Document:

Exhibit 10.1

 

 

 

 

 

 

 

 

INVESTMENT AND SUBSCRIPTION AGREEMENT

 

among

 

IMMUNIC AG and

 

its Shareholders

 

Dated as of January 6, 2019

 

 

 

 

 

 

 

     

     

    

Table of Contents

 

Page

	Article 1.   DESCRIPTION OF THE CONCURRENT FINANCING	2
	1.1     Immunic Shareholders’ Meeting	2
	1.2     Pre-Closing Capital Increase	3
	1.3     Contributions to Immunic’s Capital Reserves	5
	1.4     Use of Proceeds.	6
	1.5     Further Action.	6
	Article 2.   REPRESENTATIONS AND WARRANTIES	7
	2.1     Representations or Warranties of Immunic.	7
	2.2     Representations and Warranties of Holders	7
	Article 3.   ADDITIONAL AGREEMENTS OF THE PARTIES	8
	3.1     New CSA.	8
	3.2     Additional Agreements.	9
	Article 4.   CONDITION TO THE OBLIGATIONS OF THE PARTIES	9
	4.1     Condition Precedent of the Public Funds.	9
	4.2     Condition Subsequent.	9
	4.3     Legal Consequences.	9
	Article 5.   MISCELLANEOUS PROVISIONS	10
	5.1     Taxes.	10
	5.2     Expenses.	11
	5.3     Amendment.	11
	5.4     Waiver.	11
	5.5     Entire Agreement; Counterparts; Exchanges by Facsimile.	12
	5.6     Applicable Law; Jurisdiction.	12
	5.7     Assignability.	12
	5.8     Own Right to Claim for Vital.	12
	5.9     Notices.	12
	5.10   Severability.	13
	5.11   Other Remedies; Specific Performance.	13
	5.12   Construction.	13

 

 

    	 	i	 

     

    

Table of Contents

(continued)

Page

 

 

Exhibits:

 

EXHIBIT A – FURTHER PARTIES TO THE AGREEMENT

 

EXHIBIT B – CERTAIN DEFINITIONS

 

EXHIBIT C – CURRENT SHAREHOLDING OF THE HOLDERS

 

EXHIBIT D – Draft Exchange
Agreement

 

EXHIBIT E – INVESTORS

 

EXHIBIT 1.1(a)(ii) – SUBSCRIBERS AND NUMBER OF NEW SHARES SUBSCRIBED
BY THEM

 

EXHIBIT 1.1(a)(iv) – REVISED ARTICLES OF ASSOCIATION

 

EXHIBIT 1.2(h) – SHAREHOLDING AFTER PRE-CLOSING CAPITAL
INCREASE

 

EXHIBIT 1.4-1 – EFRE SUPPLEMENT

 

EXHIBIT 1.4-2 – AFR (ACCEPTANCE OF FUNDING REQUIREMENT)

 

EXHIBIT 3.1 – consolidated
shareholders’ agreement

 

EXHIBIT 5.9 – CONTACT DETAILS

 

    	 	2	 

     

    

INVESTMENT AND SUBSCRIPTION AGREEMENT

 

THIS INVESTMENT AND SUBSCRIPTION AGREEMENT
(this “Agreement”) is made and entered into as of January 6, 2019, by and among IMMUNIC AG,
a stock corporation formed under the laws of Germany and registered with the commercial register (Handelsregister) of the
local court of Munich (the “Commercial Register”) under number HRB 223333 (“Immunic”
or “Company”), and the parties listed on Exhibit A hereto as direct and certain indirect shareholders
of the Company. Certain capitalized terms used in this Agreement are defined in Exhibit B.

 

RECITALS

 

A.               
The Company’s share capital currently amounts to EUR 362,997.00, divided into 362,997 shares in registered form
as non-par value shares with a portion of the Company's share capital (anteiliger Betrag am Grundkapital) of EUR 1.00
each (the “Immunic Shares”). The Immunic Shares are currently held by the persons listed hereafter (the
“Holders”) as stated in the table set out in Exhibit C:

 

B.                
The Company, the Holders and Vital Therapies, Inc., a Delaware corporation (“Vital”) intend to
effect a transaction whereby the Holders contribute, transfer, assign and deliver all of the Immunic Shares owned by the Holders,
and all of their rights with respect to such Immunic Shares, to Vital in exchange for shares of Vital Common Stock, with the result
of Immunic becoming a wholly-owned subsidiary of Vital (the “Transaction”). To conclude the Transaction,
the parties thereto will enter into an exchange agreement (the “Exchange Agreement”), a current draft
of which is attached hereto as Exhibit D.

 

C.                
As a condition to the execution and delivery of the Exchange Agreement by Vital, the Company requires further financing
of at least $30 million (the “Concurrent Financing”).

 

D.               
Each of the Holders listed on Exhibit E hereto (the “Investors”) has, severally and not
jointly, committed to take part in the Concurrent Financing by way of subscription for newly issued common shares (Stammaktien)
in the Company subject to the closing of the Transaction (the “Closing”) and the further terms and conditions
set forth herein.

 

E.                
The Company and each Investor are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange
Commission (the “Commission”) under the Securities Act.

 

F.                 
In 2018, the Company and each of Manfred Groeppel, Andreas Muehler. Daniel Vitt and Hella Kohlhof (“Founders”)
have entered into certain exit bonus agreements (the “Exit Bonus Agreements”). The Exit Bonus Agreements
have been assigned and transferred by each of the Founders to their respective investment vehicle (the “Founder Vehicle(s)”;
together with Investors the “Subscribers”) as follows:

    	 	1	 

     

    

	Founder	Founder Vehicle
	Manfred Groeppel	GI
	Andreas Muehler	Xanomed
	Daniel Vitt	Listrax
	Hella Kohlhof	Constanze

 

The Parties now intend to issue new Common Shares
to the Founder Vehicles in order to settle the Founder Vehicles’ claims under the Exit Bonus Agreements.

 

G.               
In light of the Transaction, the Parties hereto further intend to enter into a consolidated shareholders’ agreement
(the “CSA 2018”) which sets forth the principles of the legal relationship between all shareholders of
Immunic. The CSA 2018 shall also replace in full any and all prior shareholders’ agreements among all or individual shareholders
relating to their participation in Immunic, including (without being limited to) the shareholders’ agreement dated August
10, 2016 as amended by the first amendment to the investment and shareholders’ agreements dated December 21, 2016, the second
accession and amendment agreement dated August 25, 2017 as well as the third accession and amendment agreement dated December 14,
2018 (together “Existing Agreements”).

 

H.               
Following the Concurrent Financing and immediately prior to closing of the Transaction, the Holders will own all of the
Immunic Shares (consisting of the Immunic Common Shares including the Immunic Pre-Closing Financing Shares) outstanding in accordance
with the Articles of Association (Satzung) of Immunic (the “Immunic Articles”).

 

NOW, THEREFORE, in consideration of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Holders hereby agree as follows

 

AGREEMENT

 

The parties to this Agreement, intending to
be legally bound, agree as follows:

 

 Article 1.    DESCRIPTION OF THE CONCURRENT FINANCING

 

1.1             
Immunic Shareholders’ Meeting

 

(a)              
Upon the terms and subject to the conditions set forth in this Agreement, the Holders undertake to resolve unanimously
and with all votes in a shareholders' meeting to be held in the form of a plenary meeting (Vollversammlung) with all Holders
being present or duly represented (“Shareholders’ Meeting”) as follows:

 

(i)                
increase of the Company’s registered share capital from EUR 362,997.00 by EUR 156,920.00 to EUR 519,917.00
in return for cash contributions by the issuance of 156,920 new shares in the Company in the form of common shares (Stammaktien)
(the “Pre-Closing Financing Shares”), each in registered form, to be issued as non-par value shares with
a portion of the Company's share capital (anteiliger Betrag am Grundkapital) of EUR 1.00 each (the “Pre-Closing
Capital Increase”).

    	 	2	 

     

    

(ii)             
invite only the Subscribers to subscribe for the Pre-Closing Financing Shares as set out in the column to the right
of the respective Subscriber’s name in the table set forth in Exhibit 1.1(a)(ii) and waive any statutory or contractual
subscription rights conflicting with such admission.

 

(iii)           
convert all of Immunic’s outstanding preferred shares series A-1 and series A-2 (together “Preferred
Shares”) into common shares of Immunic (“Common Shares”); and

 

(iv)            
revise the articles of association (Satzung) of the Company as set forth in Exhibit 1.1(a)(iv)
(“Revised Articles of Association”).

 

(b)              
All Pre-Closing Financing Shares shall have the right to participate in profits as from the beginning of the year
of their issuance.

 

(c)              
The Shareholders’ Meeting shall be held immediately following the conclusion of the Vital Stockholders Meeting
(as defined in the Exchange Agreement) so long as all of the Vital Stockholder Matters (as defined in the Exchange Agreement) required
to implement the Transaction are approved by the Vital Stockholders (as defined in the Exchange Agreement) prior to the conclusion
of the Vital Stockholders Meeting. At the Shareholders’ Meeting, the Holders are obliged to vote in favor of all of the items
contemplated by Section 1.1(a) above as well as any other items that may be required or advisable to implement the Concurrent Financing.

 

1.2             
Pre-Closing Capital Increase

 

(a)              
Each of the Holders undertakes individually for himself vis-à-vis each other Holder, to do or cause
to be done everything necessary to implement the resolutions set forth in Section 1.1 above. Thus, the Holders undertake in
particular to co-operate in the Pre-Closing Capital Increase as described by exercising their voting rights in the Shareholders’
Meeting accordingly and to waive their right to raise objections to and to challenge the resolutions of the Shareholders’
Meeting.

 

(b)              
Each of the Subscribers undertakes, subject to sec. 4.1, individually for itself vis-à-vis each other
and each of the Holders, to (A) subscribe and to take over the Pre-Closing Financing Shares as stated in Sec. 1.1(a)(ii) above
immediately after the end of the Shareholders’ Meeting, and (B) pay to the Company in full a cash contribution equal
to the aggregate amount of the portion of the Company’s share capital in respect of the Pre-Closing Financing Shares it has
subscribed for (“Capital Contribution”). The Capital Contribution shall be paid within two (2) bank
working day in Frankfurt am Main, Germany after the respective Subscriber has subscribed for its Pre-Closing Financing Shares to
the following special account

 

    	 	3	 

     

    

(c)              
for the increase of the share capital of the Company (“Special Account”) by irrevocable
wire transfer of immediately available funds valued as of the relevant due date and free of any bank and other charges:

 

	Account Holder	Immunic AG
	Bank	Landesbank Baden-Württemberg
	BIC	 
	IBAN	 
	Reference	Pre-Closing Capital Increase 

[Name of Subscriber]

 

(d)              
Payments shall be made exclusively to the Special Account, which has been opened solely for this purpose and must
not have a debit balance immediately prior to the Capital Contribution being effected, so that the Company’s Management Board
can freely dispose of the amounts paid (cf. §§ 188, 36, 36a, 37 German Stock Corporation Act (AktG)). The
Capital Contribution paid in respect to the Pre-Closing Financing Shares shall not be used for payments until the Pre-Closing Capital
Increase has been properly registered with the commercial register.

 

(e)              
After the subscription and taking over of the Pre-Closing Financing Shares under Sec. 1.1 above and the receipt of
the aggregate amount of the portion of the Company’s share capital of such Pre-Closing Financing Shares, the Company shall
without undue delay (unverzüglich) apply for registration of the increase of the share capital under Sec. 1.1
above and its consummation and the Revised Articles of Association with the commercial register of the Company and shall take all
actions and make all declarations necessary or appropriate for the increase of the share capital under Sec. 1.1 above and the Revised
Articles of Association to become effective.

 

(f)               
The Company is instructed to notify the notary notarizing the Pre-Closing Capital Increase at least in text form
without delay of the payments received by sending an account statement of the Special Account.

 

(g)              
The Holders undertake vis-à-vis each other, as from the conclusion of this Agreement until the consummation
of the increase of the share capital under Sec. 1 above and the Revised Articles of Association has been registered with the
commercial register of the Company, to treat each other as if the Subscribers had already acquired the Pre-Closing Financing Shares
to be issued under Sec. 1 above upon subscription, respectively, and the Revised Articles of Association had already come
into force upon the end of the Shareholders’ Meeting, to the extent legally permissible. Thus, each of the Holders undertakes
individually for himself vis-à-vis each of the Holders, as from the subscription of the Pre-Closing Financing Shares
under Sec. 1 above, respectively, to put each of the Subscribers internally in such position as they each would be in, if they
had acquired the financial rights (Vermögensrechte) and, to the extent legally permissible, the administrative rights
(Verwaltungsrechte) under this Agreement (including the New CSA) as well as the Revised Articles of Association upon subscription,
respectively. Should the commercial register make valid objections to the increases of the share capital under Sec. 1 or the Revised
Articles of Association, the Holders undertake, as amongst each other, to remove such objections without undue delay by way of
adopting the necessary resolutions in a shareholders’ meeting of the Company to be held as soon as possible so that the purpose
and intention of the provisions objected to can be achieved to the maximum permissible extent.

    	 	4	 

     

    

(h)              
The subscriptions shall only become non-binding (i) if the condition precedent mentioned in sec. 4.1 has not been
fulfilled and (ii) if the consummation (Durchführung) of the respective capital increase has not been registered in
the commercial register on or before six (6) months after subscription; such deadline may be extended through mutual agreement
among the Company and the Subscribers which shall be made at least in text form pursuant to section 126 lit. b. German Civil
Code (BGB). Notwithstanding any provision herein to the contrary, if the Transaction has occurred and the subscriptions
subsequently become non-binding, the Transaction will be unaffected thereby.

 

(i)                
After the conversion to Common Shares and the Pre-Closing Capital Increase have become effective, the share capital
of the Company will be held by the Holders as set out in Exhibit 1.2(h).

 

1.3             
Contributions to Immunic’s Capital Reserves

 

(a)              
The Investors undertake individually for themselves vis-à-vis each of the other Holders, but not vis-à-vis
the Company, to render, in addition to the portion of the Company’s share capital (anteiliger Betrag des Grundkapitals)
of EUR 1.00 each for each Pre-Closing Financing Share subscribed by them under Sec. 1.1 above, further payments into
the capital reserves of the Company pursuant to Sec. 272 para. 2 no. 4 German Commercial Code (HGB) as follows:

 

	Investor	Payments to the Company’s Capital Reserves (in EUR)
	LSP	6,219,572.00
	EGS	1,243,914.00
	BKI	248,783.00
	WFB	995,132.00 
	HTGF	1,492,697.00
	IBG	995,132.00
	Fund+	7,662,513.00
	GLB V	7,662,513.00
	Total	26,520,256.00

 

The payments under this lit. (a)
shall be made within two (2) bank working day in Frankfurt am Main, Germany after the Pre-Closing Capital Increase has been filed
for registration with the commercial register, to the Special Account by irrevocable wire transfer of immediately available funds
valued as of the relevant due date and free of any bank and other charges (reference: Pre-Closing Capital
Increase [Name of Investor]). The respective payments into the capital reserves by WFB, BKI and IBG shall in each
case only become due if the Company has confirmed to WFB, BKI and IBG in text form that either of LSP, EGS, Fund+ or GLB V has
paid its corresponding capital contribution to the Special Account.

    	 	5	 

     

    

(b)              
Each of the Founders and Founder Vehicles hereby assigns and transfers for the Pre-Closing Financing Shares subscribed
by them under Sec. 1.1 above their respective claims under or in connection with the respective Exit Bonus Agreements as attached
hereto as Exhibit 1.3(b) to the capital reserves of the Company pursuant to Sec. 272 para. 2 no. 4 German
Commercial Code (HGB) subject to the condition precedent (aufschiebende Bedingung) of closing of the Exchange Agreement.
The Company hereby accepts such assignment and transfer. The Exit Bonus Agreements are thereby fully settled and shall terminate
on the date the assignments and transfers become effective.

 

(c)              
Each Subscriber may at any time render any of its contributions pursuant to this Sec. 1.3 at its sole discretion
before it becomes due.

 

1.4             
Use of Proceeds.

 

Immunic shall comply with the obligations required
by the European Fund for Regional Development (Europäischer Fonds für Regionale Entwicklung; “EFRE”)
set out in the supplement agreement in the form as attached hereto as Exhibit 1.4-1. The funds provided by IBG shall be
exclusively used to fund the project “Development of New RORyt Inhibitors for the Therapy of Auto-Immune Diseases in Saxony-Anhalt”
and “Preclinical examinations on the mechanisms of action of the assets IMU-838 and IMU 856” (“Funded Project”)
as set out in the data information sheet (“DIS”) taking IBG’s investment principles, which are attached
hereto together with the form “Acceptance of Funding Requirement” of the Company as Exhibit 1.4-2 (“AFR”),
into consideration. In case the Funded Project cannot be realized at all or in an economically reasonable way, IBG and Immunic
shall use their reasonable best efforts to define another project to be realized in Saxony-Anhalt. Such change of project will
be subject to the prior consent from IBG’s respective bodies. Solely for the purpose of carrying out the Funded Project (as
amended, as the case may be), Immunic shall maintain until completion of the Funded Project (i.e. – for the avoidance of
doubt – until documented evidence of the application of IBG’s funds (vollständiger Mittelverwendungsnachweis)
has been issued) Immunic GmbH as wholly owned subsidiary domiciled in Halle (Saale). Furthermore, Immunic represents and warrants
that the requirements for the granting of funds in accordance with the investment principles for open pari passu investments
and conversion measures in line with market standards (no subsidy; keine Beihilfe) have been fulfilled. Exhibit 1.4-1 and
Exhibit 1.4-2 are an integral part of this Agreement and therefore, are applicable, mandatory and binding upon the Company.

 

1.5             
Further Action.

 

If, at any time, any further action is determined
by either of the Parties to be necessary or desirable to carry out the purposes of this Agreement, then all of the Parties shall
use their commercially reasonable efforts to take such action.

    	 	6	 

     

    

 Article 2.    REPRESENTATIONS AND WARRANTIES

 

2.1             
Representations or Warranties of Immunic.

 

Immunic represents and warrants to IBG that
on the date of signing of this Agreement (i) the information provided in Exhibit 1.4.-2 are true and correct and (ii) the
requirements for the granting of funds in accordance with the investment principles for pari passu investments and conversion measures
in line with market standards (no subsidy; keine Beihilfen) have been fulfilled. Each of the Parties hereby acknowledges
and agrees that Immunic makes no further express or implied representation or warranty with respect to Immunic or with respect
to any other information provided to any of the Subscribers in connection with the Pre-Closing Capital Increase and this Agreement.

 

2.2             
Representations and Warranties of Holders

 

(a)              
Organization and Authority of Holders.

 

(i)                
If a Holder is not an individual, such Holder is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its formation.

 

(ii)             
Each Holder has the requisite power and authority (and, in the case of each Holder who is a natural person, capacity)
to execute, deliver and perform such Holder’s obligations under this Agreement. This Agreement has been duly authorized,
executed and delivered by such Holder and represents (assuming the valid authorization, execution and delivery of this Agreement
by each other party hereto) the legal, valid and binding obligation of such Holder, enforceable against such Holder in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws of general application
relating to or affecting creditors’ rights and subject to general equity principles.

 

(b)              
Holder Conflicts.

 

Neither the execution and delivery by such Holder
of this Agreement or the consummation by such Holder of any of the transactions contemplated hereby, nor compliance by such Holder
with this Agreement, or fulfillment of, the terms, conditions and provisions hereof, will:

 

(i)                
result in a violation or breach of the terms, conditions or provisions of, conflict with or constitute a default
under any provision of, an event of default or an event that, after notice or lapse of time or both, would result in the creation
of rights of acceleration, termination or cancellation or a loss of rights under (i) the organizational documents of such Holder
(as and if applicable), (ii) any material Contract to which such Holder is a party or any of its properties is subject or by which
such Holder is bound, (iii) any order, judgment, injunction, award, decree, ruling or writ of any Governmental Body to which such
Holder is a party or by which it is bound or (iv) any Legal Requirement affecting such Holder; or

 

(ii)             
require the approval, consent, authorization or act of, the notice to or the making by such Holder of any declaration,
filing or registration with, any Governmental Body.

    	 	7	 

     

    

(c)              
No Holder Violation or Litigation.

 

(i)                
there are no Legal Proceedings pending or, to the knowledge of such Holder, threatened against such Holder which
are reasonably expected to impair the ability of such Holder to perform its obligations under this Agreement to which it is a party
or prevent the consummation of any of the transactions contemplated hereby or thereby;

 

(ii)             
there are no Legal Proceedings pending or, to the knowledge of such Holder, threatened that question the legality
of the transactions contemplated by this Agreement; and

 

(iii)           
such Holder is not subject to any outstanding order, judgment, injunction, award, decree, ruling or writ of any Governmental
Body that prohibits or otherwise restricts the ability of such Holder to consummate fully the transactions contemplated by this
Agreement.

 

(d)              
Subscription Entirely for Own Account.

 

Save for the Transaction and in particular as
set forth in the Exchange Agreement, this Agreement is made with such Holder in reliance upon such Holder’s representation
to Immunic, which by such Holder’s execution of this Agreement, such Holder hereby confirms, that the shares of Common Shares
to be subscribed by such Holder hereunder will be acquired for investment for such Holder’s own account, not as a nominee
or agent, and not with a view to the resale or distribution of any part thereof, and that such Holder has no present intention
of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, such Holder further
represents that such Holder does not presently have any contract, undertaking, agreement or arrangement with any Person to sell,
transfer or grant participations to such Person or to any third Person, with respect to any of the shares of Common Shares to be
subscribed by such Holder hereunder, other than set forth and provided for in the Transaction and the Exchange Agreement. Such
Holder has not been formed for the specific purpose of acquiring the shares of Common Shares to be acquired by such Holder hereunder.

 

(e)              
No Other Representations or Warranties.

 

Immunic hereby acknowledges and agrees that,
except for the representations and warranties contained in this Agreement, neither Immunic, any Holder, nor any other person on
behalf of Immunic makes any express or implied representation or warranty with respect to Immunic or with respect to any other
information provided in connection with the Contemplated Transactions.

 

 Article 3.    ADDITIONAL AGREEMENTS OF THE PARTIES

 

3.1             
New CSA.

 

The
Parties shall conclude the consolidated shareholders’ agreement as set forth in Exhibit 3.1.

    	 	8	 

     

    

3.2             
Additional Agreements.

 

The Parties shall (a) use commercially reasonable
efforts to cause to be taken all actions necessary to consummate the Contemplated Transactions and (b) reasonably cooperate with
the other Parties and provide the other Parties with such assistance as may be reasonably requested for the purpose of facilitating
the performance by each Party of its respective obligations under this Agreement. Without limiting the generality of the foregoing,
each Party to this Agreement: (i) shall make all filings and other submissions (if any) and give all notices (if any) required
to be made and given by such Party in connection with the Contemplated Transactions; (ii) shall use commercially reasonable efforts
to lift any injunction prohibiting, or any other legal bar to, the Contemplated Transactions; and (iii) shall use commercially
reasonable efforts to satisfy the conditions precedent to the consummation of this Agreement. The Holders shall (a) use commercially
reasonable efforts to cause to be taken all actions necessary to consummate the Contemplated Transactions and (b) reasonably cooperate
with the Parties and provide the Parties with such assistance as may be reasonably requested for the purpose of facilitating the
performance by each Party of its respective obligations under this Agreement and to enable the Parties to continue to meet its
obligations under this Agreement following the Closing. Without limiting the generality of the foregoing, each Party and Holder:
(i) shall make all filings and other submissions (if any) and give all notices (if any) required to be made and given by such Party
or Holder in connection with the Contemplated Transactions; (ii) shall use commercially reasonable efforts to lift any injunction
prohibiting, or any other legal bar to, the Contemplated Transactions; and (iii) shall use commercially reasonable efforts to satisfy
the conditions precedent to the consummation of this Agreement.

 

 Article 4.    CONDITION TO THE OBLIGATIONS OF THE PARTIES

 

4.1             
Condition Precedent of the Public Funds.

 

The obligations of each of the Public Funds
under this Agreement to (i) subscribe for newly issued Common Shares and (ii) make further payments to Immunic’s capital
reserves is subject to the condition precedent (aufschiebende Bedingung) that their respective investment committee has
approved the respective commitment. Each of the Public Funds undertakes to notify the Company at least in electronic form by February
14, 2019 whether the condition precedent with respect to their investment committee has occurred (“Notification I”).

 

4.2             
Condition Subsequent.

 

This Agreement is subject to the condition subsequent
(auflösende Bedingung) that the Management Board of Immunic has notified Dr. Jörg Neermann (jneermann@lspvc.com)
as representative of the other Parties in electronic form (“Notification II”) that the closing of the
Exchange Agreement has not occurred by June 30, 2019 (the “Longstop Date”).

 

4.3             
Legal Consequences.

 

(a)              
In case either (i) the Notification I has not been issued in time or (ii) the committee has rejected the respective
Public Fund’s commitment, the respective condition precedent shall be deemed not to be satisfied. In either such case the
other Investors will use their reasonable efforts to take over such Public Fund’s commitment inter se.

    	 	9	 

     

    

(b)              
In case the Notification II has been received with an effective date after the Longstop Date, this Agreement shall
be of no further force or effect and all rights and obligations of the Parties under this Agreement shall cease to exist and any
and all actions hereunder shall be unwound, including (without being limited to) any and all payments or contributions rendered
by the Subscribers shall be returned by Immunic to the respective Subscribers, insofar as legally permissible; provided, however,
that (i) this Section 4.3, Section 5.6, and Section 5.11 shall survive and shall remain in full force and effect. In this
case, the Parties shall use commercially reasonable efforts to cause to be taken all actions necessary to consummate the unwinding.
Without limiting the generality of the foregoing, each Party to this Agreement shall make all filings and other submissions (if
any) and give all notices (if any) required to be made and given by such Party in connection with such unwinding.

 

 Article 5.    MISCELLANEOUS PROVISIONS

 

5.1             
Taxes.

 

(a)              
The Company has duly, timely and completely filed in accordance with the applicable laws (taking into consideration
extensions of time allowed by the competent Tax authorities) all returns, reports, forms, schedules, notices and any other document
or information requested to be filed by the Company for Taxes (“Tax Return”) and procured that such Tax
Returns are correct and complete in all respects; whereas “Tax” or “Taxes”
shall mean any public imposition, including but not limited to any federal, state or local taxes (Steuern), duties (Abgaben),
public contributions (Beiträge, Gebühren), customs (Zölle), excise (Verbrauchssteuern), any
other imposition within the meaning of section 3 para. 1 to 3 of the German Tax Code (Abgabenordnung), together with any
interest, penalty or other kind of addition thereon and incidental payments related thereto including but not limited to any ancillary
charges (steuerliche Nebenleistungen) within the meaning of section 3 para. 4 of the German Tax Code (Abgabenordnung),
social security contributions (Sozialversicherungsbeiträge), investment grants and subsidies (Investitionszuschüsse
und -zulagen) (in each case, including equivalent impositions or duties under the laws of any other jurisdiction and irrespective
of whether (i) owed as a primary liability (Steuerschuld) or as a secondary liability (Haftungsschuld) or (ii) assessed,
to be withheld or payable by law;

 

(b)              
The Company has in all respects withheld and paid all Taxes required to have been withheld and paid in connection
with any amounts due, owed or payable; or has adequately provided for such Taxes in Immunic’s audited consolidated balance
sheets at December 31, 2017 (the “Annual Financial Statement”);

 

(c)              
All tax liabilities whether actual, deferred, contingent or disputed, of the Company (i) measured by reference to
income, profits or gains earned, accrued or received for the period covered by the Annual Financial Statement or (ii) arising in
respect of an event, transaction or other circumstance occurring or arising or deemed to occur or arise for the period covered
by Annual Financial Statement (whether wholly or partly), are fully provided for or (as appropriate) disclosed in Annual Financial
Statement;

    	 	10	 

     

    

(d)              
The Company is in compliance with all terms, conditions and formalities necessary for the continuance of any Tax
exemption, Tax credit, Tax incentive, Tax refund, Tax loss utilization or other Tax reduction agreement or order available under
any applicable law;

 

(e)              
The Company is not involved in any dispute in relation to Taxes with any Tax authority and there are no audits, examinations,
investigations, proposed or asserted claims or other actions pending against or with respect to the assets of the Company;

 

(f)               
The Company is in possession of all Tax records and information to be maintained by it, so as to be able to file
its Tax Returns and to reasonably defend positions taken in Tax Returns filed as of the date hereof;

 

(g)              
The Company has its seat in Germany;

 

(h)              
No Taxes are triggered on the level of the Company by any financing measures, including but not limited to convertible
loans, equity contribution, and/or debt to equity swaps.

 

5.2             
Expenses.

 

All fees and expenses incurred in connection
with this Agreement and the Contemplated Transactions shall be paid by the Party or a Holder incurring such expenses, whether or
not the Transaction is consummated.

 

5.3             
Amendment.

 

This Agreement may be amended with the approval
of the respective Boards of Directors of Immunic and Vital and the approval by a simple majority of the Holders at any time (whether
before or after obtaining the Required Vital Stockholder Vote); provided, however, that (a) no representation, warranty or covenant
in this Agreement with respect to a Holder may be amended unless such amendment applies to all Holders in the same fashion and
the Parties obtain the approval of such amendment from the Holders who own a majority of the then outstanding Immunic Shares, and
(b) after obtaining the Required Vital Stockholder Vote, no amendment shall be made, which by applicable Legal Requirement requires
further approval of the Vital Stockholders, without the further approval of the Vital Stockholders. Subject to the foregoing, this
Agreement may not be amended.

 

5.4             
Waiver.

 

(a)              
No failure on the part of any Party or Holder to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of any Party or Holder in exercising any power, right, privilege or remedy under this Agreement, shall
operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege
or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy.

 

(b)              
No Party or Holder shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege
or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a
written instrument duly executed and delivered on behalf of such Party or Holder; and any such waiver shall not be applicable or
have any effect except in the specific instance in which it is given.

    	 	11	 

     

    

5.5             
Entire Agreement; Counterparts; Exchanges by Facsimile.

 

This Agreement and the other agreements referred
to in this Agreement constitute the entire agreement and supersede all prior agreements and understandings, both written and oral,
among or between any of the Parties and the Holders with respect to the subject matter hereof and thereof but, for the avoidance
of doubt, except for the supplement agreement in the form as attached hereto as Exhibit 1.4-1. This Agreement may be executed
in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument.
The exchange of a fully executed Agreement (in counterparts or otherwise) by all Parties and Holders by facsimile or electronic
transmission in .PDF format shall be sufficient to bind the Parties and the Holders to the terms and conditions of this Agreement.

 

5.6             
Applicable Law; Jurisdiction.

 

This Agreement shall be governed by, and construed
in accordance with, the laws of the Federal Republic of Germany, regardless of the laws that might otherwise govern under applicable
principles of conflicts of laws. In any action or suit between any of the Parties and/or the Holders arising out of or relating
to this Agreement or any of the Contemplated Transactions each of the Parties and the Holders irrevocably and unconditionally consents
and submits to the exclusive jurisdiction and venue of the courts located in Munich (Landgericht München I).

 

5.7             
Assignability.

 

This Agreement shall be binding upon, and shall
be enforceable by and inure solely to the benefit of, the Parties hereto, the Holders and their respective successors and assigns;
provided, however, that neither this Agreement nor any of a Party’s or Holder’s rights or obligations
hereunder may be assigned or delegated by such Party or Holder (as applicable) without the prior written consent of the Parties,
and any attempted assignment or delegation of this Agreement or any of such rights or obligations by such Party or Holder without
the Parties’ prior written consents shall be void and of no effect.

 

5.8             
Own Right to Claim for Vital.

 

Vital shall have an own right to claim (eigenes
Forderungsrecht) from each of the Subscribers to perform its duties and meet its obligations, in particular to make the payments
to Immunic as set forth herein, and shall have the right to enforce specific performance directly in accordance with Section 328
German Civil Code (Vertrag zugunsten Dritter im Sinne von § 328 BGB) to the sole benefit of Immunic to the extent
it may deem such enforcement necessary or advisable.

 

5.9             
Notices.

 

Any notice or other communication required or
permitted to be delivered to any Party and Holder under this Agreement shall be in writing and shall be deemed properly delivered,
given and received when delivered by hand, by registered mail, by courier or express delivery service, electronic mail, or by facsimile
to the address, electronic mail address, or facsimile telephone number set forth beneath the name of such party as listed in Exhibit 5.9
(or to such other address, electronic mail address, or facsimile telephone number as such party has specified in a written notice
given to the other parties hereto)

    	 	12	 

     

    

5.10         
Severability.

 

Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions of this Agreement or the validity or enforceability of the offending term or provision in any other situation
or in any other jurisdiction. If a final judgment of a court of competent jurisdiction declares that any term or provision of this
Agreement is invalid or unenforceable, the Parties and the Holders hereto agree that the court making such determination will have
the power to limit such term or provision, to delete specific words or phrases or to replace such term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term
or provision, and this Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power
granted to it in the prior sentence, the Parties and the Holders hereto agree to replace such invalid or unenforceable term or
provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and
other purposes of such invalid or unenforceable term or provision.

 

5.11         
Other Remedies; Specific Performance.

 

Except as otherwise provided herein, any and
all remedies herein expressly conferred upon a Party or Holder will be deemed cumulative with and not exclusive of any other remedy
conferred hereby, or by law or equity upon such Party or Holder, and the exercise by a Party or Holder of any one remedy will not
preclude the exercise of any other remedy. The Parties and the Holders hereto agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the Parties and the Holders shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court of the United States or any
state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity, and each
of the Parties and the Holders hereto waives any bond, surety or other security that might be required of any other Party or Holder
with respect thereto.

 

5.12         
Construction.

 

(a)              
For purposes of this Agreement, whenever the context requires the singular number shall include the plural, and vice
versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and
neuter genders; and the neuter gender shall include masculine and feminine genders.

    	 	13	 

     

    

(b)              
The Parties and the Holders hereto agree that any rule of construction to the effect that ambiguities are to be resolved
against the drafting Party shall not be applied in the construction or interpretation of this Agreement.

 

(c)              
As used in this Agreement, the words “include” and “including” and variations thereof, shall
not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.”

 

(d)              
Except as otherwise indicated, all references in this Agreement to “Sections,” “Articles,”
“Exhibits” and “Schedules” are intended to refer to Sections or Articles of this Agreement and Exhibits
and Schedules to this Agreement, respectively.

 

(e)              
The bold-faced headings contained in this Agreement are for convenience of reference only, shall not be deemed to
be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

[Remainder of page intentionally left blank]

 

 

 

 

    	 	14	 

     

    

IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed as of the date first above written.

 

	 	Immunic
    AG
	 	 
	 	By:	 	/s/Michael
    Singer
	 	Name:	 	Michael
    Singer
	 	Title:	 	by
    virtue of power of attorney (for the CEO)
	 	 	 	 
	 	Immunic
    AG
	 	 
	 	By:	 	/s/Michael
    Singer
	 	Name:	 	Michael
    Singer
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	(for
    the Chairman of the Supervisory Board)
	 	 	 	 
	 	Dr. Manfred Gröppel
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Dr. med Rolf Andreas
    Mühler
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Dr. Daniel Vitt
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Dr. Hella Kohlhof,
    née Herberger
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Listrax UG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney

 

    
[Signature Page to Subscription Agreement]

     

    

	 	Gröppel Investments
    UG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Constanze Investments
    UG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Xanomed UG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	LSP V Coöperatieve
    U.A.
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Dr. Gerhard Ries
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Gabriel Eckenstein
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Eckenstein-Geigy-Stiftung
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Bayern Kapital
    Innovationsfonds GmbH & Co. KG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 

 

    
[Signature Page to Subscription Agreement]

     

    

	 	Wachstumsfonds
    Bayern GmbH & Co. KG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	High-Tech Gründerfonds
    II GmbH & Co. KG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	IBG Risikokapitalfonds
    II GmbH & Co. KG
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Fund+ N.V.
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney
	 	 	 	 
	 	Global Life Bioventure
    V S.à r.l.
	 	 
	 	By:	 	/s/Thomas
    Strassner
	 	Name:	 	Thomas
    Strassner
	 	Title:	 	by
    virtue of power of attorney

 

    
[Signature Page to Subscription Agreement]

     

    

EXHIBIT B

 

CERTAIN DEFINITIONS 

 

For purposes of the Agreement (including this
Exhibit B):

 

“Agreement” has the
meaning set forth in the Preamble.

 

“Closing” has the
meaning set forth in the Recitals.

 

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

 

“Consent” means any
approval, consent, ratification, permission, waiver or authorization (including any Governmental Authorization).

 

“Contemplated Transactions”
means the Transaction, the Reverse Split, the Immunic Pre-Closing Financing, and the other transactions and actions contemplated
by the Agreement.

 

“Contract” shall,
with respect to any Person, mean any written agreement, contract, subcontract, lease (whether real or personal property), mortgage,
understanding, arrangement, instrument, note, option, warranty, purchase order, license, sublicense, insurance policy, benefit
plan or legally binding commitment or undertaking of any nature to which such Person is a party or by which such Person or any
of its assets are bound or affected under applicable law.

 

“Effect” means any
effect, change, event, circumstance, or development.

 

“Entity” means any
corporation (including any non-profit corporation), partnership (including any general partnership, limited partnership or limited
liability partnership), joint venture, estate, trust, company (including any company limited by shares, limited liability company
or joint stock company), firm, society or other enterprise, association, organization or entity, and each of its successors.

 

“Governmental Authorization”
means any: (a) permit, license, certificate, franchise, permission, variance, exceptions, orders, clearance, registration,
qualification or authorization issued, granted, given or otherwise made available by or under the authority of any Governmental
Body or pursuant to any Legal Requirement; or (b) right under any Contract with any Governmental Body.

 

“Governmental Body”
means any: (a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature;
(b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental body of any nature (including
any governmental division, department, agency, commission, instrumentality, official, ministry, fund, foundation, center, organization,
unit, body or Entity and any court or other tribunal, and for the avoidance of doubt, any Tax authority); or (d) self-regulatory
organization (including Nasdaq and the Financial Industry Regulatory Authority).

 

“Holder” has the meaning
set forth in the Preamble.

     

     

    

“Immunic” has the
meaning set forth in the Preamble.

 

“Immunic Affiliate”
means any Person that is (or at any relevant time was) under common control with Immunic within the meaning of Sections 414(b),
(c), (m) and (o) of the Code, and the regulations issued thereunder.

 

“Immunic Board of Directors”
has the meaning set forth in the Recitals.

 

“Immunic Shares” means
the Common Shares and the Preferred Shares, including the Immunic Pre-Closing Financing Shares.

 

“Immunic Common Shares”
has the meaning set forth in the Recitals.

 

“Immunic Pre-Closing Financing”
means an acquisition of Immunic Common Shares to be consummated prior to the Closing by the Holders pursuant to the Subscription
Agreement with gross proceeds of at least Thirty Million Dollars ($30,000,000).

 

“Legal Requirement”
means any federal, state, foreign, material local or municipal or other law, statute, constitution, principle of common law, resolution,
ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise
put into effect by or under the authority of any Governmental Body.

 

“Nasdaq” means The
Nasdaq Stock Market.

 

“Person” means any
individual, Entity or Governmental Body.

 

“Public Funds” means
BKI, WFB, HTGF and IBG.

 

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

 

“Subscription Agreement”
has the meaning set forth in the Recitals.

 

“Tax” has the meaning
set forth in Section 5.1 (a).

 

“Tax Return” has the
meaning set forth in Section 5.1 (a).

 

“Transaction” has
the meaning set forth in the Recitals.Untitled Document

 

 

Exhibit 10.39

 

COMMON STOCK PURCHASE AGREEMENT

 

This common stock purchase agreement is entered
into as of December 29, 2018 (this “Agreement”),
by and between Investview Inc. a Nevada corporation (the
“Company”),
and TRITON FUNDS LP, a Delaware limited partnership (the
“Investor”).

 

WHEREAS, the parties desire that, upon the terms and
subject to the conditions contained herein, the Investor shall
purchase, from time to time, as provided herein, and the Company
shall issue and sell One Million Dollars ($1,000,000) of the
Company’s Common Stock (as defined
below);

 

NOW,
THEREFORE, the parties hereto
agree as follows:

 

 

 

CERTAIN DEFINITIONS

 

DEFINED
TERMS. As used in this
Agreement, the following terms shall have the following meanings
specified or indicated (such meanings to be equally applicable to
both the singular and plural forms of the terms
defined):

 

“Agreement”
shall have the meaning specified in the preamble
hereof.

 

“Bankruptcy
Law” means Title 11, U.S.
Code, or any similar federal or state law for the relief of
debtors.

 

“Business
Day” shall mean a day on
which the Principal Market shall be open for
business.

 

“Claim
Notice” shall have the
meaning specified in Section 9.3(a).

 

“Clearing
Costs” shall mean all of
the Investor’s broker and Transfer Agent fees, excluding
commissions.

 

 “Clearing
Date” shall be the date
on which the Investor receives the Purchase Notice Shares as DWAC
Shares in its brokerage account.

 

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

 

 “Closing
Date” shall mean the date
that is no later than five (5) Business Days after the Clearing
Date.

 

 “Commitment
Amount” shall mean One
Million Dollar ($1,000,000).

 

 “Commitment
Period” shall mean the
period commencing on the Execution Date and ending on the earlier
of (i) the date on which the Investor shall have purchased Purchase
Notice Shares pursuant to this Agreement equal to the Commitment
Amount, (ii) the Expiration Date, (iii) June 30, 2019, or (iv)
written notice of termination by the Company to the Investor upon a
material breach of this Agreement by Investor.

 

“Common
Stock” shall mean the
Company’s common stock, $0.0001 value per share, and any
shares of any other class of common stock whether now or hereafter
authorized, having the right to participate in the distribution of
dividends (as and when declared) and assets (upon liquidation of
the Company).

 

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

 

“Company”
shall have the meaning specified in the preamble to this
Agreement.

 

“Custodian”
means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

 

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

 

“Dispute
Period” shall have the
meaning specified in Section 9.3(a).

 

“DTC” shall mean The Depository Trust Company,
or any successor performing substantially the same function for the
Company.

 

“DTC/FAST
Program” shall mean the
DTC’s Fast Automated Securities Transfer
Program.

 

“DWAC”
shall mean Deposit Withdrawal at Custodian as defined by the
DTC.

 

“DWAC
Eligible” shall mean that
(a) the Common Stock is eligible at DTC for full services pursuant
to DTC’s Operational Arrangements, including, without
limitation, transfer through DTC’s DWAC system, (b) the
Company has been approved (without revocation) by the DTC’s
underwriting department, (c) the Transfer Agent is approved as an
agent in the DTC/FAST Program, (d) the Purchase Notice Shares are
otherwise eligible for delivery via DWAC, and (e) the Transfer
Agent does not have a policy prohibiting or limiting delivery of
the Purchase Notice Shares, as applicable, via
DWAC.

 

“DWAC
Shares” means shares of
Common Stock that are (i) issued in electronic form, (ii) freely
tradable and transferable and without restriction on resale and
(iii) timely credited by the Company to the Investor’s or its
designee’s specified DWAC account with DTC under the DTC/FAST
Program, or any similar program hereafter adopted by DTC performing
substantially the same function.

 

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

 

“Exchange
Cap” shall have the
meaning set forth in Section 7.1(c).

 

“Execution
Date” shall mean the date
of this Agreement.

 

“Expiration
Date” shall mean one
sixty (60) Business Days after the Registration Statement has been
declared effective.

 

“FINRA”
shall mean the Financial Industry Regulatory Authority,
Inc.

 

“Indemnified
Party” shall have the
meaning specified in Section 9.2.

 

“Indemnifying
Party” shall have the
meaning specified in Section 9.2.

 

“Indemnity
Notice” shall have the
meaning specified in Section 9.3(e).

 

“Investment
Amount” shall mean the
Purchase Notice Shares referenced in the Purchase Notice multiplied
by the Purchase Price.

 

 “Investor”
shall have the meaning specified in the preamble to this
Agreement.

 

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

 

 “Material Adverse
Effect” shall mean any
effect on the business, operations, properties, or financial
condition of the Company and the Subsidiaries that is material and
adverse to the Company and the Subsidiaries and/or any condition,
circumstance, or situation that would prohibit or otherwise
materially interfere with the ability of the Company to enter into
and perform its obligations under any Transaction
Document.

 

 “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.

 

“Principal
Market” shall mean any of
the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), or principal
quotation systems (i.e. OTCQX, OTCQB, OTC Pink, the OTC Bulletin
Board), or other principal exchange or recognized quotation system
which is at the time the principal trading platform or market for
the Common Stock.

 

 “Purchase
Notice” shall mean a
written notice from Investor, substantially in the form of Exhibit
A hereto, to Company setting forth the Purchase Notice Shares which
the Investor intends to require Company to sell pursuant to the
terms of this Agreement.

 

“Purchase Notice
Shares” shall mean all
shares of Common Stock issued, or that the Company shall be
entitled to issue, per applicable Purchase Notice in accordance
with the terms and conditions of this
Agreement.

 

“Purchase
Price” shall mean 85% of
the lowest closing price of the Common Stock the five Business Days
prior to the Closing Date.

 

“Registration
Statement” shall have the
meaning specified in Section 6.3.

 

“Regulation
D” shall mean Regulation
D promulgated under the Securities Act.

 

“Rule
144” shall mean Rule 144
under the Securities Act or any similar provision then in force
under the Securities Act.

 

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

 

“SEC
Documents” shall have the
meaning specified in Section 4.5.

 

“Securities”
mean the Purchase Notice Shares.

 

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

 

 “Subsidiary”
means any Person the Company wholly-owns or controls, or in which
the Company, directly or indirectly, owns a majority of the voting
stock or similar voting interest, in each case that would be
disclosable pursuant to Item 601(b)(21) of Regulation S-K
promulgated under the Securities Act.

 

“Third Party
Claim” shall have the
meaning specified in Section 9.3(a).

 

“Transaction
Documents” shall mean
this Agreement and all schedules and exhibits hereto and
thereto.

 

“Transfer
Agent” shall mean the
current transfer agent of the Company, and any successor transfer
agent of the Company.

 

 

 

PURCHASE AND SALE OF COMMON STOCK

 

PURCHASE
NOTICES. Upon the terms and
conditions set forth herein (including, without limitation, the
provisions of Article VII), the Investor shall have the right, but
not the obligation, to direct the Company, by its delivery to the
Company of a Purchase Notice from time to time, to purchase
Purchase Notice Shares provided that the amount of Purchase Notice
Shares shall not exceed the Beneficial Ownership Limitation set
forth in Section 7.1(g).

 

MECHANICS.

 

PURCHASE
NOTICE. At any time and from
time to time during the Commitment Period, except as provided in
this Agreement, the Investor may deliver a Purchase Notice to
Company, subject to satisfaction of the conditions set forth in
Section 7.2 and otherwise provided herein. The Company shall
deliver the Purchase Notice Shares as DWAC Shares to the Investor
immediately upon receipt of the Purchase
Notice.

 

DATE OF DELIVERY OF
PURCHASE NOTICE. A Purchase
Notice shall be deemed delivered on (i) the Business Day it is
received by email by the Investor if such notice is received on or
prior to 8:00 p.m. New York time or (ii) the immediately succeeding
Business Day if it is received by email after 8:00 p.m. New York
time on a Business Day or at any time on a day which is not a
Business Day.

 

CLOSINGS.

 

CLOSING.
The Closing of a Purchase Notice shall occur no later than five (5)
Business Days following the Clearing Date, whereby the Investor,
shall deliver the Investment Amount (minus the Clearing Costs), by
wire transfer of immediately available funds to an account
designated by the Company.

 

EXPIRATION
DATE. If, by 30 days after the
Registration Statement becomes effective, the Investor has invested
less than $500,000, pursuant to this Agreement, Investor shall
within one (1) Business Day transfer to the Company the amount
representing the difference between $500,000 and the amount the
Investor has already paid to the Company. The Purchase Price for
this amount shall be 85% of the lowest closing price of the Common
Stock for the previous five Business Days, (ii) the Company shall
immediately deliver the Purchase Notice Shares as DWAC Shares to
the Investor, and (iii) the Investor shall immediately wire to the
Company the Purchase Price multiplied by the lessor of the
Beneficial Ownership Limitation or the remaining Commitment Amount.
If by Expiration date the Investor has invested less than
$1,000,000, pursuant to this Agreement, Investor shall within one
(1) Business Day transfer to the Company the amount representing
the difference between $1,000,000 and the amount the Investor has
already paid to the Company. The Purchase Price for this amount
shall be 85% of the lowest closing price of the Common Stock for
the previous five Business Days, (ii) the Company shall immediately
deliver the Purchase Notice Shares as DWAC Shares to the Investor,
and (iii) the Investor shall immediately wire to the Company the
Purchase Price multiplied by the lessor of the Beneficial Ownership
Limitation or the remaining Commitment Amount.

 

 

 

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

The
Investor represents and warrants to the Company that:

 

INTENT.
The Investor is entering into this Agreement for its own account
and the Investor has no present arrangement (whether or not legally
binding) at any time to sell the Securities to or through any
Person in violation of the Securities Act or any applicable state
securities laws; provided,
however,
that the Investor reserves the right to dispose of the Securities
at any time in accordance with federal and state securities laws
applicable to such disposition.

 

NO LEGAL ADVICE FROM
THE COMPANY. The Investor
acknowledges that it has had the opportunity to review this
Agreement and the transactions contemplated by this Agreement with
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.

 

ACCREDITED
INVESTOR. The Investor is an
accredited investor as defined in Rule 501(a)(3) of Regulation D,
and the Investor has such experience in business and financial
matters that it is capable of evaluating the merits and risks of an
investment in the Securities. The Investor acknowledges that an
investment in the Securities is speculative and involves a high
degree of risk.

 

AUTHORITY.
The Investor has the requisite power and authority to enter into
and perform its obligations under the Transaction Documents and to
consummate the transactions contemplated hereby and thereby. The
execution and delivery of the Transaction Documents and the
consummation by it of the transactions contemplated hereby and
thereby have been duly authorized by all necessary action and no
further consent or authorization of the Investor is required. The
Transaction Documents to which it is a party has been duly executed
by the Investor, and when delivered by the Investor in accordance
with the terms hereof, will constitute the valid and binding
obligation of the Investor enforceable against it in accordance
with its terms, subject to applicable bankruptcy, insolvency, or
similar laws relating to, or affecting generally the enforcement
of, creditors’ rights and remedies or by other equitable
principles of general application.

 

NOT AN
AFFILIATE. The Investor is not
an officer, director or “affiliate”
(as that term is defined in Rule 405 of the Securities Act) of the
Company.

 

ORGANIZATION AND
STANDING. The Investor is an
entity duly incorporated or formed, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
formation with full right, corporate, partnership, limited
liability company or similar power and authority to enter into and
to consummate the transactions contemplated by the Transaction
Documents.

 

ABSENCE OF
CONFLICTS. The execution and
delivery of the Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby and compliance with
the requirements hereof and thereof, will not (a) violate any law,
rule, regulation, order, writ, judgment, injunction, decree or
award binding on the Investor, (b) violate any provision of any
indenture, instrument or agreement to which the Investor is a party
or is subject, or by which the Investor or any of its assets is
bound, or conflict with or constitute a material default
thereunder, (c) result in the creation or imposition of any lien
pursuant to the terms of any such indenture, instrument or
agreement, or constitute a breach of any fiduciary duty owed by the
Investor to any third party, or (d) require the approval of any
third-party (that has not been obtained) pursuant to any material
contract, instrument, agreement, relationship or legal obligation
to which the Investor is subject or to which any of its assets,
operations or management may be subject.

 

DISCLOSURE; ACCESS TO
INFORMATION. The Investor had
an opportunity to review copies of the SEC Documents filed on
behalf of the Company and has had access to all publicly available
information with respect to the Company.

 

MANNER OF
SALE. At no time was the
Investor presented with or solicited by or through any leaflet,
public promotional meeting, television advertisement or any other
form of general solicitation or advertising.

 

 

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to the Investor that, except as
disclosed in the SEC Documents or except as set forth in the
disclosure schedules hereto:

 

ORGANIZATION OF THE
COMPANY. The Company and each
of the Subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or organization, with the
requisite power and authority to own and use its properties and
assets and to carry on its business as currently conducted. Neither
the Company nor any Subsidiary is in violation nor default of any
of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents.
Each of the Company and the Subsidiaries is duly qualified to
conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good
standing, as the case may be, could not have or reasonably be
expected to result in a Material Adverse Effect and no proceeding
has been instituted in any such jurisdiction revoking, limiting or
curtailing or seeking to revoke, limit or curtail such power and
authority or qualification.

 

AUTHORITY.
The Company has the requisite corporate power and authority to
enter into and perform its obligations under the Transaction
Documents. The execution and delivery of the Transaction Documents
by the Company and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all
necessary corporate action and no further consent or authorization
of the Company or its Board of Directors or stockholders is
required. The Transaction Documents have been duly executed and
delivered by the Company and constitutes a valid and binding
obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, or similar laws
relating to, or affecting generally the enforcement of,
creditors’ rights and remedies or by other equitable
principles of general application.

 

CAPITALIZATION.
As of the date hereof, the authorized capital stock of the Company
consists of 10,000,000,000 shares of Common Stock, par value of
$0.0001 per share, of which approximately 2,213,661,318 shares of
Common Stock are issued and outstanding. Except as set forth
on Schedule
4.3, the Company has not issued
any capital stock since its most recently filed periodic report
under the Exchange Act, other than pursuant to the exercise of
employee stock options under the Company’s stock option
plans, the issuance of shares of Common Stock to employees pursuant
to the Company’s employee stock purchase plans and pursuant
to the conversion and/or exercise of Common Stock Equivalents
outstanding as of the date of the most recently filed periodic
report under the Exchange Act. No Person has any right of first
refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the
Transaction Documents. Except as set forth on Schedule 4.3
and except as a result of the purchase
and sale of the Securities, there are no outstanding options,
warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire any shares
of Common Stock, or contracts, commitments, understandings or
arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock or Common
Stock Equivalents. The issuance and sale of the Securities will not
obligate the Company to issue shares of Common Stock or other
securities to any Person (other than the Investor) and will not
result in a right of any holder of Company securities to adjust the
exercise, conversion, exchange or reset price under any of such
securities. There are no stockholders agreements, voting agreements
or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s
stockholders.

 

LISTING AND
MAINTENANCE REQUIREMENTS. The
Common Stock is registered pursuant to Section 12(b) or 12(g) of
the Exchange Act, and the Company has taken no action designed to,
or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange
Act nor has the Company received any notification that the SEC is
contemplating terminating such registration. The Company has not,
in the twelve (12) months preceding the date hereof, received
notice from the Principal Market on which the Common Stock is or
has been listed or quoted to the effect that the Company is not in
compliance with the listing or maintenance requirements of such
Principal Market. The Company is and has no reason to believe that
it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance
requirements.

 

SEC DOCUMENTS;
DISCLOSURE. Except as set forth
on Schedule
4.5, the Company has filed all
reports, schedules, forms, statements and other documents required
to be filed by the Company under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the one (1) year preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file
such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC
Documents”) on a timely
basis or has received a valid extension of such time of filing and
has filed any such SEC Documents prior to the expiration of any
such extension. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the
Securities Act and the Exchange Act, as applicable, and other
federal laws, rules and regulations applicable to such SEC
Documents, and none of the SEC Documents when filed contained any
untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the
Company included in the SEC Documents comply as to form and
substance in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC or
other applicable rules and regulations with respect thereto. Such
financial statements have been prepared in accordance with
generally accepted accounting principles applied on a consistent
basis during the periods involved (except (a) as may be otherwise
indicated in such financial statements or the notes thereto or (b)
in the case of unaudited interim statements, to the extent they may
not include 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
operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal, immaterial, year-end
audit adjustments). Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other
Person acting on its behalf has provided the Investor or its agents
or counsel with any information that it believes constitutes or
might constitute material, non-public information. The Company
understands and confirms that the Investor will rely on the
foregoing representation in effecting transactions in securities of
the Company.

 

VALID
ISSUANCES. The Securities are
duly authorized and, when issued and paid for in accordance with
the applicable Transaction Documents, will be duly and validly
issued, fully paid, and non-assessable, free and clear of all Liens
imposed by the Company other than restrictions on transfer provided
for in the Transaction Documents.

 

NO
CONFLICTS. The execution,
delivery and performance of the Transaction Documents by the
Company and the consummation by the Company of the transactions
contemplated hereby and thereby, including, without limitation, the
issuance of the Purchase Notice Shares, do not and will not: (a)
result in a violation of the Company’s or any
Subsidiary’s certificate or articles of incorporation,
by-laws or other organizational or charter documents, (b) conflict
with, or constitute a material default (or an event that with
notice or lapse of time or both would become a material default)
under, result in the creation of any Lien upon any of the
properties or assets of the Company or any Subsidiary, or give to
others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture, instrument or any
“lock-up”
or similar provision of any underwriting or similar agreement to
which the Company or any Subsidiary is a party, or (c) result in a
violation of any federal, state or local law, rule, regulation,
order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or any Subsidiary
or by which any property or asset of the Company or any Subsidiary
is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a
Material Adverse Effect) nor is the Company otherwise in violation
of, conflict with or in default under any of the foregoing. The
business of the Company is not being conducted in violation of any
law, ordinance or regulation of any governmental entity, except for
possible violations that either singly or in the aggregate do not
and will not have a Material Adverse Effect. The Company is not
required under federal, state or local law, rule or regulation 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 the
Transaction Documents (other than any SEC, FINRA or state
securities filings that may be required to be made by the Company
subsequent to any Closing or any registration statement that may be
filed pursuant hereto); provided that, for purposes of the
representation made in this sentence, the Company is assuming and
relying upon the accuracy of the relevant representations and
agreements of Investor herein.

 

NO MATERIAL ADVERSE
CHANGE. No event has occurred
that would have a Material Adverse Effect on the Company that has
not been disclosed in subsequent SEC filings.

 

LITIGATION AND OTHER
PROCEEDINGS. Except as
disclosed in the SEC Documents or as set forth on Schedule 4.9,
there are no actions, suits, investigations, inquiries or
proceedings pending or, to the knowledge of the Company, threatened
against or affecting the Company, any Subsidiary or any of their
respective properties, nor has the Company received any written or
oral notice of any such action, suit, proceeding, inquiry or
investigation, which would have a Material Adverse Effect. No
judgment, order, writ, injunction or decree or award has been
issued by or, to the knowledge of the Company, requested of any
court, arbitrator or governmental agency which would have a
Material Adverse Effect. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any
investigation by the SEC involving the Company, any Subsidiary or
any current or former director or officer of the Company or any
Subsidiary.

 

REGISTRATION
RIGHTS. Except as set forth on
Schedule 4.10, no Person (other than the Investor) has any right to
cause the Company to effect the registration under the Securities
Act of any securities of the Company or any
Subsidiary.

 

 

 

COVENANTS OF INVESTOR

 

COMPLIANCE WITH LAW;
TRADING IN SECURITIES. The
Investor’s trading activities with respect to shares of
Common Stock will be in compliance with all applicable state and
federal securities laws and regulations and the rules and
regulations of FINRA and the Principal Market.

 

 

 

COVENANTS OF THE COMPANY

 

LISTING OF COMMON
STOCK. The Company shall
promptly secure the listing of all of the Purchase Notice Shares to
be issued to the Investor hereunder on the Principal Market
(subject to official notice of issuance) and shall use commercially
reasonable best efforts to maintain, so long as any shares of
Common Stock shall be so listed, the listing of all such Purchase
Notice Shares from time to time issuable hereunder. The Company
shall use its commercially reasonable efforts to continue the
listing and trading of the Common Stock on the Principal Market
(including, without limitation, maintaining sufficient net tangible
assets) and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules
of FINRA and the Principal Market.

 

FILING OF CURRENT
REPORT AND REGISTRATION STATEMENT. The Company agrees that it shall file a Current
Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the SEC within the time required by the Exchange Act,
relating to the transactions contemplated by, and describing the
material terms and conditions of, the Transaction Documents (the
“Current
Report”). The Company
shall permit the Investor to review and comment upon the final
pre-filing draft version of the Current Report at least two (2)
Business Days prior to its filing with the SEC, and the Company
shall give reasonable consideration to all such comments. The
Investor shall use its reasonable best efforts to comment upon the
final pre-filing draft version of the Current Report within one (1)
Business Day from the date the Investor receives it from the
Company. The Company shall also file with the SEC, within ten (15)
calendar days from the date hereof, a new registration statement
(the “Registration
Statement”) covering only
the resale of the Purchase Notice Shares.

 

 

 

CONDITIONS TO DELIVERY OF

 

PURCHASE NOTICE AND CONDITIONS TO CLOSING

 

CONDITIONS PRECEDENT
TO THE RIGHT OF THE COMPANY TO ISSUE AND SELL PURCHASE NOTICE
SHARES. The right of the
Company to issue and sell the Purchase Notice Shares to the
Investor is subject to the satisfaction of each of the conditions
set forth below:

 

ACCURACY OF
INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the
Investor shall be true and correct in all material respects as of
the date of this Agreement and as of the date of each Closing as
though made at each such time.

 

PERFORMANCE BY
INVESTOR. Investor shall have
performed, satisfied and complied in all respects with all
covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Investor at or
prior to such Closing.

 

PRINCIPAL MARKET
REGULATION. The Company shall
not issue any Purchase Notice Shares, and the Investor shall not
have the right to receive any Purchase Notice Shares, if the
issuance of such Purchase Notice Shares would exceed the aggregate
number of shares of Common Stock which the Company may issue
without breaching the Company’s obligations under the rules
or regulations of the Principal Market (the
“Exchange
Cap”).

 

CONDITIONS PRECEDENT
TO THE OBLIGATION OF INVESTOR TO PURCHASE PURCHASE NOTICE
SHARES. The obligation of the
Investor hereunder to purchase Purchase Notice Shares is subject to
the satisfaction of each of the following
conditions:

 

EFFECTIVE REGISTRATION
STATEMENT. The Registration
Statement, and any amendment or supplement thereto, shall remain
effective for the resale by the Investor of the Purchase Notice
Shares and (i) 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 such Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of such
Registration Statement, either temporarily or permanently, or
intends or has threatened to do so and (ii) no other suspension of
the use of, or withdrawal of the effectiveness of, such
Registration Statement or related prospectus shall
exist.

 

ACCURACY OF THE
COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the
Company shall be true and correct in all material respects as of
the date of this Agreement and as of the date of each Closing
(except for representations and warranties specifically made as of
a particular date).

 

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 to
be performed, satisfied or complied with by the
Company.

 

NO
INJUNCTION. No statute, rule,
regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or adopted by any court or
governmental authority of competent jurisdiction that prohibits or
directly and materially adversely affects any of the transactions
contemplated by the Transaction Documents, and no proceeding shall
have been commenced that may have the effect of prohibiting or
materially adversely affecting any of the transactions contemplated
by the Transaction Documents.

 

ADVERSE
CHANGES. Since the date of
filing of the Company’s most recent SEC Document, no event
that had or is reasonably likely to have a Material Adverse Effect
has occurred.

 

NO SUSPENSION OF
TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have
been suspended by the SEC, the Principal Market or FINRA, or
otherwise halted for any reason, and the Common Stock shall have
been approved for listing or quotation on and shall not have been
delisted from the Principal Market. In the event of a suspension,
delisting, or halting for any reason, of the trading of the Common
Stock, as contemplated by this Section 7.2(f), the Investor shall
have the right to return to the Company any amount of Purchase
Notice Shares associated with such Purchase Notice, and the
Investment Amount with respect to such Purchase Notice shall be
reduced accordingly.

 

BENEFICIAL OWNERSHIP
LIMITATION. The number of
Purchase Notice Shares then to be purchased by the Investor shall
not exceed the number of such shares that, when aggregated with all
other shares of Common Stock then owned by the Investor
beneficially or deemed beneficially owned by the Investor, would
result in the Investor owning more than the Beneficial Ownership
Limitation (as defined below), as determined in accordance with
Section 16 of the Exchange Act and the regulations promulgated
thereunder. For purposes of this Section 7.2(g), in the event that
the amount of Common Stock outstanding is greater on a Closing Date
than on the date upon which the Purchase Notice associated with
such Closing Date is given, the amount of Common Stock outstanding
on such issuance of a Purchase Notice shall govern for purposes of
determining whether the Investor, when aggregating all purchases of
Common Stock made pursuant to this Agreement, would own more than
the Beneficial Ownership Limitation following such Closing Date.
The “Beneficial Ownership
Limitation” shall be
4.99% of the number of shares of the Common Stock outstanding
immediately prior to the issuance of shares of Common Stock
issuable pursuant to a Purchase Notice.

 

PRINCIPAL MARKET
REGULATION. The issuance of the
Purchase Notice Shares shall not exceed the Exchange
Cap.

 

NO
KNOWLEDGE. The Company shall
have no knowledge of any event more likely than not to have the
effect of causing the Registration Statement to be suspended or
otherwise ineffective (which event is more likely than not to occur
within the fifteen (15) Business Days following the Business Day on
which such Purchase Notice is deemed
delivered).

 

NO VIOLATION OF
SHAREHOLDER APPROVAL REQUIREMENT. The issuance of the Purchase Notice Shares shall
not violate the shareholder approval requirements of the Principal
Market.

 

DWAC
ELIGIBLE. The Common Stock must
be DWAC Eligible and not subject to a “DTC
chill”.

 

SEC
DOCUMENTS. All reports,
schedules, registrations, forms, statements, information and other
documents required to have been filed by the Company with the SEC
pursuant to the reporting requirements of the Exchange Act shall
have been filed with the SEC within the applicable time periods
prescribed for such filings under the Exchange
Act.

 

 

 

LEGENDS

 

NO RESTRICTIVE STOCK
LEGEND. No restrictive stock
legend shall be placed on the share certificates representing the
Purchase Notice Shares.

 

INVESTOR’S
COMPLIANCE. Nothing in this
Article VIII shall affect in any way the Investor’s
obligations hereunder to comply with all applicable securities laws
upon the sale of the Common Stock.

 

 

 

NOTICES; INDEMNIFICATION

 

NOTICES.
All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (a) personally
served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by reputable air
courier service with charges prepaid, or (d) transmitted by hand
delivery, telegram, or email as a PDF, addressed as set forth below
or to such other address as such party shall have specified most
recently by written notice given in accordance herewith. Any notice
or other communication required or permitted to be given hereunder
shall be deemed effective (i) upon hand delivery or delivery by
email at the address designated below (if delivered on a business
day during normal business hours where such notice is to be
received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours
where such notice is to be received) or (ii) on the second business
day following the date of mailing by express courier service or on
the fifth business day after deposited in the mail, in each case,
fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur.

 

The
addresses for such communications shall be:

 

If
to the Company:

 

If
to the Investor:

 

TRITON
FUNDS LLC

 

1262
Prospect Street

 

La
Jolla, CA 92037

 

Email:
tritonfunds@tritonfunds.com

 

Either
party hereto may from time to time change its address or email for
notices under this Section 9.1 by giving at least ten (10)
days’ prior written notice of such changed address to the
other party hereto.

 

INDEMNIFICATION.
Each party (an “Indemnifying
Party”) agrees to
indemnify and hold harmless the other party along with its
officers, directors, employees, and authorized agents, and each
Person or entity, if any, who controls such party within the
meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act (an “Indemnified
Party”) from and against
any Damages, joint or several, and any action in respect thereof to
which the Indemnified Party becomes subject to, resulting from,
arising out of or relating to (i) any misrepresentation, breach of
warranty or nonfulfillment of or failure to perform any covenant or
agreement on the part of the Indemnifying Party contained in this
Agreement, (ii) any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement or any
post-effective amendment thereof or supplement thereto, or the
omission or alleged omission therefrom of a material fact required
to be stated therein or necessary to make the statements therein
not misleading, (iii) any untrue statement or alleged untrue
statement of a material fact contained in any preliminary
prospectus or contained in the 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 the light of the circumstances under
which the statements therein were made, not misleading, or (iv) any
violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any state securities law or any rule or
regulation under the Securities Act, the Exchange Act or any state
securities law, as such Damages are incurred, except to the extent
such Damages result primarily from the Indemnified Party’s
failure to perform any covenant or agreement contained in this
Agreement or the Indemnified Party’s negligence, recklessness
or bad faith in performing its obligations under this
Agreement; provided,
however,
that the foregoing indemnity agreement shall not apply to any
Damages of an Indemnified Party to the extent, but only to the
extent, arising out of or based upon any untrue statement or
alleged untrue statement or omission or alleged omission made by an
Indemnifying Party in reliance upon and in conformity with written
information furnished to the Indemnifying Party by the Indemnified
Party expressly for use in the Registration Statement, any
post-effective amendment thereof or supplement thereto, or any
preliminary prospectus or final prospectus (as amended or
supplemented).

 

METHOD OF ASSERTING
INDEMNIFICATION CLAIMS. All
claims for indemnification by any Indemnified Party under Section
9.2 shall be asserted and resolved as follows:

 

In the event any claim or demand in respect of
which an Indemnified Party might seek indemnity under Section 9.2
is asserted against or sought to be collected from such Indemnified
Party by a Person other than a party hereto or an affiliate thereof
(a “Third Party
Claim”), the Indemnified
Party shall deliver a written notification, enclosing a copy of all
papers served, if any, and specifying the nature of and basis for
such Third Party Claim and for the Indemnified Party’s claim
for indemnification that is being asserted under any provision of
Section 9.2 against an Indemnifying Party, together with the amount
or, if not then reasonably ascertainable, the estimated amount,
determined in good faith, of such Third Party Claim (a
“Claim
Notice”) with reasonable
promptness to the Indemnifying Party. If the Indemnified Party
fails to provide the Claim Notice with reasonable promptness after
the Indemnified Party receives notice of such Third Party Claim,
the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the
extent that the Indemnifying Party’s ability to defend has
been prejudiced by such failure of the Indemnified Party. The
Indemnifying Party shall notify the Indemnified Party as soon as
practicable within the period ending thirty (30) calendar days
following receipt by the Indemnifying Party of either a Claim
Notice or an Indemnity Notice (as defined below) (the
“Dispute
Period”) whether the
Indemnifying Party disputes its liability or the amount of its
liability to the Indemnified Party under Section 9.2 and whether
the Indemnifying Party desires, at its sole cost and expense, to
defend the Indemnified Party against such Third Party
Claim.

 

If the Indemnifying Party notifies the Indemnified
Party within the Dispute Period that the Indemnifying Party desires
to defend the Indemnified Party with respect to the Third Party
Claim pursuant to this Section 9.3(a), then the Indemnifying Party
shall have the right to defend, with counsel reasonably
satisfactory to the Indemnified Party, at the sole cost and expense
of the Indemnifying Party, such Third Party Claim by all
appropriate proceedings, which proceedings shall be vigorously and
diligently prosecuted by the Indemnifying Party to a final
conclusion or will be settled at the discretion of the Indemnifying
Party (but only with the consent of the Indemnified Party in the
case of any settlement that provides for any relief other than the
payment of monetary damages or that provides for the payment of
monetary damages as to which the Indemnified Party shall not be
indemnified in full pursuant to Section 9.2). The Indemnifying
Party shall have full control of such defense and proceedings,
including any compromise or settlement thereof;
provided,
however, that the Indemnified Party may, at the sole cost and
expense of the Indemnified Party, at any time prior to the
Indemnifying Party’s delivery of the notice referred to in
the first sentence of this clause (i), file any motion, answer or
other pleadings or take any other action that the Indemnified Party
reasonably believes to be necessary or appropriate to protect its
interests; and provided,
further,
that if requested by the Indemnifying Party, the Indemnified Party
will, at the sole cost and expense of the Indemnifying Party,
provide reasonable cooperation to the Indemnifying Party in
contesting any Third Party Claim that the Indemnifying Party elects
to contest. The Indemnified Party may participate in, but not
control, any defense or settlement of any Third Party Claim
controlled by the Indemnifying Party pursuant to this clause (i),
and except as provided in the preceding sentence, the Indemnified
Party shall bear its own costs and expenses with respect to such
participation. Notwithstanding the foregoing, the Indemnified Party
may take over the control of the defense or settlement of a Third
Party Claim at any time if it irrevocably waives its right to
indemnity under Section 9.2 with respect to such Third Party
Claim.

 

If
the Indemnifying Party fails to notify the Indemnified Party within
the Dispute Period that the Indemnifying Party desires to defend
the Third Party Claim pursuant to Section 9.3(a), or if the
Indemnifying Party gives such notice but fails to prosecute
vigorously and diligently or settle the Third Party Claim, or if
the Indemnifying Party fails to give any notice whatsoever within
the Dispute Period, then the Indemnified Party shall have the right
to defend, at the sole cost and expense of the Indemnifying Party,
the Third Party Claim by all appropriate proceedings, which
proceedings shall be prosecuted by the Indemnified Party in a
reasonable manner and in good faith or will be settled at the
discretion of the Indemnified Party(with the consent of the
Indemnifying Party, which consent will not be unreasonably
withheld). The Indemnified Party will have full control of such
defense and proceedings, including any compromise or settlement
thereof; provided, however, that if requested by the Indemnified
Party, the Indemnifying Party will, at the sole cost and expense of
the Indemnifying Party, provide reasonable cooperation to the
Indemnified Party and its counsel in contesting any Third Party
Claim which the Indemnified Party is contesting. Notwithstanding
the foregoing provisions of this clause (ii), if the Indemnifying
Party has notified the Indemnified Party within the Dispute Period
that the Indemnifying Party disputes its liability or the amount of
its liability hereunder to the Indemnified Party with respect to
such Third Party Claim and if such dispute is resolved in favor of
the Indemnifying Party in the manner provided in clause (iii)
below, the Indemnifying Party will not be required to bear the
costs and expenses of the Indemnified Party’s defense
pursuant to this clause (ii) or of the Indemnifying Party’s
participation therein at the Indemnified Party’s request, and
the Indemnified Party shall reimburse the Indemnifying Party in
full for all reasonable costs and expenses incurred by the
Indemnifying Party in connection with such litigation. The
Indemnifying Party may participate in, but not control, any defense
or settlement controlled by the Indemnified Party pursuant to this
clause (ii), and the Indemnifying Party shall bear its own costs
and expenses with respect to such participation.

 

If the Indemnifying Party notifies the Indemnified
Party that it does not dispute its liability or the amount of its
liability to the Indemnified Party with respect to the Third Party
Claim under Section 9.2 or fails to notify the Indemnified Party
within the Dispute Period whether the Indemnifying Party disputes
its liability or the amount of its liability to the Indemnified
Party with respect to such Third Party Claim, the amount of Damages
specified in the Claim Notice shall be conclusively deemed a
liability of the Indemnifying Party under Section 9.2 and the
Indemnifying Party shall pay the amount of such Damages to the
Indemnified Party on demand. If the Indemnifying Party has timely
disputed its liability or the amount of its liability with respect
to such claim, the Indemnifying Party and the Indemnified Party
shall proceed in good faith to negotiate a resolution of such
dispute; provided,
however,
that if the dispute is not resolved within thirty (30) days after
the Claim Notice, the Indemnifying Party shall be entitled to
institute such legal action as it deems
appropriate.

 

In the event any Indemnified Party should have a
claim under Section 9.2 against the Indemnifying Party that does
not involve a Third Party Claim, the Indemnified Party shall
deliver a written notification of a claim for indemnity under
Section 9.2 specifying the nature of and basis for such claim,
together with the amount or, if not then reasonably ascertainable,
the estimated amount, determined in good faith, of such claim (an
“Indemnity
Notice”) with reasonable
promptness to the Indemnifying Party. The failure by any
Indemnified Party to give the Indemnity Notice shall not impair
such party’s rights hereunder except to the extent that the
Indemnifying Party demonstrates that it has been irreparably
prejudiced thereby. If the Indemnifying Party notifies the
Indemnified Party that it does not dispute the claim or the amount
of the claim described in such Indemnity Notice or fails to notify
the Indemnified Party within the Dispute Period whether the
Indemnifying Party disputes the claim or the amount of the claim
described in such Indemnity Notice, the amount of Damages specified
in the Indemnity Notice will be conclusively deemed a liability of
the Indemnifying Party under Section 9.2 and the Indemnifying Party
shall pay the amount of such Damages to the Indemnified Party on
demand. If the Indemnifying Party has timely disputed its liability
or the amount of its liability with respect to such claim, the
Indemnifying Party and the Indemnified Party shall proceed in good
faith to negotiate a resolution of such dispute; provided, however,
that if the dispute is not resolved within thirty (30) days after
the Claim Notice, the Indemnifying Party shall be entitled to
institute such legal action as it deems
appropriate.

 

The
Indemnifying Party agrees to pay the Indemnified Party, promptly as
such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them
in connection with investigating or defending any such
Claim.

 

The
indemnity provisions contained herein shall be in addition to (i)
any cause of action or similar rights of the Indemnified Party
against the Indemnifying Party or others, and (ii) any liabilities
the Indemnifying Party may be subject to.

 

 

 

MISCELLANEOUS

 

GOVERNING LAW;
JURISDICTION. This Agreement
shall be governed by and interpreted in accordance with the laws of
the State of California without regard to the principles of
conflicts of law. Each of the Company and the Investor hereby
submits to the exclusive jurisdiction of the United States federal
and state courts located in California, County of Los Angeles, with
respect to any dispute arising under the Transaction Documents or
the transactions contemplated thereby.

 

JURY TRIAL
WAIVER. The Company and the
Investor hereby waive a trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the
other in respect of any matter arising out of or in connection with
the Transaction Documents.

 

ASSIGNMENT.
The Transaction Documents shall be binding upon and inure to the
benefit of the Company and the Investor and their respective
successors. Neither this Agreement nor any rights of the Investor
or the Company hereunder may be assigned by either party to any
other Person.

 

NO THIRD-PARTY
BENEFICIARIES. This Agreement
is intended for the benefit of the Company and the Investor and
their respective successors, and is not for the benefit of, nor may
any provision hereof be enforced by, any other Person, except as
set forth in Section 9.3.

 

TERMINATION.
The Company may terminate this Agreement at any time by written
notice to the Investor in the event of a material breach of this
Agreement by the Investor. In addition, this Agreement shall
automatically terminate on the earlier of (i) the end of the
Commitment Period; (ii) the date that the Company sells and the
Investor purchases the Commitment Amount; (iii) the date in which
the Registration Statement is no longer effective, or (iv) the date
that, pursuant to or within the meaning of any Bankruptcy Law, the
Company commences a voluntary case or any Person commences a
proceeding against the Company, a Custodian is appointed for the
Company or for all or substantially all of its property or the
Company makes a general assignment for the benefit of its
creditors; provided, however, that the provisions of Articles III,
IV, V, VI, IX and the agreements and covenants of the Company and
the Investor set forth in Article X shall survive the termination
of this Agreement.

 

ENTIRE
AGREEMENT. The Transaction
Documents, together with the exhibits and schedules thereto,
contain the entire understanding of the Company and the Investor
with respect to the matters covered herein and therein and
supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have
been merged into such documents, exhibits and
schedules.

 

FEES AND
EXPENSES. Except as expressly
set forth in the Transaction Documents or any other writing to the
contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all
other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.
The Company shall pay all Transfer Agent fees (including any fees
required for same-day processing of any instruction letter
delivered by the Company), stamp taxes and other taxes and duties
levied in connection with the delivery of any Securities to the
Investor. A document preparation fee of $10,000 will be sent from
the Company to the Investor with three (3) business days of signing
of the legal documents.

 

COUNTERPARTS.
The Transaction Documents may be executed in multiple counterparts,
each of which may be executed by less than all of the parties and
shall be deemed to be an original instrument which shall be
enforceable against the parties actually executing such
counterparts and all of which together shall constitute one and the
same instrument. The Transaction Documents may be delivered to the
other parties hereto by email of a copy of the Transaction
Documents bearing the signature of the parties so delivering this
Agreement.

 

SEVERABILITY.
In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force
and effect without said provision; provided that such severability
shall be ineffective if it materially changes the economic benefit
of this Agreement to any party.

 

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

 

NO STRICT
CONSTRUCTION. 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.

 

EQUITABLE
RELIEF. The Company recognizes
that in the event that it fails to perform, observe, or discharge
any or all of its obligations under this Agreement, any remedy at
law may prove to be inadequate relief to the Investor. The Company
therefore agrees that the Investor shall be entitled to temporary
and permanent injunctive relief in any such case without the
necessity of proving actual damages.

 

TITLE AND
SUBTITLES. The titles and
subtitles used in this Agreement are used for the convenience of
reference and are not to be considered in construing or
interpreting this Agreement.

 

AMENDMENTS;
WAIVERS. No provision of this
Agreement may be amended or waived by the parties from and after
the date that is one (1) Business Day immediately preceding the
initial filing of the Registration Statement with the SEC. Subject
to the immediately preceding sentence, (i) no provision of this
Agreement may be amended other than by a written instrument signed
by both parties hereto and (ii) no provision of this Agreement may
be waived other than in a written instrument signed by the party
against whom enforcement of such waiver is sought. No failure or
delay in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or
privilege.

 

PUBLICITY.
The Company and the Investor shall consult with each other in
issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and no party
shall issue any such press release or otherwise make any such
public statement, other than as required by law, without the prior
written consent of the other parties, which consent shall not be
unreasonably withheld or delayed, except that no prior consent
shall be required if such disclosure is required by law, in which
such case the disclosing party shall provide the other party with
prior notice of such public statement. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of the
Investor without the prior written consent of the Investor, except
to the extent required by law. The Investor acknowledges that the
Transaction Documents may be deemed to be
“material
contracts,” as that term
is defined by Item 601(b)(10) of Regulation S-K, and that the
Company may therefore be required to file such documents as
exhibits to reports or registration statements filed under the
Securities Act or the Exchange Act. The Investor further agrees
that the status of such documents and materials as material
contracts shall be determined solely by the Company, in
consultation with its counsel.

 

[Signature Page Follows]

 

 

 

 

IN WITNESS
WHEREOF, the parties have
caused this Agreement to be duly executed by their respective
officers thereunto duly authorized as of the day and year first
above written.

 

Investview Inc.

 

By:
__/s/ Ryan
Smith_____________________

Name:
Ryan Smith

Title:
CEO

 

TRITON FUNDS LP

 

By:
__/s/ Nathan
Yee_____________________

Name:Nathan
Yee

Title:
Founder

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Agreement]

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