Document:

Exhibit 10.24

 

VAPE
HOLDINGS, INC.

 

COMMON
STOCK PURCHASE AGREEMENT

 

This
Common Stock Purchase Agreement (this “Agreement”)
is made and entered into as of December 10, 2015 (the “Agreement Date”), by and between Vape Holdings,
Inc., a Delaware corporation (the “Company”), and
Odyssey Research and Trading, LLC, a Utah limited liability company (the “Purchaser”).

 

Recitals

 

Whereas,
the Company desires to issue and sell common
stock of the Company, par value $0.00001 (the “Common Stock”), on the terms and conditions set forth
herein, and has authorized such sale and issuance; and

 

Whereas,
the Purchaser desires to purchase such Common Stock on the terms and conditions set forth herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing
recitals and the mutual promises, representations, warranties, and covenants hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Agreement
To Sell And Purchase.

 

The
Purchaser hereby agrees to purchase, and the Company hereby agrees to sell and issue to the Purchaser, a number of shares (the
“Shares”) of newly issued restricted Common Stock of the Company determined pursuant to the following
formula for an aggregate purchase price of $90,000.00 (the “Purchase Price”): the total number of Shares
being purchased hereunder shall be equal to (a) the Purchase Price divided by (b) 90% multiplied by the average of the closing
prices of the Common Stock on the Company’s principal trading market for the three (3) Trading Days (as defined below) immediately
preceding the date that is six (6) months from the date hereof. In the event of any stock split, stock combination, recapitalization,
stock dividend, or similar transaction that occurs prior to the Company’s delivery of any Shares pursuant to the terms hereof,
the number of Shares shall be adjusted accordingly based on such stock split, stock combination, recapitalization, stock dividend,
or similar transaction. For purposes hereof, the term “Trading Day” means any day on which the New York
Stock Exchange is open for trading.

 

     

     

    

 

2.           Closing,
Delivery And Payment.

 

The
closing of the sale and purchase of the Shares under this Agreement (the “Closing”) will take place
simultaneously with the execution of this Agreement or at such other time as the parties may otherwise agree. At the Closing,
the Purchaser will pay the entire Purchase Price for all of the Shares by wire transfer of immediately available funds to such
account as may be designated by the Company. Notwithstanding the foregoing, the Company will not issue or otherwise put in the
Purchaser’s name any Shares until the satisfaction of each of the following conditions (the “Share Delivery
Conditions”): (a) no Shares shall be delivered prior to the date that is six (6) months from the date hereof; (b)
the Purchaser shall have delivered to the Company written notice specifying the number of Shares to be delivered (a “Share
Delivery Notice”); and (c) such delivery of Shares will not result in the Purchaser owning Common Stock in excess
of the Maximum Percentage (as defined below). Upon satisfaction of the Share Delivery Conditions, the Company will deliver the
number of Shares specified in the applicable Share Delivery Notice within three (3) days of the Purchaser’s delivery of
the applicable Share Delivery Notice. Upon execution of this Agreement, the Company will cause to be executed and delivered to
the Purchaser a fully executed secretary’s certificate substantially in the form attached hereto as Exhibit A
evidencing the Company’s approval of this Agreement.

 

3.           Representations,
Warranties and Covenants of the Company.

 

The
Company hereby represents, warrants and covenants to the Purchaser that as of the Closing and each date Shares are delivered to
the Purchaser pursuant to the terms hereof: 

 

(a)
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and
has all necessary corporate power and authority to (i) own, operate and occupy its properties and to carry on its business as
presently conducted, and (ii) enter into this Agreement and the other agreements, instruments and documents contemplated hereby,
and to consummate the transactions contemplated hereby and thereby. The Company is qualified to do business and is in good standing
in each jurisdiction in which the failure to so qualify would have a material adverse effect.

 

(b)
All necessary corporate proceedings, votes, resolutions and approvals relating to the issuance and sale of the Shares will have
been completed by the Company. Upon execution, this Agreement will constitute a valid and legally binding obligation of the Company,
enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)
The Shares purchased pursuant to this Agreement will be, upon issuance and payment by the Purchaser in accordance with this Agreement,
duly authorized, validly issued, fully paid, non-assessable, and free of all liens, claims and encumbrances.

 

(d)
There is no action, suit, investigation or proceeding pending against or, to the knowledge of the Company, threatened against
or affecting, the Company as of the date hereof which in any manner challenges or seeks to prevent, enjoin, alter or delay the
transactions contemplated by this Agreement.

 

(e)
No insolvency or bankruptcy proceedings of any nature are pending against or with respect to the Company under the laws of the
United States or any state or any foreign jurisdiction.

 

    	 	2	 

     

    

 

(f)
In order to allow for, as of the relevant date of determination, the purchase of all of the Shares to be purchased hereunder,
the Company shall take all action necessary from time to time to reserve for the benefit of the Purchaser the number of authorized
but unissued shares of Common Stock equal to the number of Shares set forth in Section 1 above (or if such number of Shares cannot
be calculated on any given date, such number shall be calculated based on 90% of the average of the closing prices of the Common
Stock on its principal trading market for the three (3) Trading Days immediately preceding any given date of measurement) (such
calculated amount is referred to as the “Share Reserve”). If at any time the Share Reserve is less than required
herein, the Company shall immediately increase the Share Reserve in an amount equal to no less than the deficiency. If the Company
does not have sufficient authorized and unissued shares of Common Stock available to increase the Share Reserve, the Company shall
call a special meeting of the stockholders as soon as practicable after such occurrence, but in no event later than thirty (30)
calendar days after such occurrence, and hold such meeting as soon as practicable thereafter, but in no event later than sixty
(60) calendar days after such occurrence, for the sole purpose of increasing the number of authorized shares of Common Stock.
The Company’s management shall recommend to the Company’s stockholders to vote in favor of increasing the number of
authorized shares of Common Stock. Management shall also vote all of its shares in favor of increasing the number of authorized
shares of Common Stock. The Company shall use its best efforts to cause such additional shares of Common Stock to be authorized
so as to comply with the requirements of this subsection.

 

4.           Representations
and Warranties of the Purchaser. 

 

The
Purchaser hereby represents and warrants to the Company that as of the Closing hereunder:

 

(a)
The Purchaser has full power and authority to enter into this Agreement. Upon execution, this Agreement will constitute a valid
and legally binding obligation of the Purchaser, enforceable in accordance with its terms except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

 

(b)
The Shares will be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and not with a view
to the resale or distribution of any part thereof, and the Purchaser has no present intention of selling, granting any participation
in or otherwise distributing the same except in compliance with applicable U.S. securities laws.

 

(c)
The Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under
the Securities Act of 1933, as amended (the “Securities Act”).

 

    	 	3	 

     

    

 

(d)
The Purchaser is an experienced investor in securities of companies in the development stage, can bear the economic risk of its
investment, including a total loss, and has such knowledge and experience in financial or business matters that it is capable
of evaluating the merits and risks of the investment in the Shares. The Purchaser has conducted its own due diligence review of
the Company and received copies or originals of all documents it has requested from the Company.

 

(e)
The Purchaser understands that the issuance of the Shares has 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 Purchaser’s representations as expressed herein. The
Purchaser understands that the Shares are characterized as “restricted securities” under applicable U.S. federal
and state securities laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless subsequently
registered for resale with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such
registration and qualification requirements is available.

 

5.           Ownership
Limitation. 

 

Notwithstanding
anything to the contrary contained in this Agreement, if at any time the Purchaser shall or would be issued shares of Common Stock
hereunder, but such issuance would cause the Purchaser (together with its affiliates) to own a number of shares exceeding 9.99%
of the number of shares of Common Stock outstanding on such date (the “Maximum Percentage”), the Company
must not issue to the Purchaser shares of the Common Stock which would exceed the Maximum Percentage. The shares of Common Stock
issuable to the Purchaser that would cause the Maximum Percentage to be exceeded are referred to herein as the “Ownership
Limitation Shares”. The Company will reserve the Ownership Limitation Shares for the exclusive benefit
of the Purchaser. From time to time, the Purchaser may notify the Company in writing of the number of the Ownership Limitation
Shares that may be issued to the Purchaser without causing the Purchaser to exceed the Maximum Percentage. Upon receipt of such
notice, the Company shall be unconditionally obligated to immediately issue such designated shares to the Purchaser, with a corresponding
reduction in the number of the Ownership Limitation Shares. For purposes of this Section, beneficial ownership of Common Stock
will be determined under Section 13(d) of the Securities Exchange Act of 1934, as amended. By written notice to the Company, the
Purchaser may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be effective until
the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable and
shall apply to all affiliates and assigns of the Purchaser.

 

6.           Miscellaneous.

 

6.1           Governing
Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah without giving
effect to the principles thereof regarding the conflict of laws. Each party consents to and expressly agrees that exclusive venue
for the resolution of any dispute arising out of or relating to this Agreement or the relationship of the parties or their affiliates
shall be in Salt Lake County, Utah. For any litigation arising in connection with this Agreement, each party hereto hereby (i)
consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court sitting in Salt Lake County,
Utah, (ii) expressly submits to the exclusive venue of any such court for the purposes hereof, and (iii) waives any claim of improper
venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection to the bringing of
any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding is improper.

 

    	 	4	 

     

    

 

6.2           Entire
Agreement; Amendments. This Agreement constitutes the full and entire understanding and agreement between the parties with
regard to the subjects hereof and thereof. Except as otherwise expressly provided herein, neither this Agreement nor any term
hereof may be amended, waived, discharged or terminated, except by a written instrument signed by the Company and the Purchaser.

 

6.3           Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to be effective upon delivery when delivered (a) personally; (b) by facsimile, provided a positive
transmission report is received and a copy is mailed no later than the next business day through a nationally recognized overnight
delivery service; (c) by overnight delivery with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such communications will be,

 

in
the case of the Purchaser:           

 

Odyssey
Research and Trading, LLC

Attention:
John Fife

303
East Wacker Drive, Suite 1040

Chicago,
Illinois 60601

jfife@chicagoventure.com

 

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

 

Hansen
Black Anderson Ashcraft PLLC

Attention:
Jon Hansen

3051
West Maple Loop Drive

Suite
325

Lehi,
Utah 84043

jhansen@hbaalaw.com

 

and
in the case of the Company:

 

Vape
Holdings, Inc.

Attn:
Kyle Tracey

21822
Lassen Street, Suite A

Chatsworth,
California 91311

 

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

 

Horwitz
+ Armstrong, LLP

Attn:
Christopher L. Tinen

26475
Rancho Parkway South

Lake
Forest, California 92630

 

or
at such other address and facsimile number as the receiving party will have furnished to the sending party in writing.

 

    	 	5	 

     

    

 

6.4           Survival.
The representations, warranties, covenants and agreements made and incorporated by reference herein will survive any investigation
made by or on behalf of the Purchaser or the Company, and will survive until the date that is two (2) years following the date
of the final Closing that occurs hereunder.

 

6.5           Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof will inure to the benefit of, and be binding
upon, the respective successors, assigns, heirs, executors and administrators of the parties hereto. The Purchaser may transfer
or assign all or any portion of its rights under this Agreement to any person or entity permitted under applicable securities
laws.

 

6.6           Interpretations.
All pronouns and any variations thereof will be deemed to refer to the masculine, feminine, neuter, singular or plural, as the
identity of the person or persons or entity or entities may require. All references to “$” or dollars herein will
be construed to refer to United States dollars. The titles of the Sections and subsections of this Agreement are for convenience
or reference only and are not to be considered in construing this Agreement. All references to “including” shall be
deemed to mean “including, without limitation.”

 

6.7           Severability.
In case any provision of this Agreement is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions will not in any way be affected or impaired thereby.

 

6.8           Attorneys’
Fees. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or collect any amounts
owed hereunder, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes
and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such
prevailing party in connection with the litigation, collection and/or dispute without reduction or apportionment based upon the
individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court’s power
to award fees and expenses for frivolous or bad faith pleading.            

 

6.9           Counterparts.
This Agreement may be executed in counterparts, each of which when so executed and delivered will constitute a complete and original
instrument but all of which together will constitute one and the same agreement, and it will not be necessary when making proof
of this Agreement or any counterpart thereof to account for any counterpart other than the counterpart of the party against whom
enforcement is sought.

 

    	 	6	 

     

    

 

6.10           No
Reliance. The Company acknowledges and agrees that neither the Purchaser nor any of its officers, directors, members, managers,
representatives or agents has made any representations or warranties to the Company or any of its officers, directors, representatives,
agents or employees except as expressly set forth in this Agreement and, in making its decision to enter into the transactions
contemplated by this Agreement, the Company is not relying on any representation, warranty, covenant or promise of the Purchaser
or its officers, directors, members, managers, agents or representatives other than as set forth in this Agreement.

 

6.11           Waiver
of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE
TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

6.12           Voluntary
Agreement. The Company has carefully read this Agreement and has asked any questions needed for the Company to understand
the terms, consequences and binding effect of this Agreement. The Company has had the opportunity to seek the advice of an attorney
of the Company’s choosing and is executing this Agreement voluntarily and without any duress or undue influence by the Purchaser
or anyone else.

 

6.13           Specific
Performance. The Company acknowledges and agrees that irreparable damage would occur to the Purchaser in the event that the
Company fails to perform any provision of this Agreement in accordance with its specific terms. It is accordingly agreed that
the Purchaser shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which the Purchaser
may be entitled hereunder, by law or at equity. For the avoidance of doubt, in the event the Purchaser seeks to obtain an injunction
against the Company or specific performance of any provision of this Agreement, such action shall not be a waiver of any right
of the Purchaser under this Agreement, at law, or in equity.

 

[signatures
on following page]

 

    	 	7	 

     

    

 

In
Witness Whereof,
the parties hereto have executed this Common
Stock Purchase Agreement as of the date set forth in the first paragraph hereof.

 

	 	COMPANY:
    
	 	 	 
	 	VAPE
    HOLDINGS, INC.
	 	 	 
	 	By:
    	/s/
    Kyle Tracey
	 	
    	Kyle
    Tracey, CEO 

  

	 	PURCHASER:
	 	 
	 	ODYSSEY
        RESEARCH AND TRADING, LLC 
	 	 	 
	 	By:
        Iliad Management, LLC, its Manager
	 	 
	 	By:
        Fife Trading, Inc., its Manager
	 	 	 
	 	By:
    	/s/
    John Fife
	 	 	John
    M. Fife, President

  

 

[Signature page to Common Stock Purchase
Agreement]

 

    	 	8	 

     

    

 

Exhibit
A

 

SECRETARY’S
CERTIFICATEExhibit 10.25

 

FORBEARANCE
AGREEMENT

 

This
Forbearance Agreement (this “Agreement”) is entered into as of December 10, 2015 by and between Typenex
Co-Investment, LLC, a Utah limited liability company (“Lender”), and Vape Holdings, Inc., a Delaware
corporation (“Borrower”). Capitalized terms used in this Agreement without definition shall have the
meanings given to them in the Note (defined below).

 

A.       Borrower
previously sold and issued to Lender that certain Unsecured Convertible Promissory Note dated December 3, 2014 in the original
principal amount of $560,000.00 (as amended by that certain Amendment to Unsecured Convertible Promissory Note dated August 26,
2015 between Lender and Borrower, the “Note”).

 

B.       The
Note was issued pursuant to a certain Securities Purchase Agreement dated December 3, 2014 between Borrower and Lender (the “Purchase
Agreement,” and together with the Note and all other documents entered into in conjunction therewith, the “Transaction
Documents”).

 

C.       Lender
has asserted that Borrower has breached certain of its obligations under the Transaction Documents (the “Breaches”),
which Breaches constitute Events of Default under the Note.

 

D.       Borrower
denies that it has breached such obligations and asserts that no Events of Default have occurred under the Note.

 

E.       No
new or additional consideration is being provided in connection with this Agreement other than the modification of terms as provided
herein.

 

F.       In
order to resolve any disputes between Borrower and Lender, Lender has agreed, subject to the terms, conditions and understandings
expressed in this Agreement, to refrain and forbear temporarily from exercising and enforcing remedies against Borrower with respect
to the Breaches as provided in this Agreement.

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

 

1.       Recitals
and Definitions. Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Agreement are
true and accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.

 

2.       Forbearance.
Subject to the terms, conditions and understandings contained in this Agreement, Lender hereby agrees to refrain and forbear from
exercising and enforcing its remedies under the Note, any of the Transaction Documents, or under applicable laws, with respect
to the Breaches until the earliest occurrence of (a) any breach of this Agreement, or (b) any Event of Default that occurs after
the date hereof (the “Forbearance”). For the avoidance of doubt, the Forbearance shall only apply to
the Breaches and any Event of Default that occurred prior to the date hereof but not to any Events of Default that may occur subsequent
to the date hereof.

 

     

     

    

 

3.       Forbearance
Effect. As a material inducement and partial consideration for Lender’s agreement to enter into this Agreement and to
grant the Forbearance, each of Borrower and Lender acknowledges and agrees that the Outstanding Balance of the Note shall be increased
by $105,000.00 (the “Forbearance Effect”) as of the date hereof. In furtherance thereof, it is the intent of
the parties hereto that the Forbearance Effect will tack back to the Purchase Price Date for purposes of determining the holding
period under Rule 144 and the parties hereto further agree to not take a position that is contrary to such intent in any setting,
document, or circumstance.

 

4.       Ratification
of the Note. The Note shall be and remains in full force and effect in accordance with its terms, and is hereby ratified and
confirmed in all respects. Borrower acknowledges that it is unconditionally obligated to pay the remaining balance of the Note
and represents that such obligation is not subject to any defenses, rights of offset or counterclaims. Subject to the terms of
Section 5 below, after giving effect to the terms of the Forbearance described herein and the application of the Forbearance Effect,
the Outstanding Balance shall be deemed and affirmed to be equal to $314,934.08 and interest shall accrue on such amount at the
rate of 10% per annum, as set forth in Section 2 of the Note, as of the date hereof. No forbearance or waiver other than as expressly
set forth herein may be implied by this Agreement. Except as expressly set forth herein, the execution, delivery, and performance
of this Agreement shall not operate as a waiver of, or as an amendment to, any right, power or remedy of Lender under the Note
or the Transaction Documents, as in effect prior to the date hereof.

 

5.       Failure
to Comply. Borrower understands that the Forbearance shall terminate immediately upon the occurrence of any material breach
of this Agreement or upon the occurrence of any Event of Default after the date hereof and that in any such case, Lender may seek
all recourse available to it under the terms of the Note, this Agreement, any other Transaction Document, or applicable law, including
without limitation applying any remedies it has under the Note with respect to any Events of Default that occurred prior to the
date hereof (with the application of such remedies being effective as of the date the applicable Event of Default occurred).

 

6.       Increase
of Share Reserve. Borrower and Lender agree that in conjunction with the Forbearance granted herein, within three (3) Trading
Days of the date of this Agreement, the Share Reserve shall be increased to 210,000,000 shares of Common Stock (as defined in
the Purchase Agreement). In furtherance of the foregoing, Borrower shall take all such actions as are necessary to increase the
Share Reserve as set forth herein, including without limitation executing and delivering to its transfer agent such documents
and instructions as are necessary to cause its transfer agent to increase the Share Reserve to 210,000,000 shares of Common Stock.

 

7.       Representations,
Warranties and Agreements. In order to induce Lender to enter into this Agreement, Borrower, for itself, and for its affiliates,
successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:

 

(a)       Borrower
has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained herein,
all of which have been duly authorized by all proper and necessary action. No consent, approval, filing or registration with or
notice to any governmental authority is required as a condition to the validity of this Agreement or the performance of any of
the obligations of Borrower hereunder.

 

    	 	2	 

     

    

 

(b)       Any
Event of Default which may have occurred under the Note has not been, is not hereby, and shall not be deemed to be waived by Lender,
expressly, impliedly, through course of conduct or otherwise except as set forth herein, and then only upon full satisfaction
of Borrower’s obligations under this Agreement. The agreement of Lender to refrain and forbear from exercising any rights
and remedies by reason of any existing default or any future default shall not constitute a waiver of, consent to, or condoning
of, any other existing or future default. For the avoidance of any doubt, the Forbearance described herein only applies to the
Breaches, and shall not constitute a waiver or forbearance of any other rights or remedies available to Lender with respect to
any other defaults under the Note or other breach of the Transaction Documents by Borrower.

 

(c)       All
understandings, representations, warranties and recitals contained or expressed in this Agreement are true, accurate, complete,
and correct in all respects; and no such understanding, representation, warranty, or recital fails or omits to state or otherwise
disclose any material fact or information necessary to prevent such understanding, representation, warranty, or recital from being
misleading. Borrower acknowledges and agrees that Lender has been induced in part to enter into this Agreement based upon Lender’s
justifiable reliance on the truth, accuracy, and completeness of all understandings, representations, warranties, and recitals
contained in this Agreement. There is no fact known to Borrower or which should be known to Borrower which Borrower has not disclosed
to Lender on or prior to the date hereof which would or could materially and adversely affect the understandings of Lender expressed
in this Agreement or any representation, warranty, or recital contained in this Agreement.

 

(d)       Except
as expressly set forth in this Agreement, Borrower acknowledges and agrees that neither the execution and delivery of this Agreement
nor any of the terms, provisions, covenants, or agreements contained in this Agreement shall in any manner release, impair, lessen,
modify, waive, or otherwise affect the liability and obligations of Borrower under the terms of the Note or any of the other Transaction
Documents.

 

(e)       Borrower
has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of
action of any kind or nature whatsoever against Lender, directly or indirectly, arising out of, based upon, or in any manner connected
with, the transactions contemplated hereby, whether known or unknown, which occurred, existed, was taken, permitted, or begun
prior to the execution of this Agreement and occurred, existed, was taken, permitted or begun in accordance with, pursuant to,
or by virtue of any of the terms or conditions of the Transaction Documents. To the extent any such defenses, affirmative or otherwise,
rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action exist or existed, such defenses, rights,
claims, counterclaims, actions and causes of action are hereby waived, discharged and released. Borrower hereby acknowledges and
agrees that the execution of this Agreement by Lender shall not constitute an acknowledgment of or admission by Lender of the
existence of any claims or of liability for any matter or precedent upon which any claim or liability may be asserted.

 

    	 	3	 

     

    

 

(f)       Borrower
hereby acknowledges that it has freely and voluntarily entered into this Agreement after an adequate opportunity and sufficient
period of time to review, analyze, and discuss (i) all terms and conditions of this Agreement, (ii) any and all other documents
executed and delivered in connection with the transactions contemplated by this Agreement, and (iii) all factual and legal matters
relevant to this Agreement and/or any and all such other documents, with counsel freely and independently selected by Borrower
(or had the opportunity to be represented by counsel). Borrower further acknowledges and agrees that it has actively and with
full understanding participated in the negotiation of this Agreement and all other documents executed and delivered in connection
with this Agreement after consultation and review with its counsel (or had the opportunity to be represented by counsel), that
all of the terms and conditions of this Agreement and the other documents executed and delivered in connection with this Agreement
have been negotiated at arm’s-length, and that this Agreement and all such other documents have been negotiated, prepared,
and executed without fraud, duress, undue influence, or coercion of any kind or nature whatsoever having been exerted by or imposed
upon any party by any other party. No provision of this Agreement or such other documents shall be construed against or interpreted
to the disadvantage of any party by any court or other governmental or judicial authority by reason of such party having or being
deemed to have structured, dictated, or drafted such provision.

 

(g)       There
are no proceedings or investigations pending or threatened before any court or arbitrator or before or by, any governmental, administrative,
or judicial authority or agency, or arbitrator, against Borrower.

 

(h)       There
is no statute, regulation, rule, order or judgment and no provision of any mortgage, indenture, contract or other agreement binding
on Borrower, which would prohibit or cause a default under or in any way prevent the execution, delivery, performance, compliance
or observance of any of the terms and conditions of this Agreement and/or any of the other documents executed and delivered in
connection with this Agreement.

 

(i)       Borrower
is solvent as of the date of this Agreement, and none of the terms or provisions of this Agreement shall have the effect of rendering
Borrower insolvent. The terms and provisions of this Agreement and all other instruments and agreements entered into in connection
herewith are being given for full and fair consideration and exchange of value.

 

(j)       To
the best of its belief, after diligent inquiry, Borrower represents and warrants that, as of the date hereof, no Event of Default
under the Note (nor any material breach by Borrower under any of the other Transaction Documents) exists.

 

(k)       Borrower
acknowledges that the application of the Forbearance Effect is separate from and in addition to its right to apply the Default
Effect described in Section 4.2 of the Note and that, for the avoidance of doubt, shall not reduce the number of times the Default
Effect may be applied pursuant to the terms of the Note. Specifically, the Default Effect may still be applied to three (3) Major
Defaults and three (3) Minor Defaults.

 

8.       Headings.
The headings contained in this Agreement are for reference purposes only and do not affect in any way the meaning or interpretation
of this Agreement.

 

    	 	4	 

     

    

 

9.       Arbitration.
Each party agrees that any dispute arising out of or relating to this Agreement shall be subject to the Arbitration Provisions
(as defined in the Purchase Agreement).

 

10.       Governing
Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah without regard
to the principles of conflict of laws. Each party agrees that the proper venue for any dispute arising out of or relating to this
Agreement shall be determined in accordance with the provisions of Section 8.3 of the Purchase Agreement. BORROWER HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

11.       Counterparts.
This Agreement may be executed in any number of counterparts with the same effect as if all signing parties had signed the same
document. All counterparts shall be construed together and constitute the same instrument. The exchange of copies of this Agreement
and of signature pages by facsimile transmission or other electronic transmission (including email) shall constitute effective
execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes.
Signatures of the parties transmitted by facsimile transmission or other electronic transmission (including email) shall be deemed
to be their original signatures for all purposes.

 

12.       Attorneys’
Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the terms of this Agreement, the
parties agree that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard
to any statutory fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes
and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses  paid
by such prevailing party in connection with the arbitration, litigation and/or dispute without reduction or apportionment based
upon the individual claims or defenses giving rise to the fees and expenses.  Nothing herein shall restrict or impair
an arbitrator’s or a court’s power to award fees and expenses for frivolous or bad faith pleading.

 

13.       Severability.
If any part of this Agreement is construed to be in violation of any law, such part shall be modified to achieve the objective
of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full force and effect.

 

14.       Entire
Agreement. This Agreement, together with the Transaction Documents, and all other documents referred to herein, supersedes
all other prior oral or written agreements between Borrower, Lender, its affiliates and persons acting on its behalf with respect
to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
Lender nor Borrower makes any representation, warranty, covenant or undertaking with respect to such matters.

 

    	 	5	 

     

    

 

15.       No
Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity
holders, representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives,
officers, directors, or employees except as expressly set forth in this Agreement and the Transaction Documents and, in making
its decision to enter into the transactions contemplated by this Agreement and the Transaction Documents, Borrower is not relying
on any representation, warranty, covenant or promise of Lender or its officers, directors, members, managers, equity holders,
agents or representatives other than as set forth in this Agreement and in the Transaction Documents.

 

16.       Amendments.
This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No provision of this Agreement
may be waived except in writing signed by the party against whom such waiver is sought to be enforced.

 

17.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Lender
hereunder may be assigned by Lender to a third party, including its financing sources, in whole or in part. Borrower may not assign
this Agreement or any of its obligations herein without the prior written consent of Lender.

 

18.       Continuing
Enforceability; Conflict Between Documents. Except as otherwise modified by this Agreement, each of the Note and all of the
other Transaction Documents shall remain in full force and effect, enforceable in accordance with all of its original terms and
provisions. This Agreement shall not be effective or binding unless and until it is fully executed and delivered by Lender and
Borrower. If there is any conflict between the terms of this Agreement, on the one hand, and the Note or any other Transaction
Document, on the other hand, the terms of this Agreement shall prevail.

 

19.       Time
is of Essence. Time is of the essence with respect to each and every provision of this Agreement.

 

20.       Notices.
Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted under this Agreement
to be given to Borrower or Lender shall be given as set forth in the “Notices” section of the Purchase Agreement.

 

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

 

[Remainder
of page intentionally left blank]

 

    	 	6	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

 

	 	COMPANY:
    
	 	 	 
	 	VAPE
    HOLDINGS, INC.
	 	 	 
	 	By:
    	/s/
    Kyle Tracey
	 	Name:	Kyle
    Tracey
	 	Title:
    	CEO
     

  

	 	LENDER:
	 	 
	 	TYPENEX
    CO-INVESTMENT, LLC 
	 	 	 
	 	By:
    Red Cliffs Investments, Inc., its Manager
	 	 	 
	 	By:
    	/s/
    John Fife
	 	 	John
    M. Fife, President

 

 

[Signature Page to Forbearance Agreement]

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