Document:

EX-10.19

 Exhibit 10.19 

MASTER MANUFACTURING AND SERVICES AGREEMENT 
  

 1. Agreement; Purchase Orders. This Master Manufacturing and Services Agreement, as it may be
amended from time to time (this “Agreement”), shall govern all Purchase Orders (each, a “P.O.”) and other communications sent by WatchGuard, Inc. (“Customer”) to Variosystems, Inc.
(“Variosystems”) for electronic assemblies (the “Products”) as well as any services Variosystems may provide to Customer. Variosystems’ performance hereunder and provision of any Products or services to
Customer is strictly limited to the terms and conditions contained in this Agreement. This Agreement may only be varied for a specific accepted P.O. by written agreement explicitly referencing this Agreement and specifically identifying any
such variance to this Agreement. All requests for Products or services must be made by written P.O. Variosystems is not obligated to accept any P.O. A P.O. is binding on Variosystems only after Variosystems confirms the terms of the P.O. by written
acceptance. Once accepted by Variosystems, a P.O. cannot be modified except by mutual written agreement of both parties and Customer is responsible for all additional charges associated with such modification. 

2. Term. This Agreement shall commence on October 1, 2017 (the “Effective Date”) and shall terminate on October 1, 2020,
unless terminated earlier in accordance with the terms of this Agreement (the “Initial Term”). This Agreement shall be automatically renewed for successive one (1) year terms thereafter (each, a “Renewal Term,”
and together with the Initial Term, the “Term”) unless and until either party provides the other party with one hundred eighty (180) days’ prior written notice to terminate the Term. Notwithstanding the foregoing, if
Variosystems continues to provide Products and services previously covered by this Agreement after the date of termination at Customer’s request, Variosystems acknowledges and agrees that such Products and services shall continue to meet
the standards set forth under this Agreement and shall be governed by this Agreement in accordance with any such request, and that each party shall retain all rights and remedies under this Agreement with respect to such Products and services. 

3. Delivery/Inspection. 
 a.
Variosystems will use commercially reasonable efforts to timely deliver to Customer the Products as specified in a P.O. on the mutually agreed upon release date(s) and within the Customer’s “on-time” delivery window;
provided, however, that VARIOSYSTEMS PROVIDES NO GUARANTEE THAT DELIVERY WILL OCCUR ON ANY SPECIFIED DATE. Unavoidable changes to the delivery date and the reason(s) for such change will be communicated to Customer as soon as reasonably
possible. 
 b. Variosystems will ship the Products to Customer Ex Works, from Variosystems’ facility in Southlake, Texas (the
“Southlake Facility”). Title and risk of loss to Products will pass to Customer upon Variosystems’ delivery to the carrier for shipment to Customer, regardless of whether Variosystems has arranged for
transportation as a courtesy to Customer. 
 c. Customer must promptly inspect the Products to confirm delivery of the
ordered items and quantities and must notify Variosystems in writing of any discrepancies within ten (10) days of the third-party carrier’s delivery of the shipment to Customer. Damages or shortages sustained in transit must be
raised directly with the applicable third-party carrier. 
 4. Credit and Payment. Invoices are due and payable net (30) thirty days after the
date of such invoice (or as otherwise mutually agreed between Variosystems and Customer); provided, however, that if Customer pays an invoice in full within 10 days after the applicable invoice date, then Customer shall be
entitled to deduct a discount of 1% of the total amount due on such invoice. Variosystems reserves the right in its sole discretion to require full payment in advance. Customer is responsible for any taxes, duties, or government levies
resulting from the sale of Products or services hereunder, excluding any taxes on Variosystems’ income. Variosystems reserves the right to charge interest on all late amounts at a rate of the lesser of (i) eighteen percent (18%) per annum
or (ii) the highest permissible rate under applicable law, until paid in full. Customer must promptly review each invoice and raise any objections in writing within ten (10) days of invoice date or such objections will be deemed to
have been waived. CUSTOMER IS NOT ENTITLED TO OFFSET OR DEDUCT FROM ANY AMOUNTS DUE AND PAYABLE TO VARIOSYSTEMS ANY DISPUTED AMOUNTS OR AMOUNTS CUSTOMER ALLEGES ARE OWED FROM VARIOSYSTEMS. 

 5. Security Interest. To secure Customer’s prompt and complete payment and performance
of any and all present and future indebtedness and liabilities to Variosystems, Customer hereby grants to Variosystems a lien on and security interest in and to all of the right, title and interest of Customer in, to and under the
Products, wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the
foregoing. The security interest granted under this provision constitutes a purchase money security interest under the Uniform Commercial Code. Variosystems may file a financing statement for the security interest and Customer must execute
any statements or other documentation necessary to perfect Variosystems’ security interest in the Products. Customer also authorizes Variosystems to execute, on Customer’s behalf, statements or other documentation necessary
to perfect Variosystems’ security interest in the Products. Variosystems is entitled to all applicable rights and remedies of a secured party under applicable law. 

6. Warranty. 
 a. THE FOLLOWING
WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, AND VARIOSYSTEMS EXPRESSLY DISCLAIMS ANY OTHER EXPRESS, IMPLIED, OR STATUTORY WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, TITLE, USE, OR QUIET ENJOYMENT, AND OF ANY OTHER WARRANTY OBLIGATION ON THE PART OF VARIOSYSTEMS. VARIOSYSTEMS DOES NOT WARRANT THAT THE PRODUCTS OR SERVICES WILL BE ERROR- FREE OR THAT THE
PRODUCTS WILL PERFORM WITHOUT INTERRUPTION. CUSTOMER ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY VARIOSYSTEMS, OR ANY OTHER PERSON OR REPRESENTATIVE ON VARIOSYSTEMS’ BEHALF, EXCEPT AS STATED IN THIS
SECTION 6. 
 b. Warranty on Fabrication and Manufacturing: Variosystems fabricates electronic assemblies per the
electronics industry standard IPC-A-610 (current Revision at time of manufacture), Class 2 “Acceptability of Electronic Assemblies” in effect as of the
date of fabrication (the “IPC Standard”) and warrants the Products against workmanship defects based upon visual and/or X-ray inspection per the acceptability parameters defined within the IPC
Standard, for a period of twelve (12) months from the original Product shipment date, which is determinable by the Product serial number or lot date code. Bottom Terminated Components (BTCs) will use a maximum allowed voiding of 50% as
determined by X-ray evaluation per Variosystems process control procedures, as determined by Variosystems in its sole discretion. If the acceptance criteria are not specifically defined in the IPC Standard
then Variosystems will use electronics industry guidelines and Variosystems process controls procedures, as determined by Variosystems in its sole discretion. 

c. Warranty on ICT or Function Testing: With respect to ICT or Function testing of a Product, if Customer requests and pays
for an ICT or Function test, Variosystems warrants against errors that are covered in the test and should have been caught by the test, which includes defective components if the ICT or Function test should have detected the defective component, for
a period of twelve (12) months from the original Product shipment date, which is determinable by the Product serial number or lot date code. PROVIDED HOWEVER, THIS WARRANTY ON ICT OR FUNCTION TESTING EXPRESSLY EXCLUDES ERRORS OR DEFECTS IN THE
ICT OR FUNCTION TEST DESIGN OR ERRORS THAT ARE NOT CAUGHT DUE TO ERRORS OR DEFECTS IN THE ICT OR FUNCTION TEST DESIGN. 
 d.
NOTWITHSTANDING THE FOREGOING, THESE WARRANTIES EXPRESSLY EXCLUDE ANY DAMAGE OR DEFECT CAUSED BY OR ATTRIBUTABLE TO: (i) Customer’s or any third party’s misuse, modification, negligence, improper maintenance, or stress,
(ii) electrical circuit malfunction or placement of the Products in an unsuitable physical or operating environment, (iii) errors in design of the Products, errors or defects in the ICT or Function test design, diagnostics
errors, application specifications errors, lack of design margin, errors in specifications, or errors in bills of materials as provided or directed by Customer, or (iv) defective components supplied by third-party manufacturers (except
in the specific instance described in Section 6(c) 

 

 
above). In the event of a component defect, Variosystems will endeavor to assist Customer in enforcing the warranty claim against the manufacturer. 

e. CUSTOMER’S SOLE AND EXCLUSIVE REMEDY FOR VARIOSYSTEMS’ FAILURE TO MEET ITS WARRANTY IS AS FOLLOWS:
(i) Customer must notify Variosystems in writing and request a warranty Return Material Authorization (“RMA”) form and Variosystems must receive the applicable Product(s) at the Southlake Facility (shipped at
Customer’s expense) before the expiration of the twelve (12) month warranty period in order for Customer to be entitled to a warranty evaluation. Customer must comply with all
applicable Variosystems terms and conditions for the RMA form and for packaging and shipping the Product(s) to Variosystems for warranty evaluation. (ii) If Variosystems’ warranty evaluation confirms a workmanship defect (as described in
Section 6(b)) or a defect that should have been caught by the ICT or Function test (as described in Section 6(c)) (as applicable, a “Warrantied Defect”), the Product will be repaired, retested (if a test is
available), final inspected and returned to Customer at no charge within a commercially reasonable timeframe. If applicable, if the ICT or Function test should have detected a defective component (as described in Section 6(c)),
Variosystems will replace the defective component within a commercially reasonable timeframe. (iii) If Variosystems’ warranty evaluation does not confirm a Warrantied Defect, additional costs and charges will apply (at Variosystems’
then-current rates) depending on Customer’s instructions to Variosystems for further work on or disposition of the Product(s). FAILURE TO OBTAIN AN RMA FORM AND RETURN THE PRODUCT(S) TO THE SOUTHLAKE FACILITY BEFORE THE EXPIRATION
OF THE TWELVE (12) MONTH WARRANTY PERIOD AND/OR FAILURE TO FOLLOW ALL OF VARIOSYSTEMS’ TERMS AND CONDITIONS FOR THE RMA FORM AND FOR THE PRODUCT RETURN PROCESS WILL VOID THE WARRANTY. 

f. VARIOSYSTEMS’ DESIGN AND ENGINEERING SERVICES, INCLUDING WITHOUT LIMITATION TEST DESIGN SERVICES, ARE PROVIDED “AS IS”
WITHOUT WARRANTY OF ANY KIND. 
 7. Purchase Orders Are Non-Cancellable by Customer. Due in part to
Variosystems’ substantial commitment of resources and non- cancellable purchases from third-parties, ONCE CUSTOMER’S P.O. HAS BEEN ACCEPTED BY VARIOSYSTEMS IN WRITING, IT IS NON-
CANCELLABLE BY CUSTOMER FOR ANY REASON. If Customer does cancel a P.O. after Variosystems’ acceptance, Customer agrees to accept delivery of and pay in full for (in accordance with this Agreement) all Products under the
P.O. that Variosystems has already completed and all Products in process at the time of cancellation. Additionally, Customer agrees to pay to Variosystems on demand a cash amount equal to the following costs and charges: (i) the cost of
components Variosystems purchased or ordered that cannot be returned or cancelled (calculated as the unit purchase price plus ten percent (10%) for freight and handling) and, in Variosystems’ discretion, cannot reasonably be reused or
repurposed for other products; plus (ii) all third-party return/restocking fees charged to Variosystems as a result of Customer’s cancellation. Notwithstanding the foregoing or anything to the contrary herein, if Customer is
in default of its payment obligations under any P.O., or becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of
creditors, Variosystems may, in its sole discretion, reject or cancel subsequent P.O.s (even P.O.s that have been accepted by Variosystems) or stop delivery of any Products in transit without liability to Customer, and Customer will be
liable for the payment obligations, costs, and charges specified in this Section 7 in connection with such cancellation as though the P.O. had been cancelled by Customer. 

8. Inventory/Facilities. 
 a.
Variosystems shall maintain its inventory in accordance with its usual and customary inventory management practices at a level sufficient to meet the demand for Products and services by Customer. For purposes of maintaining continuity of
supply of Products to Customer, Variosystems shall maintain in its inventory, or reserve through its vendors and distributors, a specified amount, as mutually agreed upon by the parties, of finished goods and components beyond
Customer’s firm P.O.s, along with a pipeline of 12 months’ supply of components necessary to manufacture Customer’s requirements for Products, based on a 12-month rolling forecast
provided by Customer to Variosystems (the “Inventory Reserve”). Customer will provide Variosystems with

 
timely updates regarding such forecast. Variosystems shall notify Customer prior to purchasing any
non-cancel/non-return (“NCNR”) components necessary to manufacture Customer’s requirements for Products. Customer will cover the cost
of any residual material or NCNR components purchased by Variosystems that cannot be liquidated in a timely manner, due to an irrevocable change in Customer’s demand or design, and will assist Variosystems in dispositioning any excess or
unneeded material that results from such change in projected demand or design. Variosystems represents and warrants to Customer that, as of the Effective Date, there is sufficient inventory of components necessary to manufacture
Customer’s requirements for Products either on hand at Variosystems’s facilities or on reserve for Variosystems through its vendors and distributors for Variosystems to meet the Inventory Reserve. Notwithstanding anything to the
contrary herein, in the event that the Inventory Reserve is used to meet Customer’s requirements, Variosystems shall use its reasonable best efforts to replenish the Inventory Reserve as soon as practicable. 

b. Variosystems shall manufacture the Products and store the components necessary to manufacture the Products at the Southlake Facility.
Variosystems hereby certifies that it has two alternate facilities with the equipment, personnel capabilities and regulatory approvals necessary for manufacturing the Products and storing the components necessary to manufacture the Products. In the
event of any manufacturing stops or interruptions at the Southlake Facility, such that the Southlake Facility becomes or would become incapable of manufacturing the Products or storing the components necessary to manufacture the Products,
Variosystems shall promptly (i) notify Customer of such stop or interruption and (ii) begin manufacturing the Products and providing any related services from an alternate manufacturing facility in order to fully accommodate
Customer’s requirements for the Products without interruption or delay. Variosystems shall be solely responsible for any additional costs arising from any facility change and any changes in the level or quality of the Products or
services that result from such facility change. 
 9. Intellectual Property. All of Customer’s Intellectual Property (as defined
below) will remain at all times the sole and exclusive property of Customer. Customer grants Variosystems a non-exclusive license to Customer’s Intellectual Property solely as
necessary to provide the Products and services to Customer under this Agreement. Otherwise, nothing herein will be deemed to grant Variosystems any right, title, interest, or license in or to such Intellectual Property. For purposes of this
Agreement, “Intellectual Property” means any inventions, works of authorship, software, or other developments, and any patent, copyright, trademark, trade secret, or other proprietary rights therein. Any Intellectual Property
created, developed, or reduced to practice by Variosystems specifically for, or developed jointly with, Customer in connection with any P.O. or as part of the Products and services delivered under this Agreement (“Developed
IP”) shall be Customer’s sole property, and Variosystems hereby irrevocably assigns, and upon the creation of any Developed IP will be automatically deemed to assign, to Customer all of its right, title, and interest in
or to any such Developed IP. 
 10. Most Favored Customer. Variosystems represents and warrants to Customer that the pricing under this
Agreement or any P.O. does not currently, and shall not during the Term, exceed the pricing that is charged by Variosystems to other customers (including the United States government) purchasing products or services that are the same or
substantially the same as the Products and services provided hereunder or under any P.O., in like or smaller quantities, over a substantially comparable time period and under the same or substantially the same terms and circumstances of purchase.
Moreover, if at any time subsequent to the Effective Date, Variosystems sells or contracts to sell to any customers (including the United States government) products or services that are the same or substantially the same as the Products or services
provided hereunder or under any P.O., in like or smaller quantities, over a substantially comparable time period and under the same or substantially the same terms and circumstances of purchase, at a price that is lower than the pricing charged
under this Agreement or pursuant to any P.O., Variosystems shall adjust the pricing of such Products and services to the amount of the lower price. 

11. Confidentiality/Non-Disclosure. 

a. All information obtained by either party in connection with any P.O. will be maintained in confidence for a period of five (5) years
following the P.O.’s completion. The parties must not disclose specific P.O. terms to

 

 
others, other than their attorneys, accountants, consultants, taxing or other governmental agencies entitled to demand the information or others to which disclosure is reasonably required in the
performance of this Agreement, except as may be necessary to enforce this Agreement. 
 b. Notwithstanding anything to the contrary in
this Agreement, the parties expressly acknowledge that Customer may (i) file a copy of this Agreement with the United States Securities and Exchange Commission (the “SEC”) in any of its SEC reports and filings, as well
as incorporate them by reference into other SEC reports and filings, and (ii) identify Variosystems by name in any of its SEC reports and filings. 

c. Nothing contained in this Agreement will be deemed to grant to either party either directly or by implication, estoppel or otherwise, any
ownership, title, license or other right to any patents, copyrights, trademarks, trade secrets, or other proprietary rights owned or licensed by the other party. 

12. Force Majeure. Each party shall be excused from its performance obligations hereunder if and to the extent it is prevented or delayed by
reason of unforeseeable events beyond its reasonable control, such as acts of God, war or other hostilities, riots, fires, floods, embargos, terrorism or sabotage, that are not caused such party’s fault or negligence (each, a “Force
Majeure Event”). Such excuse from performance shall last only as long as the Force Majeure Event remains beyond the control of the excused party. If either party experiences a Force Majeure Event, it shall immediately notify the other party
of such Force Majeure Event and shall use its best efforts to minimize the effects thereof. 
 13. Limitation of Damages. IN NO EVENT WILL
EITHER PARTY BE LIABLE FOR ANY INDIRECT, PUNITIVE, EXEMPLARY OR SPECIAL DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE MANUFACTURE OR SALE OF THE PRODUCTS OR PROVISION OF SERVICES HEREUNDER, WHETHER OR NOT THE POSSIBILITY OF SUCH DAMAGES
HAS BEEN DISCLOSED BY EITHER PARTY OR COULD HAVE BEEN REASONABLY FORESEEN BY EITHER PARTY, REGARDLESS OF THE LEGAL OR EQUITABLE THEORY UPON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY ESSENTIAL PURPOSE. 

14. INDEMNIFICATION. 
 a. CUSTOMER
HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS VARIOSYSTEMS AND ITS AFFILIATES, PARENT COMPANIES, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM AND AGAINST ANY AND ALL SUITS, CLAIMS, CAUSES, OBLIGATIONS, LIABILITIES,
DAMAGES, COSTS, AND EXPENSES (INCLUDING WITHOUT LIMITATION, ATTORNEYS’ FEES AND COURT COSTS) (COLLECTIVELY, “CLAIMS”) ARISING OUT OF OR RELATING TO, DIRECTLY OR INDIRECTLY, (I) THE FRAUD, BAD FAITH, NEGLIGENCE,
RECKLESSNESS, OR MISCONDUCT OF OR OTHER WRONGFUL ACT OR OMISSION OF CUSTOMER OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS, INCLUDING, BUT NOT LIMITED TO, THE BREACH OF THIS AGREEMENT BY CUSTOMER, OR
(II) INFRINGEMENT OR ALLEGED INFRINGEMENT OF PATENTS, TRADEMARKS, COPYRIGHTS, TRADE SECRET RIGHTS, OR ANY OTHER THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS WHERE SUCH THIRD-PARTY INTELLECTUAL PROPERTY WAS SPECIFIED, REQUIRED OR DIRECTED BY
CUSTOMER IN CONNECTION WITH THE PRODUCTS OR SERVICES HEREUNDER. NOTWITHSTANDING THE FOREGOING, CUSTOMER SHALL HAVE NO LIABILITY UNDER THIS SECTION 14(a) TO THE EXTENT ANY SUCH CLAIM IS ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF THE VARIOSYSTEMS. 
 b. VARIOSYSTEMS HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS CUSTOMER AND
ITS AFFILIATES, PARENT COMPANIES, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO, DIRECTLY OR INDIRECTLY, (I) THE FRAUD, BAD FAITH, NEGLIGENCE, RECKLESSNESS, OR
MISCONDUCT OF OR OTHER WRONGFUL ACT OR OMISSION OF VARIOSYSTEMS OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS, INCLUDING, BUT NOT LIMITED TO, THE BREACH OF THIS AGREEMENT BY VARIOSYSTEMS, OR (II) INFRINGEMENT OR ALLEGED
INFRINGEMENT OF PATENTS, TRADEMARKS, COPYRIGHTS, TRADE SECRET RIGHTS, OR ANY OTHER THIRD-PARTY INTELLECTUAL

 
PROPERTY RIGHTS WHERE SUCH THIRD-PARTY INTELLECTUAL PROPERTY WAS SPECIFIED, REQUIRED OR DIRECTED BY VARIOSYSTEMS IN CONNECTION WITH THE PRODUCTS OR SERVICES HEREUNDER. NOTWITHSTANDING THE
FOREGOING, VARIOSYSTEMS SHALL HAVE NO LIABILITY UNDER THIS SECTION 14(b) TO THE EXTENT ANY SUCH CLAIM IS ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF CUSTOMER. 

c. EACH PARTY MUST MAINTAIN SUFFICIENT LIABILITY INSURANCE TO COVER ITS OBLIGATIONS UNDER THIS AGREEMENT. THIS PROVISION SHOULD BE
CONSTRUED FAIRLY AND REASONABLY AND NEITHER MORE STRONGLY FOR NOR AGAINST EITHER PARTY. 
 15. Export Regulations. Customer agrees to comply
with all applicable export control laws and regulations and hereby gives its written assurance that Products, in whole or in part, are not intended to be shipped, directly or indirectly, to prohibited countries. 

16. Miscellaneous. 
 a. Power and
Authority. Each party hereby represents and warrants that (i) it is duly organized, validly existing and in good standing and has the power and authority to execute and deliver, and to perform its obligations under, this Agreement;
(ii) its execution and delivery of this Agreement and performance of its obligations hereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent documents) or any applicable law or contractual restriction binding on or affecting it or its property; (iii) all consents, authorizations and approvals required for its execution and
delivery of this Agreement and the performance of its obligations hereunder have been obtained and remain in full force and effect, and all conditions thereof have been fully complied with; and (iv) this Agreement is its legal, valid and
binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law). 
 b. Relationship of Parties. Each party
is an independent contractor of the other party and therefore is not an agent, employee, partner, or joint venturer. 
 c.
Waiver. Excpt as otherwise specified herein, no failure or delay by either party in exercising any right or remedy provided under this Agreement, no previous waiver or forbearance of the provisions of this Agreement by either party and
no course of dealing between the parties shall in any way be construed as a waiver or continuing waiver of any provision. 
 d.
Severability. If any term or provision of this Agreement is found to be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remainder of this Agreement will remain valid and enforceable
as if the invalid term, condition, or provision were not a part of this Agreement. 
 e. Entire Agreement. This Agreement
constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersede all previous communications, representations, understanding and agreements, either oral or written, between the parties or any official or
representative hereof. 
 f. Amendment/Modification. This Agreement may be amended in whole or in part only in a
writing signed by duly authorized personnel of both parties. 
 g. Assignment. This Agreement and the rights and obligations
hereunder and any P.O. shall inure to the benefit of and be binding upon each of the parties and their respective successors and assigns. Neither the rights nor the duties of either party under this Agreement may be voluntarily or involuntarily
assigned or delegated, in whole or part, without the prior written consent of the other party; provided, however, that Customer shall have the right without first obtaining Variosystems’ consent to assign this Agreement to any successor
entity of Customer. 
 h. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of Texas, excluding any provisions on conflicts of law. The exclusive jurisdiction and venue for any legal proceeding arising from this Agreement or Variosystems’ manufacture or sale of Products or provision of services to
Customer will be those courts located in Tarrant County, Texas. The parties will make good faith efforts to resolve any dispute, but if any legal action is necessary to enforce the terms and conditions of this Agreement, the prevailing party
will be entitled to reasonable attorney’s fees and court costs in addition to any other relief to which that party may be entitled.

 

 
 i. Compliance with Legal Requirements. Each party shall ensure that, at
all times and in all respects, it strictly complies with all applicable laws, rules, orders and regulations related to this Agreement and Variosystems’ manufacture or sale of Products or provision of services pursuant to the Agreement,
including those of any regulatory agency or body having governing authority in any jurisdiction over such party (each, a “Legal Requirement”). Compliance with this Section 16(i) may require Variosystems to obtain
licenses and/or operating permits required by any applicable Legal Requirement, which shall be provided to Customer upon Customer’s oral or written request. 

j. Disclaimer of Certain Conventions. The parties hereby exclude the application of the United Nations Convention on Contracts
for the International Sale of Goods to this Agreement, including all terms, obligations, requirements, and duties that may be said to exist or arise from such conventions. 

k. Survival. Except as otherwise expressly provided in this Agreement, each of the rights and obligations of the parties
contained in this Agreement will survive in accordance with their terms, beyond any termination of a P.O. or the parties’ relationship. 

l. Counterparts. This Agreement may be executed in counterparts, each of which counterpart shall constitute an original but
all of which together shall constitute one and the same instrument, and if so executed in counterparts shall be enforceable and effective upon the exchange of executed counterparts or the exchange of facsimile or electronic transmissions of executed
counterparts. 
 [Remainder of page intentionally left blank. 

Signature page follows.]

 

 IN WITNESS WHEREOF, Variosystems and Customer have entered into this Agreement effective as of the date set forth
above. 

 

			
	     
	 	VARIOSYSTEMS:
		
		 	Variosystems, Inc.
		
		 	 /s/ Peter Ermish

		 	 By: Peter Ermish

		 	 Title: General Manager

		 	
Date: September 15, 2017

	
	CUSTOMER:
	
	WatchGuard, Inc.
	
	 /s/ Ted Hajec

	 By: Ted Hajec

	 Title: VP Operations

	 Date: September 19, 2017

 
 

  
 Signature Page to Master
Manufacturing and Services AgreementExhibit 10.1

 

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of October 5, 2017, by and between InnerScope Hearing Technologies, Inc.,
a Nevada corporation, with its address at 2151 Professional Drive, 2 nd Floor, Roseville, CA 95661 (the “Company”),
and POWER UP LENDING GROUP LTD., a Virginia corporation, with its address at 111 Great Neck Road, Suite 216, Great Neck,
NY 11021 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering
this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated
by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the
“1933 Act”); and

 

B.
Buyer desires to purchase and the Company desires
to issue and sell, upon the terms and conditions set forth in this Agreement a convertible note of the Company, in the form attached
hereto as Exhibit A, in the aggregate principal amount of $48,000.00 (together with any note(s) issued in replacement thereof or
as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible
into shares of common stock, $0.0001 par value per share, of the Company (the “Common Stock”), upon the terms and subject
to the limitations and conditions set forth in such Note.

 

NOW THEREFORE,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date
(as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal
amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b.
Form of Payment. On the Closing Date (as
defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined
below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the
Company’s written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as
is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such
duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price. 

 

c.
Closing Date. Subject to the satisfaction
(or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and
sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern Standard Time on or about
October 6, 2017, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.
Buyer’s Representations and Warranties.
The Buyer represents and warrants to the Company that:

 

a.
Investment Purpose. As of the date hereof,
the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (such
shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the
Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof,
except pursuant to sales registered or exempted from registration under the 1933 Act.

 

b.
Accredited Investor Status. The Buyer
is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).

 

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

 

d.
Information. The Company has not disclosed
to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to
the public prior to or promptly following such disclosure to the Buyer.

 

e.
Legends. The Buyer understands that the
Note and, until such time as the Conversion Shares have been registered under the 1933 Act; or may be sold pursuant to an applicable
exemption from registration, the Conversion Shares may bear a restrictive legend in substantially the following form:

 

"THE SECURITIES REPRESENTED BY
THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER
ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) THE ISSUER
OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY ACCEPTABLE
TO THE ISSUER’S TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS."

 

The legend set forth above
shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped,
if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration without any
restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those
represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144, at the Deadline, it will be considered an Event of
Default pursuant to Section 3.2 of the Note.

 

f.
Authorization; Enforcement. This Agreement
has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement
constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

3.
Representations and Warranties of the Company.
The Company represents and warrants to the Buyer that:

 

a.
Organization and Qualification. The Company
and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease,
use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. “Subsidiaries”
means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly,
any equity or other ownership interest.

 

b.
Authorization; Enforcement. (i) The Company
has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions
contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution
and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and
thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion
Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no
further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement
has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the
true and official representative with authority to sign this Agreement and the other documents executed in connection herewith
and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note,
each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company
in accordance with its terms.

 

c.
Capitalization. As of the date hereof,
the authorized common stock of the Company consists of 225,000,000 authorized shares
of Common Stock, $0.0001 par value per share, of which 61,539,334  \##,### shares
are issued and outstanding; and 2,067,692 shares are reserved for issuance upon conversion
of the Note. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully
paid and non-assessable. .

 

d.
Issuance of Shares. The Conversion Shares
are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be
validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose
personal liability upon the holder thereof.

 

e.
No Conflicts. The execution, delivery
and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not
(i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or
conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time
or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of,
any agreement, indenture, patent, patent license 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 and
regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable
to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect). The businesses of the Company and its Subsidiaries, if
any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law,
ordinance or regulation of any governmental entity. “Material Adverse Effect” means any material adverse effect on
the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole,
or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith. 

 

f.
SEC Documents; Financial Statements. The
Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other
than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”).
Upon written request the Company will deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits
and incorporated documents. As of their respective dates or if amended, as of the dates of the amendments, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any
such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have
been amended or updated in subsequent filings prior the date hereof). As of their respective dates or if amended, as of the dates
of the amendments, the financial statements of the Company included in the SEC Documents complied as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied,
during the periods involved and fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject to the
reporting requirements of the 1934 Act.

 

g.
Absence of Certain Changes. Since June
30, 2017, except as set forth in the SEC Documents, there has been no material adverse change and no material adverse development
in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act
reporting status of the Company or any of its Subsidiaries.

 

h.
Absence of Litigation. Except as set forth
in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might
give rise to any of the foregoing.

 

i.
No Integrated Offering. Neither the Company,
nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in
any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act
of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other
issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions applicable
to the Company or its securities.

 

j.
No Brokers. The Company has taken no action
which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this
Agreement or the transactions contemplated hereby. 

 

k.
No Investment Company. The Company is
not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not be an “investment company”
required to be registered under the Investment Company Act of 1940 (an “Investment Company”). The Company is not controlled
by an Investment Company.

 

l.
Breach of Representations and Warranties by
the Company. If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition
to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of default under Section
3.4 of the Note.

 

4.
COVENANTS.

 

a.
Best Efforts. The Company shall use its
best efforts to satisfy timely each of the conditions described in Section 7 of this Agreement. 

 

b.
Form D; Blue Sky Laws. The Company agrees
to timely make any filings required by federal and state laws as a result of the closing of the transactions contemplated by this
Agreement.

 

c.
Use of Proceeds. The Company shall use
the proceeds for general working capital purposes.

 

d.
Expenses. At the Closing, the Company’s
obligation with respect to the transactions contemplated by this Agreement is to reimburse Buyer’ expenses shall be $3,000.00
for Buyer’s legal fees and due diligence fee. 

 

e.
Corporate Existence. So long as the Buyer
beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the
Company’s assets, except with the prior written consent of the Buyer.

 

f.
Breach of Covenants. If the Company breaches
any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this
Agreement, it will be considered an event of default under Section 3.4 of the Note.

 

g.
Failure to Comply with the 1934 Act. So
long as the Buyer beneficially owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the
Company shall continue to be subject to the reporting requirements of the 1934 Act.

 

h.
Trading Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company
and the Buyer agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging
transactions with respect to the common stock of the Company.

 

i.
Right of First Refusal. Unless it shall
have first delivered to the Buyer, at least twenty four (24) hours prior to the closing of such Future Offering (as defined herein),
written notice describing the proposed Future Offering (“ROFR Notice”), including the terms and conditions thereof,
identity of the proposed purchaser and proposed definitive documentation to be entered into in connection therewith, and providing
the Buyer an option during the twenty four (24) hour period following delivery of such notice to purchase the securities being
offered in the Future Offering on the same terms as contemplated by such Future Offering (the limitations referred to in this sentence
and the preceding sentence are collectively referred to as the “Right of First Refusal”), the Company will not conduct
any equity (or debt with an equity component) financing in an amount of $50,000 or less (“Future Offering(s)”) during
the period beginning on the Closing Date and ending nine (9) months following the Closing Date. In the event the terms and conditions
of a proposed Future Offering are amended in any respect after delivery of the notice to the Buyer concerning the proposed Future
Offering, the Company shall deliver a new notice to the Buyer describing the amended terms and conditions of the proposed Future
Offering and the Buyer thereafter shall have an option during the twenty four (24) hour period following delivery of such new notice
to purchase its pro rata share of the securities being offered on the same terms as contemplated by such proposed Future Offering,
as amended. Notwithstanding anything contained herein to the contrary, any subsequent offer by an investor, or an affiliate of
such investor, identified on an ROFR Notice is subject to this Section 4(h) and the Right of First Refusal.

 

5.
Transfer Agent Instructions. The Company
shall issue irrevocable instructions to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee,
for the Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of the Note
in accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”).  In the event that the Company
proposes to replace its transfer agent, the Company shall provide, prior to the effective date of such replacement, a fully executed
Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to this Agreement (including but not limited
to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount as such term is defined in the Note) signed
by the successor transfer agent to Company and the Company. Prior to registration of the Conversion Shares under the 1933 Act or
the date on which the Conversion Shares may be sold pursuant to an exemption from registration, all such certificates shall bear
the restrictive legend specified in Section 2(e) of this Agreement.  The Company warrants that: (i) no instruction other than
the Irrevocable Transfer Agent Instructions referred to in this Section 5, will be given by the Company to its transfer agent and
that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided
in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its
transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be
issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; and
(iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent
from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for
any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note
and/or this Agreement.  If the Buyer provides the Company and the Company’s transfer, at the cost of the Buyer, with
an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a public
sale or transfer of such Securities may be made without registration under the 1933 Act, the Company shall permit the transfer,
and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates, free from restrictive
legend, in such name and in such denominations as specified by the Buyer.  The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated
hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5
may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section, that
the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring
immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.

 

6.
Conditions to the Company’s Obligation
to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction,
at or before the Closing Date of each of the following conditions thereto, 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:

 

a.
The Buyer shall have executed this Agreement
and delivered the same to the Company.

 

b.
The Buyer shall have delivered the Purchase Price
in accordance with Section 1(b) above.

 

c.
The representations and warranties of the 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), and the 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 the Buyer at or prior to the Closing Date. 

 

d.
No litigation, statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental
authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which
prohibits the consummation of any of the transactions contemplated by this Agreement.

 

7.
Conditions to The Buyer’s Obligation
to Purchase. The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or
before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit
and may be waived by the Buyer at any time in its sole discretion:

 

a.
The Company shall have executed this Agreement
and delivered the same to the Buyer.

 

b.
The Company shall have delivered to the Buyer
the duly executed Note (in such denominations as the Buyer shall request) in accordance with Section 1(b) above.

 

c.
The Irrevocable Transfer Agent Instructions,
in form and substance satisfactory to the Buyer, shall have been delivered to and acknowledged in writing by the Company’s
Transfer Agent.

 

d.
The representations and warranties of the Company
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 such time
(except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Company at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed
by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters
as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Board of Directors’
resolutions relating to the transactions contemplated hereby.

 

e.
No litigation, statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental
authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which
prohibits the consummation of any of the transactions contemplated by this Agreement.

 

f.
No event shall have occurred which could reasonably
be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status
of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

 

g.
The Conversion Shares shall have been authorized
for quotation on an exchange or electronic quotation system and trading in the Common Stock on such exchange or electronic quotation
system shall not have been suspended by the SEC or an exchange or electronic quotation system.

 

h.
The Buyer shall have received an officer’s
certificate described in Section 3(d) above, dated as of the Closing Date.

 

8.
Governing Law; Miscellaneous.

 

a.
Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of Virginia without regard to principles of conflicts of laws.
Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought
only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to this Agreement
hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer waive trial by jury. The
prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that
any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement, the Note or any related document or agreement 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 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 other manner permitted by law.

 

b.
Counterparts. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. 

 

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

 

d.
Severability. In the event that any provision
of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.
Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of
any other provision hereof.

 

e.
Entire Agreement; Amendments. This Agreement
and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than
by an instrument in writing signed by the majority in interest of the Buyer.

 

f.
Notices. All notices, demands, requests,
consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage
prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram,
or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written
notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number
designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day during normal business hours where such notice
is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed
to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall
be as set forth in the heading of this Agreement with a copy by fax only to (which copy shall not constitute notice) to Naidich
Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison Naidich, facsimile: 516-466-3555, e-mail: allison@nwlaw.com.
Each party shall provide notice to the other party of any change in address.

 

g.
Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer
shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding
the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from
the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

h.
Survival. The representations and warranties
of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding
any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer
and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged
breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants
and obligations under this Agreement, including advancement of expenses as they are incurred.

 

i.
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 the other party may reasonably request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

j.
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.

 

k.
Remedies. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the
transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under
this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of
this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition
to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement
and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond
or other security being required.

 

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IN WITNESS WHEREOF, the
undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

 

InnerScope Hearing Technologies, Inc.

 

By:________________________________

Matthew Moore

Chief Executive Officer

 

 

POWER UP LENDING GROUP LTD.

 

By:____________________________________

Name: Curt Kramer

Title: Chief Executive Officer

111 Great Neck Road, Suite 216

Great Neck, NY 11021

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	$48,000.00
	 	 
	Aggregate Purchase Price:	$48,000.00

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