Document:

DEBT
RESTRUCTURING AGREEMENT

 

I

PARTIES

 

THIS
DEBT RESTRUCTURING AGREEMENT (the “Agreement”) is entered into as of the 30th day of September,
2018 (the “Effective Date”), by and between LANDSTAR, INC., a Nevada corporation (“LDSR”);
and, BLUE CITI LLC, a New York limited liability company (“Blue Citi”). LDSR and Blue Citi are
sometimes referred to collectively herein as the “Parties”, and each individually as a “Party”.

 

II

RECITALS

 

A.
LDSR has previously issued in favor of Blue Citi a series of convertible promissory notes in the original total principal
amount of Eight Hundred Ten Thousand Dollars ($810,000), which notes are collectively referred to herein as the “Convertible
Notes”.

 

B.
LDSR and Blue Citi have also previously entered into that certain Equity Purchase Agreement dated 5 February 2018 (the “Purchase
Agreement”) providing for an “Equity Line”. In connection with the Equity Line, the Parties also
entered into a Registration Rights Agreement (the “Registration Agreement”).

 

C.
As part of the Equity Line, LDSR also issued to Blue Citi its convertible note dated 6 February 2018 in the original principal
amount of $25,000 (the “Expense Note”).

 

D.
Blue Citi believes that there currently exists a number of Events of Default under the Convertible Note, with all such alleged
Events of Default referred to herein as the “Defaults”.

 

E.
The Parties wish to cancel the Equity Line and restructure the debt represented by the Convertible Notes and the Expense Note.

 

F.
Blue Citi is willing to waive its rights to remedy the Defaults provided that LDSR complies with the terms of this Agreement.

 

G.
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

III

CANCELLATION
OF THE EQUITY LINE

 

3.1
Cancellation. The Parties hereby agree that as of and on the Effective Date, the Parties have hereby cancelled the
Equity Line. The Purchase Agreement and the Registration Agreement are each cancelled in their respective entirety and shall be
of no further force and effect, and the Equity Line shall be completely null and void.

 

3.2
Commitment Shares. The obligation to issue the Commitment Shares to Blue Citi, as defined and provided for in Section
4.1.2. of the Purchase Agreement, is hereby null and void in all respects. The Commitment Shares will not be issued, and Blue
Citi shall have no further right to receive the Commitment Shares.

 

3.3
Expense Note. Notwithstanding any other provision herein to the contrary, the Expense Note shall become part of
the Consolidated Note, as provided for in Section 4.2, below. Once included as part of the Consolidated Note, the Expense Note
shall be of no further force and effect, other than to represent the original issuance date of the Expense Note, which the Parties
agree is 06 February 2018.

 

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IV

CONSOLIDATION
OF OBLIGATIONS

 

4.1
Consolidated Debt. The Parties hereby that as of the Effective Date, the total amount owed by LDSR to Blue Citi
under the Convertible Note and the Expense Note, including all interests and all other amounts (the “Consolidated Debt”)
is Eight Hundred Twenty Nine Thousand Six Hundred Eighty Dollars ($829,680). The calculation of the Consolidated Debt is reflected
and summarized on Exhibit 4.1, attached hereto and incorporated herein by reference.

 

4.2
Consolidated Note. Concurrent with the execution of this Agreement, LDSR shall issue and deliver to Blue Citi the
Consolidated Note, in the form of Exhibit 4.2, attached hereto and incorporated herein by reference. The Consolidated Note, among
other things:

 

(a)
Represents the entire Consolidated Debt;

 

(b)
completely replaces and supersedes Expense Note and each of the Convertible Notes, each of which shall be of no further force
and effect;

 

(c)
was issued in exchange for the Expense and the Convertible Notes.

 

4.3
No Continued Effectiveness. Except as to provide the original date of investment, the Expense Note and each of the
Convertible Notes shall be null and void as of the Effective Date.

 

4.4
Amount Owed. The amount of principal owed under the Consolidated Note as of the Effective Date is hereby agreed
to be the Consolidated Debt. After the Effective Date, interest shall accrue on the Consolidated Debt. No other imposition of
any penalties, additional interest, or any other amounts shall be included in the Consolidated Debt. However, in the event of
an Event of Default under the Consolidated Note after the Effective Date, then Blue Citi shall also be entitled to all remedies
provided under the Consolidated Note.

 

4.5
Conversion Rights. All conversion rights under the Expense Note and the Convertible Notes are replaced by the Consolidated
Note. The conversion discount shall be reduced from twenty-five percent (25%) to ten percent (10%).

 

4.6
Right of First Refusal. So long as any portion of the Consolidation Note remain outstanding, LDSR covenants and
agrees that it will not, without first giving Blue Citi a right of first refusal, enter into any equity line of credit agreement
with a third party, or any other arrangement or agreement having terms and conditions substantially comparable to the Equity Line.
Agreement. For the avoidance of doubt, nothing contained in this Agreement shall restrict, or require the consent of Blue Citi
for any agreement providing for the issuance or distribution of (or the issuance or distribution of) any equity securities pursuant
to any agreement or arrangement that is not commonly understood to be an “equity line of credit”. LDSR shall deliver
all written agreements and documents for any arrangement under this Section 4.6 no later than 20-days prior to proposed closing
of said transaction. Blue Citi shall thereafter have the right to enter into the proposed transaction under the same terms and
conditions up to and until the day prior to the proposed closing date.

 

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V

AGREEMENT
TO WAIVE CLAIMS

 

Blue
Citi hereby agrees to waive all Defaults, and all known and unknown claims arising under or related to the Equity Line, the Convertible
Notes, and the Expense Note as of the Effective Date. Blue Citi will not exercise any of its rights and remedies as to any of
the Defaults as of the Effective Date. Upon the occurrence of any subsequent Event of Default under the Consolidated Note after
the Effective Date, Blue Citi shall be free to exercise all rights and remedies afforded Blue Citi under the Consolidated Note.
The execution and delivery of this Agreement shall not: (a) give rise to any obligation on the part of Blue Citi to extend, modify,
or waive any term or condition of the Consolidated Note in the future; (b) give rise to any defenses or counterclaims to the right
of Blue Citi to compel payment or conversion of all amounts due under the Consolidated Note or to otherwise enforce its rights
and remedies under the Consolidated Note; or, (c) establish a custom or course of dealing between or among LDSR and Blue Citi.

 

VI

REPRESENTATIONS
AND WARRANTIES

 

6.1
LDSR. LDSR hereby represents and warrants to Blue Citi as follows as of the Effective Date:

 

(a)
The execution, delivery, and performance of this Agreement by LDSR are within LDSR’s corporate power and have been duly
authorized by all necessary corporate action.

 

(b)
This Agreement constitutes a valid and legally binding agreement and obligation of LDSR, enforceable against LDSR in accordance
with its terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’
rights generally and to general equitable principals.

 

(c)
As of the Effective Date, the consummation by LDSR of the transactions herein contemplated, including the execution, delivery
and consummation of this Agreement, will not:

 

(i)
Violate any judgment, statute, law, code, act, order, writ, rule, ordinance, regulation, governmental consent or governmental
requirement, or determination or decree of any arbitrator, court, or other governmental agency or administrative body, which now
or at any time hereafter may be applicable to and enforceable against the relevant party, work, or activity in question or any
part thereof (collectively, “Requirement of Law”) applicable to or binding upon LDSR or any of its assets;

 

(ii)
Violate (i) the terms of the Articles of Incorporation or Bylaws of LDSR; or, (ii) any material agreement, contract, mortgage,
indenture, bond, bill, note, or other material instrument or writing binding upon LDSR or to which LDSR is subject; or

 

(iii)
Accelerate or constitute an event entitling the holder of any indebtedness of LDSR to accelerate the maturity of such indebtedness
or otherwise constitute an event of default under such indebtedness.

 

(d)
LDSR is expressly not relying on any oral representations made by Blue Citi or any of its agents.

 

6.2
Blue Citi. Blue Citi hereby represents and warrants to LDSR as follows as of the Effective Date:

 

(a)
Blue Citi is (i) an “accredited investor” as that term is defined in Rule 501 under the Securities Act of 1933; (ii)
experienced in making investments of the kind described in this Agreement and the related documents; (iii) able, by reason of
the business and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or
compensated in any way by LDSR or any of its affiliates or selling agents), to protect its own interests in connection with the
transactions described in this Agreement, and the related documents, and to evaluate the merits and risks of an investment in
LDSR.

 

(b)
The execution, delivery, and performance of this Agreement by Blue Citi are within Blue Citi’s powers and have been duly
authorized by all necessary action.

 

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(c)
This Agreement constitutes a valid and legally binding agreement and obligation of Blue Citi, enforceable against Blue Citi in
accordance with its terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’
rights generally and to general equitable principals.

 

(d)
As of the Effective Date, the consummation by Blue Citi of the transactions herein contemplated, including the execution, delivery
and consummation of this Agreement, will not:

 

(i)
Violate any Requirement of Law applicable to or binding upon Blue Citi; or

 

(ii)
Violate (i) the terms of the Articles of Organization or Operating Agreement of Blue Citi; or, (ii) any material agreement, contract,
mortgage, indenture, bond, bill, note, or other material instrument or writing binding upon Blue Citi or to which Blue Citi is
subject.

 

(e)
Blue Citi is expressly not relying on any oral representations made by LDSR or any of its agents.

 

VII

ADDITIONAL
PROVISIONS

 

7.1
Executed Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together
shall be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart. If any
signature is delivered by Fax or E-Mail, such signature shall create a valid and binding obligation of that Party (or on whose
behalf such signature is executed), with the same force and effect as an original. Any photographic, photocopy, or similar reproduction
copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be considered for all purposes
as if it were an executed counterpart of this Agreement.

 

7.2
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the
entire agreement and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, except as expressly set forth
or referred to herein. This Agreement supersedes any and all (i) prior written or oral agreements, understandings, and negotiations
between the Parties with respect to the subject matter herein; and, (ii) course of performance and/or usage of the trade inconsistent
with any of the terms hereof.

 

7.3
Severability. Each and every provision of this Agreement is severable and independent of any other term or provision
of this Agreement. If any term or provision hereof is held void or invalid for any reason by a court of competent jurisdiction,
such invalidity shall not affect the remainder of this Agreement.

 

7.4
Governing Law. This Agreement shall be governed by the laws of the State of New York, without giving effect to any
choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York. If any court action is necessary to enforce the
terms and conditions of this Agreement, the Parties hereby agree that the Supreme Court of New York, New York County, shall be
the sole jurisdiction and venue for the bringing of such action. This choice of venue provision shall also apply to the Consolidated
Note, superseding any and all contrary provisions in the Consolidated Note. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTER CLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT,
OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH OR THE ADMINISTRATION THEREOF OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREIN.

 

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7.5
Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed that
the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in
equity. The remedies of the Parties under this Agreement are cumulative and shall not exclude any other remedies to which any
person may be lawfully entitled.

 

7.6
Waiver. No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition
of this Agreement or to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other
covenant, duty, agreement, or condition.

 

7.7
Recovery of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret
the provisions of this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees and other costs and
expenses, including expert witness fees, of the prevailing Party in such amount as the court shall determine, as well as same
incurred by the prevailing Party in enforcing, or on appeal from, a judgment in favor of the prevailing Party. The preceding sentence
is intended by the Parties to be severable from the other provisions of this Agreement and to survive and not be merged into such
judgment.

 

7.8
Recitals. The facts recited in Article II, above, are hereby conclusively presumed to be true as between and affecting
the Parties.

 

7.9
Amendment. This Agreement may be amended or modified only by a writing signed by all Parties.

 

7.10
Successors and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions,
conditions, and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties. This Agreement is assignable by Blue Citi to the same extent as provided for under the Note.

 

7.11
Provision Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between
the Parties; is the product of the work and efforts of all Parties; and, shall be deemed to have been drafted by all Parties.
Each Party has had the opportunity to be represented by independent legal counsel of its choice. In the event of a dispute, no
Party may claim that any provision should be construed against any other Party by reason of the fact that it was drafted by one
particular Party.

 

7.12
Agreement Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section,
Subsection, Exhibit, or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits
and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

7.13
Further Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information;
(ii) to execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another
Party may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall
be required to incur any material expense or potential exposure to legal liability pursuant to this Section 7.13.

 

7.14
Notices. 

 

7.14.1.
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be
deemed given (a) if by hand delivery, upon such delivery; (b) if by Electronic Transmission, twenty-four (24) hours after transmission;
(c) if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified mail, postage
prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

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7.14.2.
Consent to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for
communications and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a
communication (i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient
on record with the sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that
may thereafter be rendered into clearly legible tangible form.

 

7.14.3.
Address Changes. Any Party may alter the Fax number, E-Mail address, physical address, or postage address to which
communications or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the
provisions of this Section 7.14.

 

7.15
Best Efforts. Each Party shall cooperate in good faith with the other Parties generally, and in particular, the
Parties shall use and exercise their best efforts, taking all reasonable, ordinary and necessary measures to ensure an orderly
and smooth relationship under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences
or problems which may arise in the future. However, the obligations under this Section 7.15 shall not include any obligation
to incur substantial expense or liability.

 

7.16
Definitional Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended. 

 

VII

EXECUTION

 

IN
WITNESS WHEREOF, this DEBT RESTRUCTURING AGREEMENT has been duly executed by the Parties and shall be effective as of Effective
Date. Each of the Parties hereby represents and warrants that it (i) has the requisite power and authority to enter into and carry
out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder; and, (ii) it is duly authorized
and empowered to execute and deliver this Agreement. 

 

	BLUE
    CITI:	 	LDSR:
	 	 	 
	BLUE
    CITI LLC,	 	LANDSTAR,
    INC.,
	a
    New York limited liability company	 	a
    Nevada corporation
	 	 	 	 	 
	BY:
    	   	 	BY:
    	     
	NAME:	 	 	NAME:
    	 
	TITLE:
    	 	 	TITLE:
    	 
	DATED:
    	 	 	DATED:	 

 

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EXHIBIT
4.1

CONSOLIDATED
DEBT

 

    	7

     

    

 

EXHIBIT
4.2

CONSOLIDATED
NOTE

 

    	8COMMON
STOCK PURCHASE AGREEMENT

 

THIS
COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of December __, 2018, among LANDSTAR, INC.,
a Nevada corporation (the “Company”), and each purchaser identified on the Purchaser Signature Pages attached
hereto (each, including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement, and pursuant to Section 4(2) of the Securities Act (as defined
below) and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally
and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW,
THEREFORE, 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 each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

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

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“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 405 under the Securities Act.

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchaser’s obligation to pay the Subscription Amount has been
satisfied or waived; and, (ii) the Company’s obligations to deliver the Securities have been satisfied or waived.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, $0.01 par value, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

 

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“Company
Counsel” means Spectrum Law Group, APC, with offices located at 23 Corporate Plaza, Suite 150, Newport Beach, California,
92660.

 

“Company
Party” shall have the meaning ascribed to such term in Section 4.4.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Per
Share Purchase Price” equals the amount reflected on the Purchaser Signature Page attached hereto, subject to adjustment
for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that
occur after the date of this Agreement.

 

“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 informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Public
Filings” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.3.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Registrable
Securities” means the Shares, including all Common Stock of the Company issued or issuable upon any stock split, stock
dividend, recapitalization, or similar event. The terms “register,” “registered” and “registration”
refers to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and
the declaration or ordering of the effectiveness of such registration statement.

 

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“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities”
means the Shares and the Warrants.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares”
means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below
such Purchaser’s name on the Purchaser Signature Page of this Agreement and next to the heading “Subscription Amount”,
in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means the public market or exchange on which the Common Stock is listed or quoted for trading on the date in
question.

 

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

 

“Transfer
Agent” means Madison Stock Transfer Corporation, the current transfer agent of the Company, with a mailing address of
2500 Coney Island Ave, Lower Level, Brooklyn, New York, 11223, and any successor transfer agent of the Company.

 

1.2
Other Definitional Provisions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended.

 

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ARTICLE
II.

PURCHASE AND SALE

 

2.1
Closing. On the Closing Date, the Company shall sell, and the Purchasers, severally and not jointly, shall purchase,
up to an aggregate of Five Hundred Thousand Dollars ($500,000) of Shares. Each Purchaser shall deliver to the Company, via wire
transfer of immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the Purchaser Signature
Page attached hereto executed by such Purchaser. Upon receipt of the wire transfer for such Purchaser’s Subscription Amount,
the Company shall instruct the Transfer Agent to deliver without delay to each Purchaser its respective Shares as determined pursuant
to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the
Closing, as appropriate. The Closing shall occur at the offices of the Company or such other location as the parties shall mutually
agree.

 

2.2
Deliverables.

 

(a)
On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

	 	(i)	this
    Agreement duly executed by the Company; and
	 	 	 
	 	(ii)	the
    Warrant, as further described in Section 2.3, below.

 

(b)
As soon as practicable after the Closing Date, though in no event more than five (5) Business Days, the Company or the Transfer
Agent shall deliver the respective Purchaser a stock certificate for an amount of Shares equal to such Purchaser’s Subscription
Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser as set forth on the Purchaser Signature
Page attached hereto.

 

(c)
On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

	 	(i)	this
    Agreement duly executed by such Purchaser; and
	 	 	 
	 	(ii)	such
    Purchaser’s Subscription Amount by wire transfer.

 

2.3
Warrants. At the Closing each Purchaser shall also receive a Warrant, in the form of Exhibit 2.3, attached hereto
(the “Warrants”). Each respective Purchaser shall receive a Warrant to acquire that number of shares of Common
Stock as set forth on the Purchaser Signature Page attached hereto executed by such respective Purchaser.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES

 

3.1
Representations and Warranties of the Company. Except as set forth in the Disclosure Schedules and in the Public
Filings, which Disclosure Schedules and Public Filings shall be deemed a part hereof and shall qualify any representation or otherwise
made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules or in the Public
Filings, the Company hereby makes the following representations and warranties to each Purchaser as of the date of this Agreement:

 

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(a)
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable,
and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, then references
in the Transaction Documents to the Subsidiaries shall be disregarded.

 

(b)
Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite
power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the
Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or
condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on
the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document
(any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)
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 hereunder and thereunder.
The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action
is required by the Company, the Board of Directors or the Company’s shareholders in connection therewith other than in connection
with the Required Approvals. Each Transaction Document to which it is a party has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

    	5

    	 

    

 

(d)
No Conflicts. The execution, delivery and performance by the Company of the Transaction Documents, the issuance and sale
of the Securities and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not
and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or 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 any Subsidiary, 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
or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property
or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or 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 or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e)
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 of a Form 8-K with the Commission or a similar form with OTC Markets, as appropriate, describing the material
terms of the transactions contemplated hereby, and including the Transaction Documents as exhibits thereto, (ii) the filing with
the Commission of a notice of exempt offering on Form D, and (iii) such filings as are required to be made under applicable state
securities laws, if any (collectively, the “Required Approvals”).

 

(f)
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the
Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable
pursuant to this Agreement and the Warrants.

 

(g)
Capitalization. The capitalization of the Company is as described on Schedule 3.1(g). Any Person having any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents has waived all such rights. Except as described in the Public Filings or as a result of the purchase and
sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other
securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust
the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock
of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for
or purchase securities. No further approval or authorization of any shareholder, the Board of Directors, or others is required
for the issuance and sale of the Securities. Except as disclosed in the Public Filings, there are no shareholders agreements,
voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s shareholders.

 

    	6

    	 

    

 

(h)
Public Filings; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the rules of the OTC Marketplace, and will effect such filings with the Commission under
the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, as soon as practicable in order
to be a reporting company with the Commission (the foregoing materials, including the exhibits thereto and documents incorporated
by reference therein, being collectively referred to herein as the “Public Filings”). As of their respective
dates, the Public Filings complied in all material respects with the requirements of the OTC Marketplace or Securities Act and
the Exchange Act, as applicable, and none of the Public Filings, 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 the
light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to, or identified
in, Rule 144(i) under the Securities Act. To the best knowledge of the Company, the financial statements of the Company included
in the Public Filings comply in all material respects with applicable accounting requirements and the rules and regulations of
the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(i)
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the Public Filings, (i) there has been no event, occurrence or development that has had or that 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 and
(B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made
any dividend or distribution of cash or other property to its shareholders 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 pursuant to existing Company stock option plans. The Company does not have pending before the Commission any
request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or
as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence or development has occurred or exists or
is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective business, prospects,
properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities
laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior
to the date that this representation is made.

 

    	7

    	 

    

 

(j)
Litigation. Except as otherwise disclosed in the Public Filings, there is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary
or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory
authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects
or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if
there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company
nor any Subsidiary, nor any director or officer thereof, is or has been 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. The Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(k)
Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any
of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s
or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company
or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge
of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local, and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

(l)
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree
or order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule, ordinance or
regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to
its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.

 

    	8

    	 

    

 

(m)
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the Public Filings, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit.

 

(n)
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries
and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.
Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting,
and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

(o)
Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or material for use in connection with their respective businesses as described in
the Public Filings and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual
Property Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the
Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the
knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to
protect the secrecy, confidentiality, and value of all of their intellectual properties, except where failure to do so could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription
Amount. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

(q)
Transactions With Affiliates and Employees. Except as set forth in the Public Filings, none of the officers or directors
of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction
with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or
partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii)
reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

    	9

    	 

    

 

(r)
Sarbanes-Oxley; Internal Accounting Controls. The Company is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002 which are applicable to it as of the Closing Date. The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s
general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The Company has established disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.
The Company’s certifying officers have evaluated the effectiveness of the Company’s disclosure controls and procedures
as of the end of the period covered by the Company’s most recently filed periodic report under the Exchange Act (such date,
the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the Company’s internal control
over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial reporting.

 

(s)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

(t)
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities,
will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become an “investment company”
subject to registration under the Investment Company Act of 1940, as amended.

 

(u)
Listing and Maintenance Requirements. The Company is taking all necessary action to register its Common Stock pursuant
to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely
to have the effect of, negating such registration of the Common Stock, nor has the Company received any notification that the
Commission is contemplating rejecting such registration.

 

    	10

    	 

    

 

(v)
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result
of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including
without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(w)
Disclosure. All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its
business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and
does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the
Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of
a material fact or omit 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 and when made, not misleading. The Company acknowledges and agrees that
no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than
those specifically set forth in Section 3.2 hereof.

 

(x)
No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section
3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly,
made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated. The issuance and sale
of the Securities hereunder does not contravene the rules and regulations of any Trading Market.

 

(y)
Solvency. Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the
receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s
assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small
capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date.

 

    	11

    	 

    

 

(z)
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise
tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any Subsidiary.

 

(aa)
Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on
behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other
unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose
fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is
in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(bb)
Accountants. The Company’s accounting firm and independent registered public accounting firm is set forth on Schedule
3.1(bb) of the Disclosure Schedules. To the knowledge and belief of the Company, such independent registered public accounting
firm (i) is a registered public accounting firm as required by the Exchange Act; and (ii) shall express its opinion with respect
to the financial statements to be included in the Company’s Form 10 it will file with the Commission as soon as practicable.

 

(cc)
Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the
Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby
and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.
The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other
Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

 

3.2
Representations and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby
represents and warrants as of the execution of this Agreement on date hereof to the Company as follows (unless as of a specific
date therein):

 

(a)
Organization; Authority. Such Purchaser is either an individual or an entity duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority
to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated
by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action,
as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such
Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

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(b)
Own Account. Such Purchaser is acquiring the Securities as principal for its own account and not with a view to or for
distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation
and warranty not limiting such Purchaser’s right to sell the Securities in compliance with applicable federal and state
securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, either:
(i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(5), (a)(6), (a)(7) or (a)(8) under
the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.
Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

(d)
Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication,
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales of the securities of the Company during the period commencing as of the time that such Purchaser first
received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material
terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other than to other Persons
party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction).

 

(f)
Restricted Securities. Such Purchaser understands that the Securities it is purchasing are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations such securities may be resold without registration
under the Act only in certain limited circumstances. In this connection, such Purchaser represents that it is familiar with Rule
144, as presently in effect, and understands the resale limitations imposed thereby and by the Act. Such Purchaser understands
that such Securities have not been and will not be registered under the Act and have not been and will not be registered or qualified
in any state in which they are offered, and thus the Purchaser will not be able to resell or otherwise transfer such Securities
unless they are registered under the Act and registered or qualified under applicable state securities laws, or an exemption from
such registration or qualification is available. Such Purchaser has no immediate need for liquidity in connection with this investment,
and does not anticipate that the Purchaser will be required to sell such Securities in the foreseeable future.

 

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

 

(h)
Residency. The Purchaser is domiciled in the jurisdiction set forth immediately below the Purchaser’s name on the
Purchaser Signature Page attached hereto.

 

(i)
Legends. It is understood that the certificates evidencing the Securities may bear a legend substantially as follows:

 

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.”

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this
Agreement or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1
Furnishing of Information. Until the time that no Purchaser owns Securities, the Company covenants to timely file
(or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements
of the Exchange Act, and the Company shall not terminate its status as an issuer required to file reports under the Exchange Act
even if the Exchange Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.
As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will
prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required
for the Purchasers to sell the Securities, including without limitation, under Rule 144. The Company further covenants that it
will take such further action as any holder of Securities may reasonably request, to the extent required from time to time to
enable such Person to sell such Securities without registration under the Securities Act, including without limitation, within
the requirements of the exemption provided by Rule 144.

 

    	14

    	 

    

 

4.2
Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital
purposes.

 

4.3
Indemnification of Purchasers. Subject to the provisions of this Section 4.3, the Company will indemnify and hold
each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with
a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each
Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each,
a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of
the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents
or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any shareholder
of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction
Documents (unless such action is based upon a breach of such Purchaser’s representations, warranties or covenants under
the Transaction Documents or any agreements or understandings such Purchaser may have with any such shareholder or any violations
by such Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may
be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall
have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment
thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time
to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will
not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that
a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties,
covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.

 

4.4
Indemnification of the Company. Subject to the provisions of this Section 4.4, each Purchaser will severally, but
not jointly, indemnify and hold the Company and its directors, officers, shareholders, members, partners, employees and agents
(and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title
or any other title), each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of
such controlling persons (each, a “Company Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable
attorneys’ fees and costs of investigation that any such Company Party may suffer or incur as a result of or relating to
any breach of any of the representations, warranties, covenants or agreements made by such Purchaser in this Agreement or in the
other Transaction Documents.

 

    	15

    	 

    

 

4.5
Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve
and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling
the Company to issue Shares pursuant to this Agreement and the Warrants.

 

4.6
Listing of Common Stock. The Company hereby agrees to use its best efforts to maintain the listing or quotation
of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the execution hereof, the Company
shall list or quote all of the Shares on such Trading Market and promptly secure the listing of all of the Shares on such Trading
Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will
then include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares
to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably
necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of such Trading Market.

 

4.7
Equal Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be
offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents
unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification purposes,
this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser,
and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting
in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

 

4.8
Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants
that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any transactions
involving any of the Company’s securities during the period commencing with the execution of this Agreement and ending at
such time that the transactions contemplated by this Agreement are first publicly announced by the Company. Each Purchaser, severally
and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are
publicly disclosed by the Company, such Purchaser will maintain the confidentiality of the existence and terms of this transaction
and the information included in the Disclosure Schedules.

 

4.9
Further Limitations on Disposition. Without in any way limiting the representations of the Purchasers set forth
in Section 3.2 above, each Purchaser further agrees not to make any disposition of all or any portion of the Securities unless
and until the transferee has agreed in writing for the benefit of the Company to be bound by this Section 4, and

 

(a)
There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition
is made in accordance with such registration statement (it being expressly understood that the Company is under no obligation
to file such a registration statement); or

 

    	16

    	 

    

 

(b)
(i) Such Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if reasonably requested by the Company, such Purchaser
shall have furnished the Company with an opinion of counsel reasonably satisfactory to the Company that such disposition will
not require registration of such shares under the Act.

 

(c)
Notwithstanding the provisions of paragraphs (a) and (b) above, no such registration statement or opinion of counsel shall be
necessary for a transfer by a Purchaser that is a partnership or limited liability company to a partner of such partnership or
a member of such limited liability company to an affiliated venture capital fund, or a retired partner of such partnership who
retires after the date hereof or a retired member of such limited liability company who retires after the date hereof, or to the
estate of any such partner, retired partner, member or retired member or the transfer by gift, will or intestate succession by
any partner or member to his or her spouse or to the siblings, lineal descendants or ancestors of such partner or member or his
or her spouse, if the transferee agrees in writing to be subject to the terms hereof to the same extent as if he or she were an
original Purchaser hereunder.

 

4.10
Registration Rights. On or prior to thirty (30) days after the effectiveness of the Form 10 to be filed (or filed)
by the Company with the Commission, the Company shall prepare and file with the Commission a “Shelf” Registration
Statement covering the resale of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule
415. The Registration Statement shall be on Form S-1 and shall contain (unless otherwise directed by the Purchasers) a “Plan
of Distribution” reasonably agreed upon the Purchasers and the Company. Subject to the terms of this Agreement, the Company
shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, and shall use its best efforts to keep such Registration Statement continuously effective under
the Securities Act until all Registrable Securities covered by such Registration Statement have been sold or may be sold without
volume restrictions pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written opinion letter to
such effect, addressed and acceptable to the Company’s transfer agent and the affected Purchasers (the “Effectiveness
Period”). The Company shall immediately notify the Purchasers via E-Mail of the effectiveness of the Registration Statement
not later than 2-days after the Company receives notification of the effectiveness from the Commission.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1
Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, 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 this Agreement. The Company shall
pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to
the Purchasers.

 

5.2
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the
entire agreement and understanding of the parties in respect to the subject matter contained herein. The parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly
set forth or referred to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and
negotiations between the parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or
usage of the trade inconsistent with any of the terms hereof.

 

    	17

    	 

    

 

5.3
Notices.

 

5.3.1.
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be
deemed given (a) if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt
of same; (c) if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified
mail, postage prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

5.3.2.
Consent to Electronic Transmission. Each party hereby expressly consents to the use of Electronic Transmission for
communications and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a
communication (i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient
on record with the sending party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that
may thereafter be rendered into clearly legible tangible form.

 

5.3.3.
Address Changes. Any party may alter the Fax number, E-Mail address, physical address, or postage address to which
communications or copies are to be sent by giving notice of such change of address to the other parties in accordance with the
provisions of this Section 5.3.

 

5.4
Amendments; Waivers. No provision of this Agreement or any other Transaction Document may be waived, modified, supplemented,
or amended except in a written instrument signed by the Company and the Purchasers holding at least 50% in interest of the Shares
then outstanding. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

5.5
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any
Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound,
with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers”.

 

5.6
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 may any provision hereof be enforced by, any other Person,
except as otherwise set forth in Section 4.3 and Section 4.4.

 

    	18

    	 

    

 

5.7
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction
Documents 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. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the County of Wake, State of North Carolina. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the County of Wake, State of North Carolina,
for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, in
addition to the obligations of the Company under Section 4.3 and the obligations of a Purchaser under Section 4.4, the prevailing
party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

5.8
Survival. The representations and warranties contained herein shall survive the Closing and the delivery of the
Securities.

 

5.9
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
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.10
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to
be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.11
Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any
similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option
under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided,
then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

    	19

    	 

    

 

5.12
Replacement of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in
the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance
of such replacement Securities.

 

5.13
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery
of damages, each of the Purchasers 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
contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any
such obligation the defense that a remedy at law would be adequate.

 

5.14
Payment Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction
Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.15
Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute
the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by
the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary
for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented
by its own separate legal counsel in their review and negotiation of the Transaction Documents. The Company has elected to provide
all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by any of the Purchasers.

 

5.16
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of
any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

 

5.17
Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity
to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments
hereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be
subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

 

    	20

    	 

    

 

5.18
WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER
PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

5.19
Acknowledgment. Each Purchaser acknowledges that: (a) it has read this Agreement; (b) it has been represented in
the preparation, negotiation and execution of this Agreement by legal counsel of its own choice or has voluntarily declined to
seek such counsel; and (c) it understands the terms and consequences of this Agreement and is fully aware of the legal and binding
effect of this Agreement.

 

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

 

	LANDSTAR,
    INC.	 	ADDRESS
    FOR NOTICE:
	 	 	 
	 	 	 	1053
    E. Whitaker Mill Road
	 	 	 	Suite
    115
	BY:
    	         	 	 	Raleigh,
                                         NC 27604

                                                         

	NAME:
    	 	 	 	jason@data443.com
	TITLE:
    	 	 	 	 
	DATED:
    	 	 	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK;

PURCHASER
SIGNATURE PAGE FOLLOWS]

 

    	21

    	 

    

 

[PURCHASER
SIGNATURE PAGE TO

LANDSTAR
COMMON STOCK PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned has caused this Common Stock Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	Name
    of Purchaser:	 

 

	Signature
    of Authorized Signatory of Purchaser: 	 

 

	Name
    of Authorized Signatory: 	 

 

	Title
    of Authorized Signatory: 	 

 

	Email
    Address of Authorized Signatory: 	 

 

	Facsimile
    Number of Authorized Signatory: 	 

 

	EIN
    or SSN of Purchaser: 	 

 

	State
    of Formation/Residence of Purchaser:	 

 

	Address
    for Notice of Purchaser:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

Address
for Delivery of Securities for Purchaser (if not same as address for notice):

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

	Subscription
    Amount: 	$	 		Per
    Share Purchase Price:	 	 

 

	Shares:	 	 	 
	 	 	 	 
	Warrants:
    	 	 	 

 

    	22

    	 

    

 

DISCLOSURE
SCHEDULES

 

	 	Schedule
    3.1(a)	Subsidiaries.
	 	 	 
	 	Schedule
    3.1(g)	Capitalization.
	 	 	 
	 	Schedule
    3.1(bb)	Accountants/Auditors.

 

    	23

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