Document:

Exhibit 4.1

 

ITEM 9 LABS CORP.

2019 EQUITY INCENTIVE PLAN

 

1.  Purpose
of the Plan. The purpose of this Plan is to encourage ownership in Item 9 Labs Corp. (the “Company”) by key
personnel whose long-term service the Company considers essential to its continued progress and, thereby, encourage recipients
to act in the stockholders’ interest and share in the Company’s success.

 

2.  Definitions.
As used herein, the following definitions shall apply:

 

“Act” shall mean
the Securities Act of 1933, as amended.

 

“Administrator”
shall mean the Board, any Committees, or such delegates as shall be administering the Plan in accordance with Section 4 of the
Plan.

 

“Affiliate” shall
mean any entity that is directly or indirectly in control of or controlled by the Company, or any entity in which the Company has
a significant ownership interest as determined by the Administrator.

 

“Applicable Laws”
shall mean the requirements relating to the administration of stock plans under federal and state laws; any stock exchange or quotation
system on which the Company has listed or submitted for quotation the Common Stock to the extent provided under the terms of the
Company’s agreement with such exchange or quotation system; and, with respect to Awards subject to the laws of any foreign
jurisdiction where Awards are, or will be, granted under the Plan, to the laws of such jurisdiction.

 

“Award” shall
mean, individually or collectively, a grant under the Plan of an Option or other such Stock Award.

 

“Awardee” shall
mean a Service Provider who has been granted an Award under the Plan.

 

“Award Agreement”
shall mean an Option Agreement or Stock Award Agreement, which may be in written or electronic format, in such form and with such
terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement
is subject to the terms and conditions of the Plan.

 

“Board” shall
mean the Board of Directors of the Company.

 

“California Qualification
Period” shall mean any period during which the issuance and sale of securities under this Plan require qualification under
the California Corporate Securities Law of 1968.

 

“Change in Control”
shall mean any of the following, unless the Administrator provides otherwise:

 

(i)  any
merger or consolidation in which the Company shall not be the surviving entity (or survives only as a subsidiary of another entity
whose stockholders did not own all or substantially all of the Common Stock in substantially the same proportions as immediately
before such transaction);

 

(ii)  the
sale of all or substantially all of the Company’s assets to any other person or entity (other than a wholly-owned subsidiary
of the Company);

 

(iii)  the
acquisition of beneficial ownership of a controlling interest (including power to vote) in the outstanding shares of Common Stock
by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act);

 

(iv)  the
dissolution or liquidation of the Company;

 

(v)  a
contested election of Directors, as a result of which or in connection with which the persons who were Directors before such election
or their nominees cease to constitute a majority of the Board; or

 

(vi)  any
other event specified, at the time an Award is granted or thereafter, by the Board or a Committee.

 

Notwithstanding the foregoing, the term “Change
in Control” shall not include any underwritten public offering of Shares registered under the Act.

 

“Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

“Committee” shall
mean a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

 

“Common Stock”
shall mean the common stock of the Company.

 

“Company” shall
mean Item 9 Labs Corp., a Delaware corporation, or its successor.

 

“Consultant”
shall mean any natural person, other than an Employee or Director, who performs bona fide services for the Company or an Affiliate
as a consultant or advisor.

 

“Conversion Award”
has the meaning set forth in Section 4(b)(xii) of the Plan.

 

“Director” shall
mean a member of the Board.

 

“Disability”
shall mean permanent and total disability as defined in Section 22(e)(3) of the Code.

 

“Employee” shall
mean an employee of the Company or any Affiliate, and may include an Officer or Director. Within the limitations of Applicable
Laws, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as
an Employee in the case of (i) any individual who is classified by the Company or its Affiliate as leased from or otherwise employed
by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit,
litigation or otherwise; (ii) any leave of absence approved by the Company or an Affiliate; (iii) any transfer between locations
of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates; (iv) any change
in the Awardee’s status from an employee to a Consultant or Director; and (v) an employee who, at the request of the Company
or an Affiliate, becomes employed by any partnership, joint venture, or corporation not meeting the requirements of an Affiliate
in which the Company or an Affiliate is a party.

 

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

 

“Fair Market Value”
shall mean, unless the Administrator determines otherwise, as of any date, the closing price for such Common Stock as of such date
(or if no sales were reported on such date, the closing price on the last preceding day for which a sale was reported), as reported
in such source as the Administrator shall determine.

 

“Grant Date”
shall mean the date upon which an Award is granted to an Awardee pursuant to this Plan.

 

“Incentive Stock Option”
shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

 

“Nonstatutory Stock
Option” shall mean an Option not intended to qualify as an Incentive Stock Option.

 

“Officer” shall
mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

 

“Option” shall
mean a right granted under Section 8 of the Plan to purchase a certain number of Shares at such exercise price, at such times,
and on such other terms and conditions as are specified in the agreement or other documents evidencing the Award (the “Option
Agreement”). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted under
the Plan.

 

“Participant”
shall mean the Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder.

 

“Plan” shall
mean this Item 9 Labs Corp. 2019 Equity Incentive Plan.

 

“Qualifying Performance
Criteria” shall have the meaning set forth in Section 14(b) of the Plan.

 

“Related Corporation”
shall mean any parent or subsidiary (as those terms are defined in Section 424(e) and (f) of the Code) of the Company.

 

“Service Provider”
shall mean an Employee, Officer, Director, or Consultant.

 

“Share” shall
mean a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan.

 

“Stock Award”
shall mean an award or issuance of Shares or Stock Units made under Section 11 of the Plan, the grant, issuance, retention, vesting,
and transferability of which is subject during specified periods to such conditions (including continued service or performance
conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the “Stock Award Agreement”).

 

“Ten-Percent Stockholder”
shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined
voting power of all classes of stock of the Company (or any Related Corporation).

 

“Termination Date”
shall mean the date of a Participant’s Termination of Service, as determined by the Administrator in its sole discretion.

 

“Termination of Service”
shall mean ceasing to be a Service Provider. However, for Incentive Stock Option purposes, Termination of Service will occur when
the Awardee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated
thereunder) of the Company or one of its Related Corporations. The Administrator shall determine whether any corporate transaction,
such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Service.

 

3.  Stock
Subject to the Plan.

 

(a)  Aggregate
Limit. The maximum aggregate number of Shares available under the Plan through Awards is the lesser of: (i) 6,000,000 shares,
increased each anniversary date of the adoption of the plan by 2 percent of the then-outstanding shares, or (b) 10,000,000 shares.
The limitations of this Section 3(a) shall be subject to the adjustments provided for in Section 13 of the Plan.

 

(b)  Reduction
and Replenishment. Upon payment for Shares pursuant to the exercise of an Award, the number of Shares available for issuance
under the Plan shall be reduced only by the number of Shares actually issued in such payment. If any outstanding Award expires
or is terminated or canceled without having been exercised or settled in full, or if Shares acquired pursuant to an Award subject
to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such
Award or such forfeited or repurchased Shares shall again be available to grant under the Plan. Notwithstanding the foregoing,
the aggregate number of shares of Common Stock that may be issued under the Plan upon the exercise of Incentive Stock Options shall
not be increased for restricted Shares that are forfeited or repurchased. Notwithstanding anything in the Plan, or any Award Agreement
to the contrary, Shares attributable to Awards transferred under any Award transfer program shall not be again available for grant
under the Plan. The Shares subject to the Plan may be either Shares reacquired by the Company, including Shares purchased in the
open market, or authorized but unissued Shares.

 

4.  Administration
of the Plan.

 

(a) Procedure.

 

(i)  Multiple
Administrative Bodies. The Plan shall be administered by the Board or one or more Committees, including such delegates as may
be appointed under paragraph (a)(iv) of this Section 4.

 

(ii)  Section
162(m). To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees” within the meaning
of Section 162(m) of the Code or Employees that the Committee determines may be “covered employees” in the future shall
be made by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.

 

(iii)  Rule
16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange
Act (“Rule 16b-3”), Awards to Officers and Directors shall be made in such a manner to satisfy the requirement for
exemption under Rule 16b-3.

 

(iv)  Other
Administration. The Board or a Committee may delegate to an authorized Officer or Officers of the Company the power to approve
Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act; or (B) at
the time of such approval, “covered employees” under Section 162(m) of the Code.

 

(v)  Delegation
of Authority for the Day-to-Day Administration of the Plan. Except to the extent prohibited by Applicable Laws, the Administrator
may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this
Plan. Such delegation may be revoked at any time.

 

(b)  Powers
of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the Administrator,
subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its sole
discretion:

 

(i)  to
select the Service Providers of the Company or its Affiliates to whom Awards are to be granted hereunder;

 

(ii)  to
determine the number of shares of Common Stock to be covered by each Award granted hereunder;

 

(iii)  to
determine the type of Award to be granted to the selected Service Provider;

 

(iv)  to
approve the forms of Award Agreements for use under the Plan;

 

(v)  to
determine the terms and conditions, consistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions
include the exercise or purchase price, the time or times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting or exercisability acceleration or waiver of forfeiture restrictions, the acceptable
forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating thereto, based in
each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the time an Award
is granted or thereafter;

 

(vi)  to
correct administrative errors;

 

(vii)  to
construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 

(viii)  to
adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of
local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to
adopt the rules and procedures regarding the conversion of local currency, withholding procedures, and handling of stock certificates
that vary with local requirements; and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate
foreign laws, regulations and practice;

 

(ix)  to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
and Plan addenda;

 

(x)  to
modify or amend each Award, including the acceleration of vesting, exercisability, or both; provided, however, that any modification
or amendment of an Award is subject to Section 16 of the Plan and may not materially impair any outstanding Award unless agreed
to by the Participant;

 

(xi)  to
allow Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued pursuant
to an Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value
of the Shares to be withheld shall be determined in such manner and on such date that the Administrator shall determine or, in
the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant
to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may provide;

 

(xii)  to
authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights, or other stock awards
held by service providers of an entity acquired by the Company (the “Conversion Awards”). Any conversion or substitution
shall be effective as of the close of the merger or acquisition. The Conversion Awards may be Nonstatutory Stock Options or Incentive
Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity. Unless otherwise determined
by the Administrator at the time of conversion or substitution, all Conversion Awards shall have the same terms and conditions
as Awards generally granted by the Company under the Plan;

 

(xiii)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted
by the Administrator;

 

(xiv)  to
determine whether Awards will be settled in Shares, cash, or in any combination thereof;

 

(xv)  to
determine whether to provide for the right to receive dividends or dividend equivalents;

 

(xvi)  to
establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash
in exchange for Awards under the Plan;

 

(xvii)  to
impose such restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales by
a Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including
(A) restrictions under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales
or other transfers;

 

(xviii)  to
provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right,
either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment
to the Company, a number of Shares, cash, or a combination of both, the amount of which is determined by reference to the value
of the Award; and

 

(xix)  to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder.

 

(c)  Effect
of Administrator’s Decision. All decisions, determinations and interpretations by the Administrator regarding the Plan,
any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding
on all Participants. The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion, to
making such decisions, determinations and interpretations, including the recommendations or advice of any officer or other employee
of the Company and such attorneys, consultants and accountants as it may select.

 

5.  Eligibility.
Awards may be granted to Service Providers of the Company or any of its Affiliates.

 

6.  Effective
Date and Term of the Plan. The Plan shall become effective upon its adoption by the Board. Options and Stock Awards may
be granted immediately thereafter; provided, that no Option may be exercised and no Stock Award may be granted under the Plan until
it is approved by the stockholders of the Company, in the manner and to the extent required by Applicable Laws, within 12 months
after the date of adoption by the Board. The Plan shall continue in effect for a term of ten years from the date of the Plan’s
adoption by the Board unless terminated earlier under Section 16 herein.

 

7.  Term
of Award. The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the case
of an Option, the term shall be ten years from the Grant Date or such shorter term as may be provided in the Award Agreement.

 

8.  Options.
The Administrator may grant an Option or provide for the grant of an Option, from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including the achievement of performance goals, and for the satisfaction
of an event or condition within the control of the Awardee or within the control of others.

 

(a)  Option
Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise
of the Option; (ii) the type of Option; (iii) the exercise price of the Shares and the means of payment for the Shares; (iv) the
term of the Option; (v) such terms and conditions on the vesting or exercisability of an Option, or both, as may be determined
from time to time by the Administrator; (vi) restrictions on the transfer of the Option and forfeiture provisions; and (vii) such
further terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.

 

(b)  Exercise
Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

 

(i)  In
the case of an Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share
on the Grant Date. Notwithstanding the foregoing, if any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the
exercise price shall not be less than 110% of the Fair Market Value of a share of Common Stock on the Grant Date.

 

(ii)  In
the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share
on the Grant Date. The per Share exercise price may also vary according to a predetermined formula; provided, that the exercise
price never falls below 100% of the Fair Market Value per Share on the Grant Date.

 

(iii)  Reserved.

 

(iv)  Notwithstanding
the foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution or conversion of options
of an acquired entity, with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of such
substitution or conversion.

 

(c)  Vesting
Period and Exercise Dates. Options granted under this Plan shall vest, be exercisable, or both, at such times and in such installments
during the Option’s term as determined by the Administrator. The Administrator shall have the right to make the timing of
the ability to exercise any Option granted under this Plan subject to continued service, the passage of time, or such performance
requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the Administrator may reduce
or eliminate any restrictions surrounding any Participant’s right to exercise all or part of the Option.

 

(d)  Form
of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including
the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. The consideration,
determined by the Administrator (or pursuant to authority expressly delegated by the Board, a Committee, or other person), and
in the form and amount required by Applicable Laws, shall be actually received before issuing any Shares pursuant to the Plan;
which consideration shall have a value, as determined by the Board, not less than the par value of such Shares. Acceptable forms
of consideration may include:

 

(i)  cash;

 

(ii)  check
or wire transfer;

 

(iii)  subject
to any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date of surrender
or attestation that does not exceed the aggregate exercise price of the Shares as to which said Option shall be exercised;

 

(iv)  consideration
received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator to the extent that
this procedure would not violate Section 402 of the Sarbanes-Oxley Act of 2002, as amended;

 

(v)  cashless
exercise, subject to any conditions or limitations established by the Administrator;

 

(vi)  such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or

 

(vii)  any
combination of the foregoing methods of payment.

 

9.  Incentive
Stock Option Limitations.

 

(a)  Eligibility.
Only employees (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the
Company or any of its Related Corporations may be granted Incentive Stock Options.

 

(b)  $100,000
Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during
any calendar year (under all plans of the Company and any of its Related Corporations) exceeds $100,000, then the portion of such
Options that exceeds $100,000 shall be treated as Nonstatutory Stock Options. An Incentive Stock Option is considered to be first
exercisable during a calendar year if the Incentive Stock Option will become exercisable at any time during the year, assuming
that any condition on the Awardee’s ability to exercise the Incentive Stock Option related to the performance of services
is satisfied. If the Awardee’s ability to exercise the Incentive Stock Option in the year is subject to an acceleration provision,
then the Incentive Stock Option is considered first exercisable in the calendar year in which the acceleration provision is triggered.
For purposes of this Section 9(b), Incentive Stock Options shall be taken into account in the order in which they were granted.
However, because an acceleration provision is not taken into account before its triggering, an Incentive Stock Option that becomes
exercisable for the first time during a calendar year by operation of such provision does not affect the application of the $100,000
limitation with respect to any Incentive Stock Option (or portion thereof) exercised before such acceleration. The Fair Market
Value of the Shares shall be determined as of the Grant Date.

 

(c)  Leave
of Absence. For purposes of Incentive Stock Options, no leave of absence may exceed three months, unless the right to reemployment
upon expiration of such leave is provided by statute or contract. If the period of leave exceeds three months and the Awardee’s
right to reemployment is not provided by statute or contract, the Awardee’s employment with the Company shall be deemed to
terminate on the first day immediately following such three-month period, and any Incentive Stock Option granted to the Awardee
shall cease to be treated as an Incentive Stock Option and shall terminate upon the expiration of the three-month period starting
on the date the employment relationship is deemed terminated.

 

(d)  Transferability.
The Option Agreement must provide that an Incentive Stock Option cannot be transferable by the Awardee otherwise than by will or
the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other person. Notwithstanding
the foregoing, the Administrator, in its sole discretion, may allow the Awardee to transfer his or her Incentive Stock Option to
a trust where under Section 671 of the Code and other Applicable Law, the Awardee is considered the sole beneficial owner of the
Option while it is held in the trust. If the terms of an Incentive Stock Option are amended to permit transferability, the Option
will be treated for tax purposes as a Nonstatutory Stock Option.

 

(e)  Exercise
Price. The per Share exercise price of an Incentive Stock Option shall be determined by the Administrator in accordance with
Section 8(b)(i) of the Plan.

 

(f)  Ten-Percent
Stockholder. If any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the Option term shall not exceed five
years measured from the date of grant of such Option.

 

(g)  Other
Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary
to qualify as Incentive Stock Options, to the extent determined desirable by the Administrator, under the applicable provisions
of Section 422 of the Code.

 

10.  Exercise
of Option.

 

(a)  Procedure
for Exercise; Rights as a Stockholder.

 

(i)  Any
Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the respective Award Agreement.

 

(ii)  An
Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the
Award Agreement) from the person entitled to exercise the Option; (B) full payment for the Shares with respect to which the related
Option is exercised; and (C) with respect to Nonstatutory Stock Options, payment of all applicable withholding taxes.

 

(iii)  Shares
issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name
of the Participant and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company),
no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares subject to an
Option, notwithstanding the exercise of the Option.

 

(iv)  The
Company shall issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised.
An Option may not be exercised for a fraction of a Share.

 

(b)  Effect
of Termination of Service on Options.

 

(i)  Generally.
Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider, other than upon the Participant’s
death or Disability, the Participant may exercise his or her Option within such period as is specified in the Award Agreement to
the extent that the Option is vested on the Termination Date (but in no event later than the expiration of the term of such Option
as set forth in the Award Agreement). Notwithstanding the foregoing, upon a Participant’s Termination of Service during any
California Qualification Period, other than due to death, Disability, or cause, the Participant may exercise his or her Option
(A) at any time on or before the date determined by the Administrator, which date shall be at least 30 days after the Participant’s
Termination Date (but in no event later than the expiration of the term of such Option); and (B) only to the extent that the Participant
was entitled to exercise such Option on the Termination Date. In the absence of a specified time in the Award Agreement, the vested
portion of the Option will remain exercisable for three months following the Participant’s Termination Date. Unless otherwise
provided by the Administrator, if on the Termination Date the Participant is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option will automatically revert to the Plan. If after the Termination of Service the Participant
does not exercise his or her Option within the time specified by the Administrator, the Option will automatically terminate, and
the Shares covered by such Option will revert to the Plan.

 

(ii)  Disability
of Awardee. Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider as a result
of the Participant’s Disability, the Participant may exercise his or her Option within such period as is specified in the
Award Agreement to the extent the Option is vested on the Termination Date (but in no event later than the expiration of the term
of such Option as set forth in the Award Agreement). Notwithstanding the foregoing, during any California Qualification Period,
upon a Participant’s Termination of Service due to his or her Disability the Participant may exercise his or her Option (A)
at any time on or before the date determined by the Administrator, which date shall be at least six months after the Termination
Date (but in no event later than the expiration date of the term of his or her Option); and (B) only to the extent that the Participant
was entitled to exercise such Option on the Termination Date. In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for twelve months following the Participant’s Termination Date. Unless otherwise provided by the
Administrator, if at the time of Disability the Participant is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option will automatically revert to the Plan. If the Option is not so exercised within the time specified
herein, the Option will terminate, and the Shares covered by such Option will automatically revert to the Plan.

 

(iii)  Death
of Awardee. Unless otherwise provided for by the Administrator, if a Participant dies while a Service Provider, the Option
may be exercised following the Participant’s death within such period as is specified in the Award Agreement to the extent
that the Option is vested on the date of death (but in no event may the Option be exercised later than the expiration of the term
of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary
has been designated before the Participant’s death in a form acceptable to the Administrator. Notwithstanding the foregoing,
during any California Qualification Period, if the Participant dies before his or her Termination of Service, the Participant’s
Option may be exercised by the Participant’s designated beneficiary (A) at any time on or before the date determined by the
Administrator, which date shall be at least six months after the date of death (but in no event later than the expiration date
of the term of his or her Option); and (B) only to the extent that the Participant was entitled to exercise the Option at the date
of death. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative
of the Participant’s estate or by the person or persons to whom the Option is transferred pursuant to the Participant’s
will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the
Option will remain exercisable for twelve months following Participant’s death. Unless otherwise provided by the Administrator,
if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option will revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate,
and the Shares covered by such Option will revert to the Plan.

 

11.  Stock
Awards.

 

(a)  Stock
Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such Stock
Award or a formula for determining such number; (ii) the purchase price, if any, of the Shares, and the means of payment for the
Shares; (iii) the performance criteria, if any, and level of achievement versus these criteria that shall determine the number
of Shares granted, issued, retained, or vested, as applicable; (iv) such terms and conditions on the grant, issuance, vesting,
or forfeiture of the Shares, as applicable, as may be determined from time to time by the Administrator; (v) restrictions on the
transferability of the Stock Award; and (vi) such further terms and conditions in each case not inconsistent with this Plan as
may be determined from time to time by the Administrator.

 

Notwithstanding the foregoing,
during any California Qualification Period, the purchase price for restricted Shares shall be determined by the Administrator,
but shall not be less than 85% (or 100% in the case of a person who is a Ten-Percent Stockholder on the date of grant of such restricted
stock) of the Fair Market Value of a share of Common Stock on the date of grant of such restricted stock.

 

(b)  Restrictions
and Performance Criteria. The grant, issuance, retention, and vesting of each Stock Award may be subject to such performance
criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial
performance, personal performance evaluations, or completion of service by the Awardee. Notwithstanding the foregoing, during any
California Qualification Period, restricted stock awarded to anyone other than an Officer, Director, or Consultant of the Company
shall vest at a rate of at least 20% per year.

 

Notwithstanding anything
to the contrary herein, the performance criteria for any Stock Award that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code shall be established by the Administrator based on one or more Qualifying
Performance Criteria selected by the Administrator and specified in writing.

 

(c)  Forfeiture.
Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Service, the unvested Stock Award and
the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased any Shares pursuant to
such Stock Award, the Company shall have a right to repurchase the unvested portion of such Shares at the original price paid by
the Participant, provided that during any California Qualification Period, the Company must exercise such right to repurchase (i)
for either cash or cancellation of purchase money indebtedness for such unvested Shares; and (ii) within 90 days of such Termination
of Service.

 

(d)  Rights
as a Stockholder. Unless otherwise provided by the Administrator, the Participant shall have the rights equivalent to those
of a stockholder and shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) to the Participant. Unless otherwise provided by the Administrator,
a Participant holding Stock Units shall be entitled to receive dividend payments as if he or she were an actual stockholder.

 

12.  Other
Provisions Applicable to Awards.

 

(a)  Non-Transferability
of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime
of the Participant, only by the Participant. If the Administrator makes an Award transferable, either at the time of grant or thereafter,
such Award shall contain such additional terms and conditions as the Administrator deems appropriate, and any transferee shall
be bound by such terms upon acceptance of such transfer. Notwithstanding the foregoing, during any California Qualification Period,
an Award may not be transferred in any manner other than by will, by the laws of descent and distribution, or as permitted by Rule
701 of the Securities Act of 1933, as amended, as the Administrator may determine.

 

(b)  Qualifying
Performance Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean any one
or more of the following performance criteria, applied to either the Company as a whole or to a business unit, Affiliate, Related
Corporations, or business segment, either individually, alternatively, or in any combination, and measured either annually or cumulatively
over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a
designated comparison group, in each case as specified in the Award by the Committee: (i) cash flow, (ii) earnings (including gross
margin, earnings before interest and taxes, earnings before taxes, and net earnings), (iii) earnings per share, (iv) growth in
earnings or earnings per share, (v) stock price, (vi) return on equity or average stockholders’ equity, (vii) total stockholder
return, (viii) return on capital, (ix) return on assets or net assets, (x) return on investment, (xi) revenue, (xii) income or
net income, (xiii) operating income or net operating income, (xiv) operating profit or net operating profit, (xv) operating margin,
(xvi) return on operating revenue, (xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction,
(xx) growth in stockholder value relative to the moving average of the S&P 500 Index or a peer group index, (xxi) credit rating,
(xxii) strategic plan development and implementation, (xxiii) improvement in workforce diversity, (xxiv) EBITDA, and (xxv) any
other similar criteria.

 

   (c)  Certification.
Before payment of any compensation under an Award intended to qualify as “performance-based compensation” under Section
162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material
terms under such Award have been satisfied (other than in cases where such relate solely to the increase in the value of the Common
Stock).

 

(d)  Discretionary
Adjustments Pursuant to Section 162(m). Notwithstanding satisfaction or completion of any Qualifying Performance Criteria,
to the extent specified at the time of grant of an Award to “covered employees” within the meaning of Section 162(m)
of the Code, the number of Shares, Options or other benefits granted, issued, retained, or vested under an Award on account of
satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further considerations
as the Committee in its sole discretion shall determine.

 

(e)  Section 409A.
Notwithstanding anything in the Plan to the contrary, it is the Company’s intent that all Awards granted under this Plan
comply with Section 409A of the Code, and each Award shall be interpreted in a manner consistent with that intention.

 

13.  Adjustments
upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

 

(a)  Changes
in Capitalization.

 

(i)  The
limitations set forth in Section 3, the number and kind of Shares covered by each outstanding Award, and the price per Share
(but not the total price) subject to each outstanding Award shall be proportionally adjusted to prevent dilution or enlargement
of rights under the Plan for any change in the outstanding Common Stock subject to the Plan, or subject to any Award, resulting
from any stock splits, combination or exchange of Shares, consolidation, spin-off or recapitalization of Shares or any capital
adjustment or transaction similar to the foregoing or any distribution to holders of Common Stock other than regular cash dividends.

 

(ii)  The
Administrator shall make such adjustment in such manner as it deems equitable and appropriate, subject to compliance with Applicable
Laws. Any determination, substitution or adjustment made by the Administrator under this Section shall be conclusive and binding
on all persons. The conversion of any convertible securities of the Company shall not be treated as a transaction requiring any
adjustment under this Section. Except as expressly provided herein, no issuance by the Company of shares of stock of any class,
or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of Shares subject to an Award.

 

(b)  Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each
Participant as soon as practicable before the effective date of such proposed transaction. The Administrator in its discretion
may provide for an Option to be fully vested and exercisable until ten days before such proposed transaction. In addition, the
Administrator may provide that any restrictions on any Award shall lapse before the proposed transaction, provided the proposed
dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised,
an Award will terminate immediately before the consummation of such proposed transaction.

 

(c)  Change
in Control. If there is a Change in Control of the Company, as determined by the Board or a Committee, the Board or Committee,
or board of directors of any surviving entity or acquiring entity may, in its discretion, (i) provide for the assumption, continuation
or substitution (including an award to acquire substantially the same type of consideration paid to the stockholders in the transaction
in which the Change in Control occurs) of, or adjustment to, all or any part of the Awards; (ii) accelerate the vesting of all
or any part of the Options and SARs and terminate any restrictions on all or any part of the Stock Awards or Cash Awards; (iii)
provide for the cancellation of all or any part of the Awards for a cash payment to the Participants; and (iv) provide for the
cancellation of all or any part of the Awards as of the closing of the Change in Control; provided, that the Participants are notified
that they must exercise or redeem their Awards (including, at the discretion of the Board or Committee, any unvested portion of
such Award) at or before the closing of the Change in Control.

 

14.  Amendment
and Termination of the Plan.

 

(a)  Amendment
and Termination. The Administrator may amend, alter, or discontinue the Plan or any Award Agreement, but any such amendment
shall be subject to approval of the stockholders of the Company in the manner and to the extent required by Applicable Law.

 

(b)  Effect
of Amendment or Termination. No amendment, suspension, or termination of the Plan shall materially impair the rights of any
Award, unless agreed otherwise between the Participant and the Administrator. Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan before the date of such termination.

 

(c)  Effect
of the Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission of the Plan
to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any
Committee to adopt such other incentive arrangements as it or they may deem desirable, including the granting of restricted stock
or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in
specific cases.

 

15.  Designation
of Beneficiary.

 

(a)  An
Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s
Award or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the
extent that Awardee has completed a designation of beneficiary such beneficiary designation shall remain in effect with respect
to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law.

 

   (b)  The
Awardee may change such designation of beneficiary at any time by written notice. If an Awardee dies and no beneficiary is validly
designated under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor or administrator
of the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed (to the knowledge
of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee to
exercise the Award to the extent permissible under Applicable Law.

 

16.  No
Right to Awards or to Service. No person shall have any claim or right to be granted an Award and the grant of any Award
shall not be construed as giving an Awardee the right to continue in the service of the Company or its Affiliates. Further, the
Company and its Affiliates expressly reserve the right, at any time, to dismiss any Service Provider or Awardee at any time without
liability or any claim under the Plan, except as provided herein or in any Award Agreement entered into hereunder.

 

17.  Preemptive
Rights. No Shares will be issued under the Plan in violation of any preemptive rights held by any stockholder of the Company.

 

18.  Legal
Compliance. No Share will be issued pursuant to an Award under the Plan unless the issuance and delivery of such Share,
as well as the exercise of such Award, if applicable, will comply with Applicable Laws. Issuance of Shares under the Plan shall
be subject to the approval of counsel for the Company with respect to such compliance. Notwithstanding anything in the Plan to
the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be interpreted in a manner
consistent with that intention.

 

19.  Inability
to Obtain Authority. To the extent the Company is unable to or the Administrator deems that it is not feasible to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary
to the lawful issuance and sale of any Shares hereunder, the Company shall be relieved of any liability with respect to the failure
to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

20.  Reservation
of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares
as shall be sufficient to satisfy the requirements of the Plan.

 

21.  Notice.
Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and
shall be effective when received.

 

22.  Governing
Law; Interpretation of Plan and Awards.

 

(a)  This
Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice
of law rules, of the state of Delaware.

 

   (b)  If
any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid, or otherwise unenforceable by
a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid,
and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and Award shall not be affected except to the
extent necessary to reform or delete such illegal, invalid, or unenforceable provision.

 

(c)  The
headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a
part of the Plan, nor shall they affect its meaning, construction or effect.

 

(d)  The
terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted
heirs, beneficiaries, successors, and assigns.

 

(e)  All
questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion.
If the Participant believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the Participant
may request arbitration with respect to such decision. The review by the arbitrator shall be limited to determining whether the
Administrator’s decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review permitted of
the Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to waive explicitly
any right to judicial review.

 

23.  Limitation
on Liability. The Company and any Affiliate or Related Corporation that is in existence or hereafter comes into existence
shall not be liable to a Participant, an Employee, an Awardee, or any other persons as to:

 

(a)  The
Non-Issuance of Shares. The non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of
any shares hereunder; and

 

(b)  Tax
Consequences. Any tax consequence expected, but not realized, by any Participant, Employee, Awardee or other person due to
the receipt, exercise or settlement of any Option or other Award granted hereunder.

 

24.  Unfunded
Plan. Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with
respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience.
The Company shall not be required to segregate any assets that may at any time be represented by Awards, nor shall this Plan be
construed as providing for such segregation, nor shall the Company or the Administrator be deemed a trustee of stock or cash to
be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon
any contractual obligations that may be created by the Plan; no such obligation of the Company shall be deemed secured by any pledge
or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required to give any security
or bond for the performance of any obligation that may be created by this Plan.

 

IN WITNESS WHEREOF, the
Company, by its duly authorized officer, has executed this Plan, effective as of June 21, 2019.

 

	 	 	 
	 	
        ITEM 9 LABS CORP.

         

	 	 	 
	 	By: 	 
	 	Sara Gullickson
	 	Chief Executive OfficerExhibit 10.4

 

AGREEMENT AND PLAN OF EXCHANGE 

 

THIS AGREEMENT AND PLAN OF
EXCHANGE (this "Agreement") is made and entered into as of the 26th day of January 2018 (the “Effective
Date”) by and among Airware Labs Corp, a Delaware limited liability company (“ALC”), and Airware Holdings,
Inc., a Nevada corporation Arizona (“AHI”), on the one hand, and BSSD Group, LLC (formerly known as BSSD Farms,
LLC), an Arizona limited liability company (“BSSD”), Three Kings Holdings, LLC, an Arizona limited liability
company (“TKH”), Seventy Six Spirits, LLC, an Arizona limited liability company (“SSS”),
Bryce Skalla, Mark Murro III, Patrick Sean Dugan, Andrew Poirier and Carlos Curiel, individuals, some of whom are members of TKH
or SSS or may have been or are to be members of BSSD upon the Closing of this Agreement (the “Individuals” and
collectively with the BSSD Members are the “BSSD Members”), on the other hand. (Collectively, BSSD, TKH, SSS,
the Individuals, ALC and AHI are the “Parties”).

 

RECITALS

 

A. The
BSSD Members together hold all Membership Interests and a 100% participation percentage in BSSD. AHI is a wholly owned subsidiary
of ALC.

 

B.
The parties have held in depth exploratory talks regarding the acquisition of BSSD by ALC in a business combination transaction
pursuant to Section 368.

 

C. The
BSSD Members desire to convey all of the Membership Interests in BSSD to ALC (the “BSSD Membership Interests”).

 

D. For
the BSSD Membership Interests, ALC desires to exchange a total of 1,069,407,228 newly issued restricted shares of Common Stock
of ALC, fully paid and non-assessable (representing 75% of the issued and outstanding shares of Common Stock of ALC calculated
on a fully diluted basis but not including the number of shares of common stock issued in the Capital Raise (as defined below))
(the “ALC Shares”).

 

E. The
Parties desire to complete the exchange of the BSSD Membership Interests for the ALC Shares on the terms and conditions set forth
in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the premises, the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

SECTION 1

EXCHANGE OF THE BSSD MEMBERSHIP INTERESTS FOR
THE ALC SHARES

 

1.1 The
Exchange. On the terms and subject to the conditions of this Agreement, at the Closing referred to in Section 2.1:

 

a. The BSSD Members shall
assign, transfer and deliver to ACL, free and clear of any and all liens, mortgages, adverse claims, charges, security interests,
encumbrances or other restrictions or limitations whatsoever other than restrictions on transfer as set forth in this Agreement,
the BSSD Membership Interests.

 

b. ACL shall issue to the
BSSD Members the ALC Shares pro rata to their respective Membership Interests and participation percentage in BSSD.

 

c. The
BSSD Membership Interests are not certificated. To effect the transfer of the BSSD Membership Interests from the BSSD Members to
ALC, the BSSD Members shall deliver or cause to be delivered to BSSD a written directive to transfer to ALC the BSSD Membership
Interests along with executed transfer powers for the BSSD Membership Interests and to enter into the transfer ledger and the books
and records of BSSD, registration of transfer of the BSSD Membership Interests into the name of ALC as the registered owner (collectively,
the “Transfer Instructions”) to be effective at the Closing. BSSD shall comply with the Transfer Instructions
to deliver the BSSD Membership Interests to ALC by registering the BSSD Membership Interests in the name of ALC (the “Delivery”).

 

d. The
ALC Shares will be certificated. The ALC transfer agent will be notified regarding issuance of the ALC Shares to the BSSD Members
and the ALC stock ledger will reflect such issuances with restrictive legends to the BSSD Members.

 

1.2
Related Transactions. The exchange of the BSSD Membership Interests for the ALC Shares
as described in Section 1.1 above (the “Exchange”), is subject to and contingent upon the satisfactory completion
(or waiver) of the following transactions:

 

a.
Increase in Number of Authorized Shares of Common Stock. Prior to and as a condition
of the Closing, ALC will take all corporate action to amend its certificate of incorporation to increase the number of authorized
shares of Common Stock to 2,000,000,000 and to change the name of ALC to “Item 9 Labs Corp.” (the “Amended
Certificate”). 

 

b.
Conversion of Convertible Note. At the Closing, the $506,000 principal amount plus
accrued but unpaid interest on the Senior Secured Convertible Note (the “Convertible Note”) issued to Stockbridge
Enterprises, L.P. (“Stockbridge”) by AHI will be converted into shares of common stock of ALC.

 

c.
Transfer and Retention of IP. With the Closing of this Agreement, ALC and AHI will
seek a suitable purchaser for all of the intellectual property and patents held by ALC and AHI for all research and commercial
purposes; provided, however, the intellectual property and patents for and in cannabis related and drug infusion products
will not be conveyed to any purchaser but will be retained by ALC and AHI for use in the development of CBD and THC nasal delivery
solutions and products.

 

d.
Private Placement of Securities. ALC will proceed with a $1,000,000 private placement
of shares of common stock of ALC with the number of shares issued to be calculated by dividing 1,000,000 by the lesser of (i) $0.05
per share, and (ii) the price equal to 50% of the lowest closing price of ALC common stock on the OTC Markets Pink Sheets for the
thirty trading days following the Closing of this Agreement, with the offering to be made under exemptions from registration under
both federal and applicable state securities laws (the “Capital Raise”).

 

e.
Resignations and Appointments. Effective at the Closing, Jeffrey Rassas will resign
as a CEO of ALC and AHI, and ALC will cause Bryce Skalla to be appointed as a director and CEO of ALC. Jeffrey Rassas and Ron Miller
will remain as directors. Jessica Smith will remain CFO.

 

1.3Section
368 Reorganization. The parties hereto intend that the transactions contemplated by this Agreement shall qualify as a reorganization
under Section 368(a)(1)(B) of the Internal Revenue Code (the “Code”), and each party hereto will take all necessary
and appropriate actions in order to accomplish such intent. This Agreement constitutes a “Plan of Reorganization” as
required by Treasury Regulation Section 1.368-3(a) and has been duly adopted by each party hereto as such. Notwithstanding the
foregoing or anything else to the contrary contained in this Agreement, the parties acknowledge and agree that no party is making
any representation or warranty, and no legal or other opinions will be provided, as to the qualification of the Exchange as a reorganization
under Section 368 of the Code or as to the effect, if any, that any transaction consummated prior to the Closing Date has or may
have on any such reorganization status. The parties acknowledge and agree that each (i) has had the opportunity to obtain independent
legal and Tax advice with respect to the transaction contemplated by this Agreement, and (ii) is responsible for paying its own
Taxes, including without limitation, any adverse Tax consequences that may result if the transaction contemplated by this Agreement
is not determined to qualify as a reorganization under Section 368 of the Code.

 

SECTION 2

CLOSING AND POST CLOSING

 

2.1 Closing.
The closing of the exchange of the BSSD Membership Interests and the ALC Shares pursuant to this Agreement (the "Closing")
shall occur on or about February 28, 2018 at 10:00 a.m. (the "Closing Date") and shall occur at the location of
the ALC offices, or at such other time and place as shall be mutually agreed to by the Parties.

 

2.2 Closing
Deliveries. At the Closing:

 

a. The
BSSD Members shall tender and deliver to the BSSD transfer agent the Transfer Instructions for the BSSD Membership Interests and
execute transfer powers for assignment and delivery of the BSSD Membership Interests to ALC, and BSSD shall enter the transfer
of the BSSD Membership Interests into the name of ALC on the transfer ledger and the books and records of BSSD.

 

b. ALC
shall deliver certificates representing the pro rata portion of the ALC Shares each BSSD Member is to receive.

 

c.
Documented evidence from ALC reflecting completion of the Amended Certificate.

 

d.
Documented evidence from ALC reflecting completion of the Conversion of the Convertible Note.

 

e.
Documented Evidence from ALC reflecting satisfaction of the Capital Raise.

 

f.
A written certification under section 5.1 from the BSSD Members verifying the satisfaction
or waiver of the conditions set forth therein.

 

g.
A written certification under section 5.2 from ALC and AHI verifying the satisfaction or waiver
of the conditions set forth therein.

 

k. Delivery
of the written resignation of Jeffrey Rassas as CEO of ALC and AHI. Written documentation appointing Bryce Skalla as a director
and CEO of ALC.

 

2.3 Termination
in Absence of Closing.

a. Subject
to the provisions of Section 5, if by the close of business on March 31, 2018, the Closing has not occurred, then any Party hereto
may thereafter terminate this Agreement by written notice to such effect, to the other Parties hereto, without liability of or
to any Party to this Agreement or any representative of such Party unless the reason for Closing having not occurred is (i) such
Party’s willful breach of the provisions of this Agreement, or (ii) if all of the conditions to such Party’s obligations
set forth in Section 5 have been satisfied or waived in writing by the date scheduled for the Closing pursuant to Section 2.1,
the failure of such Party to perform its obligations under Section 2 on such date; provided, however, that any termination
pursuant to this Section 2.3 shall not relieve any Party hereto who was responsible for Closing having not occurred as described
in clauses (i) or (ii) above of any liability for (x) such Party’s willful breach of the provisions of this Agreement, or
(y) if all of the conditions to such Party’s obligations set forth in Section 5 have been satisfied or waived in writing
by the date scheduled for the Closing pursuant to Section 2.1, the failure of such Party to perform its obligations under this
Section 2 on such date.

b. Notwithstanding
the approval hereof by ALC and AHI, this Agreement and the transactions contemplated herein may be terminated and abandoned at
any time on or prior to the Closing Date by ALC and AHI if:

(i) any
representation or warranty made herein for the benefit of any of ALC or AHI, or any certificate, schedule or document furnished
to ALC or AHI pursuant to this Agreement is untrue in any material respect; or

(ii) BSSD
or the BSSD Members shall have defaulted in any material respect in the performance of any material obligation under this Agreement.

c. Notwithstanding
the approval by the BSSD Members, this Agreement and the transactions contemplated herein may be terminated and abandoned at any
time on or prior to the Closing Date by the BSSD Members if:

(i)   
any representation or warranty made herein for the benefit of the BSSD Members, or any certificate,
schedule or document furnished to the BSSD Members pursuant to this Agreement is untrue in any material respect; or 

(ii) any
of ALC shall have defaulted in any material respect in the performance of any material obligation under this Agreement.

 

SECTION 3

THE PRE-CLOSING PERIOD

 

3.1 Due
Diligence; Access to Information. During the period beginning on the execution of this Agreement and ending on the Closing
Date, (the “Due Diligence Period”), the Parties will each cooperate to provide access for continued review and
inspection of all assets of the Parties and all materials, documentation and other information relating to the Parties and all
other transactions contemplated by this Agreement and the opportunity to investigate any and all matters which are relevant to
the exchange of the BSSD Membership Interests for the ALC Shares and the related transactions (the “Investigation”).
The Parties shall have the right to approve or disapprove any item disclosed by the Investigation, and any Party shall deliver
written notice of any disapproved item to the other Parties on or before the end of the Due Diligence Period. In the event any
disapproved item cannot or will not be corrected or remedied by the Parties within five (5) days following notification to all
Parties of such disapproved item, the Party so affected can (1) waive the cure of such disapproved item and proceed to closing
despite the existence of such disapproved items; or (2) terminate this Agreement. In the event that the Party so affected elects
to terminate this Agreement, the Parties shall have no further obligations to each other, except as provided for in Paragraph 3.2
or as otherwise provided for in this Agreement.

 

3.2 Confidentiality.
The Parties agree that any information or documentation produced by ALC, AHI, BSSD or the BSSD Members under the terms of this
Agreement is confidential and shall only be used and/or disclosed in connection with, and relation to the Due Diligence Period
may not, and will not, be used or disclosed by the Parties or their respective directors, officers shareholders or affiliates,
including their family members to anyone outside of the Agreement and will not be used for any purpose outside of this Agreement
(the “Confidential Information”). Disclosure of the Confidential Information contained therein shall be limited
to the Parties’ respective spouses, directors, officers, shareholders, affiliates and other employees who need to know such
information and are assisting with the transactions contemplated in this Agreement, their respective counsel and accountants,
and other entities acting in connection with this Agreement.

 

3.3Operations.
The Parties shall continue to operate and carry on the business of BSSD in the ordinary course consistent with the practice conducted
immediately prior to the Effective Date, and will use commercially reasonable efforts not to take any action inconsistent with
this Agreement. Except as contemplated hereby or as may be incidental to or in furtherance of the transactions contemplated hereby
or as may have been set forth herein, the Parties shall use commercially reasonable efforts to maintain the present character
and quality of the respective businesses, including its present operations, physical facilities, working conditions, and relationships
with lessors, licensors, suppliers, clients, customers, joint venture partners, syndication partners, strategic partners and employees.

 

3.4 Costs of Due Diligence.
Each of the Parties shall pay its own costs of counsel, preparing disclosure materials for, and reviewing the contents of, any
documents to be prepared in connection with this Agreement.

 

SECTION 4

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

4.1Representations and Warranties of ALC and AHI. As a material
inducement to BSSD and the BSSD Members to enter into this Agreement, except as disclosed in the disclosure schedules delivered
to BSSD and the BSSD Members by ALC and AHI, ALC and AHI hereby covenant, represent and warrant to BSSD and the BSSD Members that:

 

a. Due Incorporation,
Good Standing and Qualification. Each of ALC and its subsidiary AHI is a corporation duly organized, validly existing, and
in good standing under the laws of the jurisdiction of its incorporation with the requisite corporate power and authority to own,
operate, and lease its properties and to carry on its business as now being conducted. Neither ALC nor AHI is subject to any material
liability by reason of the failure to be duly qualified as a foreign corporation for the transaction of business or to be in good
standing under the laws of any jurisdiction. Schedule 4.1(a) hereto sets forth, as of the date of this Agreement, each
jurisdiction in which each of ALC and AHI qualified to do business.

 

b. Authorization, Approval
and Enforceability. ALC and AHI each have all requisite power and authority to enter into and perform the terms of this Agreement.
ALC and AHI are not subject to any restriction under any corporate charter, operating agreement, partnership agreement, trust agreement,
agreement, instrument, order, judgment, decree, law, statute or regulation, or any other restriction of any kind or character,
which would prevent ALC and AHI, respectively, from entering into this Agreement or consummating the transactions contemplated
hereby in accordance with the terms hereof. This Agreement, when executed and delivered by ALC and AHI will constitute a valid
and binding obligation of ALC and AHI, respectively, enforceable in accordance with its terms, subject to the laws of general application
relating to bankruptcy, insolvency and the relief of debtors, rules of law governing specific performance, injunctive relief and
other equitable remedies, and public policy.

 

c. Capital Stock.
As of the date of this Agreement, ALC has authorized capital stock consisting of 200,000,000 shares of ALC common stock, $0.0001
par value, of which 150,383,643 shares are issued and outstanding. As of such date, 5,449,821 shares of ALC common stock are reserved
for issuance upon the exercise of outstanding ALC stock options and 6,220,343 shares of ALC common stock are reserved for issuance
upon the exercise of outstanding ALC stock warrants. All of the issued and outstanding shares of capital stock of ALC and AHI
have been duly authorized and validly issued and are fully paid and nonassessable and free of preemptive rights. As of the date
of this Agreement, the outstanding shares of ALC common stock are substantially as set forth in Note 10 to the Unaudited Consolidated
Financial Statements for the year ended September 30, 2017.

 

d. Options, Warrants and Rights. Neither ALC nor AHI has any
outstanding options, warrants, or other rights to purchase, convert any obligation into, or otherwise acquire any shares of its
capital stock, other than as set forth in Schedule 4.1(d) hereto.

 

e. Financial Statements.
The Consolidated Balance Sheets of ALC and AHI as of June 30, 2016, and the related Consolidated Statements of Operations, Stockholders’
Equity, and Cash Flows of ALC and AHI for the years ended September 30, 2015 and September 30, 2014, and all related schedules
and notes to the foregoing, have been reviewed (interim reports) or audited (annual reports) by Semple, Marchal & Cooper, LLP,
registered independent public accountants, and the Consolidated Balance Sheets of ALC and AHI as of September 30, 2016 and 2017,
and the related Consolidated Statements of Operations, Stockholders’ Equity, and Cash Flows of ALC and AHI for the three,
six and nine months ended December 31, 2016, March 31, 2017 and June 30, 2017, and all related schedules and notes to the foregoing,
have been prepared by ALC without audit. All of the foregoing financial statements have been prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”), applied on a consistent basis, and fairly present,
in all material respects, the financial position, results of operations, and changes in financial position of ALC and AHI as of
their respective dates and for the periods indicated. Neither ALC nor AHI has any material liabilities, obligations, or commitments
of a type that would be required to be disclosed in a balance sheet prepared in accordance with GAAP, whether related to tax or
non-tax matters, accrued or contingent, due or not yet due, liquidated or unliquidated, or otherwise, except as and to the extent
disclosed or reflected in the Consolidated Balance Sheet of ALC and AHI as of September 30, 2017 (the “ALC Base Balance
Sheet”), or incurred since the date of the ALC Base Balance Sheet in the ordinary course of business.

 

f. Title to Properties.
Each of ALC and AHI has good and marketable title to all of its real and personal assets and properties, including all assets and
properties reflected in the ALC Base Balance Sheet, or acquired subsequent to the date of the ALC Base Balance Sheet, except properties
disposed of subsequent to that date in the ordinary course of business or properties relating to discontinued operations. Such
assets and properties are not subject to any mortgage, pledge, lien, claim, encumbrance, charge, security interest, title retention,
or other security arrangement, except for liens for the payment of federal, state, or other taxes, the payment of which is neither
delinquent nor subject to penalties, and except for other liens and encumbrances incidental to the conduct of the business of ALC
and AHI or the ownership of their assets or properties that were not incurred in connection with the borrowing of money or the
obtaining of advances, and that do not in the aggregate materially detract from the value of the assets or properties of ALC and
AHI taken as a whole or materially impair the use thereof in the operation of their respective businesses, except in each case
as disclosed in the ALC Base Balance Sheet. All leases pursuant to which ALC or AHI leases real or personal property are valid
and effective in accordance with their respective terms. Schedule 4.1(f) hereto sets forth, as of the date hereof,
a list of all mortgages and real and personal property leases used to conduct the business of ALC or AHI.

 

g. Condition of Assets
and Properties. The buildings, equipment, machinery, fixtures, furniture, furnishings, office equipment, and all other tangible
personal assets and properties presently used in, or necessary for the operation of, the business of ALC or AHI, do not require
any repairs other than normal maintenance and are in good operating condition and in a state of reasonable maintenance and repair.

 

h. Licenses and Permits.
Neither ALC nor AHI is subject to any material disability or liability by reason of its failure to possess any license, permit,
franchise, certificate, consent, approval, or authorization. Each of ALC and AHI has all licenses, permits, franchises, certificates,
consents, approvals, and authorizations of whatever kind and type, governmental or private, necessary for the business conducted
by it and the ownership or use of all assets and properties and the premises occupied by it. Schedule 4.1(h) hereto constitutes
a true, correct, and complete list of all licenses, permits, franchises, certificates, consents, approvals, and authorizations
necessary for the conduct of the business of ALC and AHI.

 

i. Intellectual Property.
Each of ALC and AHI owns or holds all of the rights to use all trademarks, trade names, trade secrets, logos, fictitious names,
service marks, slogans, patents, and copyrights that are used in or necessary to the operation of its business. Schedule 4.1(i)
hereto constitutes, as of the date hereof, a true, complete, and correct list of all of the registered intellectual property and
applications therefor owned by or exclusively licensed to ALC or AHI. To the knowledge of ALC and AHI, none of the matters covered
by the intellectual property, nor any of the products or services sold or provided by ALC or AHI, nor any of the processes used
or the business practices followed by ALC or AHI, infringes or has infringed upon any patent, trademark, trademark right, trade
name, trade name right, trade secret, logo, fictitious name, service mark, slogan, or copyright owned by any person or entity (or
any application with respect thereto), or constitutes unfair competition. Neither ALC nor AHI is, and following the Closing neither
ALC nor AHI will be obligated, except as otherwise provided in this Agreement, to pay any royalty or other payment with respect
to any intellectual property. To the knowledge of ALC, no person or entity is producing, providing, selling, or using products
or services that would constitute an infringement of any intellectual property of ALC or AHI.

 

j. Litigation. There
are no actions, suits, proceedings, or other litigation pending or, to the knowledge of ALC, threatened against ALC or AHI, at
law or in equity, or before or by any federal, state, municipal, or other governmental department, commission, board, bureau, agency,
or instrumentality that, if determined adversely to ALC or AHI, would individually or in the aggregate have a material adverse
effect on the business, assets, properties, or operations, or on the condition, financial or otherwise, of ALC and its subsidiaries,
taken as a whole. Neither ALC nor AHI is a party to any decree, order, or arbitration award (or agreement entered into in any administrative,
judicial, or arbitration proceeding with any governmental authority) with respect to or affecting any of its assets or properties
or the use thereof or the conduct of its business. Neither ALC, nor AHI, nor, to ALC’s knowledge, any officer, director,
manager, employee, or agent of ALC or AHI has made any oral or written warranties with respect to the quality or absence of defect
of the products or services sold or performed by ALC or AHI that are in force as of the date hereof. There are no material claims
pending, anticipated, or, to the knowledge of ALC or AHI, threatened against ALC or AHI with respect to the quality of or absence
of defects in such products or services. Neither ALC nor AHI has been required to pay direct, incidental, or consequential damages
to any person or entity in connection with any of such products or services at any time during the one-year period preceding the
date of this Agreement.

 

k. No Violation.
The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate or result
in a breach by ALC or AHI of, or constitute a default under, or conflict with, or cause any acceleration of any obligation with
respect to (i) any provision or restriction of any charter, bylaw, stockholders’ agreement, operating agreement, voting trust,
proxy, or other similar agreement of ALC or AHI or known to ALC or AHI; (ii) any loan agreement, indenture, lease, mortgage, or
lien of ALC or AHI; (iii) any provision or restriction of any lien, lease agreement, contract, or instrument to which ALC or AHI
is a party or by which any of them is bound; or (iv) any order, judgment, award, decree, law, rule, ordinance, or regulation or
any other restriction of any kind or character to which any assets or properties of ALC or AHI is subject or by which ALC or AHI
is bound. Neither the execution and delivery by ALC and AHI of this Agreement or any of the other agreements contemplated hereby,
nor the consummation of the transactions contemplated hereby or thereby, will result in the creation of any lien, claim, right,
charge, encumbrance, or security interest of any nature or type whatsoever with respect to any of the stock, assets, or properties
of either ALC or AHI.

 

l. Taxes. Except
as otherwise set forth on Schedule 4.1(l) hereto, ALC has duly filed in correct form all Tax Returns (as hereinafter defined)
relating to the activities of ALC and AHI required or due to be filed (with regard to applicable extensions) on or prior to the
date hereof. All such Tax Returns are complete and accurate in all material respects, and ALC has paid or made provision for the
payment of all Taxes (as hereinafter defined) that have been incurred or are due or claimed to be due from ALC or AHI by foreign,
federal, state, or local taxing authorities for all periods ending on or before the date hereof, other than Taxes or other charges
that are not delinquent or are being contested in good faith and have not been finally determined and have been disclosed to BSSD
and the BSSD Members. The amounts set up as reserves for Taxes on the books of ALC and AHI are sufficient in the aggregate for
the payment of all unpaid Taxes (including any interest or penalties thereon), whether or not disputed, accrued, or applicable.
To the knowledge of ALC, no claims for Taxes or assessments are being asserted or threatened against ALC or AHI. ALC has furnished
to BSSD and the BSSD Members a copy of all Tax Returns filed for it within the one-year period prior to the date of the Agreement.
For purposes of this Agreement, the term “Taxes” shall mean all taxes, charges, fees, levies, or other assessments,
including, income, gross receipts, excise, property, sales, transfer, license, payroll, franchise, and withholding taxes, imposed
by the United States or any state, local, or foreign government or subdivision or agency thereof, and such term shall include any
interest, penalties, or additions to tax attributable to such assessments or to the failure to file any Tax Return; and the term
“Tax Return” shall mean any report, return, or other information required to be supplied to a taxing authority
or required by a taxing authority to be supplied to any other person.

 

m. Accounts Receivable.
Each account receivable of ALC and AHI has arisen from a bona fide transaction in the ordinary course of business, is valid and
enforceable, and is fully collectible, subject to no known defenses, setoffs, or counterclaims, except to the extent of the reserve
reflected in the books of ALC and AHI or in such other amount that is not material in the aggregate.

 

n. Contracts. Neither
ALC nor AHI is a party to (i) any plan or contract providing for bonuses, pensions, options, stock purchases, deferred compensation,
retirement payments, or profit sharing (other than profit sharing or bonus arrangements with officers and key personnel of subsidiaries);
(ii) any collective bargaining or other contract or agreement with any labor union; (iii) any lease, installment purchase agreement,
or other contract with respect to any real or personal property used or proposed to be used in its operations, except, in each
case, items included within aggregate amounts disclosed in the ALC Base Balance Sheet, (iv) any employment agreement or other similar
arrangement not terminable upon 90 days or less notice without penalty to it; (v) any contract or agreement for the purchase of
any commodity, material, fixed asset, or equipment in excess of $50,000; (vi) any contract or agreement creating an obligation
of $50,000 or more; (vii) any contract or agreement that by its terms does not terminate or is not terminable without penalty to
it within one year after the date hereof; (viii) any loan agreement, indenture, promissory note, conditional sales agreement, or
other similar type of arrangement; (ix) any material license agreement; or (x) any contract that may result in a material
loss or obligation to it. All contracts, agreements, and other arrangements to which ALC or AHI is a party are valid and enforceable
in accordance with their terms; ALC, AHI, and all other parties to each of the foregoing have performed, in all material respects,
all obligations required to be performed to date; neither ALC, nor AHI, nor any such other party is in default or in arrears under
the terms of any of the foregoing; and no condition exists or event has occurred that, with the giving of notice or lapse of time
or both, would constitute a default under any of them.

 

o. Compliance with Law
and Other Regulations. Each of ALC and AHI is in compliance in all material respects with all requirements of foreign, federal,
state, and local law and all requirements of all governmental bodies and agencies having jurisdiction over it, the conduct of its
business, the use of its assets and properties, and all premises occupied by it unless such noncompliance will not have a material
adverse effect on ALC and AHI taken as a whole. Without limiting the foregoing, each of ALC and AHI has properly filed all reports,
paid all monies, and obtained all licenses, permits, certificates, and authorizations needed or required for the conduct of its
business and the use of its assets and properties and the premises occupied by it in connection therewith and is in compliance
in all material respects with all conditions, restrictions, and provisions of all of the foregoing. Neither ALC nor AHI has received
any notice from any foreign, federal, state, or local authority or any insurance or inspection body that any of its assets, properties,
facilities, equipment, or business procedures or practices fails to comply with any applicable law, ordinance, regulation, building,
or zoning law, or requirement of any public authority or body. Neither ALC nor AHI is subject to or has been threatened with any
material fine, penalty, liability, or disability as the result of its failure to comply with any requirement of foreign, federal,
state, or local law or regulation or any requirement of any governmental body or agency having jurisdiction over it, the conduct
of its business, the use of its assets and properties, or any premises occupied by it. Without limiting the foregoing, there is
no environmental contamination, toxic waste, or other discharge, spill, construction component, structural element, or condition
adversely affecting any of the properties owned, leased, or used by ALC or AHI, nor has ALC or AHI received any official notice
or citation that any of its assets or properties in any way contravene any federal, state, or local law or regulation relating
to environmental, health, or safety matters, including any requirements of the Comprehensive Environmental Response, Compensation,
and Liability Act (“CERCLA”) or any Occupational Safety and Health Administration (“OSHA”)
requirements. There has been no (A) storage, treatment, generation, or transportation, or (B) spill, discharge, leak, emission,
injection, escape, dumping, or release of any kind into the environment (including into air, water, or ground water) of any materials
(including industrial, toxic, or hazardous substances or solid, medical, or hazardous waste) by, or on behalf of, ALC or AHI or
from any property owned, leased, or used by ALC or AHI in violation of any applicable foreign, federal, state, or local law, statute,
rule, or regulation or the common law or any decree, order, arbitration award, or agreement with or any license or permit from
any foreign, federal, state, or local governmental authority except as set forth on Schedule 4.1(o).

 

p. Employment Matters.
The employment of each employee of ALC and AHI is terminable at will without cost to ALC or AHI, as the case may be. All officers
and independent contractors of ALC and AHI are paid salaries or other compensation in accordance with the amounts set forth in
Schedule 4.1(p) hereto, and Schedule 4.1(p) correctly and accurately sets forth, as of the date hereof, all
salaries, expenses, and personal benefits paid to or accrued for all directors, officers, managers, stockholders, independent contractors,
agents, or other representatives of ALC and AHI as of the date of this Agreement, all of which are reflected as appropriate in
the ALC Base Balance Sheet.

 

q. No Payments to Directors,
Officers, Stockholders or Others. Since the date of the ALC Base Balance Sheet, there has not been any purchase or redemption
of any shares of ALC Common Stock or any shares of capital stock of AHI or any transfer, distribution, or payment by ALC or its
subsidiaries, directly or indirectly, of any assets or properties to any director, officer, or stockholder, other than the payment
of compensation for services actually rendered at rates not in excess of the rates prevailing on the date of the ALC Base Balance
Sheet.

 

r. No Prohibited Payments.
Neither ALC, nor AHI, nor, to the knowledge of ALC or AHI, any officer, director, employee, independent contractor, or agent, acting
on behalf of ALC or AHI, has at any time (i) made any contributions to any candidate for political office in violation of applicable
law or failed to disclose fully any contributions to any candidate for political office in accordance with any applicable statute,
rule, regulation, or ordinance requiring such disclosure; (ii) made any payment to any local, state, federal, or foreign governmental
officer or official, or other person charged with similar public or quasi-public duties, other than payments required or allowed
by applicable law; (iii) made any payment outside the ordinary course of business to any purchasing or selling agent or person
charged with similar duties of any entity to which ALC or AHI sells products or renders services or from which ALC or AHI buys
products or services for the purpose of influencing such agent or person to buy products or services from or sell products or services
to ALC or AHI; or (iv) engaged in any transaction, maintained any bank account, or used any corporate funds, except for transactions,
bank accounts, and funds that have been and are reflected in the normally maintained books and records of ALC or AHI.

 

s. Governing Documents
and Minute Books. Each of ALC and AHI has previously made available to BSSD and the BSSD Members true and complete copies of
the articles of incorporation and bylaws of each of ALC and AHI as currently in effect. The minute books of ALC and AHI contain
records that are complete and accurate in all material respects of all meetings and other corporate actions held or taken by the
Boards of Directors (or committees of the Boards of Directors) and stockholders of ALC and its subsidiaries, as the case may be,
since their incorporation.

 

t. Insurance. Each
of ALC and AHI maintains in full force and effect insurance coverage on its assets, properties, premises, operations, and personnel
in amounts as are set forth on Schedule 4.1(t) hereto. Each of ALC and AHI has previously made available to BSSD and the
BSSD Members true and complete copies of such policies. Schedule 4.1(t) hereto also sets forth, as of the date hereof, a
list of all insurance claims made by ALC and AHI during the last three years prior to the date hereof.

 

u. OTC Markets Disclosure
Reports. ALC’s report on Form 10-K for the year ended September 30, 2016 and 2017 filed with the OTC Markets Disclosure
System and all subsequent reports filed by ALC thereafter do not contain a misstatement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading as of the time the document was filed.

 

v. No Material Adverse
Change. Since December 31, 2017, there has not been and there is not threatened (i) any material adverse change in the financial
condition, business, properties, assets, or results of operations of ALC and AHI taken as a whole; (ii) any loss or damage (whether
or not covered by insurance) to any of the assets or properties of ALC or AHI that materially affects or impairs the ability of
ALC and AHI to conduct their businesses taken as a whole; (iii) any event or condition of any character that has materially and
adversely affected the business, condition, or prospects (financial or otherwise) of ALC and AHI taken as a whole; or (iv) any
mortgage or pledge of any material amount of the assets or properties of ALC or AHI, or any indebtedness incurred by ALC or AHI,
other than indebtedness, not material in the aggregate, incurred in the ordinary course of business.

 

w. Accuracy of Statements.
Neither any representation or warranty made by ALC or AHI in this Agreement nor any statement, list, certificate, or other information
furnished or to be furnished by or on behalf of ALC or AHI to BSSD and the BSSD Members in connection with this Agreement or any
of the transactions contemplated hereby contains or will contain an untrue statement of a material fact or omits or will omit to
state a material fact necessary to make the statements contained herein or therein, in light of circumstances in which they are
made, not misleading.

 

x. Investment
Representations.

 

(i) As a condition to the
BSSD Members transferring the BSSD Membership Interests to ALC, ALC represents and warrants to the BSSD Members as follows:

 

(1) ALC acknowledges that
it has received all materials related to BSSD that it may desire including information necessary to verify the accuracy of the
information set forth in this Agreement and any other materials furnished herewith and copies of the most recent financial statements
and have answers to all inquiries they may have regarding BSSD its business, operations and finances. ALC has taken all the steps
necessary to evaluate the merits and risks of an investment in the BSSD Membership Interests as proposed hereunder and is relying
on its own business judgment and decisions in entering into this Agreement and consummating the purchase of the BSSD Membership
Interests.

 

(2) ALC is experienced
in evaluating and investing in development stage companies such as BSSD and such knowledge and experience in financial and business
matters to enable it to evaluate the merits and risks of an investment in the BSSD Membership Interests, to make an informed investment
decision with respect thereto, and can afford to bear such risks, including, without limitation, the risks of losing its entire
investment in the BSSD Membership Interests.

 

(3) ALC is acquiring the
BSSD Membership Interests in the Exchange based solely upon its own independent analysis of BSSD's business experience and operations
and historical financial information and acknowledges that no assurances or guarantees can be made.

 

(4) ALC is aware and hereby
acknowledges that with regard to the BSSD Membership Interests, it is acquiring “restricted shares” and “control”
securities as defined under Rule 144 (which governs the resale of “restricted securities” without registration under
the Act and “control” securities from an affiliate in a private sale) and that the BSSD Membership Interests will be
transferred to ALC as “restricted shares”. ALC acknowledges that the BSSD Membership Interests have not been registered
under the Securities Act of 1933 (the “Act”), and the BSSD Membership Interests were originally issued to the
BSSD Members on the basis of the statutory exemption provided by Section 4(a)(2) of the Act, Regulation D promulgated thereunder,
or Rule 144, or any or all, relating to transactions by an issuer not involving any public offering or resales and under similar
exemptions under certain state securities laws, that this transaction has not been reviewed by, passed on or submitted to any Federal
or state agency or self-regulatory organization where an exemption is being relied upon, and that the BSSD Members’ reliance
thereon is based in part upon the representations made by ALC in this Agreement. ALC acknowledges that it has been informed by
BSSD, or is otherwise familiar with, the nature of the limitations imposed by the Act (and applicable state securities laws) and
the rules and regulations thereunder on the transfer of securities. In particular, ALC agrees that no sale, assignment or transfer
of any of the BSSD Membership Interests shall be valid or effective, and BSSD shall not be required to give any effect to such
sale, assignment or transfer, unless (A) such sale, assignment or transfer is registered under the Act (and applicable state securities
laws), it being understood that the BSSD Membership Interests are not currently registered for sale and that neither BSSD nor the
BSSD Members has any obligation or intention to so register the BSSD Membership Interests, except as contemplated hereunder or
(B) the BSSD Membership Interests are sold, assigned or transferred in accordance with all the requirements and limitations of
Rule 144 under the Act, it being understood that Rule 144 is not available at the present time for the sale of the BSSD Membership
Interests, or (iii) such sale, assignment or transfer is otherwise exempt from registration under the Act (and applicable state
securities laws). ALC further understands that an opinion of counsel and other documents may be required to transfer the BSSD Membership
Interests.

 

(5) ALC is acquiring the
BSSD Membership Interests for investment for its own account and not with the view to, or for resale in connection with, any distribution
thereof or the granting of any participation therein, and has no present intention of distributing or selling to others any of
such interest or granting participations therein.

 

(6) ALC acknowledge that
there is no trading market for the BSSD Membership Interests presently and it is uncertain that any active market for the BSSD
Membership Interests will develop in the future, and that ALC may find it impossible to liquidate the investment at a time when
it may be desirable to do so, or at any other time.

 

(7) ALC is not purchasing
the BSSD Membership Interests because of or following any advertisement, article, notice or other communication published in any
newspaper, magazine or internet site or similar media or broadcast over television or radio, or presented at any seminar or meeting.

 

(8) ALC is not relying
on the BSSD Members or BSSD with respect to the tax and other economic considerations of an investment in the BSSD Membership Interests.

 

(9) There are no registration
rights for the BSSD Membership Interests.

 

(10) ALC acknowledges that
the representations, warranties and agreements made by ALC herein shall survive the execution and delivery of this Agreement.

 

(ii) Purchaser Qualifications.
ALC has reviewed, understands and satisfies the eligible purchaser requirements under this Agreement as set forth in Rule 501(a)
of Regulation D promulgated under the Act at the time it was offered the BSSD Membership Interests, and ALC qualifies under Rule
506(b)(2)(ii) in that it has such knowledge and experience in financial and business matters to enable such person to evaluate
the merits and risks of an investment in the BSSD Membership Interests. ALC acknowledges that the BSSD Members have relied on the
representations of ALC to form a reasonable belief that ALC satisfies the eligible purchaser requirements set forth herein.

 

4.2 Covenants,
Representations and Warranties of BSSD and the BSSD Members. As a material inducement to ALC and AHI to enter into this Agreement,
except as disclosed in the disclosure schedules delivered to ALC and AHI by BSSD and the BSSD Members, BSSD and the BSSD Members
hereby covenant, represent and warrant to ALC and AHI that:

 

a. Corporate
Existence and Qualification. BSSD is a limited liability company duly organized, validly existing and in good standing under
the laws of the State of Arizona with authority to do business in the State of Arizona. BSSD has the company power to own, manage,
lease and hold its properties and to carry on its business as and where such properties are presently located and such business
is presently conducted. BSSD is not subject to any material liability by reason of the failure to be duly qualified as a foreign
corporation for the transaction of business or to be in good standing under the laws of any jurisdiction. Schedule 4.2(a)
hereto sets forth, as of the date of this Agreement, each jurisdiction in which BSSD is qualified to do business.

 

b. Authorization,
Approval and Enforceability. Each of BSSD and the BSSD Members has all requisite power and authority to enter into and perform
the terms of this Agreement. BSSD and the BSSD Members are not subject to any restriction under any corporate charter, bylaws,
operating agreement, partnership agreement, trust agreement, agreement, instrument, order, judgment, decree, law, statute or regulation,
or any other restriction of any kind or character, which would result in the breach of, default of, or conflict with, any other
agreement or obligation of BSSD or prevent consummating the transactions contemplated hereby in accordance with the terms hereof.
This Agreement, when executed and delivered by BSSD and the BSSD Members will constitute a valid and binding obligation of BSSD
and the BSSD Members, respectively, enforceable in accordance with its terms, subject to the laws of general application relating
to bankruptcy, insolvency and the relief of debtors, rules of law governing specific performance, injunctive relief and other equitable
remedies, and public policy.

 

c. Capitalization
and Company Records. All Membership Interests and Participation Percentages, Units and rights of BSSD issued and outstanding
are held by the BSSD Members. There are no outstanding subscriptions, options, convertible securities, rights (preemptive or otherwise),
warrants, calls or agreements relating to any Membership Interest, Units or rights in BSSD. BSSD’s books and records made
available to ALC and AHI for review were correct and complete as of the date of such review, no further entries have been made
through the date of this Agreement, and such books and records contain an accurate record of all required Manager and Member actions
of BSSD and the BSSD Members taken by written consent or at a meeting. All company actions taken by BSSD and the BSSD Members,
respectively, have been duly authorized or ratified. All accounts, books, ledgers and official and other records of BSSD and the
BSSD Members, respectively, fairly and accurately reflect all of BSSD’s transactions, properties, assets and liabilities.

 

d. Financial
Statements. The Balance Sheets of BSSD as of ________________, and the related Consolidated Statements of Operations, Stockholders’
Equity, and Cash Flows of BSSD for the years ended _______________, and all related schedules and notes to the foregoing, have
been prepared by BSSD without audit. All of the foregoing financial statements have been prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”), applied on a consistent basis, and fairly present,
in all material respects, the financial position, results of operations, and changes in financial position of BSSD as of their
respective dates and for the periods indicated. BSSD has no material liabilities, obligations, or commitments of a type that would
be required to be disclosed in a balance sheet prepared in accordance with GAAP, whether related to tax or non-tax matters, accrued
or contingent, due or not yet due, liquidated or unliquidated, or otherwise, except as and to the extent disclosed or reflected
in the Balance Sheet of BSSD as of _______________ (the “BSSD Base Balance Sheet”), or incurred since the date
of the BSSD Base Balance Sheet in the ordinary course of business.

 

e. Title to Properties.
BSSD has good and marketable title to all of its real and personal assets and properties, including all assets and properties
reflected in the BSSD Base Balance Sheet, or acquired subsequent to the date of the BSSD Base Balance Sheet, except properties
disposed of subsequent to that date in the ordinary course of business or properties relating to discontinued operations. Such
assets and properties are not subject to any mortgage, pledge, lien, claim, encumbrance, charge, security interest, title retention,
or other security arrangement, except for liens for the payment of federal, state, or other taxes, the payment of which is neither
delinquent nor subject to penalties, and except for other liens and encumbrances incidental to the conduct of the business of
BSSD or the ownership of their assets or properties that were not incurred in connection with the borrowing of money or the obtaining
of advances, and that do not in the aggregate materially detract from the value of the assets or properties of BSSD taken as a
whole or materially impair the use thereof in the operation of its business, except in each case as disclosed in the BSSD Base
Balance Sheet. All leases pursuant to which BSSD leases real or personal property are valid and effective in accordance with their
respective terms. Schedule 4.2(e) hereto sets forth, as of the date hereof, a list of all mortgages and real and personal
property leases used to conduct the business of BSSD.

 

f.Condition of
Assets and Properties. The buildings, equipment, machinery, fixtures, furniture, furnishings, office equipment, and all other
tangible personal assets and properties presently used in, or necessary for the operation of, the business of BSSD, do not require
any repairs other than normal maintenance and are in good operating condition and in a state of reasonable maintenance and repair.

 

g.
Licenses and Permits. BSSD is not subject to any material disability or liability by reason of its failure to possess any
license, permit, franchise, certificate, consent, approval, or authorization. BSSD has all licenses, permits, franchises, certificates,
consents, approvals, and authorizations of whatever kind and type, governmental or private, necessary for the business conducted
by it and the ownership or use of all assets and properties and the premises occupied by it. Schedule 4.2(g) hereto constitutes
a true, correct, and complete list of all licenses, permits, franchises, certificates, consents, approvals, and authorizations
necessary for the conduct of the business of BSSD.

 

h.
Intellectual Property. BSSD owns or holds all of the rights to use all trademarks,
trade names, trade secrets, logos, fictitious names, service marks, slogans, patents, and copyrights that are used in or necessary
to the operation of its business. Schedule 4.2(h) hereto constitutes, as of the date hereof, a true, complete, and
correct list of all of the registered intellectual property and applications therefor owned by or exclusively licensed to BSSD.
To the knowledge of BSSD, none of the matters covered by the intellectual property, nor any of the products or services sold or
provided by BSSD, nor any of the processes used or the business practices followed by BSSD, infringes or has infringed upon any
patent, trademark, trademark right, trade name, trade name right, trade secret, logo, fictitious name, service mark, slogan, or
copyright owned by any person or entity (or any application with respect thereto), or constitutes unfair competition. BSSD is,
and following the Closing BSSD will not be obligated, except as otherwise provided in this Agreement, to pay any royalty or other
payment with respect to any intellectual property. To the knowledge of BSSD, no person or entity is producing, providing, selling,
or using products or services that would constitute an infringement of any intellectual property of BSSD.

j.  Litigation.
There are no actions, suits, proceedings, or other litigation pending or, to the knowledge of BSSD, threatened against BSSD, at
law or in equity, or before or by any federal, state, municipal, or other governmental department, commission, board, bureau, agency,
or instrumentality that, if determined adversely to BSSD, would individually or in the aggregate have a material adverse effect
on the business, assets, properties, or operations, or on the condition, financial or otherwise, of BSSD. BSSD is not a party to
any decree, order, or arbitration award (or agreement entered into in any administrative, judicial, or arbitration proceeding with
any governmental authority) with respect to or affecting any of its assets or properties or the use thereof or the conduct of its
business. Neither BSSD, nor, to BSSD’s or the BSSD Members’ knowledge, any officer, director, manager, employee, or
agent of BSSD has made any oral or written warranties with respect to the quality or absence of defect of the products or services
sold or performed by BSSD that are in force as of the date hereof. There are no material claims pending, anticipated, or, to the
knowledge of BSSD and the BSSD Members, threatened against BSSD with respect to the quality of or absence of defects in such products
or services. BSSD has not been required to pay direct, incidental, or consequential damages to any person or entity in connection
with any of such products or services at any time during the one-year period preceding the date of this Agreement.

 

k. No Violation.
The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate or result
in a breach by BSSD of, or constitute a default under, or conflict with, or cause any acceleration of any obligation with respect
to (i) any provision or restriction of any charter, bylaw, stockholders’ agreement, operating agreement, voting trust, proxy,
or other similar agreement of BSSD or known to BSSD; (ii) any loan agreement, indenture, lease, mortgage, or lien of BSSD; (iii)
any provision or restriction of any lien, lease agreement, contract, or instrument to which BSSD is a party or by which any of
them is bound; or (iv) any order, judgment, award, decree, law, rule, ordinance, or regulation or any other restriction of any
kind or character to which any assets or properties of BSSD is subject or by which BSSD is bound. Neither the execution and delivery
by BSSD of this Agreement or any of the other agreements contemplated hereby, nor the consummation of the transactions contemplated
hereby or thereby, will result in the creation of any lien, claim, right, charge, encumbrance, or security interest of any nature
or type whatsoever with respect to any of the stock, assets, or properties of BSSD.

 

l. Taxes. Except
as otherwise set forth on Schedule 4.2(l) hereto, BSSD has duly filed in correct form all Tax Returns (as hereinafter defined)
relating to the activities of BSSD required or due to be filed (with regard to applicable extensions) on or prior to the date hereof.
All such Tax Returns are complete and accurate in all material respects, and BSSD has paid or made provision for the payment of
all Taxes (as hereinafter defined) that have been incurred or are due or claimed to be due from BSSD by foreign, federal, state,
or local taxing authorities for all periods ending on or before the date hereof, other than Taxes or other charges that are not
delinquent or are being contested in good faith and have not been finally determined and have been disclosed to ALC and AHI. The
amounts set up as reserves for Taxes on the books of BSSD are sufficient in the aggregate for the payment of all unpaid Taxes (including
any interest or penalties thereon), whether or not disputed, accrued, or applicable. To the knowledge of BSSD and the BSSD Members,
no claims for Taxes or assessments are being asserted or threatened against BSSD or the BSSD Members. BSSD has furnished to ALC
and AHI a copy of all Tax Returns filed for it within the one-year period prior to the date of the Agreement. For purposes of this
Agreement, the term “Taxes” shall mean all taxes, charges, fees, levies, or other assessments, including, income,
gross receipts, excise, property, sales, transfer, license, payroll, franchise, and withholding taxes, imposed by the United States
or any state, local, or foreign government or subdivision or agency thereof, and such term shall include any interest, penalties,
or additions to tax attributable to such assessments or to the failure to file any Tax Return; and the term “Tax Return”
shall mean any report, return, or other information required to be supplied to a taxing authority or required by a taxing authority
to be supplied to any other person.

 

m. Accounts Receivable.
Each account receivable of BSSD has arisen from a bona fide transaction in the ordinary course of business, is valid and enforceable,
and is fully collectible, subject to no known defenses, setoffs, or counterclaims, except to the extent of the reserve reflected
in the books of BSSD or in such other amount that is not material in the aggregate.

 

n. Contracts. BSSD
is not a party to (i) any plan or contract providing for bonuses, pensions, options, stock purchases, deferred compensation, retirement
payments, or profit sharing (other than profit sharing or bonus arrangements with officers and key personnel of subsidiaries);
(ii) any collective bargaining or other contract or agreement with any labor union; (iii) any lease, installment purchase agreement,
or other contract with respect to any real or personal property used or proposed to be used in its operations, except, in each
case, items included within aggregate amounts disclosed in the BSSD Base Balance Sheet, (iv) any employment agreement or other
similar arrangement not terminable upon 90 days or less notice without penalty to it; (v) any contract or agreement for the purchase
of any commodity, material, fixed asset, or equipment in excess of $50,000; (vi) any contract or agreement creating an obligation
of $50,000 or more; (vii) any contract or agreement that by its terms does not terminate or is not terminable without penalty to
it within one year after the date hereof; (viii) any loan agreement, indenture, promissory note, conditional sales agreement, or
other similar type of arrangement; (ix) any material license agreement; or (x) any contract that may result in a material
loss or obligation to it. All contracts, agreements, and other arrangements to which BSSD is a party are valid and enforceable
in accordance with their terms; BSSD and all other parties to each of the foregoing have performed, in all material respects, all
obligations required to be performed to date; neither BBBD nor any such other party is in default or in arrears under the terms
of any of the foregoing; and no condition exists or event has occurred that, with the giving of notice or lapse of time or both,
would constitute a default under any of them.

 

o. Compliance with Law
and Other Regulations. BSSD is in compliance in all material respects with all requirements of foreign, federal, state, and
local law and all requirements of all governmental bodies and agencies having jurisdiction over it, the conduct of its business,
the use of its assets and properties, and all premises occupied by it unless such noncompliance will not have a material adverse
effect on BSSD. Without limiting the foregoing, BSSD has properly filed all reports, paid all monies, and obtained all licenses,
permits, certificates, and authorizations needed or required for the conduct of its business and the use of its assets and properties
and the premises occupied by it in connection therewith and is in compliance in all material respects with all conditions, restrictions,
and provisions of all of the foregoing. BSSD has not received any notice from any foreign, federal, state, or local authority or
any insurance or inspection body that any of its assets, properties, facilities, equipment, or business procedures or practices
fails to comply with any applicable law, ordinance, regulation, building, or zoning law, or requirement of any public authority
or body. BSSD is not subject to or has been threatened with any material fine, penalty, liability, or disability as the result
of its failure to comply with any requirement of foreign, federal, state, or local law or regulation or any requirement of any
governmental body or agency having jurisdiction over it, the conduct of its business, the use of its assets and properties, or
any premises occupied by it. Without limiting the foregoing, there is no environmental contamination, toxic waste, or other discharge,
spill, construction component, structural element, or condition adversely affecting any of the properties owned, leased, or used
by BSSD, nor has BSSD received any official notice or citation that any of its assets or properties in any way contravene any federal,
state, or local law or regulation relating to environmental, health, or safety matters, including any requirements of the Comprehensive
Environmental Response, Compensation, and Liability Act (“CERCLA”) or any Occupational Safety and Health Administration
(“OSHA”) requirements. There has been no (A) storage, treatment, generation, or transportation, or (B) spill,
discharge, leak, emission, injection, escape, dumping, or release of any kind into the environment (including into air, water,
or ground water) of any materials (including industrial, toxic, or hazardous substances or solid, medical, or hazardous waste)
by, or on behalf of BSSD or from any property owned, leased, or used by BSSD in violation of any applicable foreign, federal, state,
or local law, statute, rule, or regulation or the common law or any decree, order, arbitration award, or agreement with or any
license or permit from any foreign, federal, state, or local governmental authority except as set forth on Schedule 4.2(o).

 

p. Employment Matters.
The employment of each employee of BSSD is terminable at will without cost to BSSD. All officers and independent contractors of
BSSD are paid salaries or other compensation in accordance with the amounts set forth in Schedule 4.2(p) hereto, and
Schedule 4.2(p) correctly and accurately sets forth, as of the date hereof, all salaries, expenses, and personal benefits
paid to or accrued for all directors, officers, managers, stockholders, independent contractors, agents, or other representatives
of BSSD as of the date of this Agreement, all of which are reflected as appropriate in the BSSD Base Balance Sheet.

 

q. No Payments to Managers,
Members or Others. Since the date of the BSSD Base Balance Sheet, there has not been any purchase or redemption of any Membership
Interests, Participation Percentage, units or rights of BSSD or any transfer, distribution, or payment by BSSD, directly or indirectly,
of any assets or properties to any director, officer, manager or member, other than the payment of compensation for services actually
rendered at rates not in excess of the rates prevailing on the date of the BSSD Base Balance Sheet.

 

r. No Prohibited Payments.
Neither BSSD, nor, to the knowledge of BSSD and the BSSD Members, any manager, officer, member, employee, independent contractor,
or agent, acting on behalf of BSSD, has at any time (i) made any contributions to any candidate for political office in violation
of applicable law or failed to disclose fully any contributions to any candidate for political office in accordance with any applicable
statute, rule, regulation, or ordinance requiring such disclosure; (ii) made any payment to any local, state, federal, or foreign
governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required
or allowed by applicable law; (iii) made any payment outside the ordinary course of business to any purchasing or selling agent
or person charged with similar duties of any entity to which BSSD sells products or renders services or from which BSSD buys products
or services for the purpose of influencing such agent or person to buy products or services from or sell products or services to
BSSD; or (iv) engaged in any transaction, maintained any bank account, or used any corporate funds, except for transactions, bank
accounts, and funds that have been and are reflected in the normally maintained books and records of BSSD.

 

s. Governing Documents
and Minute Books. BSSD has previously made available to ALC and AHI true and complete copies of the articles of organization
and operating agreement of BSSD as currently in effect. The minute book of BSSD contains records that are complete and accurate
in all material respects of all meetings and other corporate actions held or taken by the Board of Managers (or committees of the
Board of Managers), managers and members of BSSD since its organization.

 

t. Insurance. BSSD
maintains in full force and effect insurance coverage on its assets, properties, premises, operations, and personnel in amounts
as are set forth on Schedule 4.2(t) hereto. BSSD has previously made available to ALC and AHI true and complete copies of
such policies. Schedule 4.2(t) hereto also sets forth, as of the date hereof, a list of all insurance claims made by BSSD
during the last three years prior to the date hereof.

 

u. No Material Adverse
Change. Since December 31, 2017, there has not been and there is not threatened (i) any material adverse change in the financial
condition, business, properties, assets, or results of operations of BSSD; (ii) any loss or damage (whether or not covered by insurance)
to any of the assets or properties of BSSD that materially affects or impairs the ability of BSSD to conduct their businesses taken
as a whole; (iii) any event or condition of any character that has materially and adversely affected the business, condition, or
prospects (financial or otherwise) of BSSD; or (iv) any mortgage or pledge of any material amount of the assets or properties of
BSSD, or any indebtedness incurred by BSSD, other than indebtedness, not material in the aggregate, incurred in the ordinary course
of business.

 

v. Accuracy of
Statements. Neither any representation or warranty made by BSSD and the BSSD Members in this Agreement nor any statement, list,
certificate, or other information furnished or to be furnished by or on behalf of BSSD, the BSSD Members to ALC or AHI in connection
with this Agreement or any of the transactions contemplated hereby contains or will contain an untrue statement of a material fact
or omits or will omit to state a material fact necessary to make the statements contained herein or therein, in light of circumstances
in which they are made, not misleading.

 

w. Investment
Representations.

 

(i) As a condition to ALC
issuing the ALC Shares to the BSSD Members, the BSSD Members represent and warrant to ALC as follows:

 

(1) the BSSD Members hereby
acknowledge that each has received all materials related to ALC and AHI that each may desire including information necessary to
verify the accuracy of the information set forth in this Agreement and any other materials furnished herewith and copies of the
most recent financial statements and have answers to all inquiries they may have regarding ALC and AHI and their businesses, operations
and finances. The BSSD Members have taken all the steps necessary to evaluate the merits and risks of an investment as proposed
hereunder and are relying on their own business judgment and decisions in entering into this Agreement and consummating the exchange
for the ALC Shares.

 

(2) each of the BSSD Members
are experienced in evaluating and investing in companies such as ALC that develop, manufacture and distribute breathing technology
solutions and products based upon filtered and non-filtered nasal dilator breathing devices and such knowledge and experience in
financial and business matters to enable them individually to evaluate the merits and risks of an investment in the ALC Shares,
to make an informed investment decision with respect thereto, and can afford to bear such risks, including, without limitation,
the risks of losing their entire investment in the ALC Shares.

 

(3) the BSSD Members are
accredited investors in that each of the equity owners of BSSD is an accredited investor as that term is defined in Rule 501 of
Regulation D promulgated under the Securities Act of 1933 (the “Act”) or otherwise either alone or with
his purchaser representative has such knowledge and experience in financial and business matters that he is capable of evaluating
the merits and risks of an investment in the ALC Shares and can acquire the ALC Shares pursuant to this Agreement without registration
under the Act by virtue of the exemption provided by Section 4(a)(2) of the Act. Each of the BSSD Members shall provide to ALC
investor representations letter regarding accredited investor status or other customary representations, warranties and assurances
that establish a reasonable basis to believe that such BSSD Member satisfies the criteria set forth above for a private placement
of securities.

 

(4) the BSSD Members hereby
acknowledge that with regard to the ALC Shares, each is acquiring “restricted shares” as defined under Rule 144 (which
governs the resale of “restricted securities” without registration under the Act) and that the ALC Shares will be issued
to the BSSD Members as “restricted shares”. The BSSD Members acknowledge that the ALC Shares have not been registered
under the Act, and are being issued on the basis of the statutory exemption provided by Section 4(a)(2) of the Act, Regulation
D promulgated thereunder, or any or all, relating to transactions by an issuer not involving any public offering and under similar
exemptions under applicable state securities laws, that this transaction has not been reviewed by, passed on or submitted to any
Federal or state agency or self-regulatory organization where an exemption is being relied upon, and that ALC’s reliance
thereon is based in part upon the representations made by the BSSD Members in this Agreement. The BSSD Members acknowledge that
each has been informed by ALC, or is otherwise familiar with, the nature of the limitations imposed by the Act (and applicable
state securities laws) and the rules and regulations thereunder on the transfer of securities. In particular, the BSSD Members
agree that no sale, assignment or transfer of any of the ALC Shares shall be valid or effective, and ALC shall not be required
to give any effect to such sale, assignment or transfer, unless (A) such sale, assignment or transfer is registered under the Act
(and applicable state securities laws), it being understood that the ALC Shares are not currently registered for sale and that
ALC has no obligation or intention to so register the ALC Shares, except as contemplated hereunder or (B) the ALC Shares are sold,
assigned or transferred in accordance with all the requirements and limitations of Rule 144 under the Act, it being understood
that Rule 144 is not available at the present time for the sale of the ALC Shares, or (iii) such sale, assignment or transfer is
otherwise exempt from the registration under the Act (and applicable state securities laws). The BSSD Members further understand
that an opinion of counsel and other documents may be required to transfer the ALC Shares.

 

(5) Each of the BSSD Members
is acquiring the ALC Shares for investment for his or its own account and not with the view to, or for resale in connection with,
any distribution thereof or the granting of any participation therein, and has no present intention of distributing or selling
to others any of such interest or granting participations therein.

 

(6) the BSSD Members acknowledge
that there is a limited and illiquid trading market for the ALC Shares presently and it is uncertain that any more active or liquid
market for the ALC Shares will develop in the future, and that the BSSD Members may find it impossible to liquidate the investment
at a time when it may be desirable to do so, or at any other time.

 

(7) the BSSD Members are
not acquiring the ALC Shares because of or following any advertisement, article, notice or other communication published in any
newspaper, magazine or internet site or similar media or broadcast over television or radio, or presented at any seminar or meeting.

 

(8) the BSSD Members are
entering into this Agreement and exchange for the ALC Shares based solely upon their own independent analysis, respectively, of
ALC's business experience and operations and historical financial information and acknowledges that no assurances or guarantees
can be made regarding such information. The BSSD Members are not relying on ALC with respect to the tax and other economic considerations
of an investment in the ALC Shares.

 

(9) There are no registration
rights for the ALC Shares.

 

(10) The issuances of the
BSSD Membership Interests to the BSSD Members have not been made in violation of any federal or state securities laws and were
issued the BSSD Membership Interests only after disclosure of all material facts regarding BSSD, the business, properties and financial
condition of BSSD to all equity owners so that each such equity owner meets all of the qualifications and requirements for such
issuances.

 

(11) the BSSD Members acknowledge
that the representations, warranties and agreements made by the BSSD Members herein shall survive the execution and delivery of
this Agreement.

 

(ii) Purchaser Qualifications.
The BSSD Members have reviewed, understand and satisfy the eligible purchaser requirements under this Agreement as set forth in
Rule 501(a) of Regulation D promulgated under the Act in that at the time each such person was offered the ALC Shares, and each
of the BSSD Members qualifies under Rule 506(b)(2)(ii) in that each such person has such knowledge and experience in financial
and business matters to enable such person to evaluate the merits and risks of an investment in the ALC Shares. The BSSD Members
each acknowledge that ALC has relied on the representations of the BSSD Members to form a reasonable belief that the BSSD Members
each satisfy the eligible purchaser requirements set forth herein.

 

 4.3Duration of Covenants, Representations
and Warranties. The Parties hereby represent to each other that all of the representations, warranties and covenants contained
in this Agreement and in any documents, certificates or other instruments delivered by or on behalf of the Parties are true now,
will be true at the Closing and shall survive the Closing.

 

SECTION 5

CONDITIONS TO OBLIGATIONS OF THE PARTIES

 

5.1 Conditions
to Obligations of BSSD and the BSSD Members. The obligations of BSSD and the BSSD Members to consummate the transactions contemplated
hereby and to take the other actions required to be taken by BSSD and the BSSD Members at the Closing, respectively, shall not
be independent of each other and are subject, at the option of BSSD and the BSSD Members, to the satisfaction or waiver of the
following conditions:

a.
All representations and warranties of ALC and AHI contained in this Agreement shall be true
and correct in all material respects at and as of the Closing, and ALC and AHI shall have performed and satisfied in all material
respects all covenants and agreements required by this Agreement to be performed and satisfied by ALC and AHI at or prior to the
Closing.

b.
As of the Closing Date, no suit, action or other proceeding (excluding any such matter initiated
by or on behalf of BSSD or the BSSD Members) shall be pending or threatened before any governmental authority seeking to restrain
ALC or AHI or prohibit the Closing or seeking damages against ALC or AHI as a result of the consummation of this Agreement.

c.
All proceedings to be taken by ALC and AHI in connection with the transactions contemplated
hereby and all documents incident thereto, including deliveries by ALC and AHI at the Closing under Section 2.1, shall be satisfactory
in form and substance to BSSD and the BSSD Members, and BSSD and the BSSD Members shall have received all such counterpart originals
or certified or other copies of such documents as it or they may reasonably request.

d.
No proceeding in which BSSD or the BSSD Members shall be a debtor, defendant or party seeking
an order for its own relief or reorganization shall have been brought or be pending by or against BSSD or any of the BSSD Members
under any United States or state bankruptcy or insolvency law.

5.2 Conditions
to Obligations of ALC and AHI . The obligations of ALC and AHI to consummate the transactions contemplated hereby and to take
the other actions required to be taken by ALC and AHI at the Closing are subject, at the option of ALC and AHI, to the satisfaction
or waiver of the following conditions:

 

a.  All
representations and warranties of BSSD and the BSSD Members contained in this Agreement shall be true and correct in all material
respects at and as of the Closing, and BSSD and the BSSD Members each shall have performed and satisfied in all material respects
all agreements and covenants required by this Agreement to be performed and satisfied by them at or prior to the Closing.

 

b. As
of the Closing Date, no suit, action or other proceeding (excluding any such matter initiated by or on behalf of ALC or AHI) shall
be pending or threatened before any court or governmental agency seeking to restrain BSSD or any of the BSSD Members or prohibit
the Closing or seeking damages against BSSD or any of the BSSD Members or its properties as a result of the consummation of this
Agreement.

 

c. All proceedings to
be taken by BSSD and the BSSD Members in connection with the transactions contemplated hereby and all documents incident thereto,
including deliveries by BSSD and the BSSD Members at the Closing under Section 2.1, shall be satisfactory in form and substance
to ALC and AHI, and ALC and AHI shall have received all such counterpart originals or certified or other copies of such documents
as it or they may reasonably request.

 

e. No proceeding in which ALC or AHI, respectively, shall be a debtor, defendant or party
seeking an order for its own relief or reorganization shall have been brought or be pending by or against ALC or AHI, respectively,
under any United States or state bankruptcy or insolvency law.

 

SECTION 6

INDEMNIFICATION; REMEDIES; DISPUTE RESOLUTION

  

6.1 Survival.
All representations, warranties, covenants, and obligations in this Agreement shall expire on the second (2nd) anniversary of the
Closing Date of this Agreement (the "Survival Period"). The right to indemnification, payment of Damages or other
remedy based on such representations, warranties, covenants, and obligations will not be affected by any investigation conducted
with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and
delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty,
covenant, or obligation. The waiver of any condition based on the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, will not affect the right to indemnification, payment of Damages, or other remedy
based on such representations, warranties, covenants, and obligations.

 

6.2 Indemnification
by ALC and AHI. From and after the date of this Agreement until the expiration of the Survival Period, ALC and AHI shall indemnify
and hold harmless BSSD and the BSSD Members (“the BSSD Indemnified Party”), from and against any Damages arising,
directly or indirectly, from or in connection with:

 

a.
any misrepresentation or breach of warranty made by ALC or AHI in this Agreement or in any
certificate delivered by ALC or AHI pursuant to this Agreement; or

 

b.
 any breach by ALC or AHI of any covenant or obligation of ALC or AHI in this Agreement required
to be performed by ALC or AHI on or prior to the Closing Date. 

 

6.3 Indemnification
by BSSD and the BSSD Members. From and after the date of this Agreement until the expiration of the Survival Period, BSSD and
the BSSD Members shall indemnify and hold harmless ALC and AHI their respective officers, directors, employees and authorized agents
(the “ALC Indemnified Parties”), from and against any Damages arising, directly or indirectly, from or in connection
with:

 

a. any
misrepresentation or breach of warranty made by BSSD or any of the BSSD Members in this Agreement or in any certificate delivered
by BSSD or the BSSD Members pursuant to this Agreement; or

 

b. any
breach by BSSD or any of the BSSD Members of any covenant or obligation of BSSD or any of the BSSD Members in this Agreement required
to be performed by BSSD or any of the BSSD Members on or prior to the Closing Date.

 

6.4 Limitations
on Liability. No BSSD Indemnified Party or ALC Indemnified Party shall be entitled to indemnification pursuant to Section
6.2 or 6.3, respectively, unless and until the aggregate amount of Damages to all ALC Indemnified Parties or the BSSD Indemnified
Party, respectively, with respect to matters under Section 6.5 exceeds $5,000 at which time, ALC Indemnified Parties or
the BSSD Indemnified Party, respectively, shall be entitled to indemnification for the total amount of such Damages in excess of
$0. In such case the indemnifying Party must receive written notice from the other Party of such claim for indemnification prior
to the expiration of the Survival Period.

 

6.5 Determining
Damages. Materiality qualifications to the representations and warranties of ALC and AHI or BSSD and the BSSD Members shall
not be taken into account in determining the amount of Damages occasioned by a breach of any such representation and warranty for
purposes of determining whether the aggregate damage threshold set forth in Section 6.4 has been met.

 

6.6 Dispute
Resolution. Pursuant to A.R.S. Section 12-1518, for any claim or controversy related
to or arising out of this Agreement after the Closing, the Parties agree to mediation followed by arbitration to be held in Phoenix,
Arizona in accordance with rules of the American Arbitration Association (“AAA”). In the event the Parties must
resolve a claim or controversy by arbitration, then such arbitration proceeding shall be before a panel of one (1) arbitrator mutually
agreeable to the Parties under the then current commercial rules of the AAA. If the Parties cannot agree on an arbitrator within
sixty (60) days after a demand for arbitration has been requested in writing by either of them, then arbitration shall proceed
before a single arbitrator appointed by the AAA under its then current commercial rules. Such arbitrator shall have experience
or knowledge in the field of consumer products and related services and shall be a lawyer who has participated previously in arbitration
or dispute resolution proceedings but who has not previously represented any of the Parties. Any arbitration shall consist of not
more than three (3) days of hearings all of which shall occur within sixty (60) days after the arbitrator has been selected. Either
Party may seek injunctive relief (temporary, preliminary and/or permanent) in a court of law for any breach by either Party of
the other's proprietary rights or breach of a Party's non-disclosure obligations as set forth herein. The arbitrator shall have
no right to award punitive damages or any equitable relief of any kind. Either Party, before or during any arbitration, may apply
to a court having jurisdiction for a temporary restraining order or preliminary injunction where such relief is necessary to protect
its interests pending completion of the arbitration proceeding. Neither the Parties nor the arbitrators may disclose the existence
or results of any arbitration hereunder without prior written consent of all Parties. No arbitration proceeding or legal action,
regardless of its form, relating to or arising out of this Agreement may be commenced by any Party after the expiration of the
Survival Period.

 

SECTION 7

GENERAL PROVISIONS

 

7.1 Risk
of Loss. Risk of loss to the BSSD Membership Interests prior to the Closing shall remain on the BSSD Members. Risk of loss
to the ALC Shares prior to the Closing shall remain on ALC.

 

7.2 Counsel.
It is stipulated, agreed and understood that the Parties hereto have mutually agreed and consented to the terms of this Agreement
(including the forms of documents set forth in the exhibits). The Parties have been advised and have chosen to be represented by
separate legal, financial and tax counsel of their choice and have been given ample time and opportunity to obtain such counsel
and review this Agreement and the related transactions with such counsel at their own leisure. Jeffrey R. Perry and Jeffrey R.
Perry Law Firm, P.C. have represented only ALC and AHI and have provided no representation, advice or counsel to BSSD, and the
BSSD Members or any other party. ALC and AHI have interests that are opposed to those interests of BSSD and the BSSD Members. In
the event that BSSD and the BSSD Members have not engaged counsel to advise them regarding this Agreement and the related transactions,
it has been recommended to each such party to obtain counsel.

 

7.3 Final
Agreement. This Agreement constitutes the final and complete agreement between the Parties concerning the subject matter of
this Agreement. This Agreement supersedes all prior agreements, understandings, negotiations and discussions, written or oral,
between the Parties with respect thereto. Any modification, revision or amendment of this Agreement shall not be effective unless
made in writing and executed by the Parties.

 

7.4 Language
and Construction. This Agreement has been negotiated by the Parties. The language used in this Agreement shall be deemed to
be the language chosen by the Parties to express their mutual intent and will be interpreted fairly in accordance with its terms
without any strict construction in favor of or against either Party. The captions are for convenience only and shall not control
or affect the meaning or construction of the provisions of this Agreement.

 

7.5 Severability.
In case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this
Agreement shall be construed as if the invalid, illegal or unenforceable provisions(s) had never been contained herein; provided
that such invalid, illegal or unenforceable provisions shall first be curtailed, limited or eliminated to the extent necessary
to remove such invalidity, illegality or unenforceability with respect to the applicable law as it shall then be applied.

 

7.6 Waiver.
Except as expressly set forth herein, any waiver of, or promise not to enforce, any right under this Agreement shall not be enforceable
unless evidenced in writing and signed by the Party against whom enforcement of the waiver is sought. Waiver by a Party of any
breach by the other Party shall not operate or be construed as a waiver of any subsequent breach by such Party.

 

7.7 Headings.
The headings in this Agreement are for the purpose of convenience only and shall not limit, enlarge or affect any of the covenants,
terms, conditions or provisions of this Agreement.

 

7.8 Effect
of Recitals. The recitals contained in this Agreement are an integral part of this Agreement.

 

7.9 Notices.
All notices, requests, demands and other communications made pursuant to this Agreement shall be in writing and shall be sent by
registered or certified mail, return receipt requested, or by commercial courier or by facsimile transmission to the Parties at
the addresses or numbers set forth below, or to such other person and place as the Party shall designate by notice to the other
Party:

 

BSSD:

BSSD Group, LLC

2033 N. Overfield Road

Casa Grande, AZ 85194

 

 

Three Kings Holdings, LLC

5702 N. 18th
Place

Phoenix, AZ 85016

 

Seventy-Six Spirits, LLC

854 W. Highway 287

Casa Grande, AZ 85194

 

ALC and AHI:

Airware Labs Corp./Airware
Holdings, Inc.

7600 E. Redfield Road

Suite 100

Scottsdale, AZ
85258

 

7.10 Assignments.
Except as expressly otherwise provided herein, no Party may assign this Agreement or delegate any obligations under this Agreement
without obtaining the written consent of each of the other Parties.

 

7.11 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

 

7.12 Governing
Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Arizona without
regard to principles of conflicts of law.

 

7.13 Attorneys’
Fees. In the event of any proceeding to enforce this Agreement, the prevailing Party shall be entitled to receive from the
losing Party all reasonable costs and expenses, including the reasonable fees of attorneys, accountants and other experts, incurred
by the prevailing Party in investigating and prosecuting (or defending) such action, in arbitration, at trial or upon any appeal.

 

7.14 A
Party’s Default. If all contingencies herein are satisfied and thereafter any Party fails to close this Agreement and
to complete the Exchange as herein provided, within five (5) days following a written demand to so, any other Party may enforce
this Agreement by a suit for specific performance, by an action for damages, or any other action available at law or in equity
for the recovery of any other relief available to such Party.

 

7.15  Further
Assurances. The Parties will make, execute and deliver any and all such further resolutions, instruments and assurances as
may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement and for the
better assuring and confirming benefits provided herein.

 

7.16 Time
is of the Essence. The Parties acknowledge that time is of the essence.

 

[SIGNATURES ON THE FOLLOWING PAGES]

 

    	 

    	 

    

 

 

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

 

	BSSD:	TKH:
	 	 
	BSSD Group, LLC	Three Kings Holdings, LLC 
	 	 
	 	 
	By: _______________________	By: _______________________
	 	 
	Name: _____________________	Name: ____________________
	 	 
	Title: ______________________	Title: _____________________
	 	 
	Bryce Skalla	SSS:
	 	 
	 	Seventy Six Spirits, LLC
	 	 
	 	 
	 	 
	By: ______________________	By: ______________________
	 	 
	Name: Bryce Skalla	Name: ____________________
	 	 
	 	Title: _____________________
	 	 
	 	 
	Mark Murro III	Patrick Sean Dugan
	 	 
	 	 
	 	 
	 	 
	By: ______________________	By: ______________________
	 	 
	Name: Mark Murro III 	Name: Patrick Sean Dugan
	 	 
	 	 
	Andrew Poirier	Carlos Curiel
	 	 
	 	 
	 	 
	By: ______________________	By: ______________________
	 	 
	Name: Andrew Poirier 	Name: Carlos Curiel
	 	 
	 	 
	ALC:	AHI:
	 	 
	Airware Labs Corp.	Airware Holdings, Inc.
	 	 
	 	 
	 	 
	 	 
	By: _______________________	By: _______________________
	 	 
	Name: _____________________	Name: ____________________
	 	 
	Title: ______________________	Title: _____________________

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