of the Company know of no basis for any such claim.

    11

     

    

(v)           Transfer
Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid
in connection with the sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid
or provided for by the Company and all laws imposing such taxes will be or will have been complied with.

 

4.             COVENANTS.

 

(a)           Commercially
Reasonable Efforts. Each party shall use commercially reasonable efforts timely to satisfy each of the conditions to be satisfied
by it as provided in Sections 6 and 7 of this Agreement.

 

(b)           Form
D and Blue Sky. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof (accessible through the SEC’s EDGAR website) to each Buyer promptly after such filing. The Company shall, on or
before the Closing Date, take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for
or to qualify the Securities for sale to the Buyers at the Initial Closing and any Subsequent Closing pursuant to this Agreement under
applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification).
The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable securities
or “Blue Sky” laws of the states of the United States following the Closing Date.

 

(c)           Use
of Proceeds. The Company estimate the use the proceeds from the sale of the Securities to be substantially as set forth on Schedule 4(c)
hereto.

 

(d)           Fees.
Except as expressly set forth in the Transaction Documents to the contrary, all parties shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall be responsible for the payment of, and shall pay, any placement
agent’s fees, financial advisory fees, or broker’s commissions (other than for Persons engaged by any Buyers or their investment
advisors) relating to or arising out of the transactions contemplated hereby, and shall hold each Buyer harmless against, any liability,
loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in connection with
any claim relating to any such payment.

 

(e)           Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation
of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse
Effect.

    12

     

    

(f)            Allocation
of Purchase Price for Federal Income Tax Purposes. In accordance with Treasury regulations section 1.1273-2(h), the Company shall
allocate the Initial Purchase Price and any Subsequent Purchase Price between the Notes based upon their relative fair market values.
In making such allocation, the parties hereto shall agree, based upon the advice of their financial advisors, upon the appropriate methodology
to be used for determining the relative fair market values of the Notes. Notwithstanding this provision, generally accepted accounting
principles may require a different purchase price to be reflected in the Company’s financial statements.

 

(g)           U.S.
Real Property Holding Corporation. For as long as the Buyers hold any Securities, and unless otherwise agreed to by the Buyers
who own Securities at the relevant time, the the Company will not cause its shares to be U.S. real property interests within the
meaning of Section 897 of the Internal Revenue Code of 1986, as amended. 5. REGISTERS. The Company shall maintain at its principal
executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities),
a register for the Notes in which the Company shall record the name and address of the Person in whose name the Notes have been
issued (including the name and address of each transferee) and the principal amount of Notes held by such Person. The Company shall
keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by
notice to each holder of Securities), a register for the Common Stock in which the Company shall record the name and address of the
Person in whose name the Conversion Shares and any Interest Shares have been issued (including the name and address of each
transferee) and the number of Conversion Shares and Interest Shares held by such Person. The Company shall keep the register open
and available at all times during business hours for inspection of any Buyer or its legal representatives.

 

6.             CONDITIONS
TO THE COMPANY’S OBLIGATIONS TO SELL.

 

(a)           The
obligations of the Company hereunder to issue and sell the Notes to each Buyer at the Initial Closing or any Subsequent Closing, as applicable
(each a “Closing”), is subject to the satisfaction, at or before the Closing Date of each of the following conditions,
provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion
by providing each Buyer with prior written notice thereof:

 

(i)                
Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)          
    Such Buyer and each other Buyer shall have delivered to the Company the Initial Purchase Price for the Notes being
purchased by such Buyer at the Initial Closing by wire transfer of immediately available funds pursuant to the wire instructions provided
by the Company.

    13

     

    

(iii)              
Such Buyer and each other Buyer shall have delivered to the Company the Subsequent Purchase Price for the Notes being purchased by such
Buyer at any Subsequent Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iv)        
     The representations and warranties of such Buyer shall be true and correct in all material respects as of the
date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such
Buyer at or prior to the Closing Date.

 

7.              CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

 

(a)           The
obligation of each Buyer hereunder to purchase the Notes at the Initial Closing and any Subsequent Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit
and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)               
The Company shall have executed and delivered to such Buyer (A) each of the Transaction Documents, and (B) the Notes (in such denominations
as such Buyer shall have requested prior to the Closing) being purchased by such Buyer at such Closing pursuant to this Agreement.

 

(ii)               
The Company shall have delivered to such Buyer a copy of the Company’s Articles of Incorporation as filed with the Secretary of
State of the State of Nevada.

 

(iii)               
The representations and warranties of the Company shall be true and correct as of the date when made and as of the Closing Date as though
made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of
such specific date), and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing
Date.

 

(iv)              
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of
the Securities.

 

(v)               
The Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement as such
Buyer or its counsel may reasonably request.

    14

     

    

8.             TERMINATION.
In the event that the Initial Closing or any Subsequent Closing shall not have occurred with respect to a Buyer on or before five business
days from the Initial Closing Date or any Subsequent Closing Date before Sept 30, 2019, as applicable, due to the Company’s or
such Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching party’s failure
to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such
breaching party at the close of business on such date without liability of any party to any other party.

 

9.             MISCELLANEOUS.

 

(a)           Governing
Law: Jurisdiction: Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of Nevada, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the County of Clark, State of Nevada, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by
law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)           Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to each other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the
signature were an original, not a facsimile signature.

 

(c)           Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

(d)           Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

    15

     

    

(e)           Entire
Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements between
the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement,
the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, none of the Company or
any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may
be amended other than by an instrument in writing signed by the Company and the holders of at least sixty five percent of the aggregate
number of Securities issued hereunder (the “Majority Holders”), and any amendment to this Agreement made in conformity
with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable. No provision hereof
may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. No such amendment shall
be effective to the extent that it applies to less than all of the holders of the applicable Securities then outstanding. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents
unless the same consideration also is offered to all of the parties to the Transaction Documents or holders of Notes, as the case
may be. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the
transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing,
the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation
to provide any financing to the Company.

 

(f)            Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
or (iii) one business day after deposit with an overnight courier service, in each case properly addressed to the party to receive
the same. The addresses and facsimile numbers for such communications shall be:

 

If
to the Company,

	 	 
	 	 
	 	 
	Email:	 	 
	Attention: 	 	 
	 	 	 

With
a copy (for informational purposes only) to:

	 	 
	 	 
	 	 
	 	 
	Telephone: 	 	 
	Facsimile:	 	 
	Attention:	 	 

    16

     

    

If
to a Buyer, to its address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer’s representatives
as set forth on the Schedule of Buyers, or to such other address and/or facsimile number and/or to the attention of such other
Person as the recipient party has specified by written notice given to each other party five days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence
of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively.

 

(g)           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns,
including any purchasers of the Notes. The Company shall not assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Majority Holders. A Buyer may assign some or all of its rights hereunder in connection with transfer of
any of its Securities without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect
to such assigned rights.

 

(h)           No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i)            Survival.
Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the Buyers contained
in Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing. Each Buyer
shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

 

(j)            Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

    17

     

    

(k)           Indemnification.
In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and
in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless each Buyer and each other holder of the Securities and all of their stockholders, partners, members, officers, directors,
employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses
in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or
warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate,
instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee
by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting
from (i) the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instilment or document
contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the
proceeds of the issuance of the Securities, (iii) any disclosure made by such Buyer pursuant to Section 4(i), or (iv) the status
of such Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by the Transaction
Documents. To the extent that the foregoing undertakings by the Company may be unenforceable for any reason, the Company shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

(l)            No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party.

 

(m)          Remedies.
Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all rights
and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such
holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement
and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform, observe,
or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the
Buyers. The Company therefore agrees that the Buyers shall be entitled to seek temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages and without posting a bond or other security.

    18

     

    

(n)           Payment
Set Aside. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant to any of the other Transaction
Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

(o)           Independent
Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under any Transaction Document are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of
any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by
any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Buyers are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Buyers are not acting in concert
or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Buyer confirms that
it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors.
Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of
this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional
party in any proceeding for such purpose.

 

[Signature
Pages Follow]

    19

     

    

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to
be duly executed as of the date first written above.

 

	 	 	COMPANY:
	 	 	 
	 	 	ADAMS
    ONE CORP.,
	 	 	A
    Nevada Corporation
	 	 	 
	 	 	By: 	
	 	 	 	Jay
    Grdina, CEO/President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Securities
Purchase Agreement Signature Page]

     

     

    

IN
WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to
be duly executed as of the date first written above.

 

	 	 	BUYER:
	 	 	 
	 	 	By: 	 
	 	 	 	Name:
	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]