Document:

Exhibit 10.2

 

 

 

PURCHASE AND SALE AGREEMENT

 

 

 

THIS PURCHASE AND
SALE AGREEMENT (“Agreement”), is entered into and shall be effective as of the 1st day of June,
2018 (the “Effective Date”), by and between WALLACE REAL ESTATE, LLC, a California Limited Liability Company,
OTTIE J. WALLACE, TRUSTEE OF THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK
PROPERTIES LLC, a California Limited Liability Company (together, the “Seller”), and RYAN LAW GROUP,
PLLC., a Florida Professional Limited Liability Company, or its Assigns (as defined in Section 9.6 below) (“Purchaser”).
Seller and Purchaser are referred to collectively in this Agreement as the “Parties” or, individually, as a
“Party.”

 

RECITALS

 

A.           Seller
is the owner of three parcels of real property, identified as Tax Parcel Nos. 061-033-005, 061-033-006, and 061-033-007 in Merced
County, California, consisting of approximately 27.33 combined gross acres of land located at or near the intersection of State
Highway 140 and North Arboleda Drive in the City of Merced, County of Merced, State of California, as generally depicted on the
site plan (“Site Plan”) attached hereto as Exhibit “A” and being more particularly described
on Exhibit “B”  attached hereto (“Land”), together with (i) any and all rights,
privileges, easements, tenements, hereditaments, rights-of-way, and appurtenances that belong or appertain to the Land or are
owned by or run in favor of Seller, including, without limitation, any and all rights to minerals, oil, gas, hydrocarbon substances,
and other materials or substances on and under the Land, as well as any and all development rights, entitlements, and land use
approvals, air rights, water, and appurtenant water rights that pertain to or are associated with the Land (collectively, the
“Appurtenances”), (ii) any and all buildings, structures, parking areas, paved areas, landscaped areas (including,
without limitation, plants, trees, shrubbery, and other landscaping improvements), fixtures, and other improvements located on
the Land including, without limitation, any apparatus, equipment, and appliances used in connection with the use, operation, maintenance,
and occupancy of the Land, such as all electrical, mechanical, plumbing, and heating and air conditioning systems and facilities
used to provide any utility, refrigeration, ventilation, garbage disposal, or other services on the Land (collectively, the “Improvements”),
(iii) any and all maps, surveys, reports, studies, plans, specifications, drawings, warranties, appraisals, tests, inspections,
and certificates of occupancy owned or held by Seller that pertain to or are associated with the Land or the use, operation, and
maintenance thereof (collectively, the “Tangible Property”), (iv) any and all intangible property owned or
held by Seller that pertain to or are associated with the Land or to the use, operation, and maintenance thereof, including, without
limitation, all permits, authorizations, approvals, licenses, service contracts, management agreements, and other agreements relating
to the Land (collectively, the “Intangible Property”), and (v) any and all personal property, as described
in Exhibit “C” attached hereto (“Personal Property”).

 

B.           The
Land, Appurtenances, Improvements, Tangible Property, Intangible Property, and Personal Property are collectively referred to in
this Agreement as the “Property.”

 

C.           Seller
desires to sell, transfer, and convey full and complete title, ownership, rights, and control of the Property to Purchaser and
Purchaser desires to purchase and accept from Seller the Property, in accordance with the terms and conditions of this Agreement.

 

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AGREEMENT

 

FOR GOOD AND VALUABLE
CONSIDERATION, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

TRANSFER OF PROPERTY

 

Section 1.1          Transfer
of Property. Upon the full and complete satisfaction of all closing conditions and contingencies contained in this Agreement,
Seller agrees to sell, transfer, and convey full and complete title, ownership, rights, and control of Seller in and to the Property
to Purchaser, and Purchaser agrees to purchase and accept the Property from Seller, in accordance with the terms and conditions
of this Agreement.

 

Section 1.2          No
Assumption of Liabilities. Seller agrees and acknowledges that except for the new dock and rail switch the plans for which
with BNSF have been disclosed to Purchaser pursuant to Exhibit C below, and agreements relative to the ongoing use of the property
(“Leases”), under no event or circumstance, shall Purchaser be responsible or liable for any other obligation or liability
whatsoever of Seller, whether existing prior to or after the Effective Date of this Agreement or prior to Closing (as defined in
Section 8.2 below), and Purchaser, by agreeing to purchase and accept the Property from Seller is not accepting or agreeing
to assume or discharge any other obligations or liabilities whatsoever pertaining to the Property or with respect to Seller or
any third-parties that may claim or have any kind of interest whatsoever against Seller or the Property unless specifically agreed
to by the Parties in a separate written agreement. Purchaser agrees and acknowledges that Seller, under no event or circumstance,
shall be responsible or liable for any obligation or liability whatsoever of Purchaser pertaining to Purchaser’s ownership,
use, development, maintenance, and operation of the Property arising after the Closing.

 

Section 1.3          Purchase
Price. The purchase price for the Property shall be the sum of Two Million Five Hundred Thousand Dollars and No/100 ($2,500,000.00)
(the “Purchase Price”), payable as follows:

 

(a)          At
Closing date as defined in Section 8.2, Purchaser shall issue irrevocable instructions for the issuance and delivery to Seller
of that number of shares of the restricted common stock, par value $0.001, of the vegalab, Inc., (VEGL) (the “Securities”)
with a value equal to Five Hundred Thousand Dollars ($500,000.00) based on the average trading price from January 1, 2018 through
June 30, 2018 on the OTC Marketplace; The aforementioned Securities shall be issued two thirds of the total (66.66%) in the name
of WALLACE REAL ESTATE LLC and one third of the total (33.33%) in the name of ELBULINICK. Properties LLC; and

 

(b)          The
balance of Two Million Dollars ($2,000,000.00) will be secured by a Two Guaranteed Promissory Notes of One Million Dollars ($1,000,000.00)
each and Deed of Trust on the Property in forms attached hereto as Exhibit D, with interest accrued at a rate of Eight Percent
(8%) annually; minimum monthly payments, the first of which will be due on or before October 1, 2018, will consist of interest
only on the Notes, with a balloon payment due on the fifth anniversary of closing; there is no prepayment penalty.

 

    	 	2	 

     

    

 

ARTICLE II

DUE DILIGENCE AND INSPECTIONS

 

Section 2.1          Physical
Inspections.

 

(a)          Subject
to and consistent with Section 9.3 herein, Purchaser and its representatives, consultants, and contractors shall at all times before
the Closing have the privilege, opportunity, and right, with at least twenty-four (24) hours’ notice to Seller (which may
be delivered in writing, by e-mail, or orally), to enter upon the Property, including, without limitation, any Improvements and
Appurtenances located thereon or associated therewith, in order to inspect, review, investigate, examine, and inquire further about
the Property and to perform any tests, examinations, surveys, and inspections on the Property (including, without limitation, any
desirable geotechnical and environmental tests, studies, and examinations, soil tests, borings, percolation tests, and other tests
in order to analyze surface, subsurface, and topographic conditions). Purchaser and its representatives, consultants, and contractors
shall conduct such entry and any inspections in connection with the Property so as to minimize, to the extent reasonably possible,
interference with the activities of Seller. Purchaser shall conduct tests, examination, surveys and inspection at its own expense.
Purchase shall indemnify and hold Seller harmless from any and all liability arising out of Purchaser’s test, examination,
surveys and inspection. Purchaser will fully restore the Property from any and all invasive testing, examination, surveys, and
inspections at its own costs and to the extent that any reports are generated there from and Purchaser does not Close provide said
reports to Purchaser at no costs.

 

(b)          Seller
makes no representations as to the necessary public agency permits, if any, for the test, inspections, surveys, examinations
Purchaser may elects to conduct notwithstanding Seller will cooperate with Purchaser’s effort to obtain necessary
approvals, consents, authorizations, and/or licenses necessary to Purchaser to enter upon the Property to perform the tests,
studies, and examinations contemplated under Section 2.1(a) above have been obtained. The risk of loss with respect to
the Property shall be borne by Seller up until the Closing Date (as defined in Section 8.2 below) and shall be borne
by Purchaser from and after the Closing Date.

 

Section 2.2          Inspections
of Seller’s Disclosures. Subject to the Due Diligence Deadline and the Title Cure Deadline (if applicable), Purchaser
and its representatives, consultants, and contractors shall at all times before Closing have the privilege, opportunity, and right
to inspect, review, investigate, examine, and inquire further about any and all of the Tangible Property, Intangible Property,
and any other information or documentation provided by Seller that pertain to or are associated with the Property, including, without
limitation, conformed copies of those documents, instruments, and other items specified or generally described on Exhibit “C”
attached hereto (collectively, the “Seller’s Disclosures”). Seller represents, warrants, covenants, and
certifies to Purchaser that the Seller’s Disclosures, upon delivery, will be complete and consist of everything that is in
Seller’s possession, however, Seller does not warrant or make any representation to Purchaser regarding the truthfulness
or accuracy of any of the Seller’s Disclosures that were not prepared or produced by Seller. Seller agrees, within five (5)
business days after the Effective Date, to furnish and deliver to Purchaser four (4) complete-hard copies and to establish of an
electronic drop box of the Seller’s Disclosures and to certify in writing to Purchaser concurrently with such delivery that
to the best of Seller’s knowledge, information, and belief Seller has delivered each and every item of the Seller’s
Disclosures to the extent such item is in Seller’s possession. In the event Purchaser does not close, all four (4) copies
of the aforementioned Seller’s disclosure material shall be returned to Seller within fifteen (15) days of Seller demand
for return.

 

    	 	3	 

     

    

 

Section 2.3          Due
Diligence Deadline. Purchaser shall have until 11:59 p.m. (Pacific Daylight Time), on the date that is forty five (45)
days after Seller’s delivery of the Seller’s Disclosures as contemplated in Section 2.2 above (the “Due
Diligence Deadline”), to:

 

(a)          Satisfy
itself as to any and all matters as Purchaser deems to be necessary or desirable in connection with the Seller’s Disclosures,
including, without limitation, the truth, accuracy, completeness, and acceptability of the Seller’s Disclosures, or the waiver
by Purchaser of any objections to the Seller’s Disclosures;

 

(b)          Satisfy
itself as to any boundary and survey issues related to the Property, whether provided by Seller as part of the Seller Disclosures,
if any (the “Survey”), and in the event Seller has no Survey, to satisfy itself of a Survey that may be obtained
by Purchaser at Purchaser’s sole cost and expense, a courtesy copy of which shall be provided to Seller and its legal counsel,
or the waiver by Purchaser of any objections to the Survey;

 

(c)          Satisfy
itself as to all matters in the Commitment (as defined in Section 3.1(f) below) and any other matters related to the status
of title to the Property and the issuance of the Owner’s Title Policy (as defined in Section 8.4 below). Purchaser
may notify Seller prior to the expiration of the Due Diligence Deadline of any objectionable title matters or defects that Purchaser
reasonably believes affect the marketability, insurability, ownership, or use of Purchaser’s title to the Property. If Seller
is notified of any such objectionable title matters or defects prior to the Due Diligence Deadline, Seller may attempt in good
faith to procure a cure for the same up until three (3) days prior to the Closing Date (the “Title Cure Deadline”);
provided, however, Seller is not being obligated to make any such cure. If, however, Seller does not cure the objectionable title
matters or defects objected to by the expiration of the Title Cure Deadline, then at Purchaser’s option, Purchaser may either
(i) take title to the Property despite the existence of such matters, or (ii) terminate this Agreement by giving written notice
to Seller prior to the expiration of the Title Cure Deadline, in which event this Agreement shall be deemed terminated and of no
further force or effect with Seller and Purchaser having no further rights, obligations, or liabilities under this Agreement, except
for matters that by the terms of this Agreement expressly survive termination. In the event Purchaser does not give written notice
of termination to Seller prior to the expiration of the Title Cure Deadline, Purchaser shall be deemed to have accepted the status
of title to the Property;

 

(d)          Satisfy
itself as to such other matters as Purchaser, in its sole and absolute discretion, deems to be necessary or desirable in connection
with the potential ownership, use, development, maintenance, insurability, leasing, financing, and operation of the Property; and

 

(e)          Complete
all inspections, testing, obtain a Survey (as contemplated in Section 2.3(b)), obtain any environmental audits or inspections,
verify the zoning of the Property, and conduct and complete any and all other due diligence items which Purchaser deems necessary
pertaining to the Property and/or the Business.

 

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At any time prior to the Due Diligence
Deadline, Purchaser may terminate this Agreement for any reason that Purchaser determines, in its sole and absolute discretion,
does not meet Purchaser’s satisfaction (including, those items specified in subparts (a) through (e) above), or for any reason
that adversely or materially affects the marketability or insurability of the title to the Property or that adversely or materially
affects the potential ownership, use, development, maintenance, insurability, leasing, financing, and operation of the Property
and/or the Business for Purchaser’s intended purposes, by giving written notice to Seller (which notice shall explain in
reasonable detail the basis for termination), in which event this Agreement will be deemed terminated, except for matters that
by the terms of this Agreement expressly survive termination.

 

Section 2.4          Conditions Precedent. INTENTIONALLY
LEFT BLANK.

 

ARTICLE III

TITLE

 

Section 3.1          Conditions of Title.

 

(a)          At
the Closing, Seller shall convey good and marketable fee simple title to the Land, Appurtenances, and improvements to Purchaser
by General Warranty Deed, free and clear of all liens, encumbrances, and other exceptions to title, except the Permitted Title
Exceptions (as defined in Section 3.1(g) below), in a form to be negotiated and agreed-upon in good faith by the Parties
and acceptable and insurable by the Title Company (the “Deed”).

 

(b)          At
the Closing, Seller shall convey title to the Tangible Property and Personal Property to Purchaser by a Bill of Sale, free and
clear of all liens, encumbrances, and other exceptions to title, except the Permitted Title Exceptions, in a form to be negotiated
and agreed- upon in good faith by the Parties (the “Bill of Sale”).

 

(c)          At
the Closing, Seller shall assign, transfer, convey, and deliver possession, title, control, and ownership to the Intangible Property,
including but not limited to the Leases, to Purchaser in accordance with an Assignment and Assumption Agreement, in a form to be
negotiated and agreed-upon in good faith by the Parties (the “General Assignment”). The General Assignment
shall state and be consistent with the non-assumption of liabilities provided for in Section 1.2 above.

 

(d)          The
title to the Property to be conveyed by Seller to Purchaser must be acceptable to and insurable by a nationally-recognized and
financially sound title insurance company designated by Purchaser (such title insurance company so designated being referred to
as the “Title Company”) under the Owner’s Title Policy, free and clear of all liens, encumbrances, and other
exceptions to title, except the Permitted Title Exceptions. As of the Effective Date of this Agreement, Chicago Title has been
designated by Purchaser as the Title Company and the underwriter of the Owner’s Title Policy.

 

(e)          The
transfer of the Property to Purchaser shall include any and all of Seller’s ownership and rights in any water rights, water
contracts, and water shares (collectively, the “Water Rights”) that pertain to or are associated with the Land
and any land lying in the bed of any street, sidewalk, or highway, opened or proposed, in front of or adjoining the Property to
the center line thereof, to the extent owned by Seller. The transfer of the Property also includes any right of Seller to any
unpaid amount by reason of any taking by condemnation and/or for any damage to the Property by reason of change of grade of any
street or highway. Seller will deliver at no additional cost to Purchaser, at Closing or thereafter, on demand, any conveyance,
assignment, and transfer documents that Purchaser may require to transfer any Water Rights or other rights associated with the
Land as reflected in this Section 3.1 (e). The obligations of Seller under this Section 3.1(e) shall survive the
Closing.

 

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(f)          Purchaser
will cause the Title Company to issue and deliver to the Parties, an up-to-date commitment for issuance of the Owner’s Title
Policy in accordance with this Agreement and the title insurance coverage requested and desired by Purchaser (the “Commitment”),
along with copies of all source documents and exceptions to title coverage as set forth, referenced, or described in the Commitment,
The Parties will have the Commitment updated (and if desired by Purchaser, converted to a Pro Forma Policy) immediately prior to
Closing in order to allow for issuance of the Owner’s Title Policy and will cause copies of any such update, as well as of
any new exceptions or matters affecting title revealed thereby, to be promptly delivered to the Parties.

 

(g)          Any
title exceptions to the Property revealed by the Commitment or the Survey (if any) to which Purchaser does not object prior to
the Due Diligence Deadline, the title exceptions to which Purchaser objects to prior to the Due Diligence Deadline and waives upon
the expiration of the Title Cure Deadline (if applicable), or the title exceptions to which Purchaser waives its objection prior
to Closing, are referred to herein as “Permitted Title Exceptions.”

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

Section 4.1          Representations
and Warranties of Seller. Except for those express representations, warranties, certificates, and covenants contemplated
and provided for by Seller in favor of Purchaser in this Agreement and the Seller Closing Documents (as defined in Section 8.3(a)
below), Seller and Purchaser agree that if Purchaser elects to purchase the Property, it is doing so in the Property’s “AS
IS” “WHERE IS” condition and based upon Purchaser’s own investigations and due diligence. Notwithstanding
anything to the contrary in this Agreement, Seller represents, warrants, certifies, and covenants to Purchaser that:

 

(a)          Seller
Wallace Real Estate, LLC is a limited liability company duly organized, validly existing, and in good standing under the laws of
the State of California and is authorized to do business in the State of California.

 

(b)          Seller
has complete and full authority to sell, transfer, and convey to Purchaser good and marketable fee simple title to the Property,
in accordance with the terms of this Agreement, free and clear of all liens, encumbrances, and other exceptions or limitations
to title, except for any Permitted Title Exceptions.

 

(c)          Seller
has complete and full authority to execute and deliver the Seller Closing Documents and such other documents, instruments, and
agreements, including, but not limited to, any affidavits and certificates, as are necessary at the request of the Title Company
in order to carry out and effectuate the transactions contemplated by this Agreement and Seller will execute and deliver the Seller
Closing Documents and other documents and take all such additional actions necessary, appropriate, or desirable by Purchaser or
Title Company to effect and facilitate the consummation of the sale, transfer, and conveyance of the Property and all other transactions
contemplated by this Agreement.

 

    	 	6	 

     

    

 

(d)          Each
of the persons executing this Agreement on behalf of Seller further represent, warrant, certify, and covenant that the persons
signing this Agreement on behalf of Seller are duly qualified and appointed representatives of Seller and have all requisite powers
and authority on behalf of Seller to enter into this Agreement as the valid, binding, and enforceable obligation of Seller.

 

(e)          During
Seller’s ownership of and previous development, use, and operation of the Property, Seller has no knowledge, information,
or belief of any of the following events: (1) one or more landfills being deposited on, or taken from, the Property or (2) any
construction debris or other debris (including, without limitation, stumps, tanks, or concrete) being buried upon any of the Property.

 

(f)           Seller
has no knowledge or information regarding any Hazardous Materials (as defined below) located, used, or stored on the Property.
“Hazardous Materials” or similar terms or iterations shall mean and include asbestos, asbestos-containing materials,
petroleum and petroleum products, the group of organic compounds known as polychlorinated biphenyls, and any substances or materials
that are regulated, controlled or prohibited under the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 690, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601-9657, as amended by the Superfund
Amendments and Reauthorization Act of 1986, or any similar federal, state, or local laws or ordinances or any other environmental
laws, the Federal Water Pollution Control Act, 33 U.S.C. § 1251, the Clean Air Act, 42 U.S.C. § 7401, the Toxic Substances
Control Act, 15 U.S.C.§ 2601, or any similar federal, state, or local laws or ordinances, or any other federal, state, or
local environmental statutes, regulations, ordinances, or other environmental regulatory requirements.

 

(g)          Seller
is not a “foreign person”, “foreign corporation”, “foreign trust” or “foreign estate”
as those terms are defined in the Internal Revenue Code, Section 1445, nor is the sale of the Property subject to any withholding
requirements imposed by the Internal Revenue Code (including, but not limited to, Section 1445 thereof) or any comparable laws
of the State of California, and Purchaser has no obligation under any such laws to withhold any monies from the Purchase Price
in accordance with the provisions of such laws in connection with the transactions contemplated by this Agreement (or, if same
shall not be the case such that Purchaser is obligated to withhold from the Purchase Price under any such laws, Seller shall cooperate
with Purchaser in connection with Closing to allow for withholding and compliance with such laws, as necessary). Seller shall
execute at closing a FIRPTA Non-foreign Certificate, which Certificate shall include Seller’s Federal Employer/Taxpayer Identification
Number (FEIN) (the “FIRPTA Certificate”).

 

(h)          This
Agreement is made with the Seller in reliance upon the Seller’s representation to the Purchaser, which by the Seller’s
execution of this Agreement, the Seller hereby confirms, that the Securities to be acquired by the Seller will be acquired for
investment for the Seller’s own account, not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that the Seller has no present intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, the Seller further represents that the Seller does not presently have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with
respect to any of the Securities. The Seller represents and warrants it is an “accredited investor” as defined in Rule
501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

    	 	7	 

     

    

 

(i)           The
Seller has reviewed each of the reports filed by vegalab with the Securities and Exchange Commission since January 1, 2017, and
has had an opportunity to discuss the Purchaser’s business, management, financial affairs and the terms and conditions of
the offering of the Securities with the Purchaser’s management. The Seller understands that such discussions, as well as
any other written information delivered by the Purchaser to the Seller, were intended to describe the aspects of the Purchaser’s
business that the Purchaser believes to be material.

 

(j)           The
Seller understands that the Securities have not been, and will not be, registered under the Securities Act, by reason of a specific
exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of the Seller’s representations as expressed herein. The Seller understands that the
Securities are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to
these laws, the Seller must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission
and qualified by state authorities, or an exemption from such registration and qualification requirements is available e.g. a Rule
144 exemption. The Seller acknowledges that the Purchaser has no obligation to register or qualify the Securities for resale. The
Seller further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements
relating to the Purchaser that are outside of the Seller’s control, and which the Purchaser is under no obligation and may
not be able to satisfy.

 

(k)          The Seller understands that the Securities,
and any securities issued in respect thereof or exchange therefore, may bear the following legend:

 

“THE SECURITIES REFERENCED
HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY, WHICH WILL NOT BE UNREASONABLY WITHHELD,
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

In addition to all other
rights and remedies of Purchaser set forth in this Agreement or otherwise in equity, Seller shall forever indemnify, defend (with
legal counsel satisfactory to Purchaser), and hold harmless Purchaser, its employees, officers, shareholders, attorneys, directors,
agents, contractors, assigns and successors-in-interest, from and against any and all claims, actions, loss, cost, damage and expense
(including reasonable attorneys’ fees, including fees on appeal) resulting from a default or breach by Seller of any of the
representations, warranties, certifications, and covenants contained in this Agreement. The foregoing representations, warranties,
certifications, and covenants and any and all other representations, warranties, certifications, and covenants of Seller contained
in this Agreement shall survive the Closing.

 

(1)   
Seller acknowledges the information disclosed in paragraph 4.2 (f) below is not public information at this time and
agrees not disclose this information to any other, except as is necessary, or to buy, sell or otherwise trade any shares of
vegalab stock until after said information is made public by vegalab.

 

    	 	8	 

     

    

 

Section 4.2          Representations
and Warranties of Purchaser. Purchaser represents, warrants, certifies, and covenants to Seller that:

 

(a)          Purchaser
is a corporation duly organized, validly existing, and in good standing under the laws of the State of Florida.

 

(b)          Purchaser
has complete and full authority to purchase, acquire, and receive title to the Property, in accordance with the terms of this Agreement,
and to perform any obligations of Purchaser under this Agreement.

 

(c)          Purchaser
has complete and full authority to execute and deliver the Purchaser Closing Documents (as defined in Section 8.3(b) below)
and such other documents, instruments, and agreements, including, but not limited to, affidavits and certificates, as are necessary
at the request of the Title Company to effectuate the transactions contemplated by this Agreement and Purchaser will execute and
deliver all such documents and take all such additional actions necessary, appropriate, or desirable to effect and facilitate the
transaction contemplated by this Agreement.

 

(d)          Each
of the persons executing this Agreement on behalf of Purchaser further represent, warrant, certify, and covenant that the persons
signing this Agreement on behalf of Purchaser are duly qualified and appointed representatives of Purchaser and have all requisite
powers and authority on behalf of Purchaser to enter into this Agreement as the valid, binding, and enforceable obligation of Purchaser.

 

(e)          An
executed copy of this Agreement and all documents executed by Purchaser in connection with this Agreement (including the Purchaser
Closing Documents) which are to be delivered to Title Company at Closing (i) are or at the time of Closing will be duly authorized,
executed, dated, acknowledged, and delivered by Purchaser, (ii) are or at the time of Closing will be legal, valid, and binding
obligations of Purchaser, and (iii) do not and at the time of Closing will not violate any provision of any agreement or judicial
order to which Purchaser is a party or to which Purchaser is subject.

 

(f)           Purchaser
has disclosed to Seller the audit firm for vegalab has raised an issue as to whether a company it recently acquired. The Agronomy
Group, is auditable. If it is not vegalab will not be able to file reports for the second quarter of 2018 or for twelve months
from the end of said quarter. Furthermore it is anticipated the auditor’s decision on this issue will be known before closing.
Any time before closing or within five (5) business days of notification, whichever is sooner Seller shall have the right to cancel
this agreement following notification of an unfavorable decision on this issue.

 

(g)          By
separate agreement Purchaser is obligated to enter into a written lease agreement with vegalab for no less than the unimproved
portion of the property prior to Closing. The rent do from vegalab will be in an amount necessary to assure that the total rents
from Purchaser’s operation of the property equal or exceed the amount of Purchasers obligations for payment due under the
Notes.

 

    	 	9	 

     

    

 

In addition to all other
rights and remedies of Seller set forth in this Agreement or otherwise in equity, Purchaser shall forever indemnify, defend (with
legal counsel satisfactory to Seller), and hold harmless Seller, its employees, officers, shareholders, attorneys, directors, agents,
contractors, assigns and successors-in-interest, from and against any and all claims, actions, loss, cost, damage and expense (including
reasonable attorneys’ fees, including fees on appeal) resulting from a default or breach by Purchaser of any of the representations,
warranties, certifications, and covenants contained in this Agreement. The foregoing representations, warranties, certifications,
and covenants and any and all other representations, warranties, certifications, and covenants of Purchaser contained in this Agreement
shall survive the Closing.

 

ARTICLE V

CONDEMNATION OR CASUALTY LOSS

 

Section 5.1          Condemnation
Loss. Seller shall give Purchaser written notice of the commencement of any condemnation or eminent domain proceedings
affecting any or all portions of the Property prior to Closing. If any such condemnation or eminent domain affects the Property
in any material or undesirable manner, either Party may in such Party’s sole and absolute discretion within ten (10) calendar
days of Seller’s notice of commencement of condemnation or eminent domain proceedings elect to terminate this Agreement.
If Purchaser elects to move forward with the Closing to purchase the Property, the Purchase Price shall not be reduced and Purchaser
shall be entitled to all of the condemnation proceeds, which Seller will fully assign and transfer to Purchaser, by way of a form
to be negotiated and agreed-upon in good faith by the Parties.

 

Section
5.2          Casualty Loss. If prior to Closing, the Property is
damaged or destroyed by fire or other casualty, Seller shall estimate the cost to repair the Property and the time required
to complete repairs and will provide Purchaser with a detailed written notice of Seller’s estimation (the
“Casualty Notice”), as soon as reasonably possible after the occurrence of the casualty. In the event of
any Material Damage (as defined below) to or destruction of the Property, or any portion thereof, prior to Closing, Purchaser
may, at its sole option, terminate this Agreement by delivering written notice to the Seller on or before the expiration of
thirty (30) days after the date Seller delivers the Casualty Notice to Purchaser (and if necessary, the Closing Date shall be
extended to give the Parties the full benefit of the 30-day period to make such election and to obtain insurance settlement
agreements with Seller’s insurers). Upon any such termination, Seller and Purchaser shall have no further
rights, obligations, or liabilities under this Agreement, except for matters that by the terms of this Agreement expressly
survive termination. If Purchaser does not elect to terminate this Agreement within the aforementioned 30-day period, then
the Parties shall proceed under this Agreement and close on the Property timely (subject to extension of the Closing Date as
provided above), and as of Closing Seller shall fully assign and transfer to Purchaser, by way of a form to be negotiated and
agreed-upon in good faith by the Parties, all of Seller’s rights in and to any resulting insurance proceeds due Seller
as a result of such damage or destruction and Purchaser shall thereafter assume responsibility for any desired repairs. For
the purposes of this Agreement, “Material Damage” means damage which exceeds $100,000.00 to repair or
which, in Purchaser’s reasonable estimation, will take longer than thirty (30) days to repair. If the damage to the
Property does not quality as Material Damage, then neither Purchaser nor Seller shall have the right to terminate this
Agreement, and Seller shall, at Seller’s Purchaser’s option, either (i) repair the damage before
the Closing in a manner reasonably satisfactory to Purchaser, or (ii) credit Purchaser at Closing for the reasonable cost to
complete all necessary and desired repairs (in which case Seller shall retain all insurance proceeds and Purchaser shall
assume full responsibility for all needed repairs).

 

    	 	10	 

     

    

 

ARTICLE VI

BROKERS AND EXPENSES

 

Section 6.1          Brokers.
The Parties represent and warrant to each other that no broker or finder was instrumental in arranging or bringing about any of
the transactions contemplated by this Agreement and that there are no claims or rights for brokerage commissions, finder’s
fees, or otherwise in connection with the transactions contemplated by this Agreement. If any Party or third-person brings a claim
for a commission, finder’s fee, or any other amount based upon any contact, dealings, or communication with any of the Parties,
then the Party through whom such person makes his claim shall defend the other Parties (each an “Indemnified Party”)
from such claim, and shall forever indemnify the Indemnified Party and hold the Indemnified Party harmless from any and all costs,
damages, claims, liabilities, or expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred
by the Indemnified Party in defending against such claim. The provisions of this Section 6.1 shall survive the Closing or,
if the transactions contemplated by this Agreement are not consummated, any termination of this Agreement.

 

ARTICLE VII

AGREEMENTS AFFECTING THE PROPERTY

 

Section 7.1          Purchaser’s
Approval of Agreements Affecting the Property. Seller acknowledges and agrees that it was a material inducement to Purchaser
entering into this Agreement that any and all benefits, rights, and interests associated with the Property remain in the same condition
existing as of the Effective Date and, as a result, Seller shall not be entitled, without the prior written consent of Purchaser,
which consent may not be unreasonably withheld, conditioned, or delayed, to (i) alter, amend, modify, supplement, or extend the
term of any existing Intangible Property or enter into any new leases, contracts, agreements, or other instruments associated with
the Property, (ii) alter, amend, or modify the Revenues (as defined in Section 8.5 below) of any existing Intangible Property
or enter into any new leases, contracts, agreements, or other instruments associated with the Property until Closing, (iii) make
any tenant and other capital improvements in connection with the Property, or (iv) cancel or terminate any existing Intangible
Property or commence any collection, unlawful detainer, or other remedial action against any tenant or contract vendor. In addition,
Seller will not sell, encumber, convey, assign, pledge, lease, or contract to sell, convey, assign, pledge, encumber or lease all
or any part of the Property, nor restrict the use of all or any part of the Property, nor take or cause or allow to be taken any
action in conflict with this Agreement at any time between the Effective Date and the Closing or the earlier termination of this
Agreement.

 

Section 7.2          Assignment
of Intangible Property. The Seller’s Disclosures shall include full and complete copies of any and all Intangible
Property, together with detailed statements, summaries, and supplemental information as to such Intangible Property. To the extent
Intangible Property is assignable, all Intangible Property shall be fully assigned to and assumed by Purchaser as of the Closing
by execution by both Parties of an Assignment and Assumption of Intangible Property, in a form to be negotiated and agreed-upon
in good faith by the Parties (the “Assignment of Intangible Property”). The Assignment of Intangible Property shall
state and be consistent with the non-assumption of liabilities provided for in Section 1.2 above. No later than ten (10)
days prior to the expiration of the Due Diligence Deadline, Seller will obtain any written estoppel certificates required by Purchaser
concerning the Intangible Property signed by each such tenant or third-party prior to Closing, which estoppel certificates shall
be in a form to be negotiated and agreed-upon in good faith by the Parties.

 

    	 	11	 

     

    

 

Section 7.3          Protection
of Property. At all times prior to Closing, and without limiting the provisions of Section 7.1 above or any other
provision of this Agreement, Seller shall maintain the Property free from waste and neglect, shall maintain all insurance coverages
thereon which are now in place, and shall keep and perform or cause to be performed all obligations of the owner of the Property
under any recorded title documents, the Intangible Property, applicable laws, and any mortgages and deeds of trust affecting the
Property. Without limitation, from the Effective Date to the Closing Date or earlier termination of this Agreement, Seller shall
not do, suffer or permit, or agree to do, any of the following: (i) enter into any transaction with respect to or affecting the
Property that would in any way prevent Seller’s full and complete performance under this Agreement, or limit or adversely
affect Purchaser’s rights under this Agreement or as an owner of the Property following Closing (including, without limitation,
anything that may subject Purchaser to any cost, liability, or expense or otherwise interfere with, delay, or increase the cost
of Purchaser’s acquisition, development, use, maintenance, and operation of the Property); (ii) sell, encumber, pledge,
or grant any interest in the Property or any part thereof in any form or manner whatsoever; (iii) enter into, amend, waive any
rights under, terminate, or extend any document or instrument affecting the Property without the prior written consent of Purchaser;
or (iv) without limiting the foregoing, change the physical characteristics of the Property in any respect unless Purchaser has
given its prior written approval to any such change. For purposes of this Section 7.3, it shall not be unreasonable for
Purchaser to refuse to consent to any matter that may subject Purchaser to any cost, liability, or expense or otherwise interfere
with, delay, or increase the cost of Purchaser’s acquisition, development, use, maintenance, and operation of the Property.

 

ARTICLE VIII

CLOSING AND ESCROW

 

Section 8.1          Escrow
Instructions. Upon execution and delivery of this Agreement, the Parties shall deposit an executed counterpart of this
Agreement with the Title Company identified in Section 9.1, and this Agreement shall serve as joint instructions to the Title Company
as the title insurer and escrow holder for consummation of the transfer of title, ownership, and control of the Property to Purchaser
and all other transfers contemplated by this Agreement, including, without limitation, the manner in which the Seller Closing Documents
and Purchaser Closing Documents are to be held, released, and handled in escrow. However, Seller and Purchaser reserve the right
to submit separate written escrow and closing instructions to Title Company prior to its part of the Closing.

 

    	 	12	 

     

    

 

Section 8.2          Closing.
The consummation of the sale, transfer, and conveyance of title, ownership, and control of the Property to Purchaser and the closing
of the other transfers and transactions contemplated by this Agreement (collectively, the “Closing”) shall
be defined as the date that the following have occurred: (i) the final, mutually approved versions of the Deed and any other necessary
conveyance documents have been recorded in the official records of the Merced County Recorder’s Office; (ii) previously
approved, executed counterparts of the Bill of Sale, the General Assignment, the Assignment of Intangible Property, and all other
Seller Closing Documents and Purchaser Closing Documents required of the Parties shall have been delivered to the Title Company,
(iii) Purchaser shall have paid to Title Company all funds required from Purchaser necessary to close the transaction the subject
of this Agreement and execute the Promissory Note and Deed of Trust set forth in Section 1.3(b), and (iv) Purchaser shall have
directed the Title Company to release the Purchase Price funds to the Seller. The Closing shall occur on or before fifteen (15)
days after the expiration of the Due Diligence Deadline (“Closing Date”), or on such earlier date as
may be mutually agreed by the Purchaser and Seller by written notice approved by both Parties, given not less than five (5) calendar
days prior to the earlier Closing Date. Purchaser shall pay Seller Twenty Thousand Dollars and No/100 ($20,000.00) in the event
Purchaser completes the Due Diligence Deadline and any extensions thereto and elects not to Close. Purchaser shall have the right
to extend the Closing Date for an additional fifteen (15) days, by giving written notice of such extension to Seller on or before
the Closing Date and paying a nonrefundable deposit of Five Thousand Dollars and No/100 ($5,000.00) to Title Company which shall
be disbursed by the escrow agent upon deposit to Seller. Except as otherwise provided in this Agreement (including, under Section
5.2 above), the Closing Date may not be further extended without the prior written approval of Seller and Purchaser. The Closing
shall occur on or prior to the Closing Date at an exact time agreed to by the Parties in the offices of the Title Company. Notwithstanding
the foregoing, the Parties agree that the Closing may occur through the mail and/or electronic transmission pursuant to a mutually
acceptable escrow arrangement among the Parties and the Title Company. If, prior to the Due Diligence Deadline, Purchaser has
not notified Seller of its dissatisfaction with any of the information to be reviewed pursuant to Section 2.3 above, or if it
has made such notice and Seller has cured the reason for any such notice and Purchaser has indicated in writing its satisfaction
with such cure, and if all of the conditions have been met, and if under such circumstances Purchaser elects not to proceed with
the purchase of the property. Purchaser shall be obligated to pay Seller an additional $10,000 upon the payment of which this
Agreement shall be void and of no further force or effect.

 

Section 8.3          Deposit
of Closing Documents.

 

(a)          At
or before the Closing, Seller shall deposit into escrow with Title Company the following documents, agreements, and instruments
or at the request of Purchaser shall ratify and affirm any of the following previously executed and delivered documents (collectively,
the “Seller Closing Documents”):

 

(i)          An
original duly executed, dated, acknowledged, and recordable Deed and any other necessary conveyance documents signed by Seller,
in a final form consistent with Section 3.1(a);

 

(ii)         An
original duly executed, dated, and acknowledged Bill of Sale signed by Seller, in a final form consistent with Section 3.1 (b):

 

(iii)        An
original duly executed, dated, and acknowledged General Assignment signed by Seller, in a final form consistent with Section
3.1(c):

 

(iv)        An
original executed Assignment of Intangible Property, in a final form consistent with Section 7.2;

 

(v)         INTENTIONALLY
LEFT BLANK.

 

    	 	13	 

     

    

 

(vi)        The
FIRPTA Certificate pursuant to Section 1445(b)(2) of the United States Internal Revenue Code of 1986, as amended (the “Federal
Code”), and on which Purchaser is entitled to rely, that Seller is not a “foreign person” within the
meaning of Section 1445(f)(3) of the Federal Code;

 

(vii)       Original
duly executed and dated instructions from Seller to the Title Company;

 

(viii)      An
original duly executed and dated settlement statement signed by Seller, in a final form approved in advance by the Parties (“Settlement
Statement”);

 

(ix)         INTENTIONALLY
LEFT BLANK.; and

 

(x)          If
required by the Title Company to Close, evidence satisfactory to Purchaser and the Title Company of Seller’s authority to
enter into this Agreement and transfer the Property in accordance with the provisions of this Agreement, including, without limitation,
evidence of Seller’s respective receipt of any and all necessary consents, approvals, ratifications, and/or joinders as may
be necessary, required or appropriate in connection with this Agreement and/or transfer of the Property to Purchaser in accordance
with this Agreement.

 

(b)          At
or before the Closing, Purchaser shall deposit into escrow the following documents, agreements, and instruments (collectively,
the “Purchaser Closing Documents”);

 

(i)          An
original duly executed, dated, and acknowledged General Assignment signed by Purchaser, in a final form consistent with Section
3.1(c);

 

(i)          Original
duly executed, dated, and acknowledged instructions from Purchaser to the Title Company;

 

(ii)         An
original duly executed and dated Settlement Statement signed by Purchaser, in a final form approved in advance by the Parties;

 

(iii)        If
required by the Title Company to Close, evidence satisfactory to Seller and the Title Company of Purchaser’s authority to
enter into this Agreement and acquire the Property in accordance with the provisions of this Agreement, including (without limitation)
evidence of Purchaser’s respective receipt of any and all necessary consents, approvals, ratifications, and/or joinders as
may be necessary, required or appropriate in connection with this Agreement and/or transfer of the Property to Purchaser in accordance
with this Agreement;

 

(iv)        An
original executed Assignment of Intangible Property, in a final fonn consistent with Section 7.2;

 

(v)         A
copy of any applicable assignments of this Agreement, duly executed by Purchaser and/or its Assigns; and

 

(vi)        Two
original Guarantied Promissory Notes in the combined principal amount of Two Millions dollars ($2,000,000.00) and Deed of Trust
secure said Notes on the Property in favor of Seller.

 

    	 	14	 

     

    

 

(vii)       Irrevocable
instructions for the issuance and delivery to Seller of the Securities referenced in 1.3(a)

 

Section 8.4          Closing
Costs. Seller shall be responsible for the payment of the premium for a standard owner’s policy of title insurance
issued by Title Company (Form 2006) for the Property in the insured amount of the Purchase Price (the “Owner’s Title
Policy”). Purchaser shall be responsible for the premiums and costs associated with any additional affirmative coverage,
endorsements, and extended coverage to the Owner’s Title Policy requested by Purchaser. The Parties shall each pay their
own respective attorneys’ fees. All recording fees on recordable documents shall be paid one-half (1/2) by each Party. All
escrow, document preparation fees, and closing costs charged by the Title Company shall be paid one-half (1 /2) by each Party.
Any closing costs not otherwise provided for in this Agreement shall be paid by the Party legally responsible therefor or, if no
law applies, according to prevailing custom for commercial transactions in the City of Merced, County of Merced, and/or State
of California.

 

Section
8.5          Revenues. At or before the Closing, Seller shall be
entitled to all revenue generated from rents whether it be security deposits, prepaid rent, accrued and collected rents and
delinquent rents, income, revenues, and other payments attributable to the Intangible Property during Seller’s period
of ownership, operation, and leasing of the Property (if any) prorated, based upon the number of days remaining in the month
alter the Closing and such amounts will be identified on the Settlement Statement, if any (collectively, the
“Revenues”) as Seller’s property. Seller reserves the right, but shall not be required
to, pursue collection of any delinquent Revenues that Seller is entitled to, which have not been assigned to Purchaser under
the General Assignment, and which have accrued prior to Closing. In the event that any delinquent Revenues are collected by
either Party, each Party shall only receive its prorata share of such Revenues based upon the Closing Date proration.

 

Section 8.6          Condition
of Property at Closing; Delivery of Keys. Seller agrees to deliver immediate possession of the Property to Purchaser at
Closing, free of any right of possession or claim to right of possession by any party other than Purchaser. Purchaser, prior to
acceptance of the Property at Closing, shall be permitted to inspect and confirm that the Property has been surrendered in a condition
consistent with Purchaser’s prior investigations and due diligence and consistent with the express representations, warranties,
certificates, and covenants provided by Seller in this Agreement. At Closing, Seller shall furnish Purchaser with all keys and
access cards in Seller’s possession (if applicable) and shall provide written documentation for all security codes and combinations
to any security doors, safes, cabinets, elevators, and vaults located on the Property, including any and all operating manuals
and warranties to such security systems, safes, cabinets, elevators, and vaults that are in Seller’s possession, so that
Purchaser has full and unrestricted ability (after the Closing) to unlock, possess, occupy, use, and utilize the Property. After
Closing, Seller (and any of its employees, officers, members, managers, shareholders, directors, agents, or assigns) shall not
be permitted under any circumstance to retain or possess any duplicate keys, access cards, security codes, or other related information
concerning access to any portions of the Property.

 

    	 	15	 

     

    

 

Section 8.7          Ongoing
Delivery of Documents and Information. Following the Closing, Seller agrees to promptly notify Purchaser of and to transfer,
assign, and deliver, as applicable, any and all documents, payments, or funds (except for any Revenues that Seller is entitled
to collect and retain under Section 8.5), or records defined as Tangible Property, Intangible Property, and any other documents,
payments or funds, or records that pertain to or are associated with the Property, to Purchaser within fourteen (14) calendar days
of Seller’s receipt of such documents, payments or funds, or records. Seller’s obligations under this Section 8.7
shall survive the Closing. As of the Effective Date of this Agreement, all notices, documents, payments or funds, or records pertaining
to the Property shall be sent to:

 

	 	Ryan Law Group, PLLC
	 	636 U.S. Highway One, Suite 110
	 	North Palm Beach, Fl. 33408
	 	Attn: James D. Ryan
	 	Email: jdr@ryanlawgroup.net

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1          Notices.
Any notices required or permitted to be given under this Agreement shall be given in writing and shall be delivered (a) in person,
(b) by certified mail, postage prepaid, return receipt requested, (c) by a commercial overnight courier that guarantees next day
delivery and provides a receipt, or (d) by e-mail, and such notices shall be addressed as follows:

 

	If to Seller:	Wallace Real Estate, LLC,
	 	Ottie J. Wallace, Trustee Of The Wallace Bypass Trust
	 	Under the Ottie Joel and Elizabeth Wallace Family Trust,
	 	and Elbulinick Properties LLC
	 	Attention: Mr. Bud Wallace
	 	9290 E. Hwy 140
	 	Planada, CA 95365
	 	E-Mail: Bud@wallacetransport.com
	 	 
	With a copy to:	Corbett Browning
	 	P.O. Box 2067
	 	Merced, California 95344-0067
	 	E-Mail: cjb@rbgmlaw.com
	 	 
	If to Purchaser:	Ryan Law Group, PLLC
	 	636 U.S. Highway One, Suite 110 
	 	North Palm Beach, Fl. 33408 
	 	Attn: James D. Ryan 
	 	Email: jdr@ryanlawgroup.net

 

    	 	16	 

     

    

 

	With a copy to:	Parsons Behle & Latimer
	 	One Utah Center
	 	201 South Main Street, Suite 1800 
	 	Post Office Box 45898 
	 	Salt Lake City, Utah 84145-45898 
	 	Attention: Mark E. Lehman 
	 	E-Mail: mlehman@parsonsbehle.com
	 	 
	If to Title Company:	Chicago Title
	 	Attn: Connie Cauthen, Escrow Officer 
	 	1140 F Street, Ste. 103 
	 	Reedley, CA 93654 
	 	E-Mail: cauthenc@ctt.com

 

or to such other address or addresses as
a Party may from time-to-time specify in writing to the other Parties. Any notice shall be deemed delivered when actually delivered,
if such delivery is in person, upon deposit with the U.S. Postal Service, if such delivery is by certified mail, upon deposit with
the overnight courier service, if such delivery is by an overnight courier service, and upon transmission, if such delivery is
by email transmission.

 

Section 9.2          Entire
Agreement. This Agreement, together with the exhibits attached hereto, and all other agreements, documents, and instruments
referenced in this Agreement, contain all of the representations, warranties, certifications, and covenants made by the Parties
and constitute the entire understanding between the Parties with respect to the subject matter hereof. Any prior correspondence,
memoranda, or agreements are replaced in total by this Agreement together with the exhibits hereto.

 

Section 9.3          Entry
and Indemnity. In connection with any entry by Purchaser, or its authorized agents, employees, or contractors onto those
portions of the Property inspected by Purchaser in accordance with this Agreement, Purchaser shall give Seller reasonable advance
notice twenty-four (24) hours prior to such entry (which may be delivered in writing, by e-mail, or orally) and shall conduct such
entry and any inspections in connection therewith so as to minimize, to the extent reasonably possible, interference with the activities
of Seller and the existing tenant, which in some circumstances may mean that Seller may require more than twenty-four (24) hours’
notice to Seller prior to the performance of said inspections given the sensitive and confidential nature of Seller’s business
activities for its clients. Without limiting the foregoing, prior to any entry to perform any on-site testing, Purchaser shall
give Seller notice thereof, including the identity of the authorized company or persons who will perform such testing and a reasonable
explanation of the proposed scope of the testing. Purchaser shall indemnify and hold Seller harmless from and against any costs,
damages, liabilities, losses, expenses, liens, or claims arising out of or relating to any entry on the Property by Purchaser,
its authorized agents, employees, or contractors in the course of performing the inspections, testing, or inquiries provided for
in this Agreement; provided, however, that the foregoing indemnity shall not apply to (i) the mere discovery of a pre-existing
condition unless caused by Purchaser, or (ii) costs, damages, liabilities, losses, expenses, liens, or claims arising out of or
relating to Seller’s negligence or willful misconduct.

 

Section 9.4          Time.
Time is of the essence in the performance of each of the Parties’ respective obligations contained in this Agreement.

 

    	 	17	 

     

    

 

Section 9.5          Attorneys’
Fees. If any litigation or binding arbitration proceeding is commenced between the Parties concerning this Agreement and/or
the rights and obligations of any Party in relation herewith (including, but not limited to, claims in contract, tort, or equity),
the Party prevailing in such litigation or binding arbitration proceeding, or the non-dismissing party in the event of a dismissal,
with or without prejudice, shall be entitled, in addition to such other relief as may be granted, to a reasonable sum for any and
all costs and expenses, including, without limitation, attorneys’ fees, expert witness fees, consultants’ fees, court
costs, cost of paralegals, accounts, business office expenses of any kind or nature, including, but not limited to, staff, traveling
expenses, telephone expenses, and any and all other costs and expenses of defense or prosecution incurred in connection therewith,
whether specified herein or not. Any such attorneys’ fees and other costs and expenses incurred by the prevailing or non-dismissing
Party in enforcing a judgment in its favor under this Agreement, whether or not suit is filed, may be recoverable separately from
and in addition to any other amount included in such judgment or award and such obligation is intended to be severable from the
other provisions of this Agreement and to survive and not be merged into any such judgment or award and, to the extent Purchaser
is the prevailing or non-dismissing Party, Purchaser may, at its election, credit such attorneys’ fees and all other costs
and expenses against the Purchase Price.

 

Section 9.6          Assignment.
Neither Party may assign any of its respective rights or interests under this Agreement to an unauthorized third-party, without
the prior written consent of the other Party; provided, however, Purchaser is authorized to assign and transfer its rights to purchase
and acquire the Property under this Agreement subject to the conditions below. If Purchaser intends to assign its interest in this
Agreement, Purchaser shall notify Seller in writing at least five (5) business days before the Closing. Such notice shall include
the name(s), title(s), and addresses of the individual(s) and/or entity that Purchaser intends to assign this Agreement to (the
“Assigns”). At least three (3) business days before the Closing, Purchaser and the Assigns shall execute an
Assignment and Assumption of Contract (the “Contract Assignment”), in a form acceptable to the Parties, to assign
Purchaser’s rights and obligations in this Agreement to the Assigns and then Seller and the Assigns will proceed to Closing.
To the extent Purchaser assigns its interest the Two Million dollar ($2,000,000.00) balance shall be paid to Seller at Closing.
Any such assignment shall not constitute a waiver or release by Seller of any claims of Seller against Purchaser. In the event
this Agreement is assigned as provided for above, this Agreement shall be binding upon and shall inure to the benefit of the successors
and permitted assigns of the Parties to this Agreement. Seller’s consent shall not be required for any assignment by Purchaser
that complies with this Section 9.6 and so long as the applicable Assigns have expressly assumed all of Purchaser’s
obligations under this Agreement upon consummation of such assignment. Notwithstanding the forgoing, nothing herein shall be construed
to prevent Seller from unilaterally making an assignment to any entity or person working in cooperation with Seller for tax and
/ or estate planning purposes so long as such assignee agrees to cooperate and perform under this agreement.

 

Section 9.7          Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument. Executed counterparts of this Agreement may be transmitted and delivered
by the Parties by way of e-mail or other forms of electronic transmission.

 

    	 	18	 

     

    

 

Section 9.8           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

 

Section 9.9           Confidentiality.
The Parties shall maintain as strictly confidential any and all non-public material obtained about Purchaser and Seller and Purchaser’s
intended use, operation, development, and other purposes for the Property and the Business, and shall not disclose any economics
or non-public information about the transactions contemplated in this Agreement to any third-parties, except for disclosures required
by court order or subpoena or in connection with any litigation or other dispute resolution proceedings between the Parties. In
the event that the Closing does not occur in accordance with the terms of this Agreement, all Parties shall return any documents,
materials, or information regarding the Property supplied in accordance with this Agreement. Any Parties in breach of this Section
9.9 agree to indemnify, defend, protect, and hold harmless those non-breaching Parties from and against any and all claims
arising out of any breach of this Section 9.9. This Section 9.9 shall survive the Closing or any termination of this
Agreement.

 

Section 9.10         Interpretation
of Agreement. The article, section, and other headings of this Agreement are for convenience of reference only and shall
not be construed to affect the meaning of any provision contained in this Agreement. Where the context so requires, the use of
the singular shall include the plural and vice versa and the use of the masculine shall include the feminine and the neuter. The
term “person” shall include any individual, partnership, joint venture, corporation, trust, unincorporated association,
any other entity and any government or any department or agency thereof, whether acting in an individual, fiduciary, or other capacity.

 

Section 9.11         Amendments.
This Agreement may be amended or modified only by a written instrument signed by each of the Parties.

 

Section 9.12         No
Recording. Neither this Agreement or any memorandum or short form thereof may be recorded by any of the Parties.

 

Section
9.13         Effective Date. As used in this Agreement, the term “Effective
Date” shall mean the first date on which both of the Parties shall have executed and delivered this Agreement.

 

Section 9.14         Submission
not an Offer or Option. The submission of this Agreement or a summary of some or all of its provisions for examination
or negotiation by Seller or Purchaser does not constitute an offer by Seller or Purchaser to enter into an agreement to transfer,
purchase, or sale the Property, and neither Party shall be bound to the other with respect to any such transfer, purchase, or sale
until this Agreement is executed and delivered by each of Seller or Purchaser.

 

Section 9.15         Indemnities.
In case any claim, action, or proceeding is brought, made, or initiated against a Party entitled to indemnification under this
Agreement (an “Indemnitee”) the Party providing indemnification (“Indemnitor”), upon written
notice from the Indemnitee, shall at its sole cost and expense, resist, or defend such claim, action, or proceeding by attorneys
reasonably approved by Indemnitee. Notwithstanding the foregoing, Indemnitee may retain its own attorneys, and Indemnitor shall
pay the reasonable fees and disbursements of such attorneys to defend or assist in defending any claim, action, or proceeding (i)
if Indemnitee shall have reasonably concluded that there may be a conflict of interest between Indemnitor and Indemnitee in the
conduct of the defense of such action, or (ii) such claim, action, or proceeding is for equitable relief against Indemnitee and
no monetary damages are being sought against Indemnitee. Indemnitor shall not settle any such claim, action, or proceeding against
Indemnitee without the consent of Indemnitee, which consent shall not be unreasonably withheld, conditioned, or delayed, if such
settlement involves relief other than the payment of money by Indemnitor.

 

    	 	19	 

     

    

  

Section 9.16         Construction.
This Agreement shall not be construed more strictly against one Party than against any other Party merely by virtue of the fact
that it may have been prepared by counsel for one of the Parties.

 

Section 9.17         Time
Computation. Unless otherwise provided in this Agreement, in computing a period of days for performance or payment as provided
hereunder, the first day shall be excluded and the last day shall be included. If the last day of any such period is Saturday,
Sunday, or on a day on which banking institutions in the State of California are authorized by law to close, the period shall extend
to include the next day which is not a Saturday, Sunday, or day on which banking institutions in the State of California are authorized
by law to close. Any performance or payment which may be taken or made under this Agreement must, unless otherwise indicated herein,
be taken or made prior to 5:00 p.m. (Pacific Daylight Time) on the last day of the applicable period provided specified.

 

Section 9.18         Recitals.
The Parties acknowledge and agree that the Recitals set forth in this Agreement are true, accurate, and correct and are hereby
made a part of this Agreement and are incorporated herein by this reference.

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement as of the Effective Date.

 

	SELLER:	 	PURCHASER:
	 	 	 
	
        WALLACE REAL ESTATE, LLC, a

        California Limited Liability Company.
	 	
        RYAN LAW GROUP, PLLC.,

        a Florida Limited Liability Company

	 	 	 	 	 
	By:	/s/ Ottie Joel Wallace	 	By:	/s/ James D. Ryan
	Print Name:	Ottie Joel Wallace	 	Print Name:	James D. Ryan
	Title: 	Authorized Member	 	Title: 	Authorized Member

 

	THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK PROPERTIES LLC, a California Limited Liability Company	 	 
	 	 	 	 
	By: 	/s/ Ottie J. Wallace	 	 
	OTTIE J. WALLACE	 	 
	TRUSTEE and sole owner of ELBULINICK PROPERTIES  LLC	 	 

 

    	 	20	 

     

    

  

EXHIBIT “A”

TO

PURCHASE AND SALE AGREEMENT 

 

 

 

Site
Plan

 

    	 	A-1	 

     

    

 

EXHIBIT “B”

TO

PURCHASE AND SALE AGREEMENT 

 

 

 

Legal
Description of Land

 

The real property referenced
in the foregoing Purchase and Sale Agreement as the “Land” is located in the City of Merced. County of Merced, State
of California and is more particularly described as follows:

 

PARCEL 1 (Assessor’s Parcel
No. 061-033-005):

 

ALL OF THAT CERTAIN PARCEL OF LAND
SITUATED IN THE COUNTY OF MERCED, STATE OF CALIFORNIA LYNG IN THE SOUTHEAST QUARTER (SE 1/4) OF SECTION 25. TOWNSHIP 7 SOUTH.
RANGE 14 EAST MOUNT DIABLO MERIDIAN AS DESCRIBED IN DEED DATED MAY 4, 1897 FROM ELIZA B. FOWLER TO THE SAN FRANCISCO AND SAN
JOAQUIN VALLEY RAILWAY COMPANY (PREDECESSOR IN INTEREST TO THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY) RECORDED MAY 6,
1897 IN VOLUME 47 AT PAGE 98 IN THE RECORDS OF SAID MERCED COUNTY DESCRIBED OF REFERENCE AS FOLLOWS:

 

“COMMENCING AT A POINT
ON THE EAST LINE OF THE SOUTH EAST QUARTER OF SECTION TWENTY FIVE (25) TOWNSHIP SEVEN SOUTH RANGE FOURTEEN (14) EAST M. D. B. &
M. - ONE HUNDRED AND THIRTY FEET (130) SOUTH OF THE NORTH EAST CORNER OF SAID QUARTER SECTION LINE ONE HUNDRED (100) FEET; THENCE
WEST AT RIGHT ANGLES FOUR HUNDRED AND THIRTY (430) FEET; THENCE NORTH AT RIGHT ANGLES ONE HUNDRED (100) FEET TO THE SOUTH LINE
OF THE PRESENT RIGHT OF WAY OF THE GRANTEE HEREIN’S REQUEST; THENCE EASTERLY ALONG THE SAID SOUTH LINE OF SAID RIGHT OF WAY
FOUR HUNDRED AND THIRTY (430) FEET TO THE POINT OF BEGINNING. SAVE AND EXCEPT A STRIP OF LAND THIRTY (30) FEET IN WIDTH TAKEN OFF
FROM THE ENTIRE EAST END OF SAID DESCRIBED PIECE OF LAND. THE SAME BEING A PART OF THE COUNTY ROAD, HAVING BEEN HERETOFORE DEDICATED
TO THE PUBLIC AS A HIGHWAY;”

 

EXCEPTING FROM THE ABOVE DESCRIBED PARCEL
OF LAND ANY RIGHTS, TITLE AND/OR INTEREST IN AND TO THAT PORTION OF THAT CERTAIN 18.31 ACRE PARCEL OF LAND AS DESCRIBED IN DEED
DATED MARCH 14, 1896 FROM J. M. FOWLER TO SAID RAILWAY COMPANY RECORDED MARCH 20, 1896 IN VOLUME 33 OF DEEDS AT PAGE 600 OF THE
RECORDS OF SAID MERCED COUNTY, LYING ADJACENT TO THE ABOVE DESCRIBED PARCEL OF LAND.

 

PARCEL 2 (Assessor’s Parcel
No. 061-033-006):

 

PARCEL 2A

 

ALL OF THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 25,
T.7 S., R. 14 E., M.D.B.&M., COUNTY OF MERCED, STATE OF CALIFORNIA. AS DESCRIBED AS FOLLOWS:

 

COMMENCING AT A POINT 130
FEET SOUTH OF THE EAST QUARTER CORNER OF SAID SECTION 25. THENCE SOUTH 88° 29’ 30” WEST, 430.00
FEET TO THE POINT OF BEGINNING; THENCE SOUTH 89° 29’ 30” WEST, 645.08 FEET TO A POINT ON THE NORTHERLY LINE
OF PARCEL 1 AS SHOWN ON THAT PARCEL MAP FOR PETER & ROSEMARY BARALDI FILED SEPTEMBER 19 ,1975 IN VOLUME 27 OF
PARCEL MAPS AT PAGE 48, MERCED COUNTY RECORDS: THENCE ALONG SAID NORTH LINE SOUTH 0° 31’ 00” WEST, 100 FEET;
THENCE CONTINUING ALONG SAID NORTH LINE. NORTH 88° 29’ 30” EAST, 654.07 FEET; THENCE LEAVING SAID NORTH LINE,
NORTH 0° 31’ 24’’ EAST, 100 FEET TO THE POINT OF BEGINNING.

 

    	 	B-1	 

     

    

  

PARCEL 2B

 

PARCEL 1 AS SHOWN ON THAT PARCEL MAP FOR
PETER & ROSEMRY BARALDI FILED SEPTEMBER 19, 1975 IN VOLUME 27 PF PARCEL MAPS AT PAGE 48, MERCED COUNTY RECORDS, SITUATED IN
SECTION 25, T.7 S, R.14 E., M.D.B.&M., COUNTY OF MERCED, STATE OF CALIFORNIA

 

TOGETHER WITH THE FOLLOWING DESCRIBED PORTION
OF PARCEL B AS SHOWN ON THAT PARCEL MAP FOR PETER A. BARALDI, JR., ET AL FILED OCTOBER 18, 1978 IN VOLUME 38 OF PARCEL MAPS AT
PAGE 10, MERCED COUNTY RECORDS, SITUATED IN SECTION 25, 7.7 S., R.14 E.. M.D.B.&M.. COUNTY OF MERCED, STATE OF CALIFORNIA.

 

BEGINNING AT THENORTHWEST CORNER
OF SAID PARCEL B; THENCE ALONG THE NORTH LINE OF SAID PARCEL B, NORTH 88° 29’ 30” EAST, 1281.88 FEET TO THE NORTHEAST
CORBER OF SAID PARCEL B, THENCE ALONG THE EAST LINE OF SAID PARCEL B, SOUTH 0° 31’ 24” WEST, 102.00 FEET; THENCE LEAVING
SAID EAST LINE. SOUTH 88° 29’ 32” WEST, 1282.12 FEET TO A POINT ON THE WEST LINE OF SAID PARCEL B; THENCE
ALONG SAID WEST LINE. NORTH 0° 39’ 34” EAST. 102.00 FEET TO THE POINT OF BEGINNING.

 

PARCEL 2A AND PARCEL 2B TOGETHER CONTAINING
6.53 ACRES MORE OR LESS.

 

PARCEL 3 (Assessor’s Parcel
No. 061-033-007):

 

PARCEL C AS SHOWN ON THAT PARCEL MAP FOR
PETER A. BARALDI. JR. ET AL FILED OCTOBER 18, 1978 IN VOLUME 38 OF PARCEL MAPS AT PAGE 10, MERCED COUNTY RECORDS, SITUATED IN SECTION
25, T.7 S.. R.14 E., M.D.B.&M., COUNTY OF MERCED, STATE OF CALIFORNIA.

 

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED
PORTION OF SAID PARCEL B.:

 

BEGINNING AT THE NORTHWEST CORNER
OF SAID PARCEL B; THENCE ALONG THE NORTH LINE OF SAID PARCEL B, NORTH 88° 79’ 30” EAST. 1281.88 FEET TO THE NORTHEAST
CORNER OF SAID PARCEL B: THENE ALONG THE EAST LINE OF SAID PARCEL B, SOUTH 0° 31’ 24” WEST 102.00 FEET; THENCE
LEAVING SAID’ EAST LINE, SOUTH 88° 29’ 32” WEST, 1282.12 FEET TO A POINT ON THE WEST LINE OF SAID PARCEL B: THENCE ALONG
SAID WEST LINE NORTH 0° 39’ 34” EAST, 102.00 FEET TO THE POINT OF BEGINNING.

 

ALSO EXCEPTING THEREFROM THE PROPERTY AMD
PROPERTY RIGHTS EXCEPTED IN DEED RECORDED MAY 17, 1955 IN VOL. 1207, OFFICIAL RECORDS, PAGE 415. MERCED COUNTY RECORDS.

 

PARCEL 3 CONTAINS 20.8 ACRES MORE OR LESS.

 

    	 	B-2	 

     

    

  

EXHIBIT “C”

TO

PURCHASE AND SALE AGREEMENT 

 

 

 

List
of Seller’s Disclosures

 

Seller represents, warrants,
covenants, and certifies to Purchaser that the “Seller’s Disclosures” as defined and contemplated in the foregoing
Purchase and Sale Agreement (“Agreement”) shall include, but not be limited to, each of the following documents,
instruments, and other items that are in Seller’s possession, based upon the knowledge, information, and belief of Seller
and its good faith best efforts to discover and locate such documents, instruments, and other items:

 

		I.	Financial Information about Property

 

		a.	BNSF Track Lease, Distribution Agreement/Lease, Drain
Design, Farm Lease Cancelation/Termination of Trans-load agent; and,

 

		b.	Current Property Tax Bills, Property Insurance policy,
MID Tax statement, East San Joaquin Water Quality Coalition Agreement, Farm Lease

 

		II.	Operational Matters

 

		a.	MID Tax statement, PG&E statement; and

 

		b.	Distribution Agreement/Lease, Cancelation/Termination
of Trans-load agent

 

		III.	Prorations

 

		a.	INTENTIONALLY LEFT BLANK.

 

		IV.	Environmental and Engineering Reports

 

		a.	Phase One Environmental Survey, Letter from Crop Production
Services regarding release, Red Rock Geotechnical Engineering Investigation, 2018 Dock Plans and upgrades terminal

 

		b.	M-l Zoning 5/31/1994 94-141, Administrative Permit
99071, Red Rock Subdivision Approval M-l zoning, Agricultural Conservation Easement Satisfied;

 

		V.	Title Documents

 

		a.	ALTA Land Survey of Tuttle property, 2016 Appraisal,
2018 Dock Plans and upgrades terminal
	 	 	 

		b.	.

 

    	 	C-1	 

     

    

 

		VI.	Property Condition and Compliance Information

 

		a.	Merced County Environmental Health Permit 2018;

 

		b.	Topographic Survey of Tuttle property, ALTA Land survey
of Tuttle property, BNSF Proposed Double Track 3-30-2009, Rail switch proposal 9-29-1998, Rail switch proposal 8-25-200, Rail
switch proposal 4-15-1998, Storage pads proposal 1998, North/south switch, Rail track elevations, Drain Design, Wind Map, New
Dock Plans 3-18-18, New N/S Rail switch plan 3-18-18, 2016 Appraisal, 2018 Dock Plans and upgrades terminal;

  

		c.	M-1 Zoning 5/31/1994 94-141, Administrative Permit
99071, Merced County Environmental health Permit 2018; and,

 

		d.	Personal property list.

 

		VII.	Leasing and Tenant Information

 

		a.	Distribution Agreement/Lease, Valley Pacific, 7-2015
Lease, Farm Lease.

 

		VIII.	Agreements and Contracts

 

		a.	Distribution Agreement/Lease.

 

		IX.	Insurance

 

		a.	Property Insurance Policy.

 

		X.	Real Estate Taxes

 

		a.	Current Property Tax Bills, MID Tax statement, East
San Joaquin Water Quality Coalition statement/billing.

 

    	 	C-2	 

     

    

 

EXHIBIT “D”

TO

PURCHASE AND SALE AGREEMENT 

 

 

 

PROMISSORY NOTE

 

Merced, California

 

	$1,000,000.00	Due
    in full
	 	July__,
    2023

  

1.          For
value received, RYAN LAW GROUP, PLLC., a Florida Professional Limited Liability Company, (hereinafter collectively referred to as
“PROMISOR”), jointly and severally, promise to pay to WALLACE REAL ESTATE, LLC, a California Limited Liability Company, (hereinafter
collectively referred to as “PAYEE”), the sum of $I,000,000.00, in the following manner: minimum monthly payments,
the first of which will be due on or before October 1, 2018, will consist of interest only, with a balloon payment due on _____________,
2023 or on the fifth anniversary of the closing of the sale of that certain property known as the Tuttle Property, more particularly
described in the Deed of Trust accompanying this Note, whichever is later in time; interest will be accruing at a rate of eight
percent (8%) annually; there is no prepayment penalty.

 

LATE PAYMENTS

 

2.          PROMISOR
agrees that if any installment payment provided for in this Note is [late or in default or unpaid] for at least ten
(10) days, it would be impracticable or extremely difficult to fix the actual damages resulting to the PAYEE. Therefore, PROMISOR
agrees to pay to the PAYEE 5% of the amount of the defaulted payment, as liquidated damages and not as a penalty, to compensate
the PAYEE for the expenses of administering the default. Only one late charge will be collected on any installment, regardless
of the period during which it remains in default.

 

ACCELERATION

 

3.          (a)
On default, the PAYEE of this Note may accelerate the maturity of all installments, making the unpaid balance of the Note (the
total of the unpaid monthly installments and any unpaid that have been charged) due immediately without presentment for payment
or any notice, if:

 

    	 	D-1	 

     

    

  

		(1)	PROMISOR or any endorser, surety, or guarantor of this Note:

 

		(i)	Suspends business.

 

		(ii)	Becomes insolvent or offers settlement to any creditors.

 

		(iii)	Files a petition in bankruptcy, either voluntary or involuntary.

 

		(iv)	Institutes any proceeding under any bankruptcy or insolvency
laws relating to the relief of debtors.

 

		(v)	Gives notice of any intended bulk sale.

 

		(vi)	Makes an assignment for the benefit of creditors.

 

		(vii)	Makes any false statement or representation orally or
in writing, fails to furnish information, or fails to permit inspection of any books or records on demand of the PAYEE.

 

		(2)	A receiver is appointed for PROMISOR or any endorser,
surety or guarantor.

 

DISPOSITION OF COLLATERAL
ON DEFAULT

 

4.          PROMISOR
secures the payment of this Promissory Note by a Deed of Trust, dated the date this Note is executed, and a Guarantee dated the
date this Note is executed.

 

5.          In
case if default in payment of this Note or nay other notes of the undersigned, whether as PROMISOR, co-PROMISOR, or endorder,
held by the PAYEE or in case the collateral declines in value or otherwise becomes reasonably unsatisfactory to the PAYEE,
the PAYEE is authorized to dispose of all or any part of the collateral security property at public or private sale, without
advertisement, or notice to the PROMISOR, which rights are expressly waived. At such a sale, the PAYEE may purchase any or
all of the property free of any claim or right of redemption of the PROMISOR, which rights are expressly waived except as
provided by law. Neither the sale of the collateral nor the application of its proceeds will prejudice any other rights of
PAYEE againts PROMISOR.

 

COLLECTION COSTS

 

5.         PROMISOR
agrees to pay the expenses incurred in any attempt to enforce this Note, including the cost of retaking and keeping any
collateral or other security property for this Note, specified in any agreements.

 

ATTORNEYS’ FEES

 

6.         PROMISOR
agrees that if any legal action is necessary to enforce this Note for nonpayment at maturity, the prevailing party will be
entitled to reasonable attorneys’ fees in addition to any other relief that party may be entitled to. This provision is
applicable to the entire Note.

 

    	 	D-2	 

     

    

 

EXTENSION OF TIME FOR PAYMENT

 

7.       No
extension of time for payment of all or any part of the amount owing on this Note will affect the liability of the PROMISOR
or any surety, guarantor, or endorser of this Note. The PROMISOR and all sureties, guarantors, endorsers, severally waive
presentment for payment, notice of nonpayment, and notice of dishonor of this Note.

 

	Executed on __________, ______, 2018	 
	 	 
	
        RYAN LAW GROUP, PLLC. 

        A Florida Professional Limited Liability Company
	 
	 	 	 
	By:	 	 
	Print Name: 	James D. Ryan	 
	Title: 	Authorized Member	 

 

    	 	D-3	 

     

    

  

PROMISSORY NOTE

[SAME CHANGES
AS TO NOTE ABOVE]

 

	Merced, California	 
	 	 
	$1,000,000.00	Due in full
	 	July__, 2023

 

1.       For value received,
RYAN LAW GROUP, PLLC., A Florida Professional Limited Liability Company, (hereinafter collectively referred to as “PROMISOR”),
jointly and severally, promise to pay to OTTIE J. WALLACE, TRUSTEE OF THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH
WALLACE FAMILY TRUST and ELBUL1NICK PROPERTIES LLC, a California Limited Liability Company, (hereinafter collectively referred
to as “PAYEE”), the sum of $1,000,000.00, in the following manner: minimum monthly payments, the first of which will
be due on or before October 1, 2018, will consist of interest only, with a balloon payment due on ______________, 2023 or on the fifth anniversary
of the closing of the sale of that certain property known as the Tuttle Property, more particularly described in the Deed of Trust
accompanying this Note, whichever is later in time; interest will be accruing at a rate of eight percent (8%) annually; there is
no prepayment penalty.

 

LATE PAYMENTS

 

2.       PROMISOR
agrees that if any installment payment provided for in this Note is [late or in default or unpaid] for at least ten
(10) days, it would be impracticable or extremely difficult to fix the actual damages resulting to the PAYEE. Therefore, PROMISOR
agrees to pay to the PAYEE 5% of the amount of the defaulted payment, as liquidated damages and not as a penalty, to compensate
the PAYEE for the expenses of administering the default. Only one late charge will be collected on any installment, regardless
of the period during which it remains in default.

 

ACCELERATION

 

3.       (a)
On default, the PAYEE of this Note may accelerate the maturity of al installments, making the unpaid balance of the Note (the total
of the unpaid monthly installments and any unpaid fines that have been charged) due immediately without presentment for payment
or any notice, if:

 

		(1)	PROMISOR or any endorser, surety, or guarantor of
this Note:

 

		(i)	Suspends business.

 

		(ii)	Becomes insolvent or offers settlement to any creditors.

 

		(iii)	Files a petition in bankruptcy, either voluntary or
involuntary.

 

    	 	D-4	 

     

    

 

		(iv)	Institutes any proceeding under any bankruptcy or insolvency
laws relating to the relief of debtors.

 

		(v)	Gives notice of any intended bulk sale.

 

		(vi)	Makes an assignment for the benefit of creditors.

 

		(vii)	Mortgages, pledges, assigns, or transfers any accounts
receivable or other property, real or personal, in trust or otherwise, without the written consent of the PAYEE.

 

		(viii)	Makes any false statement or representation orally or
in writing, fails to furnish information, or fails to permit inspection of any books or records on demand of the PAYEE.

 

		(2)	A receiver is appointed for PROMISOR or any endorser,
surety or guarantor.

 

DISPOSITION OF COLLATERAL ON DEFAULT

 

4.       PROMISOR
secures the payment of this Promissory Note by a Deed of Trust, dated the date this Note is executed, and a Guarantee dated the
date this Note is executed.

 

5.       In
case of default in payment of this Note or any other notes of the undersigned, whether as PROMISOR, co-PROMISOR, or endorser, held
by the PAYEE or in case the collateral declines in value or otherwise becomes reasonably unsatisfactory to the PAYEE, the PAYEE
is authorized to dispose of all or any part of the collateral security property at public or private sale, without advertisement,
or notice to the PROMISOR, which rights are expressly waived. At such a sale, the PAYEE may purchase any or all of the property
free of any claim or right of redemption of the PROMISOR, which rights are expressly waived except as provided by law. Neither
the sale of the collateral nor the application of its proceeds will prejudice any other rights of PAYEE against PROMISOR.

 

COLLECTION COSTS

 

5.       PROMISOR
agrees to pay the expenses incurred in any attempt to enforce this Note, including the cost of retaking and keeping any collateral
or other security property for this Note, specified in any agreements.

 

ATTORNEYS’ FEES

 

6.       PROMISOR
agrees that if any legal action is necessary to enforce this Note for nonpayment at maturity, the prevailing party will be entitled
to reasonable attorneys’ fees in addition to any other relief that party may be entitled to. This provision is applicable to the
entire Note.

 

    	 	D-5	 

     

    

 

EXTENSION OF TIME FOR PAYMENT

 

7.       No extension of time for payment of
all or any part of the amount owing on this Note will affect the liability of the PROMISOR or any surety, guarantor, or endorser
of this Note. The PROMISOR and all sureties, guarantors, endorsers, severally waive presentment for payment, notice of nonpayment,
and notice of dishonor of this Note.

 

Executed on_____, _____, 2018

 

	RYAN LAW GROUP, PLLC.

                    A Florida Professional Limited Liability Company
	 
	 	 
	By:	 	 
	Print Name: 	James D. Ryan	 
	Title: 	Authorized Member	 

 

    	 	D-6	 

     

    

 

UNCONDITIONAL GUARANTY

 

VEGALAB,
INC., a Nevada Corporation (“Guarantor”) hereby unconditionally guarantees the performance of each and every
obligation undertaken by Promisor under the Notes (the “Notes”), dated the same date as this Guaranty, including specifically
the obligation to make payments when due under the Notes. This Guaranty is given in consideration of WALLACE REAL ESTATE, LLC,
a California Limited Liability Company, OTTIE J. WALLACE, TRUSTEE OF THE
WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK PROPERTIES LLC, a California Limited
Liability Company (“Holder”) to take the aforementioned Notes as part of the Purchase Sale Agreement (“Agreement”)
between the parties and that this Guaranty is part of the consideration for said Agreement, This Guaranty is a continuing one
and shall terminate only on the satisfaction of each and every obligation of Guarantor under the Notes. Guarantor agrees that
the Holder of the Notes may from time to time extend the time for performance or otherwise modify the Notes and any or all provisions
of it without in any way releasing or discharging Guarantor from its obligations hereunder. This Guaranty shall not be released,
extinguished, modified, or in any way affected by failure on the part of the Holder of the Notes to enforce all the rights and
remedies available to it under the Notes. This Guaranty shall be binding on Guarantor and its successors and assigns. In the event
of any action to enforce any of the terms and conditions of this Guaranty, the prevailing party in such action and any appeal
resulting from it shall be entitled to recover from the other reasonable attorney fees and costs, which shall be fixed as part
of the cost by the court in which such action shall be pending.

  

	Executed on_____, _____, 2018	 
	 	 	 
	GUARANTOR:	 
	 	 	 
	BY:	 	 
	PRINT NAME:	David Selakovic	 
	TITLE: 	Chief
    Executive Officer, on behalf of VEGALAB. INC., a Nevada Corporation

 

    	 	D-7	 

     

    

  

	RECORDING REQUESTED BY:	 	 
	Corbett J. Browning. Esq.	 	 
	 	 	 
	When Recorded Mail Document to:	 	 
	ROBBINS, BROWNING, GODWIN & MARCHINI	 	 
	700 Loughborough Dr., Suite D	 	 
	Merced, CA 95348	 	 
	 	 	  SPACE ABOVE THIS LINE FOR RECORDER’S USE
		 	 

APNs: 061-033-005,
061-033-006, and 061-033-007

 

DEED OF TRUST

 

THIS DEED OF TRUST made this_____day
of_________, 2018 between RYAN LAW GROUP, PLLC., a Florida Professional Limited Liability Company (collectively the “Trustor”),
whose address is 636 U.S. Highway One, Suite 110, North Palm Beach, Florida 33408, and WALLACE REAL ESTATE, LLC, a California Limited
Liability Company, OTTIE J. WALLACE, TRUSTEE OF THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST,
and ELBULINICK PROPERTIES LLC, a California Limited Liability Company (collectively the “Beneficiary”), whose address
is 9290 E. Hwy 140, Planada, California 95365, and TransCounty Title Company, (the “Trustee”), whose address is 635 West
19th Street, Merced, California, 95340;

 

TRUSTOR HEREBY irrevocably grants, transfers, and assigns to
Trustee, in trust, with power of sale, all that property in the County of Merced, State of California, described as:

 

PARCEL 1 (Assessor’s Parcel
No. 061-033-005):

 

ALL OF THAT CERTAIN PARCEL OF
LAND SITUATED IN THE COUNTY OF MERCED, STATE OF CALIFORNIA LYNG IN THE SOUTHEAST QUARTER (SE 1/4) OF SECTION 25, TOWNSHIP 7 SOUTH,
RANGE 14 EAST MOUNT DIABLO MERIDIAN AS DESCRIBED IN DEED DATED MAY 4, 1897 FROM ELIZA B. FOWLER TO THE SAN FRANCISCO AND SAN JOAQUIN
VALLEY RAILWAY COMPANY (PREDECESSOR IN INTEREST TO THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY) RECORDED MAY 6, 1897 IN
VOLUME 47 AT PAGE 98 IN THE RECORDS OF SAID MERCED COUNTY DESCRIBED OF REFERENCE
AS FOLLOWS:

 

    	 	D-8	 

     

    

 

“COMMENCING AT A POINT ON THE
EAST LINE OF THE SOUTH EAST QUARTER OF SECTION TWENTY FIVE (25) TOWNSHIP SEVEN SOUTH RANGE FOURTEEN (14) EAST M. D. B. & M.
– ONE HUNDRED AND THIRTY FEET (130) SOUTH OF THE NORTH EAST CORNER OF SAID QUARTER SECTION LINE ONE HUNDRED (100) FEET; THENCE
WEST AT RIGHT ANGLES FOUR HUNDRED AND THIRTY (430) FEET; THENCE NORTH AT RIGHT ANGLES ONE HUNDRED (100) FEET TO THE SOUTH LINE
OF THE PRESENT RIGHT OF WAY OF THE GRANTEE HEREIN’S REQUEST; THENCE EASTERLY ALONG THE SAID SOUTH LINE OF SAID RIGHT OF WAY FOUR
HUNDRED AND THIRTY (430) FEET TO THE POINT OF BEGINNING. SAVE AND EXCEPT A STRIP OF LAND THIRTY (30) FEET IN WIDTH TAKEN OFF FROM
THE ENTIRE EAST END OF SAID DESCRIBED PIECE OF LAND. THE SAME BEING A PART OF THE COUNTY ROAD, HAVING BEEN HERETOFORE DEDICATED
TO THE PUBLIC AS A HIGHWAY.”

 

EXCEPTING FROM THE ABOVE DESCRIBED PARCEL
OF LAND ANY RIGHTS, TITLE AND/OR INTEREST IN AND TO THAT PORTION OF THAT CERTAIN 18.31 ACRE PARCEL OF LAND AS DESCRIBED IN DEED
DATED MARCH 14, 1896 FROM J. M. FOWLER TO SAID RAILWAY COMPANY RECORDED MARCH 20, 1896 IN VOLUME 33 OF DEEDS AT PAGE 600 OF THE
RECORDS OF SAID MERCED COUNTY, LYING ADJACENT TO THE ABOVE DESCRIBED PARCEL OF LAND.

 

PARCEL 2 (Assessor’s Parcel No. 061-033-006):

 

PARCEL 2A

 

ALL OF THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 25,
T.7 S., R.14 E., M.D.B.&M., COUNTY OF MERCED. STATE OF CALIFORNIA, AS DESCRIBED AS FOLLOWS:,

 

COMMENCING AT A POINT 130
FEET SOUTH OF THE EAST QUARTER CORNER OF SAID SECTION 25, THENCE SOUTH 88° 29’ 30” WEST, 430.00 FEET TO THE
POINT OF BEGINNING; THENCE SOUTH 89° 29’ 30” WEST, 645.08 FEET TO A POINT ON THE NORTHERLY LINE OF PARCEL 1
AS SHOWN ON THAT PARCEL MAP FOR PETER & ROSEMARY BARALDI FILED SEPTEMBER 19, 1975 IN VOLUME 27 OF PARCEL MAPS AT PAGE 48,
MERCED COUNTY RECORDS; THENCE ALONG SAID NORTH LINE SOUTH 0°
31’ 00” WEST, 100 FEET; THENCE CONTINUING ALONG SAID NORTH LINE, NORTH 88° 29’ 30” EAST, 654.07
FEET; THENCE LEAVING SAID NORTH LINE, NORTH 0° 31’ 24” EAST, 100 FEET TO THE POINT OF BEGINNING.

 

    	 	D-9	 

     

    

 

PARCEL 2B

 

PARCEL 1 AS SHOWN ON THAT PARCEL MAP FOR
PETER & ROSEMRY BARALDI FILED SEPTEMBER 19, 1975 IN VOLUME 27 PF PARCEL MAPS AT PAGE 48, MERCED COUNTY RECORDS, SITUATED IN
SECTION 25, T.7 S, R.14 E., M.D.B.&M., COUNTY OF MERCED, STATE OF CALIFORNIA

 

TOGETHER WITH THE FOLLOWING DESCRIBED PORTION
OF PARCEL B AS SHOWN ON THAT PARCEL MAP FOR PETER A. BARALDI, JR., ET AL FILED OCTOBER 18, 1978 IN VOLUME 38 OF PARCEL MAPS AT
PAGE 10, MERCED COUNTY RECORDS, SITUATED IN SECTION 25, 7.7 S., R.14 E., M.D.B.&M., COUNTY OF MERCED, STATE OF CALIFORNIA.

 

BEGINNING AT THENORTHWEST
CORNER OF SAID PARCEL B; THENCE ALONG THE NORTH LINE OF SAID PARCEL B, NORTH 88° 29’ 30” EAST, 1281.88 FEET TO THE NORTHEAST
CORBER OF SAID PARCEL B, THENCE ALONG THE EAST LINE OF SAID PARCEL B, SOUTH 0°
31’ 24” WEST, 102.00 FEET; THENCE LEAVING SAID EAST LINE, SOUTH 88°29’ 32” WEST, 1282.12 FEET
TO A POINT ON THE WEST LINE OF SAID PARCEL B; THENCE ALONG SAID WEST LINE, NORTH 0° 39’ 34” EAST, 102.00 FEET TO
THE POINT OF BEGINNING.

 

PARCEL 2A AND PARCEL 2B TOGETHER CONTAINING
6.53 ACRES MORE OR LESS.

 

PARCEL 3 (Assessor’s Parcel No.
061-033-007):

 

PARCEL C AS SHOWN ON THAT PARCEL MAP FOR
PETER A. BARALDI, JR. ET AL FILED OCTOBER 18, 1978 IN VOLUME 38 OF PARCEL MAPS AT PAGE 10, MERCED COUNTY RECORDS, SITUATED IN
SECTION 25, T.7 S., R.14 E., M.D.B.&M., COUNTY OF MERCED, STATE
OF CALIFORNIA.

 

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED
PORTION OF SAID PARCEL B.:

 

BEGINNING AT THE
NORTHWEST CORNER OF SAID PARCEL B; THENCE ALONG THE NORTH LINE OF SAID PARCEL B, NORTH 88° 79’ 30” EAST, 1281.88
FEET TO THE NORTHEAST CORNER OF SAID PARCEL B; THENE ALONG THE EAST LINE OF SAID PARCEL B, SOUTH 0° 31’ 24” WEST
102.00 FEET; THENCE LEAVING SAID EAST LINE, SOUTH 88° 29’ 32” WEST, 1282.12 FEET TO A POINT ON THE WEST LINE OF SAID
PARCEL B; THENCE ALONG SAID WEST LINE NORTH 0° 39’ 34” EAST, 102.00 FEET TO THE POINT OF BEGINNING.

 

    	 	D-10	 

     

    

 

ALSO EXCEPTING THEREFROM THE
PROPERTY AMD PROPERTY RIGHTS EXCEPTED IN DEED RECORDED MAY 17, 1955 IN VOL. 1207, OFFICIAL RECORDS, PAGE 415, MERCED COUNTY RECORDS.

 

PARCEL 3 CONTAINS 20.8 ACRES MORE
OR LESS.

 

Merced County Assessor’s Parcel Numbers 061-033-005, 061-033-006,
and 061-033-007, (the “Property”), together with the rents, issues, and profits of the Property, subject, however, to
the right, power, and authority given to and conferred on Beneficiary to collect and apply those rents, issues, and profits.

 

FOR THE PURPOSE OF SECURING:

 

(1)       Performance
of each agreement of Trustor incorporated by reference or contained in this Deed of Trust;

 

(2)      Payment of those notes indebtedness evidenced by two
promissory notes, and any extension or renewal of those two promissory notes, in the principal sum of $1,000,000.00 respectively,
executed by Trustor on__________, ___,2018, in favor of Beneficiary or order; and

 

(3)       Payment of any
further sums that the then record owner of the Property hereafter may borrow from Beneficiary, when evidenced by another note or
notes reciting it is so secured.

 

TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:

 

(4)       By the execution
and delivery of this Deed of Trust and the notes secured by this Deed of Trust, that provisions 1 to 14, inclusive, of the fictitious
Deed of Trust recorded on recorded in Santa Barbara County and Sonoma County October 18, 1961, and in all other counties October
23, 1961, in Book 1547 at Page 538, of the Official Records of Merced County, California, hereby are adopted and incorporated by
reference;

 

(5)       That they acknowledges
receipt of a full copy of the provisions numbered 1 to 14, inclusive, referred to above, and understands them;

 

(6)       That
they will observe and perform those provisions; and

 

(7)       That the references
to property, obligations, and parties in those provisions shall be construed to refer to the Property, obligations, and parties
set forth in this Deed of Trust.

 

    	 	D-11	 

     

    

  

The undersigned Trustor requests that a
copy of any Notice of Default and of any Notice of Sale under this Deed of Trust be mailed to them at the address of the Trustor
set forth above.

 

NOTICE:

 

A
copy of any Notice of Default and of any Notice of Sale will be sent only to the address contained in this recorded request. If
your address changes, a new request must be recorded.

  

	TRUSTOR	 
	 	 
	RYAN LAW GROUP, PLLC.

A Florida Professional Limited Liability Company

	 
	 	 	 
	By:	 	 
	Print Name:	James D. Ryan	 
	Title:   	Authorized Member	 

 

    	 	D-12	 

     

    

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

	STATE OF CALIFORNIA	)	 
	 	)ss.	 
	COUNTY OF MERCED	)	 

 

On ________________, 2018 before me, ________________, a Notary Public, personally appeared __________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

	WITNESS my hand and official seal. 	 
	 	 
	 	 
	Notary Public in and for said State	 

  

    	 	D-13Exhibit 10.3

 

SECURITIES EXCHANGE AGREEMENT

 

This Securities Exchange
Agreement (this “Agreement”) is dated as of September 10, 2018, by and among VEGALAB, INC., a Nevada corporation
(the “Company”), and WALLACE REAL ESTATE, LLC, a California Limited Liability Company, OTTIE J. WALLACE, TRUSTEE
OF THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK PROPERTIES LLC, a California
Limited Liability Company (individually, a “Subscriber” and, together, the “Subscribers”).

 

IN CONSIDERATION of
the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and the Subscribers agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1         Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have
the meanings indicated in this Section 1.1:

 

“Action”
means any action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or
investigation pending or threatened in writing against or affecting any party hereto, or any of their respective properties, before
or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign),
stock market, stock exchange or trading facility.

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under
common control with a Person, as such terms are used in and construed under Rule 12b-2 adopted under the Exchange Act.

 

“Commission” means the Securities
and Exchange Commission.

 

“Common Stock” means the common
stock of the Company, $0.001 par value per share.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“GAAP” means U.S. generally accepted
accounting principles.

 

“Knowledge”
means, with respect to any statement made to the knowledge of a party, that the statement is based upon actual knowledge of
the officers or managers of a corporate or company party having responsibility for the matter or matters that are the subject of
the statement, after due inquiry, or the actual knowledge of the individual making the statement, after due inquiry.

 

“Lien”
means any lien, charge, encumbrance, security interest, right of first refusal, preemptive right or other restrictions of any
kind.

 

     

     

    

 

“Material Adverse
Effect” means any of (i) a material and adverse effect on the legality, validity or enforceability of any Transaction
Document, (ii) a material and adverse effect on the results of operations, assets, prospects, business or condition (financial
or otherwise) of the Person to which the term applies, or (iii) an adverse impairment to a Person’s ability to perform on
a timely basis its obligations.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“PSA”
means that certain Purchase and Sale Agreement entered into by and between WALLACE REAL ESTATE, LLC, a California Limited Liability
Company, OTTIE J. WALLACE, TRUSTEE OF THE WALLACE BYPASS TRUST UNDER THE OTTIE JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK
PROPERTIES LLC, a California Limited Liability Company (together, the “Seller”), and RYAN LAW GROUP, PLLC., a Florida
Professional Limited Liability Company, or its Assigns, dated June 1, 2018, and concerning that certain real property located in
Merced County, California, commonly known as the Tuttle Cross Dock (“the Tuttle Property”), which PSA was assigned
to the Company effective September 7, 2018.

 

“SEC Disclosure Documents” has the
meaning set forth in Section 3.1(f).

 

“Securities Act” means the Securities
Act of 1933, as amended.

 

“Shares” means the 157,729 shares
of Common Stock being exchanged pursuant to Section 2.1.

 

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

 

ARTICLE II.

EXCHANGE

 

2.1         Consideration
for Shares. Subscribers hereby accept the Shares in consideration of and in exchange for $500,000 of purchase price for the
Tuttle Property set forth in the PSA.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to the Subscribers:

 

(a)         Organization
and Qualification. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the state of Nevada, with the requisite power and authority to own and use its properties and assets and
to carry on its business as currently conducted. The Company is not in violation of any of the provisions of its articles of incorporation,
bylaws or other organizational or charter documents.

 

    	 	2	 

     

    

 

(b)         Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery of each
of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of the Company and no further action is required by the Company in connection therewith.
Each Transaction Document has been duly executed by the Company and constitutes the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general application.

 

(c)         No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated thereby do not (i) conflict with or violate any provision of the Company’s articles
of incorporation, bylaws or other organizational or charter documents, 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, result in the creation of any Lien upon any of the properties
or assets of the Company, 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 a Company debt or otherwise)
or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or
(iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as
could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(d)         Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) the
filing with the Commission of one or more reports disclosing this Agreement and the transactions contemplated hereby, (ii) the
filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act and under applicable
state securities statutes pertaining to the purchase and sale contemplated by this Agreement, and (iii) those that have been made
or obtained prior to the date of this Agreement.

 

(e)         Issuance
of the Shares. The Shares have been duly authorized and, when issued and paid for in accordance with the Transaction Documents,
will be duly and validly issued, fully paid and non-assessable, free and clear of all Liens. The Shares are not subject to any
preemptive or similar rights to subscribe for or purchase securities.

 

    	 	3	 

     

    

 

(f)          SEC
Disclosure Documents. The Company has delivered to the Subscribers all reports filed by the Company under the Exchange Act
for the twelve months preceding the date of this Agreement (such reports, as amended, collectively, the “SEC Disclosure
Documents”). As of their respective dates, the SEC Disclosure Documents complied in all material respects with the requirements
of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of
the SEC Disclosure Documents, when filed, 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.

 

(g)         Material
Changes. Except as disclosed in the SEC Disclosure Documents, since the date of the latest audited financial statements included
within the SEC Disclosure Documents, (i) there has been no event, occurrence or development that has had or that, individually
or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice, (B) liabilities not required to be reflected in the Company’s financial statements pursuant
to GAAP or required to be disclosed in filings made with the Commission, (C) other liabilities that would not, individually or
in the aggregate, have a Material Adverse Effect, and (D) the Note, (iii) the Company has not altered its method of accounting
or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v)
the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued pursuant to
existing Company stock option plans or executive and director compensation arrangements.

 

(h)         Litigation.
There is no Action that (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction
Documents or (ii) that could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect. None of the Company or any director or officer (in his or her capacity thereof), is or
has been during the ten-year period prior to the date hereof the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Knowledge of the
Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former
director or officer of the Company (in his or her capacity as such).

 

3.2         Representations
and Warranties of the Subscribers. The Subscribers hereby represent and warrant to the Company as follows:

 

(a)         Organization
and Qualification. The Subscribers are entities duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the state of California, with the requisite power and authority to own and use their properties and assets and
to carry on their businesses as currently conducted. The Subscribers are not in violation of any of the provisions of their articles
of incorporation, bylaws or other organizational or charter documents.

 

    	 	4	 

     

    

 

(b)         Authorization;
Enforcement. The Subscribers have the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery
of each of the Transaction Documents by the Subscribers and the consummation by them of the transactions contemplated thereby have
been duly authorized by all necessary action on the part of the Subscribers and no further action is required by the Subscribers
in connection therewith. Each Transaction Document has been duly executed by the Subscribers and constitutes the valid and binding
obligation of the Subscribers enforceable against the Subscribers in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(c)         Investment
Intent. The Subscribers are acquiring the Shares as principal for their own account for investment purposes only and not with
a view to or for distributing or reselling such Shares or any part thereof, without prejudice, however, to the Subscribers’
right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state
securities laws. Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation or warranty
by the Subscribers to hold the Shares for any period of time. The Subscribers are acquiring the Shares hereunder in the ordinary
course of their businesses. The Subscribers do not have any agreement or understanding, directly or indirectly, with any Person
to distribute any of the Shares.

 

(d)         Subscribers’
Status. At the time the Subscribers were offered the Shares, they were, and at the date hereof they are, “accredited
investors” as defined in Rule 501(a) under the Securities Act. The Subscribers are not registered broker-dealers under Section
15 of the Exchange Act.

 

(e)         General
Solicitation. The Subscribers are not purchasing the Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement.

 

(f)          Access
to Information. The Subscribers acknowledge that they have reviewed the SEC Disclosure Documents and have been afforded (i)
the opportunity to ask such questions as they have deemed necessary of, and to receive answers from, representatives of the Company
concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access
to information about the Company and its financial condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company
possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with
respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of the Subscribers or their
representatives or counsel shall modify, amend or affect the Subscribers’ right to rely on the truth, accuracy and completeness
of the SEC Disclosure Documents and the Company’s representations and warranties contained in the Transaction Documents.

 

    	 	5	 

     

    

 

(g)         Independent
Investment Decision. The Subscribers have independently evaluated the merits of its decision to purchase Shares pursuant to
the Transaction Documents.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Restrictions
on Transfer. Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of the Shares, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor,
the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does
not require registration of such transferred Shares under the Securities Act. Certificates evidencing the Shares will contain the
following legend:

 

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL
BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

The Subscribers are advised that after
six months have elapsed from the date of the exchange the Shares may be sold by a Subscriber in a brokers’ transaction (as
defined in Rule 144(g)), directly to a market maker, or in a riskless principal transaction (as defined in Rule 144(f)) without
further restriction under the Securities Act subject to complying with the conditions of Rule 144 adopted under the Securities
Act, which include (a) the Subscriber is not an Affiliate of the Company and has not been an Affiliate during the three months
preceding the date of sale, (b) the Company has filed all required reports under section 13 of the Exchange Act during the 12 months
preceding the date of sale, and (c) the Company has submitted and posted on its website every Interactive Data File required to
be submitted and posted pursuant to Rule 405 of SEC Regulation S-T during the 12 months preceding such sale.

 

ARTICLE V.

MISCELLANEOUS

 

5.1         Fees
and Expenses. Each party 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 the
Transaction Documents. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Shares.

 

    	 	6	 

     

    

 

5.2         Entire
Agreement. The Transaction Documents contain the entire understanding of the parties with respect to the subject matter hereof
and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters,
which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3         Notices.
Any notice or other communication required or permitted to be delivered to any party under this Agreement shall be in writing and
shall be deemed properly delivered, given and received: (a) if delivered by hand, when delivered; (b) if sent by electronic mail,
telegram, cablegram or other electronic transmission, upon delivery; (c) if sent by registered, certified or first class mail,
the fifth day after being sent; and (c) if sent by overnight delivery via a national courier service, one business day after being
sent, in each case to the address or email address set forth beneath the name of such party below (or to such other address, email
address or facsimile telephone number as such party shall have specified in a written notice given to the other parties hereto):

 

	If to the Company:	Vegalab, Inc.
	 	Attn: Chief Executive Officer
	 	636 U.S. Highway 1, Ste. 110
	 	North Palm Beach, FL 33408
	 	E-mail: dds@vegalab.com
	 	 
	If to Subscribers:	Wallace Real Estate, LLC, Ottie J. Wallace, Trustee Of The
	 	Wallace Bypass Trust Under the Ottie Joel and Elizabeth
	 	Wallace Family Trust, and Elbulinick Properties LLC
	 	Attention: Mr. Bud Wallace
	 	9290 E. Hwy 140
	 	Planada, CA 95365
	 	E-Mail: Bud@wallacetransport.com

 

or such other address as may be designated
in writing hereafter, in the same manner, by such Person.

 

5.4         Amendments;
Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written instrument
signed by the Company and the Subscribers. 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 either party to exercise any right hereunder
in any manner impair the exercise of any such right.

 

5.5         Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. 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. This Agreement shall be construed by
its fair meaning as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

 

    	 	7	 

     

    

 

5.6         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. Neither the Company nor the Subscribers may assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other.

 

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

 

5.8         Governing
Law. 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 Nevada, without regard to the principles of
conflicts of law thereof.

 

5.9         Survival.
The representations, warranties, agreements and covenants contained herein shall survive the closing of the transactions contemplated
hereby and the delivery of the Shares.

 

5.10       Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

5.11       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Subscribers
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence
and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would
be adequate.

 

5.12       Issuance
of Shares. Subscribers request, and the Company agrees, that the Shares shall be issued to the Subscribers as follows:

 

(a)         Wallace
Real Estate, LLC (52,577 shares), and;

 

(b)         Elbulinick
Properties, LLC (105,155 shares)

 

5.13       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature page signed by party is delivered
by email or facsimile transmission, such signature page shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) the signature page with the same force and effect as if such signature page were an
original thereof.

 

SIGNATURES PAGE FOLLOWS

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Exchange Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

COMPANY:

 

VEGALAB, INC.

 

	By:	/s/ David Selakovic	 
	Name:	David Selakovic, Chief Executive Officer	 

 

SUBSCRIBERS:

 

WALLACE REAL ESTATE, LLC, a California Limited Liability
Company,

 

	By:	/s/ OTTIE J. WALLACE	 
	OTTIE J. WALLACE, Authorized Member	 

 

THE WALLACE BYPASS TRUST UNDER THE OTTIE
JOEL AND ELIZABETH WALLACE FAMILY TRUST, and ELBULINICK PROPERTIES LLC, a California Limited Liability Company

 

	By:	/s/ OTTIE J. WALLACE	 
	OTTIE J. WALLACE, TRUSTEE and

                    sole owner of ELBULINICK PROPERTIES LLC
	 

 

    	 	9

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