Document:

Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
AGREEMENT dated as of the 16th day of December 2014 (the “Agreement”) between TANGIERS INVESTMENT GROUP,
LLC, a Delaware limited liability company (the “Investor”), and STRAGENICS, INC., a Florida corporation
organized and existing under the laws of the State of Florida (the “Company”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the
Investor, as provided herein, and the Investor shall purchase from the Company up to Five Million Dollars ($5,000,000) of the
Company’s common stock, $.0001 par value per share (the “Common Stock”); and

 

WHEREAS,
such investments will be made in reliance upon the provisions of Regulation D (“Regulation D”) of the Securities
Act of 1933, as amended, and the regulations promulgated thereunder (the “Securities Act”), and or upon such
other exemption from the registration requirements of the Securities Act as may be available with respect to any or all of the
investments to be made hereunder.

  

NOW,
THEREFORE, the parties hereto agree as follows:

  

ARTICLE
I.

Certain
Definitions

 

Section
1.1. “Advance” shall mean the portion of the Commitment Amount requested by the Company in the Advance
Notice.

 

Section
1.2. “Advance Date” shall mean the first (1st) Trading Day after expiration of the applicable
Pricing Period for each Advance.

 

Section
1.3. “Advance Notice” shall mean a written notice in the form of Exhibit A attached hereto to the
Investor executed by an officer of the Company and setting forth the Advance amount that the Company requests from the Investor.

 

Section
1.4. “Advance Notice Date” shall mean each date the Company delivers (in accordance with Section 2.2(b)
of this Agreement) to the Investor an Advance Notice requiring the Investor to advance funds to the Company, subject to the terms
of this Agreement. No Advance Notice Date shall be less than ten (10) Trading Days after the prior Advance Notice Date.

 

Section
1.5. “Bid Price” shall mean, on any date, the closing bid price (as reported by Bloomberg L.P.) of the
Common Stock on the Principal Market or if the Common Stock is not traded on a Principal Market, the highest reported bid price
for the Common Stock, as furnished by the Financial Industry Regulatory Authority. 

 

Section
1.6. “Closing” shall mean one of the closings of a purchase and sale of Common Stock pursuant to Section
2.3.

 

Section
1.7. “Commitment Amount” shall mean the aggregate amount of up to Five Million Dollars ($5,000,000) that
the Investor has agreed to provide to the Company in order to purchase the Company’s Common Stock pursuant to the terms
and conditions of this Agreement.

 

Section
1.8. “Commitment Fee Tranche” shall mean the issue of restricted Company Common Stock to the Purchaser
in defined increments or “Tranches”. The increments thereof and the number of restricted shares to be issued shall
be determined based on the division of the Commitment Amount by the Formula Price as defined in Section 12.4.

 

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Section
1.9. “Commitment Period” shall mean the period commencing on the Effective Date, and expiring on the earliest
to occur of (x) the date on which the Investor shall have made payment of Advances pursuant to this Agreement in the aggregate
amount of the Commitment Amount, (y) the date this Agreement is terminated pursuant to Section 10.2 or (z) the date occurring
thirty-six (36) months after the Effective Date or forty-eight (48) months after the Effective Date if thirty-six (36) months
after the Effective Date the Company files either an amendment to the then effective registration statement or a new registration
statement is declared effective.

 

Section
1.10. “Common Stock” shall mean the Company’s common stock, $.0001 par value per share whether issued
to the Investor directly or underlying warrants issued to the Investor.

 

Section
1.11. “Condition Satisfaction Date” shall have the meaning set forth in Section 7.2.

 

Section
1.12. “Damages” shall mean any loss, claim, damage, liability, costs and expenses (including, without
limitation, reasonable attorney’s fees and disbursements and costs and expenses of expert witnesses and investigation).

 

Section
1.13. “Effective Date” shall mean the date on which the SEC first declares effective a Registration Statement
registering the resale of the Registrable Securities as set forth in Section 7.2(a).

 

Section
1.14. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

Section1.15.“Formula
Price” shall mean the average of the VWAPs of the Company’s Common Stock during the five (5) business days immediately
preceding the date on which a Commitment Fee Tranche is due to be issued.

 

Section
1.16. “Material Adverse Effect” shall mean any condition, circumstance, or situation that would prohibit
or otherwise materially interfere with the ability of the Company to enter into and perform any of its obligations under this
Agreement or the Registration Rights Agreement in any material respect.

 

Section
1.17. “Market Price” shall mean the lowest trading price of the Common Stock during the Pricing Period.

 

Section
1.18. “Maximum Advance Amount” The maximum dollar amount of each Advance will be equal to the average
daily trading volume in dollar amount during the ten (10) trading days preceding the Advance Date. No Advance will be made in
an amount lower than the Minimum Advance Amount (defined below) or higher than One Hundred Thousand Dollars ($100,000).

 

Section
1.19. “Minimum Advance Amount” shall be Five Thousand Dollars ($5,000) per Advance Notice.

 

Section
1.20. “FINRA” shall mean the Financial Industry Regulatory Authority.

 

Section
1.21. “Person” shall mean an individual, a corporation, a partnership, an association, a trust or other
entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

Section
1.22. “Pricing Period” shall mean the five (5) consecutive Trading Days including and immediately following
the day the Advance Notice is delivered to Purchaser subject to the terms and conditions provided herein.

 

 Section
1.23. “Principal Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq
Capital Market, the NYSE MKT LLC, the OTC Bulletin Board, the OTC Markets (as “OTCQB”) or the New York Stock Exchange,
or whichever is at the time the principal trading exchange or market for the Common Stock.

 

Section
1.24. “Purchase Price” shall be set at eighty percent (80%) of the Market Price during the Pricing Period.
If the Company is not Deposit/Withdrawal at Custodian (“DWAC”) eligible, an additional five percent (5%) will be added
to the discount of the Market Price during the Pricing Period. If the Company falls under a DTC “chill” order, an
additional ten percent (10%) will be added to the discount of the Market Price during the Pricing Period

 

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Section
1.25. “Registrable Securities” shall mean the shares of Common Stock to be issued hereunder and
underlying any warrants that may be issued by the Company to the Investor from time to time pursuant to this Agreement; (i)
in respect of which the Registration Statement has not been declared effective by the SEC, (ii) which have not been sold and are
not eligible for sale under circumstances meeting all of the applicable conditions of Rule 144 (or any similar provision then
in force) under the Securities Act (“Rule 144”) or (iii) which have not been otherwise transferred to a holder
who may trade such shares without restriction under the Securities Act, and the Company has delivered a new certificate or other
evidence of ownership for such securities not bearing a restrictive legend.

 

Section
1.26. “Registration Rights Agreement” shall mean the Registration Rights Agreement dated the date hereof,
regarding the filing of the Registration Statement for the resale of the Registrable Securities, entered into between the Company
and the Investor.

 

Section
1.27. “Registration Statement” shall mean a registration statement on Form S-1 (if use of such form is
then available to the Company pursuant to the rules of the SEC and, if not, on such other form promulgated by the SEC for which
the Company then qualifies and which counsel for the Company shall deem appropriate, and which form shall be available for the
resale of the Registrable Securities to be registered thereunder in accordance with the provisions of this Agreement and the Registration
Rights Agreement, and in accordance with the intended method of distribution of such securities), for the registration of the
resale by the Investor of the Registrable Securities under the Securities Act.

 

Section
1.28. “Regulation D” shall have the meaning set forth in the recitals of this Agreement.

 

Section
1.29. “SEC” shall mean the United States Securities and Exchange Commission.

 

Section
1.30. “Securities Act” shall have the meaning set forth in the recitals of this Agreement.

 

Section
1.31. “SEC Documents” shall mean Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and Proxy Statements of the Company as supplemented to the date hereof, filed by the Company for a period
of at least twelve (12) months immediately preceding the date hereof or the Advance Date, as the case may be, until such time
as the Company no longer has an obligation to maintain the effectiveness of a Registration Statement as set forth in the Registration
Rights Agreement.

 

Section
1.32. “Trading Day” shall mean any day during which the Principal Market shall be open for business.

 

Section
1.33. “VWAP” shall mean the volume weighted average price of the Company’s Common Stock as quoted
by Bloomberg, LP.

 

ARTICLE
II. 

Advances

 

Section
2.1. Advances.

 

Subject
to the terms and conditions of this Agreement (including, without limitation, the provisions of Article VII hereof), the Company,
at its sole and exclusive option, may issue and sell to the Investor, and the Investor shall purchase from the Company, shares
of the Company’s Common Stock by the delivery, in the Company’s sole discretion, of Advance Notices. The number of
shares of Common Stock that the Investor shall purchase pursuant to each Advance shall be determined by dividing the amount of
the Advance by the Purchase Price. No fractional shares shall be issued. Fractional shares shall be rounded to the next higher
whole number of shares. The aggregate maximum amount of all Advances that the Investor shall be obligated to make under this Agreement
shall not exceed the Commitment Amount.

 

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Section
2.2. Mechanics.

 

(a) Advance
Notice. At any time during the Commitment Period, the Company may require the Investor to purchase shares of Common Stock
by delivering an Advance Notice to the Investor, subject to the conditions set forth in Section 7.2; provided, however, the
amount for each Advance as designated by the Company in the applicable Advance Notice shall not be less than the Minimum Advance
Amount, nor more than the Maximum Advance Amount and the aggregate amount of the Advances pursuant to this Agreement shall not
exceed the Commitment Amount. The Company acknowledges that the Investor may sell shares of the Company’s Common Stock corresponding
with a particular Advance Notice after the Advance Notice is received by the Investor. There shall be a minimum of ten (10) Trading
Days between each Advance Notice Date.

 

(b) Date
of Delivery of Advance Notice. An Advance Notice shall be deemed delivered on (i) the Trading Day it is received by facsimile
or e-mail or otherwise by the Investor if such notice is received prior to 5:00 pm Eastern Time, or (ii) the immediately succeeding
Trading Day if it is received by facsimile or e-mail or otherwise after 5:00 pm Eastern Time on a Trading Day or at any time on
a day which is not a Trading Day. No Advance Notice may be deemed delivered on a day that is not a Trading Day.

 

Section
2.3. Closings. On each Advance Date (i) the Company shall deliver to the Investor such number of shares of the Common
Stock registered in the name of the Investor as shall equal (x) the amount of the Advance specified in such Advance Notice pursuant
to Section 2.1 herein, divided by (y) the Purchase Price and (ii) upon receipt of such shares, the Investor shall deliver to the
Company the amount of the Advance specified in the Advance Notice by wire transfer of immediately available funds. Provided, however,
that if the Company is not DWAC eligible, then the Investor shall be allowed to deliver the amount of any Advance specified in
the Advance Notice within three (3) to five (5) business days after the Pricing Period. The parties understand that the Company’s
DWAC eligibility will not affect their ability to obtain Advances under this Agreement, but may extend the timing of an Advance
Date. In addition, on or prior to the Advance Date, each of the Company and the Investor shall deliver to the other all documents,
instruments and writings required to be delivered by either of them pursuant to this Agreement in order to implement and effect
the transactions contemplated herein. [note – commitment fee is paid in stock on a schedule]

 

	 	(a)	Company’s
    Obligations Upon Closing.

 

On
each Advance Date:

 

(i) The
Company shall deliver to the Investor the shares of Common Stock applicable to the Advance in accordance with Section 2.3. The
certificates evidencing such shares shall be free of restrictive legends, provided such shares are registered pursuant to an effective
registration statement.

 

(ii) the
Company’s Registration Statement with respect to the resale of the shares of Common Stock delivered in connection with the
Advance shall have been declared effective by the SEC;

 

(iii) the
Company shall have obtained all material permits and qualifications required by any applicable state for the offer and sale of
the Registrable Securities, or shall have the availability of exemptions therefrom. The sale and issuance of the Registrable Securities
shall be legally permitted by all laws and regulations to which the Company is subject;

 

(iv) the
Company shall have filed with the SEC in a timely manner all reports, notices and other documents required of a “reporting
company” under the Exchange Act and applicable Commission regulations; and

 

(v) the
Commitment Fee as set forth in Section 12.4, to the extent due, shall have been paid. .

  

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(b) Investor’s
Obligations Upon Closing.Upon receipt of the shares referenced in Section 2.3(a)(i) above and provided the Company is
in compliance with its obligations in Section 2.3, the Investor shall deliver to the Company the amount of the Advance specified
in the Advance Notice by wire transfer of immediately available funds.

  

Section
2.4. Hardship. In the event the Investor sells shares of the Company’s Common Stock after receipt of an Advance
Notice and the Company fails to perform its obligations as mandated in Section 2.3, and specifically the Company fails to deliver
to the Investor on the Advance Date the shares of Common Stock corresponding to the applicable Advance pursuant to Section 2.3(a)(i),
the Company acknowledges that the Investor shall suffer financial hardship and, provided that the Investor has performed its obligations
pursuant to Section 2.3, and therefore the Company shall be liable for any and all losses, commissions, fees, or financial hardship
caused to the Investor, provided, however that the amount of any such losses for which the Company shall be liable shall not in
any event exceed the applicable Advance.

 

ARTICLE
III.

Representations
and Warranties of Investor

 

Investor
hereby represents and warrants to, and agrees with, the Company that the following are true and correct as of the date hereof
and as of each Advance Date:

 

Section
3.1. Organization and Authorization. The Investor is duly incorporated or organized and validly existing in the jurisdiction
of its incorporation or organization and has all requisite power and authority to purchase and hold the securities issuable hereunder.
The decision to invest and the execution and delivery of this Agreement by such Investor, the performance by such Investor of
its obligations hereunder and the consummation by such Investor of the transactions contemplated hereby have been duly authorized
and require no other proceedings on the part of the Investor. The undersigned has the right, power and authority to execute and
deliver this Agreement and all other instruments (including, without limitations, the Registration Rights Agreement), on behalf
of the Investor. This Agreement has been duly executed and delivered by the Investor and, assuming the execution and delivery
hereof and acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor, enforceable
against the Investor in accordance with its terms.

 

Section
3.2. Evaluation of Risks. The Investor has such knowledge and experience in financial, tax and business matters as
to be capable of evaluating the merits and risks of, and bearing the economic risks entailed by, an investment in the Company
and of protecting its interests in connection with this transaction. It recognizes that its investment in the Company involves
a high degree of risk.

 

Section
3.3. No Legal Advice From the Company. The Investor acknowledges that it had the opportunity to review this Agreement
and the transactions contemplated by this Agreement with his or its own legal counsel and investment and tax advisors. The Investor
is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

Section
3.4. Investment Purpose. The securities are being purchased by the Investor for its own account, and for investment
purposes. The Investor agrees not to assign or in any way transfer the Investor’s rights to the securities or any interest
therein and acknowledges that the Company will not recognize any purported assignment or transfer except in accordance with applicable
Federal and state securities laws. No other person has or will have a direct or indirect beneficial interest in the securities.
The Investor agrees not to sell, hypothecate or otherwise transfer the Investor’s securities unless the resale of the securities
is registered under Federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company,
an exemption from such laws is available.

 

Section
3.5. Accredited Investor. The Investor is and shall be on each Advance Date, an “Accredited Investor”
as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act. The Company may seek any written reasonable assurances
from the Investor of the Investor’s status as an “accredited investor” on or prior to any Advance Date.

 

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Section
3.6. Information. The Investor and its advisors (and its counsel), if any, have been furnished with all materials
relating to the business, finances and operations of the Company and information it deemed material to making an informed investment
decision. The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management.
Neither such inquiries nor any other due diligence investigations conducted by such Investor or its advisors, if any, or its representatives
shall modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties contained
in this Agreement. The Investor understands that its investment involves a high degree of risk. The Investor has sought such accounting,
legal and tax advice, as it has considered necessary to make an informed investment decision with respect to this transaction.

 

Section
3.7. Receipt of Documents. The Investor and its counsel have received and read in their entirety: (i) this Agreement
and the Exhibits annexed hereto; (ii) all due diligence and other information necessary to verify the accuracy and completeness
of such representations, warranties and covenants; (iii) the Company’s most recent periodic filings filed with the SEC;
and (iv) answers to all questions the Investor submitted to the Company regarding an investment in the Company; and the Investor
has relied on the information contained therein and has not been furnished any other documents, literature, memorandum or prospectus.

 

Section
3.8. Registration Rights Agreement. The Investor has entered into the Registration Rights Agreement dated the date
hereof.

  

Section
3.9. Not an Affiliate. The Investor is not an officer, director or a person that directly, or indirectly through one
or more intermediaries, controls or is controlled by, or is under common control with the Company or any “Affiliate”
of the Company (as that term is defined in Rule 405 of the Securities Act).

 

Section
3.10. Trading Activities. The Investor’s trading activities with respect to the Company’s Common Stock
shall be in compliance with all applicable federal and state securities laws, rules and regulations and the rules and regulations
of the Principal Market on which the Company’s Common Stock is listed or traded. Neither the Investor nor its affiliates
has an open short position in the Common Stock of the Company, the Investor agrees that it shall not, and that it will cause its
affiliates not to, engage in any short sales of or hedging transactions with respect to the Common Stock.. 

 

Section
3.11 Reliance on Exemptions. The Investor understands that the Common Stock is being offered and sold to it in reliance
on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Investor’ compliance with, the representations, warranties,
agreements, acknowledgements and understandings of such Investor set forth here in order to determine the availability of such
exemptions and the eligibility of such Investor to acquire the Common Stock.

 

Section
3.12Broker. The Investor is not a broker or dealer.

 

Section
3.13No Governmental Review. The Investor understands that no United States, federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Common Stock issuable pursuant to this Agreement
or the fairness or suitability of the investment in the Common Stock nor have such authorities passed upon or endorsed the merits
of the offering of the Common Stock.

 

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ARTICLE
IV.

Representations
and Warranties of the Company

 

Except
as stated below, on the disclosure schedules attached hereto or in the SEC Documents (as defined herein), the Company hereby represents
and warrants to, and covenants with, the Investor that the following are true and correct as of the date hereof:

 

Section
4.1. Organization and Qualification. The Company is duly incorporated or organized and validly existing in the jurisdiction
of its incorporation or organization and has all requisite corporate power to own its properties and to carry on its business
as now being conducted. Each of the Company and its subsidiaries (if any) is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the business conducted by it makes such qualification necessary,
except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect on the
Company and its subsidiaries taken as a whole.

 

Section
4.2. Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power
and authority to enter into and perform this Agreement, the Registration Rights Agreement, and any related agreements, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Registration Rights Agreement and any
related agreements by the Company and the consummation by it of the transactions contemplated hereby and thereby, have been duly
authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board
of Directors or its stockholders, (iii) this Agreement, the Registration Rights Agreement and any related agreements have been
duly executed and delivered by the Company, (iv) this Agreement, the Registration Rights Agreement and assuming the execution
and delivery thereof and acceptance by the Investor and any related agreements constitute the valid and binding obligations of
the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or affecting generally, the enforcement of creditors’ rights and remedies.

 

Section
4.3. Capitalization. The authorized capital stock of the Company consists of 400,000,000 shares of Common Stock and
100,000,000 shares of Preferred Stock (with various series), $0.0001 par value per share (“Preferred Stock”),
of which 89,005,250 shares of Common Stock and -0- shares of Preferred Stock are issued and outstanding. All of such outstanding
shares have been validly issued and are fully paid and nonassessable. No shares of Common Stock are subject to preemptive rights
or any other similar rights or any liens or encumbrances suffered or permitted by the Company. As of the date hereof, except for
the financing transactions and acquisitions previously disclosed to the Investor and as set forth in Schedule 4.3; (i) there
are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries, or contracts,
commitments, understandings or arrangements by which the Company or any of its subsidiaries is or may become bound to issue additional
shares of capital stock of the Company or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of
the Company or any of its subsidiaries, (ii) there are no outstanding debt securities (iii) there are no outstanding
registration statements other than on Form S-8 and (iv) there are no agreements or arrangements under which the Company or any
of its subsidiaries is obligated to register the sale of any of their securities under the Securities Act (except pursuant to
the Registration Rights Agreement). There are no securities or instruments containing anti-dilution or similar provisions that
will be triggered by this Agreement or any related agreement or the consummation of the transactions described herein or therein.
The Company has furnished to the Investor true and correct copies of the Company’s Certificate of Incorporation, as amended
and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws,
as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable
for Common Stock and the material rights of the holders thereof in respect thereto.

 

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Section
4.4. No Conflict. Subject to the Company’s Certificate of Incorporation, the execution, delivery and performance
of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby will not (i) result
in a violation of the Certificate of Incorporation, any certificate of designations of any outstanding series of preferred stock
of the Company or By-laws or (ii) conflict with or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its subsidiaries is a party, or result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations
of the Principal Market on which the Common Stock is quoted) applicable to the Company or any of its subsidiaries or by which
any material property or asset of the Company or any of its subsidiaries is bound or affected and which would cause a Material
Adverse Effect or a material adverse effect on the Company’s business or financial condition. Neither the Company nor its
subsidiaries is in violation of any term of or in default under its Articles of Incorporation or By-laws or their organizational
charter or by-laws, respectively, or any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to the Company or its subsidiaries that would cause a Material Adverse
Effect or a material adverse effect on the Company’s business or financial condition. The business of the Company and its
subsidiaries is not being conducted in violation of any material law, ordinance, and regulation of any governmental entity. Except
as specifically contemplated by this Agreement and as required under the Securities Act and any applicable state securities laws,
the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement
or the Registration Rights Agreement in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof.

 

Section
4.5. SEC Documents; Financial Statements. As of their respective dates, the financial statements of the Company disclosed
on the Company’s website and disclosed to the Investor (the “Financial Statements”) complied as to form
in all material respects with applicable accounting requirements and the published rules and regulations with respect thereto.
Such Financial Statements have been prepared in accordance with generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii)
in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements)
and, fairly present in all material respects the financial position of the Company as of the dates thereof and the results of
its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). No other information provided by or on behalf of the Company to the Investor, taken as a whole, contains any untrue
statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.

 

Section
4.6. 10b-5. None of the documents provided to the Investor include any untrue statements of material fact, nor do
they omit to state any material fact required to be stated therein necessary to make the statements made, taken as a whole, in
light of the circumstances under which they were made, not misleading.

 

Section
4.7. No Default. The Company is not in default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any indenture, mortgage, deed of trust or other material instrument or agreement to which it
is a party or by which it is or its property is bound (which has not been waived) and neither the execution, nor the delivery
by the Company, nor the performance by the Company of its obligations under this Agreement or any of the exhibits or attachments
hereto will conflict with or result in the breach or violation (which has not been waived) of any of the terms or provisions of,
or constitute a default or result in the creation or imposition of any lien or charge on any assets or properties of the Company
under its Certificate of Incorporation, By-Laws, any material indenture, mortgage, deed of trust or other material agreement applicable
to the Company or instrument to which the Company is a party or by which it is bound, or any statute, or any decree, judgment,
order, rules or regulation of any court or governmental agency or body having jurisdiction over the Company or its properties,
in each case which default, lien or charge is likely to cause a Material Adverse Effect on the Company’s business or financial
condition.

 

Section
4.8. Absence of Events of Default. No Event of Default, as defined in the respective agreement to which the Company
is a party, and no event which, with the giving of notice or the passage of time or both, would become an Event of Default (as
so defined), has occurred and is continuing, which would have a Material Adverse Effect or a material adverse effect on the Company’s
business, properties, prospects, financial condition or results of operations.

 

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Section
4.9. Intellectual Property Rights. The Company and its subsidiaries own or possess adequate rights or licenses to
use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses
as now conducted. The Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries
of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service
mark registrations, trade secret or other similar rights of others, and, to the knowledge of the Company, there is no claim, action
or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its
subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks,
service mark registrations, trade secret or other infringement; and the Company and its subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing.

 

Section
4.10. Employee Relations. Neither the Company nor any of its subsidiaries is involved in any labor dispute nor, to
the knowledge of the Company or any of its subsidiaries, is any such dispute threatened. None of the Company’s or its subsidiaries’
employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

 

Section
4.11. Environmental Laws. To the Company’s knowledge, the Company and its subsidiaries are (i) in compliance
with any and all applicable material foreign, federal, state and local laws and regulations relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental
Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license
or approval.

 

Section
4.12. Title. The Company has good and marketable title to its properties or interests in properties and material assets
owned by it, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest other than such as
are not material to the business of the Company. Any real property and facilities held under lease by the Company and its subsidiaries
are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and buildings by the Company and its subsidiaries.

 

Section
4.13. Insurance. The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its subsidiaries are engaged. Neither the Company nor any such subsidiary has been refused any insurance
coverage sought or applied for and neither the Company nor any such subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial
or otherwise, or the earnings, business or operations of the Company and its subsidiaries, taken as a whole.

 

Section
4.14. Regulatory Permits. The Company and its subsidiaries possess all material certificates, authorizations and permits
issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as
currently conducted, and neither the Company nor any such subsidiary has received any notice of proceedings relating to the revocation
or modification of any such certificate, authorization or permit.

 

Section
4.15. No Material Adverse Breaches, etc. Neither the Company nor any of its subsidiaries is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect on the business, properties, operations, financial
condition, results of operations or prospects of the Company or its subsidiaries [already covered].

 

Section
4.16. Absence of Litigation. Except as disclosed in Schedule 4.16, there is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending against or,
to the Company’s knowledge, affecting the Company, the Common Stock or any of the Company’s subsidiaries, wherein
an unfavorable decision, ruling or finding would (i) have a Material Adverse Effect on the transactions contemplated hereby (ii)
adversely affect the validity or enforceability of, or the authority or ability of the Company to perform its obligations under,
this Agreement or any of the documents contemplated herein, or (iii) have a Material Adverse Effect on the business, operations,
properties, financial condition or results of operation of the Company and its subsidiaries taken as a whole.

 

    	9

    	 

    

 

Section
4.17. Subsidiaries. The Company does not presently own or control, directly or indirectly, any interest in any other
corporation, partnership, association or other business entity other than what is reported in the Company’s SEC filings.

 

Section
4.18. Tax Status. Except as disclosed in Schedule 4.18, the Company and each of its subsidiaries has made or filed
all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject
and (unless and only to the extent that the Company and each of its subsidiaries has set aside on its books provisions reasonably
adequate for the payment of all unpaid and unreported taxes) has paid all taxes and other governmental assessments and charges
that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

 

Section
4.19. Certain Transactions. Except as disclosed in Schedule 4.19, the Company is not presently a party to any transaction
(other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership,
trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner.

 

Section
4.20. Fees and Rights of First Refusal. The Company is not obligated to offer the securities offered hereunder on
a right of first refusal basis or otherwise to any third parties including, but not limited to, current or former shareholders
of the Company, underwriters, brokers, agents or other third parties.

 

Section
4.21. Use of Proceeds. The Company shall use the net proceeds from this offering for general corporate purposes, including,
without limitation, the payment of loans incurred by the Company. However, in no event shall the Company use the net proceeds
from this offering for the payment (or loan to any such person for the payment) of any judgment, or other liability, incurred
by any executive officer, officer, director or employee of the Company in his or her individual capacity.

 

Section
4.22. Further Representation and Warranties of the Company. For so long as any securities issuable hereunder held
by the Investor remain outstanding, the Company acknowledges, represents, warrants and agrees that it will use its best efforts
to maintain the listing of its Common Stock on the Principal Market.

  

Section
4.23. Opinion of Counsel. The Company will obtain, subject to applicable securities laws, for the Investor, at the
Company’s expense, any and all opinions of counsel which may be reasonably required in order to sell the securities issuable
hereunder without restriction.

 

Section
4.24. Dilution. The Company is aware and acknowledges that issuance of shares of the Company’s Common Stock
could cause dilution to existing shareholders and could significantly increase the outstanding number of shares of Common Stock. 

 

    	10

    	 

    

 

ARTICLE
V.

Indemnification

 

The
Investor and the Company represent to the other the following with respect to itself:

 

Section
5.1. Indemnification. 

 

(a)In
consideration of the Investor’s execution and delivery of this Agreement, and in addition to all of the Company’s
other obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless the Investor, and all of
its officers, directors, partners, employees and agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Investor Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred
by the Investor Indemnitees or any of them as a result of, or arising out of, or relating to (a) any material misrepresentation
or breach of any representation or warranty made by the Company in this Agreement or the Registration Rights Agreement or any
other certificate, instrument or document contemplated hereby or thereby, (b) any material breach of any covenant, agreement or
obligation of the Company contained in this Agreement or the Registration Rights Agreement or any other certificate, instrument
or document contemplated hereby or thereby, (c) any cause of action, suit or claim brought or made against such Investor Indemnitee
not arising out of any action or inaction of an Investor Indemnitee, and arising out of or resulting from the execution, delivery,
performance or enforcement of this Agreement or any other instrument, document or agreement executed pursuant hereto by any of
the Investor Indemnitees, or (d) any failure (whether purposeful or not) on the part of the transfer agent to effectuate the transfer
of shares or any of the transactions contemplated hereunder. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities, which is permissible under applicable law. 

 

(b) In
consideration of the Company’s execution and delivery of this Agreement, and in addition to all of the Investor’s
other obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company and all of
its officers, directors, shareholders, employees and agents (including, without limitation, those retained in connection with
the transactions contemplated by this Agreement) (collectively, the “Company Indemnitees”) from and against
any and all Indemnified Liabilities incurred by the Company Indemnitees or any of them as a result of, or arising out of, or relating
to (a) any material misrepresentation or breach of any representation or warranty made by the Investor in this Agreement, the
Registration Rights Agreement, or any instrument or document contemplated hereby or thereby executed by the Investor, (b) any
material breach of any covenant, agreement or obligation of the Investor(s) contained in this Agreement, the Registration Rights
Agreement or any other certificate, instrument or document contemplated hereby or thereby executed by the Investor, or (c) any
cause of action, suit or claim brought or made against such Company Indemnitee based on misrepresentations or due to a breach
by the Investor and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement or
any other instrument, document or agreement executed pursuant hereto by any of the Company Indemnitees. To the extent that the
foregoing undertaking by the Investor may be unenforceable for any reason, the Investor shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

 

(c) The
obligations of the parties to indemnify or make contribution under this Section 5.1 shall survive termination. 

 

ARTICLE
VI.

Covenants
of the Company

  

Section
6.1.Listing of Common Stock. The Company shall maintain the Common Stock’s authorization for quotation on the
Over-the-Counter Bulletin Board or OTC Markets “OTCQB”, during the Commitment Period.

 

Section
6.2. Exchange Act Registration. During the term of the Commitment Period, the Company will cause its Common Stock
to continue to be registered under Section 12(g) of the Exchange Act, will file in a timely manner all reports and other documents
required of it as a reporting company under the Exchange Act and will not take any action or file any document (whether or not
permitted by Exchange Act or the rules thereunder) to terminate or suspend such registration or to terminate or suspend its reporting
and filing obligations under said Exchange Act.

 

    	11

    	 

    

 

Section
6.3. Transfer Agent Instructions. Upon effectiveness of the Registration Statement the Company shall deliver instructions
to its transfer agent to issue shares of Common Stock to the Investor free of restrictive legends on or before each Advance Date.

 

Section
6.4. Corporate Existence. During the Commitment Period, the Company will take all steps necessary to preserve and
continue the corporate existence of the Company.

 

Section
6.5. Notice of Certain Events Affecting Registration; Suspension of Right to Make an Advance. The Company will immediately
notify the Investor upon its becoming aware of the occurrence of any of the following events in respect of a registration statement
or related prospectus relating to an offering of Registrable Securities: (i) receipt of any request for additional information
by the SEC or any other Federal or state governmental authority during the period of effectiveness of the Registration Statement
for amendments or supplements to the registration statement or related prospectus; (ii) the issuance by the SEC or any other Federal
or state governmental authority of any stop order suspending the effectiveness of the Registration Statement or the initiation
of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in the Registration Statement
or related prospectus of any document incorporated or deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the case
of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related
prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
and (v) the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate;
and the Company will promptly make available to the Investor any such supplement or amendment to the related prospectus. The Company
shall not deliver to the Investor any Advance Notice during the continuation of any of the foregoing events. The Investor understands
and acknowledges that receipt of any of the information requested herein may, at the time provided to the Investor, constitute
material, non-public inside information, and the Investor agrees to conduct itself accordingly based on applicable law,

 

Section
6.6. Restriction on Sale of Capital Stock. Following the effectiveness of the Registration Statement, the Company
shall not, without the prior written consent of the Investor, (i) issue or sell any Common Stock or Preferred Stock without consideration
or for a consideration per share less than the Bid Price of the Common Stock determined immediately prior to its issuance, or
(ii) issue or sell any Preferred Stock warrant, option, right, contract, call, or other security or instrument
granting the holder thereof the right to acquire Common Stock without consideration or for a consideration per share less than
the Bid Price of the Common Stock determined immediately prior to its issuance. Notwithstanding the foregoing this Section shall
not apply in respect of an Exempt Issuance or an underwritten public offering of Common Stock. For purposes of this Agreement
“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors
or consultants of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose,
(b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided
that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the exercise, exchange or conversion price of such securities, (c) any financing that the Company has in place prior to the date
of this Agreement, (d) a private placement(s) of the Company’s stock in an amount up to $2,000,000 and (e) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided
that any such issuance shall only be to a Person which is, itself or through its subsidiaries, a company in a business synergistic
with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall
not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity
whose primary business is investing in securities. In no event may the Investor unreasonably withhold approval of additional financing
to the Company from third parties except as such financing is an equity line of credit financing. In the event the Company elects
to obtain additional financing during the term of this Agreement, the Company shall immediately provide the Investor written notice
of such intent (the “Financing Notice”). The Financing Notice shall contain all of the terms, and parties related
to the financing. In the event that the Company provides the Investor the Financing Notice then the Investor shall have five business
days to respond to such Financing Notice. Should five business days pass without the Investor providing a response to the Company,
then the Investor shall be deemed to have approved and consented to the additional financing contained in the notice provided
by the Company.

 

    	12

    	 

    

 

Section
6.7. Consolidation; Merger. During the Commitment Period, the Company shall not, at any time after the date hereof,
effect any merger or consolidation of the Company with or into, or a transfer of all or substantially all the assets of the Company
to another entity (a “Consolidation Event”) unless the resulting successor or acquiring entity (if not the
Company) assumes by written instrument the obligation to deliver to the Investor such shares of stock and/or securities as the
Investor is entitled to receive pursuant to this Agreement.

 

Section
6.8. Issuance of the Company’s Common Stock. The sale of the shares of Common Stock under this Agreement shall
be made in accordance with the provisions and requirements of Regulation D and any applicable state securities law.

 

Section
6.9. Review of Public Disclosures. All SEC filings (including, without limitation, all filings required under the
Exchange Act, which include Forms 10-Q and 10-QSB, 10-K and 10K-SB, 8-K, etc) and other public disclosures made by the Company,
including, without limitation, all press releases, investor relations materials, and scripts of analysts meetings and calls, shall
be reviewed and approved for release by the Company’s attorneys and, if containing financial information, the Company’s
independent certified public accountants.

 

Section
6.10. Market Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result
in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Common Stock or (ii) sell, bid for or purchase the Common Stock, or pay
anyone any compensation for soliciting purchases of the Common Stock.

 

ARTICLE
VII.

Conditions
Precedent

 

Section
7.1. Conditions Precedent to the Obligations of the Company. The obligation hereunder of the Company to issue and
sell the shares of Common Stock to the Investor incident to each Closing is subject to the satisfaction, or waiver by the Company,
at or before each such Closing, of each of the conditions set forth below.

 

(a) Accuracy
of the Investor’s Representations and Warranties. The representations and warranties of the Investor shall be true and
correct in all material respects.

 

(b) Performance
by the Investor. The Investor shall have performed, satisfied and complied in all respects with all covenants, agreements
and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied with by
the Investor at or prior to such Closing.

    

Section
7.2. Conditions Precedent to the Right of the Company to Deliver an Advance Notice. The right of the Company to deliver
an Advance Notice is subject to the fulfillment by the Company, on such Advance Notice (a “Condition Satisfaction Date”),
of each of the following conditions:

 

(a) Registration
of the Common Stock with the SEC. The Company shall have filed with the SEC a Registration Statement with respect to the resale
of the Registrable Securities in accordance with the terms of the Registration Rights Agreement. As set forth in the Registration
Rights Agreement, the Registration Statement shall have previously become effective and shall remain effective on each Condition
Satisfaction Date and (i) the Company shall be listed on an exchange or its Common Stock shall be traded over the counter on the
OTCBB or OTC Markets “OTCQB”; (ii) neither the Company nor the Investor shall have received notice that the SEC has
issued or intends to issue a stop order with respect to the Registration Statement or that the SEC otherwise has suspended or
withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened to
do so (unless the SEC’s concerns have been addressed and the Investor is reasonably satisfied that the SEC no longer is
considering or intends to take such action), and (iii) no other suspension of the use or withdrawal of the effectiveness of the
Registration Statement or related prospectus shall exist. The Registration Statement must have been declared effective by the
SEC prior to the first Advance Notice Date.

 

    	13

    	 

    

 

(b) Authority.
The Company shall have obtained all permits and qualifications required by any applicable state in accordance with the Registration
Rights Agreement for the offer and sale of the shares of Common Stock, or shall have the availability of exemptions there from.
The sale and issuance of the shares of Common Stock shall be legally permitted by all laws and regulations to which the Company
is subject.

 

(c) Fundamental
Changes. There shall not exist any fundamental changes to the information set forth in the Registration Statement which would
require the Company to file a post-effective amendment to the Registration Statement.

 

(d) Performance
by the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied with by
the Company at or prior to each Condition Satisfaction Date.

 

(e) No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits or directly and adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the
effect of prohibiting or adversely affecting any of the transactions contemplated by this Agreement.

 

(f) No
Suspension of Trading in or Delisting of Common Stock. The trading of the Common Stock is not suspended by the SEC or the
Principal Market (if the Common Stock is traded on a Principal Market). The issuance of shares of Common Stock with respect to
the applicable Closing, if any, shall not violate the shareholder approval requirements of the Principal Market (if the Common
Stock is traded on a Principal Market). The Company shall not have received any notice threatening the continued listing of the
Common Stock on the Principal Market (if the Common Stock is traded on a Principal Market).

 

(g) Maximum
Advance Amount. The amount of an Advance requested by the Company shall not exceed the Maximum Advance Amount. In addition,
in no event shall the number of shares issuable to the Investor pursuant to an Advance cause the aggregate number of shares of
Common Stock beneficially owned by the Investor and its affiliates to exceed nine and 9/10 percent (9.9%) of the then outstanding
Common Stock of the Company. For the purposes of this section beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act.

 

(h) No
Knowledge. The Company has no knowledge of any event which would be more likely than not to have the effect of causing such
Registration Statement to be suspended or otherwise ineffective.

 

(i)Executed
Advance Notice. The Investor shall have received the Advance Notice executed by an officer of the Company and the representations
contained in such Advance Notice shall be true and correct as of each Condition Satisfaction Date.

 

    	14

    	 

    

 

ARTICLE
VIII.

Due
Diligence Review; Non-Disclosure of Non-Public Information

 

Section
8.1. Non-Disclosure of Non-Public Information.

 

(a) Except
as may be required by the Investor herein, the Company covenants and agrees that it shall refrain from disclosing, and shall cause
its officers, directors, employees and agents to refrain from disclosing, any material non-public information to the Investor
without also disseminating such information to the public, unless prior to disclosure of such information the Company identifies
such information as being material non-public information and provides the Investor with the opportunity to accept or refuse to
accept such material non-public information for review.

 

(b) Except
as provided herein, nothing herein shall require the Company to disclose material non-public information to the Investor or its
advisors or representatives, and the Company represents that it does not disseminate material non-public information to any investors
who purchase stock in the Company in a public offering, to money managers or to securities analysts, provided, however, that notwithstanding
anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the advisors and representatives
of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to disclose
the specific event or circumstance) of which it becomes aware, constituting material non-public information (whether or not requested
of the Company specifically or generally during the course of due diligence by such persons or entities), which, if not disclosed
in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement or to
omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in
which they were made, not misleading. Nothing contained in this Section 8.2 shall be construed to mean that such persons or entities
other than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public
information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall
prevent any such persons or entities from notifying the Company of their opinion that based on such due diligence by such persons
or entities, that the Registration Statement contains an untrue statement of material fact or omits a material fact required to
be stated in the Registration Statement or necessary to make the statements contained therein, in light of the circumstances in
which they were made, not misleading.

 

 

ARTICLE
IX.

Choice
of Law/Jurisdiction

 

Section
9.1. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of
California without regard to the principles of conflict of laws. The parties further agree that any action between them shall
be heard in the State of California, and expressly consent to the jurisdiction and venue of the courts sitting in California and
the United States District Court of California for the adjudication of any civil action asserted pursuant to this paragraph. 

 

ARTICLE
X.

Assignment;
Termination

 

Section
10.1. Assignment. Neither this Agreement nor any rights of the Company hereunder may be assigned to any other Person.

 

Section
10.2. Termination.

 

(a) The
obligations of the Investor to make Advances under Article II hereof shall terminate thirty six (36) months after the Effective
Date or forty eight (48) months after the Effective Date if thirty six (36) months after the Effective Date the Company filed
either an amendment to the then effective registration statement or a new registration statement was declared effective. The Company’s
obligations under this Agreement shall terminate on the date that the Investor is no longer obligated to make Advances.

 

(b) The
obligation of the Investor to make an Advance to the Company pursuant to this Agreement shall terminate permanently (including
with respect to an Advance Date that has not yet occurred) in the event that (i) there shall occur any stop order or suspension
of the effectiveness of the Registration Statement for an aggregate of ninety (90) Trading Days, other than due to the acts of
the Investor, during the Commitment Period, or (ii) the Company shall at any time fail materially to comply with the requirements
of Article VI and such failure is not cured within thirty (30) days after receipt of written notice from the Investor, provided,
however, that this termination provision shall not apply to any period commencing upon the filing of a post-effective amendment
to such Registration Statement and ending upon the date on which such post effective amendment is declared effective by the SEC.

 

(c)The
Company shall have the right to terminate this Agreement upon thirty (30) days written notice to the Investor.

 

    	15

    	 

    

 

ARTICLE
XI.

Notices

 

Section
11.1. Notices. Any notices, consents, waivers, or other communications required or permitted to be given under the
terms of this Agreement must be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile or e-mail, provided a copy is mailed by U.S. certified mail, return receipt requested;
(iii) three (3) days after being sent by U.S. certified mail, return receipt requested, or (iv) one (1) day after deposit with
a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses,
e-mail and facsimile numbers for such communications shall be:

 

	If to the Company, to:	
        Stragenics, Inc.

        Attn: Alan Grofe
	 
	 	
        Address: 100 Rialto Place

        Suite 700

        Melbourne, FL 32901
	 
	 	
         

        Phone: 321-541-1216

        Facsimile: 321-725-6315

        Email: agrofe@stragenics.com
	 
	 	 	 
	 If to the Investor(s):	Tangiers Investment Group, LLC	 
	 	Robert Papiri	 
	 	501 West Broadway, Suite 800	 
	 	San Diego, CA 92101	 
	 	Telephone: 619-615-4255  	 
	 	Facsimile: 619-566-2011  	 
	 	
        Email: admin@tangierscapital.com
	 
	 	 	 

Each party
shall provide five (5) days’ prior notice to the other party of any change in address, e-mail or facsimile number.

 

    	16

    	 

    

 

ARTICLE
XII.

Miscellaneous

 

Section
12.1. Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party via e-mail or overnight delivery. In the event any signature page is delivered by facsimile transmission, the party using
such means of delivery shall cause four (4) additional original executed signature pages to be physically delivered to the other
party within five (5) days of the execution and delivery hereof, though failure to deliver such copies shall not affect the validity
of this Agreement.

 

Section
12.2. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the
Investor, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this
Agreement, the Registration Rights Agreement and the instruments referenced herein and therein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters.
No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged
with enforcement.

 

Section
12.3. Reporting Entity for the Common Stock. The reporting entity relied upon for the determination of the trading
price or trading volume of the Common Stock on any given Trading Day for the purposes of this Agreement shall be Bloomberg, L.P.
or any successor thereto. The written mutual consent of the Investor and the Company shall be required to employ any other reporting
entity.

 

Section
12.4. Commitment Fee. The Company shall be required to issue to the Purchaser restricted Common Stock equal to five
percent (5%) of the Commitment Amount as a commitment fee (the “Commitment Fee”). The Commitment Fee Common
Stock shall be issued in tranches in accordance with the following schedule:

 

a)
50% of the Commitment Fee shall be issuable upon the execution of the Securities Purchase Agreement (Tranche #1). The number of
shares to be issued will be determined based on the division of 50% of the Commitment Amount, times five percent (5%), divided
by the Formula Price;

 

b)
50% of the Commitment Fee shall be issuable 60 days following the execution of the Securities Purchase Agreement (Tranche #2).
The number of shares to be issued will be determined based on the division of 50% of the Commitment Amount, times five percent
(5%), divided by the Formula Price;

 

At
no time shall Investor be issued shares of Common Stock, which at that time would effectively give Investor more than a 9.99%
ownership of the then outstanding shares of Common Stock of the Company, and Investor will promptly notify the Company if such
would be the case. In this event, the Company’s obligations with respect to the Commitment Fee shall be deferred until the
Investor notifies the Company in writing that issuance of the Common Stock contemplated by this Section 12.4 will not effectively
give Investor more than a 9.99% ownership of the outstanding shares of Common Stock of the Company.

 

 Section
12.5. Brokerage. Each of the parties hereto represents that it has had no dealings in connection with this transaction
with any finder or broker who will demand payment of any fee or commission from the other party. The Company on the one hand,
and the Investor, on the other hand, agree to indemnify the other against and hold the other harmless from any and all liabilities
to any person claiming brokerage commissions or finder’s fees on account of services purported to have been rendered on
behalf of the indemnifying party in connection with this Agreement or the transactions contemplated hereby.

 

Section
12.6. Confidentiality. If for any reason the transactions contemplated by this Agreement are not consummated, each
of the parties hereto shall keep confidential any information obtained from any other party (except information publicly available
or in such party’s domain prior to the date hereof, and except as required by court order) and shall promptly return to
the other parties all schedules, documents, instruments, work papers or other written information without retaining copies thereof,
previously furnished by it as a result of this Agreement or in connection herein.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	17

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be executed by the undersigned, thereunto
duly authorized, as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	STRAGENICS,
    INC. 
	 	 	 
	 	/s/ Alan W. Grofe
	 	Name:	 ALAN W. GROFE 
	 	Title:	PRESIDENT & CEO
	 	 	 
	 	INVESTOR:
	 	 
	 	TANGIERS
    INVESTMENT GROUP, LLC
	 	 	 
	 	 
	 	By:	 
	 	Its:	Managing Member

 

    	18

    	 

    

 

EXHIBIT
A

 

ADVANCE
NOTICE

 

STRAGENICS,
INC.

The
undersigned, _______________________ hereby certifies, with respect to the sale of shares of Common Stock of Stragenics, Inc.,
(the “Company”) issuable in connection with this Advance Notice, delivered pursuant to the Securities Purchase
Agreement (the “Agreement”), as follows:

 

1. The
undersigned is the duly elected ______________ of the Company.

 

2. There
are no fundamental changes to the information set forth in the Registration Statement which would require the Company to file
a post-effective amendment to the Registration Statement.

 

3.
The Company has performed in all material respects all covenants and agreements to be performed by the Company and has
complied in all material respects with all obligations and conditions contained in the Agreement on or prior to the Advance
Notice Date, and shall continue to perform in all material respects all covenants and agreements to be performed by the
Company through the applicable Advance Date. All conditions to the delivery of this Advance Notice are satisfied as of the
date hereof.

 

4. The
undersigned hereby represents, warrants and covenants that it has made all filings (“SEC Filings”) required
to be made by it pursuant to applicable securities laws (including, without limitation, all filings required under the Securities
Exchange Act of 1934, which include Forms 10-Q, 10-K or 8-K, etc.). All SEC Filings and other public disclosures made by the Company,
including, without limitation, all press releases, analysts meetings and calls, etc. (collectively, the “Public Disclosures”),
have been reviewed and approved for release by the Company’s attorneys and, if containing financial information, the Company’s
independent certified public accountants. None of the Company’s Public Disclosures contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the relevant circumstances under which they were made, not misleading.

 

5. The
Advance requested is _____________________.

 

The
undersigned has executed this Certificate this ____ day of _________________.

 

	 	Stragenics, Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

  

If Returning
This Advance Notice via Facsimile Please Send To: 619-566-2011

 

	If
    by Mail, via Federal Express To: 	Tangiers
    Investment Group, LLC
	 	501 West Broadway,
    Suite 800, San Diego, CA 92101

 

 

 

19Exhibit 10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of December 16, 2014, by and between STRAGENICS, INC.
a Florida corporation (the “Company”), and TANGIERS INVESTMENT GROUP, LLC, a Delaware limited liability
company (the “Investor”).

 

WHEREAS:

 

A. In
connection with the Securities Purchase Agreement by and between the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor that number of shares of the Company’s common stock, $.0001 par value per share
(the “Common Stock”), which can be purchased pursuant to the terms of the Securities Purchase Agreement for
an aggregate purchase price of up to Five Million Dollars ($5,000,000). Capitalized terms not defined herein shall have the meaning
ascribed to them in the Securities Purchase Agreement.

 

B. To
induce the Investor to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the “Securities Act”), and applicable state securities laws.

 

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

 

1. DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

a. “Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

 

b. “Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the Securities Act and pursuant to Rule 415 under the
Securities Act or any successor rule providing for offering securities on a continuous or delayed basis (“Rule 415”),
and the declaration or ordering of effectiveness of such Registration Statement(s) by the United States Securities and Exchange
Commission (the “SEC”).

 

c. “Registrable
Securities” means the Investor’s Shares, as defined in the Securities Purchase Agreement, and shares of Common
Stock issuable to Investors pursuant to the Securities Purchase Agreement.

 

d. “Registration
Statement” means a registration statement under the Securities Act, which covers the Registrable Securities.

 

    	1

    	 

    

 

2. REGISTRATION.

 

a. Mandatory
Registration. The Company shall prepare and file with the SEC a Registration Statement on Form S-1 or on such other form as
is available. The Company shall cause such Registration Statement to be declared effective by the SEC prior to the first sale
to the Investor of the Company’s Common Stock pursuant to the Securities Purchase Agreement. The Company shall cause the
Registration Statement to remain effective until the full completion of the Commitment Period (as such term is defined in the
Securities Purchase Agreement).

 

b. Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to
Section 2(a) is insufficient to cover all of the Registrable Securities pursuant to the Securities Purchase Agreement, the Company
shall amend the Registration Statement, or file a new Registration Statement (on the short form available therefore, if applicable),
or both, so as to cover all of such Registrable Securities pursuant to the Securities Purchase Agreement as soon as practicable,
but in any event not later than fifteen (15) days after the necessity therefore arises, subject to applicable laws or regulations.
The Company shall use its commercially reasonable best efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available
under a Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities” if at any
time the number of Registrable Securities issuable on an Advance Notice Date is greater than the number of shares available for
resale under such Registration Statement.

 

3. RELATED
OBLIGATIONS.

 

a. The
Company shall keep the Registration Statement effective pursuant to Rule 415 at all times until the completion of the Commitment
Period (as such term is defined in the Securities Purchase Agreement) (the “Registration Period”), which Registration
Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading.

 

b. The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times
during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all of such
Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement which
are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company’s
filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), the Company shall have incorporated such report by reference into the Registration Statement,
if applicable, or shall file such amendments or supplements with the SEC on the same day on which the Exchange Act report is filed
which created the requirement for the Company to amend or supplement the Registration Statement.

 

c. The
Company shall furnish to the Investor without charge, (i) at least one copy of such Registration Statement as declared effective
by the SEC and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference,
all exhibits and each preliminary prospectus, (ii) ten (10) copies of the final prospectus included in such Registration Statement
and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request) and (iii)
such other documents as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Investor.

 

    	2

    	 

    

 

d. The
Company shall use its commercially reasonable best efforts to (i) register and qualify the Registrable Securities covered by a
Registration Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as
the Investor reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof
during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (w) make any change to its certificate of incorporation or by-laws, (x) qualify to do business
in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general
taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall
promptly notify the Investor of the receipt by the Company of any notification with respect to the suspension of the registration
or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

e. As
promptly as practicable after becoming aware of such event or development, the Company shall notify the Investor in writing of
the happening of any event as a result of which the prospectus included in a Registration Statement, as then in effect, includes
an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall
such notice contain any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission, and deliver copies of such supplement or amendment to each Investor (which
may be electronic copies). The Company shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to the Investor by facsimile on the same day of such effectiveness),
(ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would
be appropriate.

 

f. The
Company shall use its commercially reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
within the United States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension
at the earliest possible moment and to notify the Investor of the issuance of such order and the resolution thereof or its receipt
of actual notice of the initiation or threat of any proceeding for such purpose.

 

g. At
the reasonable request of the Investor, the Company shall furnish to the Investor, on the date of the effectiveness of the Registration
Statement and thereafter from time to time on such dates as the Investor may reasonably request (i) a letter, dated such date,
from the Company’s independent certified public accountants in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given
in an underwritten public offering, addressed to the Investor.

 

h. The
Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of,
or to obtain a protective order for, such information.

 

    	3

    	 

    

 

i. The
Company shall use its commercially reasonable best efforts either to cause all the Registrable Securities covered by a Registration
Statement (i) to be listed on each securities exchange on which securities of the same class or series issued by the Company are
then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or to secure
the inclusion for quotation on the National Association of Securities Dealers, Inc. OTC Bulletin Board or OTC Markets, OTCQB,
for such Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying its obligation under
this Section 3(j).

 

j. The
Company shall cooperate with the Investor to the extent applicable, to facilitate the timely preparation and delivery of certificates
(not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration Statement
and enable such certificates to be in such denominations or amounts, as the case may be, as the Investor may reasonably request
and registered in such names as the Investor may request.

 

k. The
Company shall use its commercially reasonable best efforts to cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate
the disposition of such Registrable Securities.

 

l. The
Company shall otherwise use its commercially reasonable best efforts to comply with all applicable rules and regulations of the
SEC in connection with any registration hereunder.

 

m. Within
two (2) business days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the form
attached hereto as Exhibit A.

 

n. The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to a Registration Statement.

 

4. OBLIGATIONS
OF THE INVESTOR.

 

The
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant to
any Registration Statement(s) covering such Registrable Securities until the Investor’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(e) or receipt of notice that no supplement or amendment is required. Notwithstanding
anything to the contrary, the Company shall cause its transfer agent to deliver unlegend certificates for shares of Common Stock
to a transferee of the Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale
of Registrable Securities with respect to which the Investor has entered into a contract for sale prior to the Investor’s
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence
of 3(e) and for which the Investor has not yet settled.

 

    	4

    	 

    

 

For
so long as any Registrable Securities remain held by the Investors, the Investor shall not directly or indirectly engage in any
short selling of the Company’s registered securities either for itself or on behalf of any third party for whom the Investor
receives consideration,  provided that the Company acknowledges and agrees that upon receipt of an Advance Notice the Investor
has the right to sell the shares to be issued to the Investor pursuant to the Advance Notice during the applicable Pricing Period. 

 

5. EXPENSES
OF REGISTRATION.

 

All
expenses incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees, printers, legal and accounting fees shall be paid by the Company.

 

6. INDEMNIFICATION.

 

With
respect to Registrable Securities which are included in a Registration Statement under this Agreement:

 

a. To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls the Investor within
the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading;
(ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation there under
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, “Violations”). The Company shall reimburse the Investor and
each such controlling person promptly as such expenses are incurred and are due and payable, for any legal fees or disbursements
or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

 

    	5

    	 

    

 

b. In
connection with a Registration Statement, the Investor agrees to indemnify, hold harmless and defend, to the same extent and in
the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration
Statement and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each
an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject,
under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or is based
upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity
with written information furnished to the Company by the Investor expressly for use in connection with such Registration Statement;
and, subject to Section 6(d), the Investor will reimburse any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b)
and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim
if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b)
with respect to any prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of
material fact contained in the prospectus was corrected and such new prospectus was delivered to the Investor prior to the Investor’s
use of the prospectus to which the Claim relates.

 

c. Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the reasonable fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid
by the indemnifying party, if, in the reasonable opinion of original counsel retained by the indemnified parties, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the
defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably
withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party
or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a
release from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability
to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced
in its ability to defend such action.

 

d. The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

    	6

    	 

    

 

e. The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7. CONTRIBUTION.

 

To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make
the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities
who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited
in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8. REPORTS
UNDER THE EXCHANGE ACT.

 

With
a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any similar rule or
regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration
(“Rule 144”) the Company agrees to:

 

a. make
and keep public information available, as those terms are understood and defined in Rule 144;

 

b. file
with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s
obligations under Section 6.3 of the Securities Purchase Agreement) and the filing of such reports and other documents is required
for the applicable provisions of Rule 144; and

 

c. furnish
to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the
most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without
registration.

 

9. AMENDMENT
OF REGISTRATION RIGHTS.

 

Provisions
of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only by a written agreement between the Company and the Investor. Any amendment or waiver effected
in accordance with this Section 9 shall be binding upon the Investor and the Company. No consideration shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration
also is offered to all of the parties to this Agreement.

 

10. MISCELLANEOUS.

 

a. A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

    	7

    	 

    

 

b. Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	If to the Company:	Stragenics, Inc.
	 	 	 
	 	Attn: Alan Grofe
	 	Address:	100 Rialto Place
	 	 	Suite 700
	 		Melbourne, FL 32901
	 	Phone: 321-541-1216
	 	Facsimile:	 

 

	If to the Investor:	Tangiers Investment Group, LLC
	 	501 W. Broadway, Suite 800
	 	San Diego, CA 92101
	 	Attention:	Justin Ederle
	 	 	Managing Partner
	 	Telephone:	619-615-4255 
	 	Facsimile:	619-566-2011

 

Any
party may change its address by providing written notice to the other parties hereto at least five days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be
rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service
in accordance with clause (i), (ii) or (iii) above, respectively.

 

c. Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

    	8

    	 

    

 

d. The
corporate laws of the State of California govern all issues concerning the relative rights of the Company and the Investor. All
other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than
the State of California. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Superior Courts of the
State of California, sitting in California and the Federal District Court for the District of California, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

e. This
Agreement, the Securities Purchase Agreement and the Registration Rights Agreement constitute the entire agreement among the parties
hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein and therein. This Agreement and the Securities Purchase Agreement supersede all
prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

f. This
Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

g. The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

h. This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

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

 

j. The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no
rules of strict construction will be applied against any party.

 

k. This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	9

    	 

    

  

IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above
written.

 

	 	COMPANY:
	 	 	 
	 	STRAGENICS,
    INC.
	 	 	 
	 	/s/ Alan W. Grofe
	 	Name:	  ALAN W. GROFE
	 	Title:	PRESIDENT & CEO

 

	 	INVESTOR:
	 	 	 
	 	TANGIERS INVESTMENT GROUP, LLC
	 	 	 
	 	 
	 	By:	 
	 	Its:	Managing Member

 

    	10

    	 

    

 

EXHIBIT
A

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

 

Attention:

 

	 	Re:	Stragenics, Inc.

 

Ladies
and Gentlemen:

 

We
are counsel to Stragenics, Inc. (the “Company”), and have represented the Company in connection with
that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and between
the Company and Tangiers Investment Group, LLC (the “Investor”) pursuant to which the Company issued to the
Investor shares of its Common Stock, $.0001 par value per share (the “Common Stock”). Pursuant to the Securities
Purchase Agreement, the Company also has entered into a Registration Rights Agreement with the Investor (the “Registration
Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Registrable Securities
(as defined in the Registration Rights Agreement) under the Securities Act of 1933, as amended (the “Securities Act”).
In connection with the Company’s obligations under the Registration Rights Agreement, on ____________ ____, the Company
filed a Registration Statement on Form ________ (File No. 333-_____________) (the “Registration Statement”)
with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which names
the Investor as a selling stockholder thereunder.

 

In
connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS]
on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff,
that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration
Statement.

 

	 	Very truly yours,
	 	 	 
	 	By:	 

 

	cc:	Stragenics, Inc.

 

 

11

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