Document:

ex10-2.htm

Exhibit 10.2

 

 

 

CONTRIBUTION AGREEMENT

 

 

THIS CONTRIBUTION AGREEMENT (the “Agreement”) is dated as of this 25th day of February, 2015, by and between FOCUS FRANCHISING COMPANY, LLC, a Delaware limited liability Recipient (“Contributor”) , FOCUS FRANCHISING, INC., a Florida corporation (“Recipient”); and joined by FOCUS ACQUISITION GROUP, LLC, a Delaware limited liability Recipient (the “Common Parent”)

 

RECITALS:

 

A. The membership interest of the Contributor is owned 100.00% by the Common Parent;

 

B. The issued and outstanding common stock of the Recipient is owned 100.00% by the Common Parent;

 

C. Contributor is the owner of the JRECK SUBS franchise system, which includes all of the associated assets, contracts and intellectual property which comprise the JRECK SUBS franchise business (the “Franchise”);

 

D. The Common Parent has determined that it is in its’ best interests to transfer ownership of the Franchise to the Recipient, in order to further the development and marketing of the Franchise;

 

E.  In furtherance of this Agreement, the Common Parent has agreed to cause the Contributor to contribute of its right, interest and title in the Franchise, to the Recipient;

 

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:

 

ARTICLE 1.          TERMS OF CONTRIBUTION

 

1.1 Contribution of Assets to Recipient.  At  or  prior  to  the  Closing,  the  Contributor shall transfer, convey and distribute to the Recipient, free and clear of any and all claims,  pledges,  contracts,  title  retention  agreements,  rights,  options,  liens,  encumbrances, agreements,  charges, taxes or liabilities of any kind  (collectively,  "Encumbrances"),  all of the Contributor's right, title and interest in and to all of the property and assets of the Contributor, whether real, personal  or mixed, tangible and  intangible,  of every kind  and description, wherever  located  (the  "Transferred Assets "),  other  than  the  Excluded  Assets  (as  defined  in Section 1.2 below).   Without limiting the generality of the foregoing, it is mutually agreed and understood that the Transferred Assets include:

 

(a) the tangible personal property of the Contributor used or useful in the operation of the Franchise, including, but not limited to, software, hardware, personal computers, machinery, equipment, vehicles, tools, furniture; furnishings, fixtures, goods, and other tangible personal property, together with all warranties (express or implied), operating manuals and all tangible and intangible property related to the foregoing;

 

(b) all rights under those agreements, including all franchise agreements, contracts, and other instruments relating to the Franchise, whether written or oral, in effect on the Closing Date, (collectively, the ''Assumed Contracts"), including any security deposits or prepaid expenses relating to the Assumed Contracts;

 

(c) Intellectual Property related to or useful in the Franchise, including, but not limited to, the right to use the name "Jreck Subs" and any derivatives thereof; and all other Intellectual Property related to the operation or ownership of the Franchise;

 

(d) all transferable Permits relating to the Franchise;

 

(e) all accounts, notes receivable and trade receivables, billed and unbilled, that relate to the Franchise and all related rights as of the Closing Date;

 

 

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(f) all inventory, if any, including office and other supplies of the Contributor as of the Closing Date;

 

(g) all prepaid expenses of the Contributor;

 

(h) the Contributor's current and prospective franchisee list and all franchisee and prospective franchisee data relating to the Franchise;

 

(i) all books, records, files and papers pertaining to the Transferred Assets and the Assumed Liabilities (as defined in Section 1.3 below), whether in hard copy or computer format; including, without limitation, financial records and information, personnel files, sales and promotional literature, catalogs, photography, brochures, manuals and· data, lists of present, former and prospective franchisees and customers and all other marketing materials and correspondence relating to the Franchise;

 

(j) all   cash,   cash  equivalents,   certificates   of  deposit   and   bank accounts;

 

(k) except as otherwise specifically provided herein, all other assets, properties, claims, credits, rights, choses in action, rights of set-off and interests of the Contributor relating to the Transferred Assets or the Franchise of every kind, nature and description whether or not disclosed herein and whether tangible or intangible, personal or mixed; and

 

(l) all goodwill  associated  with  the  Franchise  or  the  Transferred Assets.

 

1.2 Consideration to Contributor.  In consideration of the contribution of the assets listed above, Recipient shall transfer to Focus Acquisition Group, LLC, all of its issued and outstanding stock, if any, which is not already owned by Focus Acquisition Group, LLC.

 

1.3 Closing Date.  Subject to the provisions of this Agreement, the Closing of the transactions contemplated herein shall occur on or before the close of Franchise on September 5, 2012.

 

ARTICLE 2.         TAXES

 

2.1 Tax Effect of Contribution.  The parties anticipate that the Recipient will be classified as a corporation under the Code.    The contributions pursuant to Section 1.1 above, are intended by the parties to be a tax-free contribution of property under §351 of the Code.

 

ARTICLE 3.        REPRESENTATIONS & WARRANTIES OF CONTRIBUTOR

 

FOCUS FRANCHISING COMPANY, LLC, makes the following representations and warranties to all parties, each of which shall be deemed material (and said other parties, in executing, delivering and consummating this Agreement, have relied and will rely upon the correctness and completeness of each of such representations and warranties).

 

3.1 Organization, Good Standing and Qualification.  Contributor is a limited liability Recipient duly organized and validly existing under the laws of the State of Delaware and is in good standing under such laws and has requisite corporate power and authority to own properties owned by it and to conduct business as being conducted by it, except where the failure to be existing and in good standing or have such power would not have a Material Adverse Effect (as defined herein).  Contributor does not own or lease property or engage in any activity in any jurisdiction which might require its qualification to do Franchise as a foreign corporation in any jurisdiction, except where the failure to be so qualified would not have a Recipient Material Adverse Effect.  As used in this Agreement, “Material Adverse Effect” means any material adverse change in, or material adverse effect on, the Franchise, financial condition or operations of an entity or person, taken as a whole; provided, however that, the effects of changes that are generally applicable to: (a) the industries and markets in which such entity or person operates; or (b) the United States economy shall be excluded from the determination of Material Adverse Effect; and provided, further that any adverse effect on Contributor resulting from the execution of this Agreement and the announcement of this Agreement and the transactions contemplated hereby shall also be excluded from the determination of Material Adverse Effect.

 

 

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3.2 Organizational Documents.  Contributor has delivered to Recipient accurate and complete copies of its organizational documents including all amendments thereto.  There has not been any violation of any provisions of the foregoing or any operating agreement which may be in effect, and no action has been taken that is inconsistent in any material respect with any resolution adopted by the members or managers of Contributor.

 

3.3 Corporate Authority.  Contributor has all requisite power and authority to execute and deliver this Agreement, to carry out and perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution, delivery and performance by Contributor of this Agreement and the consummation of the transactions contemplated herein have been duly and validly authorized by Contributor’s members and managers. Except for obtaining the approval of a majority of its members, no further authorization is necessary on the part of Contributor to consummate the Transaction contemplated hereby.

 

3.4 Valid and Binding Agreement.  Assuming this Agreement constitutes the valid and binding obligation of the other parties hereto and subject to the adoption of this Agreement by a majority of Contributor members, this Agreement, when executed and delivered by Contributor, constitutes or will constitute the legal, valid and binding obligation of Contributor, enforceable against each party named above in accordance with its terms, subject to: (a) applicable bankruptcy, insolvency, reorganization and moratorium laws and other laws of general application affecting enforcement of creditors’ rights generally; and (b) equitable defenses and to the discretion of the court before which any proceedings seeking the remedy of specific performance and injunctive and other forms of equitable relief may be brought.

 

3.5 No Breach of Statute or Contract.  Except for matters specifically described in this Agreement, neither the execution, delivery and performance of this Agreement by Contributor, nor compliance with the terms and provisions of this Agreement on the part of Contributor, will: (i) violate any provision of Contributor’s  organizational documents or operating agreement which may be in effect for Contributor, as amended; (ii) require the issuance of any authorization, license, consent or approval of or require notice to or filing with, any federal or state governmental agency; or (iii) conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both a default under any mortgage, indenture, agreement, permit, deed of trust, lease, franchise, license or instrument to which Contributor is a party or by which it or any of its properties is bound, or any judgment, decree, order, rule or regulation or other restriction of any court or any regulatory body, administrative agency or other governmental body applicable to Contributor or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of Contributor pursuant to any such term, except in the case of clauses (ii) or (iii) for such violations, breaches or defaults which, or authorizations, licenses, consents, approvals, notices or filings the failure of which to obtain or make, (iv) would not have a Material Adverse Effect or would not materially adversely affect the ability of Contributor to consummate the Transaction contemplated by this Agreement, or (v) would become applicable as a result of the Franchise or activities in which the Recipient is or proposes to be engaged or as a result of any acts or omissions by, or the status of any facts pertaining to the Recipient.

 

3.6 Litigation.  There is neither pending nor, to Contributor’s knowledge, threatened, any legal or governmental action, suit, investigation, proceeding or claim, to which Contributor is or may be named as a party by or before any court, governmental or regulatory authority or by any third party that is reasonably likely to have a Material Adverse Effect on the Franchise or the Transaction.  Contributor is not a party or subject to the provisions of any material injunction, judgment, decree, or order of any court, regulatory body, administrative agency or other governmental body.

 

3.7 Title to Transferred Assets: Liens and Encumbrances.  Contributor has good and valid title in and to the Transferred Assets, free from all mortgages, pledges, liens, security interests, conditional sale agreements, encumbrances or charges, except: (a) as would not have a Material Adverse Effect; (b) as shown on Contributor Financial Statements; or (c) tax, materialmen’s or like liens for obligations not yet due or payable or being contested in good faith by appropriate proceedings.  Contributor owns or has adequate rights to use the Transferred Assets with regard to its Franchise operations as now conducted.

 

 

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3.8 Franchise.  Except for such claims, which individually or in the aggregate, would not have a Material Adverse Effect, there are no pending or, to the knowledge of Contributor, threatened claims of which Contributor has been given written notice by any person against their use of any intellectual property, including but not limited to trademarks, trade names, service marks, service names, mark registrations, logos, assumed names, trade secrets, Franchise (source code and object code), any other copyrightable works, copyright registrations, inventions, and patents and all applications therefore which are owned or used by Contributor in its operations as currently conducted. Contributor has full ownership of the Franchise and all associated intellectual property as are necessary to permit it to conduct its operations as currently conducted, except where the failure to have such rights is related to the use of Commercial Franchise Rights as defined below.

 

3.9 Brokers or Finders.  Contributor represents, as to itself, and its affiliates, that no agent, broker, investment banker, financial advisor or other firm or person is or will be entitled to any brokers’ or finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement.

 

3.10 Consents.  Contributor’s execution and delivery of this Agreement does not, and Contributor’s performance of this Agreement and the consummation of the transaction contemplated hereby will not, require any filing with, delivery of notice to or receipt of any material consent from, any Person except for FOCUS ACUISITIONS GROUP, LLC as its member.

 

3.11 Accounts Receivable.  All of the accounts and notes receivable were or will have been created in the ordinary course of Contributor’s operation of the Franchise business, and Contributor has no knowledge of any valid defense or right of set-off to the rights of Contributor to collect such accounts and notes receivable in their full amounts.

 

ARTICLE 4.        REPRESENTATIONS & WARRANTIES OF RECIPIENT

 

FOCUS FRANCHISING, INC., makes the following representations and warranties to each of the other parties to this Agreement, each of which shall be deemed material (and each said other party, in executing, delivering and consummating this Agreement, have relied and will rely upon the correctness and completeness of each of such representations and warranties):

 

4.1 Organization, Good Standing and Qualification. Recipient is a corporation, duly organized and validly existing under the laws of the State of Florida and is in good standing under such laws and has the requisite power and authority to own properties owned by it and to conduct the Franchise business, except where the failure to be existing and in good standing or have such power would not have a Material Adverse Effect (as defined herein). Recipient does not own or lease property or engage in any activity in any jurisdiction which might require its qualification to do business as a foreign corporation in any jurisdiction, except where the failure to be so qualified would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse change in, or material adverse effect on, the Franchise, financial condition or operations of Recipient, taken as a whole; provided, however that, the effects of changes that are generally applicable to: (a) the industries and markets in which Recipient operates; or (b) the United States economy shall be excluded from the determination of Material Adverse Effect; and provided, further that any adverse effect on Recipient resulting from the execution of this Agreement and the announcement of this Agreement and the transactions contemplated hereby shall also be excluded from the determination of Material Adverse Effect.

 

4.2 Recipient Authority. Recipient has all requisite corporate power and authority to execute and deliver this Agreement, to carry out and perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by Recipient of this Agreement and the consummation of the transactions contemplated herein have been duly and validly authorized by Recipient’s officers and directors. Except for obtaining the approval of a majority of its members, no further corporate authorization is necessary on the part of Recipient to consummate the transactions contemplated hereby.

 

 

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4.3 Valid and Binding Agreement. Assuming this Agreement constitutes the valid and binding obligation of the other parties hereto and subject to the adoption of this Agreement by a majority of Recipient’s members, this Agreement, when executed and delivered by Recipient, constitutes or will constitute the legal, valid and binding obligation of Recipient, enforceable against Recipient, in accordance with its terms, subject to: (a) applicable bankruptcy, insolvency, reorganization and moratorium laws and other laws of general application affecting enforcement of creditors’ rights generally; and (b) equitable defenses and to the discretion of the court before which any proceedings seeking the remedy of specific performance and injunctive and other forms of equitable relief may be brought.

 

4.4 No Breach of Statute or Contract.  Except for matters specifically described in this Agreement, neither the execution, delivery and performance of this Agreement by Recipient, nor compliance with the terms and provisions of this Agreement on the part of Recipient, will: (i) violate any provision of Recipient’s Articles, bylaws or any other organizational documents of Recipient, as amended; (ii) require the issuance of any authorization, license, consent or approval of or require notice to or filing with, any federal or state governmental agency; or (iii) conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both a default under any mortgage, indenture, agreement, permit, deed of trust, lease, franchise, license or instrument to which Recipient is a party or by which it or any of its properties is bound, or any judgment, decree, order, rule or regulation or other restriction of any court or any regulatory body, administrative agency or other governmental body applicable to Recipient or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of Recipient pursuant to any such term, except in the case of clauses (ii) or (iii) for such violations, breaches or defaults which, or authorizations, licenses, consents, approvals, notices or filings the failure of which to obtain or make, (iv) would not have a Material Adverse Effect or would not materially adversely affect the ability of Recipient to consummate the transactions contemplated by this Agreement, or (v) would become applicable as a result of the Franchise or activities in which the Recipient is or proposes to be engaged or as a result of any acts or omissions by, or the status of any facts pertaining to the Recipient.

 

4.5 Brokers or Finders.  Recipient represents, as to itself, and its affiliates, that no agent, broker, investment banker, financial advisor or other firm or person is or will be entitled to any brokers’ or finder’s fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement.

 

4.6 No Material Adverse Change. As of the Effective Date hereof and as of the Closing Date no event has occurred or is planned to occur, or circumstance arisen or reasonably likely to arise that, individually or taken together with all other facts, circumstances and events, has had or is reasonably likely to have a Material Adverse Effect on Recipient or any principal or Affiliate of Recipient.

4.7 Legal Proceedings. There are no legal actions, lawsuits, claims, demands or proceedings pending or, to the knowledge of Recipient, threatened by or against or affecting Recipient or any principal or Affiliate of Recipient that would (i) give any person the right to enjoin or rescind the transactions contemplated by this Agreement, or (ii) otherwise prevent Recipient from executing and delivering this Agreement or performing the its obligations pursuant to, or observing any of the terms and provisions of, this Agreement.

 

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ARTICLE 5.        ADDITIONAL AGREEMENTS & POST CLOSING EVENTS OF THE PARTIES

 

The parties hereby further agree that, from and after the Closing:

 

5.1 Publicity. The initial press releases with respect to the execution of this Agreement shall be acceptable to the parties. Thereafter, so long as this Agreement is in effect, the parties shall not issue or cause the publication of any press release with respect to this Agreement or the other transactions contemplated hereby or otherwise without the prior agreement of the other parties, except as may be required by law or by any listing agreement with a national securities exchange.

 

5.2 Further Assurances. From time to time from and after the Closing, the parties shall execute and deliver, or cause to be executed and delivered, any and all such further agreements, certificates and other instruments, and shall take or cause to be taken any and all such further action, as any of the parties may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Agreement.

 

ARTICLE 6.        CONDITIONS

 

6.1 Conditions to Each Party’s Obligation to Closing. The obligations of the parties to consummate this Agreement are subject to the satisfaction (or, if permissible, waiver by the party for whose benefit such conditions exist) of the following conditions:

 

(a) Approval of Members.  This Agreement shall have been approved by the member (or members as the case may be) of Contributor and Recipient, in accordance with the law of the jurisdiction in which said entity is organized or incorporated;

 

(b) Governmental Entities. No court, arbitrator or governmental body, agency or official shall have issued any order, decree or ruling, and there shall not be any statute, rule or regulation, restraining, enjoining or prohibiting the consummation of the material transactions contemplated by this Agreement; provided that the parties shall have used their best efforts to cause any such order, decree, ruling, statute, rule or regulation to be vacated or lifted; and

 

(c) Consents. All authorizations, approvals or consents required to permit the consummation of this Agreement shall have been obtained and be in full force and effect, except where the failure to have obtained any such authorizations, approvals or consents would not have a Material Adverse Effect.

 

(d) Accuracy of Representations and Warranties All representations and warranties made by each of the parties hereto, shall be true and correct on and as of the Closing Date as though such representations and warranties were made on and as of that date (other than those representations and warranties that address matters only as of a particular date or only with respect to a specific period of time which need only be true and accurate as of such date or with respect to such period), except where the failure of such representations and warranties to be so true and accurate (without giving effect to any limitation as to “materiality” or “material adverse effect” set forth therein), would not have a Material Adverse Effect;

 

(e) Performance. Each party shall have performed, satisfied and complied in all material aspects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such party on or before the Closing Date.

 

 

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ARTICLE 7.         CLOSING

 

7.1 Place and Date of Closing.  The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of the Contributor, or such other location or via such other methodology as is agreed to between the parties, at a time mutually agreeable to the parties, or on such date as may be reasonably required to accommodate a satisfaction of the conditions precedent to Closing hereunder.

 

7.2 Actions at Closing.  At the Closing, the parties shall make all payments and deliveries stated in this Agreement to be made at the Closing and/or on or prior to the Closing Date.

 

ARTICLE 8.        SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION

 

8.1 Survival.  The parties hereto agree that their respective representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing for a period of two (2) years from the Effective Date.  To the extent that an Indemnified Party (as hereinafter defined) asserts in writing a claim for Damages (as hereinafter defined) against an Indemnifying Party (as hereinafter defined) prior to the expiration of the indemnification period, which claim reasonably identifies the basis for the claims and the amounts of any reasonably ascertainable damages, the Indemnification Period shall be extended for such claim until such claim is resolved, subject to the limitations hereinafter provided.

 

8.2 Indemnification .  Subject to the limitations below, each party hereto (the "Indemnifying Party")   shall indemnify, defend, and hold harmless the other party (the "Indemnified Party")  and each of their respective officers, directors, employees and affiliates for, by, from, against and in respect of any third party claim and the resulting liability, obligation, loss, damage, cost, or expense arising from or based upon (a) the ownership, use, possession, or operation of the Franchise by Contributor before and on the Effective Date (solely in the case of Contributor as the Indemnifying Party), or the operation of the Franchise after  the Effective Date (solely in the case of Recipient as the Indemnifying Party); (b) any damage or deficiency resulting from any misrepresentation, breach of warranty, or non-fulfillment of any covenant or agreement on the part of the Indemnifying Party under this Agreement or from any misrepresentation in or omission pursuant to this Agreement; and (c) all actions, suits, proceedings, demands, assessments, reasonable expenses, and costs, including arbitration and court costs and reasonable attorneys’ fees, incident to any of the foregoing (the items in clauses (a), (b), and (c) collectively, “Damages”).  This covenant by each party to indemnify, defend, and hold harmless the other party, shall survive the Closing to the same extent and time provided in Section 8.1 above.

 

8.3 Limitations of Liability

 

The following limitations shall apply to a party's obligations of indemnity hereunder with regard to breach of any warranty or material inaccuracy of any representation:

(a) Cap. Except to the extent of a fraudulent misrepresentation, the maximum aggregate liability for all losses, claims, damages, indemnification obligations or deficiencies resulting from the breach of any warranty or material inaccuracy of any representation made and contained in this Agreement shall in no event exceed One Hundred Thousand Dollars ($100,000) in the aggregate.

(b) Basket. Neither party shall be entitled to indemnification under this Agreement unless the indemnification obligation shall be in excess of Ten Thousand Dollars ($10,000) in the aggregate.

(c) Certain Damages Excluded.  The Indemnifying Party shall be responsible only for direct damages except in the event of fraud or intentional misconduct or gross negligence.

 

 

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(d) Exclusive Remedy. The rights and remedies herein provided shall be the exclusive right and remedy available to the Indemnified Party except as to matters involving fraud or fraudulent misrepresentation.

 

8.4 Defense of Claims.  Each party entitled to indemnification under this Article 9 (the “Indemnified Party” agrees to notify the party required to provide indemnification (the “Indemnifying Party” with reasonable promptness of any claim asserted against it in respect of which the Indemnifying Party may be liable under this Agreement, which notification shall be accompanied by a written statement setting forth the basis of such claim and the manner of calculation thereof. The failure of the Indemnified Party to promptly give notice shall not preclude such Indemnified Party from obtaining indemnification under this Article 9, except to the extent, and only to the extent, that the Indemnifying Party’s failure actually prejudices the rights or increases the liabilities and obligations of the Indemnifying Party. The Indemnifying Party shall have the right, at its election, to defend or compromise any such claim at their own expense with counsel of their choice; provided, however that: (a) such counsel shall have been approved by the Indemnified Party prior to engagement, which approval shall not be unreasonably withheld or delayed; (b) the Indemnified Party may participate in such defense, if it so chooses with its own counsel and at its own expense; and (c) any such defense or compromise shall be conducted in a manner which is reasonable and not contrary to the Indemnified Party’s interest. In the event the Indemnifying Party does not undertake to defend or compromise, the Indemnifying Party shall promptly notify the Indemnified Party of its intention not to undertake to defend or compromise the claim.

 

ARTICLE 9.        PARTIES

 

9.1 Parties in Interest. Nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns, nor is anything in this Agreement intended to relieve or discharge the obligations or liability of any third persons to any party to this Agreement, nor shall any provision give any third persons any right of subrogation or action over or against any party to this Agreement.

 

9.2 Notices. Any notice, demand, request, offer, consent, approval or communications (collectively, a “Notice”) to be provided under this Agreement shall be in writing and sent by one of the following methods: (a) postage prepaid, United States certified or registered mail with a return receipt requested, addressed to the appropriate party at the addresses set forth below; (b) overnight delivery with a nationally recognized and reputable air courier (with electronic tracking requested) addressed to the appropriate party at the addresses set forth below; (c) personal delivery to the appropriate party at the addresses set forth below; or (d) by confirmed facsimile or telecopier transmission to the appropriate party at the facsimile numbers set forth below and in such case of facsimile transmission, a copy must also be contemporaneously sent by one of the methods described in the preceding clause (a), (b) or (c) of this Section (it being understood and agreed, however, that such Notice shall be deemed received upon receipt of electronic transmission). Any such Notice shall be deemed given upon receipt thereof, or, in case of any Notice sent pursuant to clause (a), (b) or (c) above, the refusal thereof by the intended receipt. Notwithstanding the foregoing, in the event any Notice is sent by overnight delivery or personal delivery and it is received (or delivery is attempted) during non-business hours (i.e., other than during 8:30 a.m. to 5:30 p.m. (Monday through Friday, excluding holidays), then such Notice shall not be deemed to have been received until the next Franchise Day. Either party may designate a different address for receiving Notices hereunder by notice to the other party in accordance with the provisions of this Section 10.2. Further notwithstanding the foregoing, if any Notice is sent by either party hereto to the other and such Notice has not been sent in compliance with this Section but has in fact actually been received by the other party, then such Notice shall be deemed to have been duly given by the sending party and received by the recipient party effective as of such date of actual receipt.

 

Notwithstanding anything in this Section to the contrary, any Notice delivered in accordance herewith to the last designated address of any person or party to which a Notice may be or is required to be delivered pursuant to this Agreement shall not be deemed ineffective if actual delivery cannot be made due to a change of address of the person or party to which the Notice is directed or the failure or refusal of such person or party to accept delivery of the Notice.

 

 

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ARTICLE 10.        MISCELLANEOUS

 

10.1 Non-Assignability; Binding Effect. Neither this Agreement, nor any of the rights or obligations of the parties hereunder, shall be assignable by any party hereto without the prior written consent of all other parties hereto, which such consent may be granted or withheld in such other party’s sole and absolute discretion. The rights and obligations of this Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns. Nothing expressed or implied herein shall be construed to give any other person any legal or equitable rights hereunder.

 

10.2 Schedules and Exhibits. All exhibits and schedules attached hereto (the “Exhibits”) shall be construed with and deemed an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. Any matter disclosed pursuant to the Exhibits shall be deemed to be disclosed for all purposes under this Agreement, and all references to this Agreement herein or in any such Exhibits shall be deemed to refer to and include all such Exhibits.

 

10.3 Waiver. No failure to exercise, and no delay in exercising, any right, power or privilege under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right, power or privilege hereunder preclude the exercise of any other right, power or privilege. No waiver of any breach of any provision shall be deemed to be a waiver of any preceding or succeeding breach of the same or any other provision, nor shall any waiver be implied from any course of dealing between the parties. No extension of time for performance of any obligations or other acts hereunder or under any other agreement shall be deemed to be an extension of the time for performance of any other obligations or any other acts. No waiver shall be effective unless in writing, and signed by the party or parties to which the performance of duty is owed. The rights and remedies of the parties under this Agreement are in addition to all other rights and remedies, at law or equity, that they may have against each other except as may be specifically limited herein.

 

10.4 Independent Covenants. The parties agree that each of the covenants, clauses and provisions contained in this Agreement shall be deemed severable and construed as independent of any other covenant, clause or provision.

 

10.5 Severability.  If all or any portion of a covenant, clause or provision in this Agreement is held to be illegal, invalid, or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision, the remaining covenants, clauses and provisions shall remain valid and enforceable. In lieu of each covenant, clause or provision of this Agreement that is held to be illegal, invalid or unenforceable, there shall be added as a part of this Agreement a covenant, clause or provision as nearly identical as may be possible and as may be legal, valid and enforceable, and the parties expressly agree to be bound by any such added covenant, clause or provision as if the resulting covenant, clause or provision were separately stated in, and made a part of this Agreement. In the event any covenant, clause or provision of this Agreement is illegal, invalid or unenforceable as aforesaid and the effect of such illegality, invalidity or unenforceability is that either party no longer has the substantial benefit of its bargain under this Agreement and a covenant, clause or provision as nearly identical as may be possible cannot be added, then, in such event, such party may in its discretion cancel and terminate this Agreement provided such party exercises such right within a reasonable time after such occurrence.

 

10.6 Entire Agreement.  This Agreement contains and represents the entire and complete understanding and agreement concerning and in reference to the arrangement between the parties hereto. The parties hereto agree that no prior statements, representations, promises, agreements, instructions, or understandings, written or oral, pertaining to this Agreement, other than those specifically set forth and stated herein, shall be of any force or effect. The parties agree that prior drafts of this Agreement shall not be deemed to provide any evidence as to the meaning of any provision hereof or the intent of the parties with respect thereto.

 

 

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10.7 Modifications and Amendments. This Agreement may not be, and shall not be construed to have been modified, amended, rescinded, canceled, or waived, in whole or in part, except if done so in writing and executed by the parties hereto.

 

10.8 Time of Essence.  The parties to this Agreement acknowledge and agree that time is of the essence with respect to the consummation of the transactions contemplated by this Agreement.

 

10.9 Governing Law. The validity, interpretation and enforcement of this Agreement shall be governed by, and construed and enforced in accordance with the local laws of the State of Florida without giving effect to its conflicts of laws provisions, and to the exclusion of the law of any other forum, without regard to the jurisdiction in which any action or special proceeding may be instituted.

 

10.10 Exclusive Jurisdiction: Venue. EACH PARTY HERETO AGREES TO SUBMIT TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN SEMINOLE COUNTY, FLORIDA, FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM.

 

10.11 Waiver of Jury Trial.  AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY OF ANY ISSUES SO TRIABLE.

 

10.12 Construction. The parties agree and acknowledge that they have jointly participated in the negotiation and drafting of this Agreement and that this Agreement has been filly reviewed and negotiated by the parties and their respective counsel. In the event of an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumptions or burdens of proof shall arise favoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. If any party has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the party has not breached shall not detract from or mitigate the fact that the party is in breach of the first representation, warranty, or covenant. The mere listing (or inclusion of copy) of a document or other item shall not be deemed adequate to disclose an exception to a representation or warranty made herein (unless the representation or warranty relates solely to the existence of the document or other items itself).

 

10.13 Section Headings. The titles to the numbered sections in this Agreement and the ordering or position thereof are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of said covenants or provisions set forth herein.

 

10.14 Counterparts. This Agreement may be executed by each party upon a separate counterpart, each of which shall be deemed an original, and in such case one copy of this Agreement shall consist of enough of such counterparts to reflect the signature of all of the parties to this Agreement. A telecopy signature of any party shall be considered to have the same binding legal effect as an original signature.

 

10.15 Attorneys’ Fees. Notwithstanding this Article 11, in the event either party employs an attorney or brings an action against the other arising out of the terms of this Agreement, the prevailing party (whether such prevailing party has been awarded a money judgment or not) shall receive from the other party (and the other party shall be obligated to pay) the prevailing party reasonable legal fees and expenses (including the fees and expenses of experts and para-professionals), whether such fees and expenses are incurred before, during or after any trial, re trial, re-hearing, mediation or arbitration, administrative proceedings, appeals or bankruptcy or insolvency proceedings, and irrespective of whether the prevailing party would have been entitled to such fees and expenses under applicable law in the absence of this Section. Without limiting the generality of the foregoing, the term “expenses” shall include expert witness fees, bonds, filing fees, administrative fees, transcriptions, depositions or proceedings, costs of discovery and travel costs. The term “prevailing party” as used in this Section shall mean that party whose positions substantially prevail in such action or proceeding, and any action or proceeding brought by either party against the other as contemplated in this Section may include a plea or request for judicial determination of the “prevailing party” within the meaning of this Section. In the event neither party substantially prevails in its positions in such action or proceeding, the court may rule that neither party has so substantially prevailed, in which event each party shall be responsible for its own fees and expenses in connection therewith. In addition, the fees and expenses for the services of “in-house” counsel (if any) shall be included within the prevailing party’s fees and expenses as fully as if such in-house legal services were provided by an “outside” attorney or law firm as contemplated within this Section, irrespective of whether “outside” legal services are obtained in connection with such matter. The fees and expenses on the part of in-house counsel as aforesaid shall be determined based upon the prevailing hourly rates, fees and expenses for an attorney(s) of comparable experience in the Orlando, Florida area.

 

 

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10.16 Arm’s Length Negotiations. Each party herein expressly represents and warrants to all other parties hereto that: (a) before executing this Agreement, said party has fully informed itself of the terms, contents, conditions and effects of this Agreement; (b) said party has relied solely and completely upon its own judgment in executing this Agreement; (c) said party has had the opportunity to seek and has obtained the advice of counsel before executing this Agreement; (d) said party has acted voluntarily and of its own free will in executing this Agreement; (e) said party is not acting under duress, whether economic or physical, in executing this Agreement; and (f) this Agreement is the result of arm’s length negotiations conducted by and among the parties and their respective counsel.

 

10.17 Rules of Interpretation.  Except as otherwise expressly provided in this Agreement, the following rules shall apply hereto: (a) the singular includes the plural and plural includes the singular; (b) “or” is not exclusive and “include” and “including” are not limiting; (c) a reference to any agreement or other contract includes any permitted supplements and amendments; (d) a reference to a section or paragraph in this Agreement shall, unless the context clearly indicates to the contrary, refer to all sub-parts or sub-components of any said section or paragraph; (e) words such as “hereunder”, “hereto”, “hereof”, and “herein”, and other words of like import shall, unless the context clearly indicates to the contrary, refer to the whole of this Agreement and not to any particular clause hereof; (f) a reference in this Agreement to a “person” or “party” (whether in the singular or the plural) shall (unless otherwise indicated herein) include both natural persons and unnatural persons (including, but not limited to, corporations, partnerships, limited liability companies or partnerships, trusts, etc.); (g) all accounting terms not otherwise defined herein shall have the meanings assigned to them in accordance with GAAP; and (h) any reference in this Agreement to a “Franchise Day” shall include each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which national banks in Orlando, Florida are closed.

 

 

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

 

 

	
FOCUS ACQUISITIONS GROUP, LLC, a Delaware limited liability

 

By: /s/ Daniel R. Patterson                                 

	  
	Daniel R. Patterson, as its Manager	 
	  	  
	 	 
	
FOCUS FRANCHISING COMPANY, LLC, a Delaware limited liability company

 

 

By: /s/ Daniel R. Patterson                                 

	  
	Daniel R. Patterson, as its Manager	 
	
 

 

FOCUS FRANCHISING, INC., a Florida corporation

 

 

By: /s/ Daniel R. Patterson                                 

	  
	Daniel R. Patterson, as its President	  
	  	  

 

 

JRECK Franchise Operations 

Contribution Agreement (FINAL)

Page 12 of 12EXHIBIT 10.1

 

EQUITY PURCHASE AGREEMENT

 

BY AND BETWEEN

 

VNUE, INC.

 

AND

 

TARPON BAY PARTNERS LLC

 

Dated

 

February 18, 2016

 

     

     

    

  

THIS EQUITY PURCHASE AGREEMENT entered
into as of the 18th day of February, 2016 (this "AGREEMENT"), by and between TARPON BAY PARTNERS LLC,
a Florida limited liability company ("INVESTOR"), and VNUE, INC., a Nevada corporation (the "COMPANY").

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Investor, from
time to time as provided herein, and Investor shall purchase up to Ten Million Dollars ($10,000,000) of the Company’s Common
Stock (as defined below); and

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

Section 1.1       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.

 

"BY-LAWS"
shall have the meaning specified in Section 4.7.

 

"CLAIM NOTICE"
shall have the meaning specified in Section 9.3(a).

 

“CLEARING DATE”
shall be the date in which the Estimated Put Shares (as defined in Section 2.2(a)) have been deposited into the Investor’s
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 CERTIFICATE"
shall mean the closing certificate of the Company in the form of Exhibit B hereto.

 

    	 	1	 

     

    

  

"CLOSING PRICE"
shall mean the closing bid price for the Company’s common stock on the Principal Market on a Trading Day as reported by Bloomberg
Finance L.P.

 

"COMMITMENT PERIOD"
shall mean the period commencing on the Effective Date, and ending on the earlier of (i) the date on which Investor shall have
purchased Put Shares pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or (ii) the date
occurring twenty four (24) months from the date of commencement of the Commitment Period.

 

"COMMON STOCK"
shall mean the Company's common stock, $0.0001 par 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" shall mean any securities that are convertible into or exchangeable for Common Stock or any options or other
rights to subscribe for or purchase Common Stock or any such convertible or exchangeable securities.

  

"COMPANY"
shall have the meaning specified in the preamble to this Agreement.

 

"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).

 

"DOLLAR VOLUME"
shall mean the product of (a) the Closing Price multiplied by (b) the trading volume on the Principal Market on a Trading Day.

 

"DTC" shall
have the meaning specified in Section 2.3.

 

"DWAC" shall
have the meaning specified in Section 2.3.

 

    	 	2	 

     

    

 

"EFFECTIVE DATE"
shall mean the date that the Registration Statement is declared effective by the SEC.

 

“ESTIMATED PUT
SHARES” shall have the meaning specified in Section 2.2(a)

 

"EXCHANGE ACT"
shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

 

"FAST" shall
have the meaning specified in Section 2.3.

 

"FINRA" shall
mean the Financial Industry Regulatory Authority, Inc.

 

“FLOOR PRICE”
shall have the meaning specified in Section 2.2(c).

 

"INDEMNIFIED PARTY"
shall have the meaning specified in Section 9.3(a).

 

"INDEMNIFYING
PARTY" shall have the meaning specified in Section 9.3(a).

 

"INDEMNITY NOTICE"
shall have the meaning specified in Section 9.3(b).

 

"INVESTMENT AMOUNT"
shall mean the dollar amount to be invested by Investor to purchase Put Shares with respect to any Put as notified by the Company
to Investor in accordance with Section 2.2.

 

"INVESTOR"
shall have the meaning specified in the preamble to this Agreement.

 

"LEGEND"
shall have the meaning specified in Section 8.1.

 

    	 	3	 

     

    

  

"MARKET PRICE"
shall mean the lowest Closing Price on the Principal Market for any Trading Day during the Valuation Period, as reported by Bloomberg
Finance L.P.

 

"MATERIAL ADVERSE
EFFECT" shall mean any effect on the business, operations, properties, or financial condition of the Company that is material
and adverse to the Company 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 of this Agreement.

 

"MAXIMUM COMMITMENT
AMOUNT" shall mean Ten Million Dollars ($10,000,000).

 

“PAR VALUE PAYMENT”
shall have the meaning specified in Section 2.2(a).

 

"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), OTCQB, the OTC Bulletin Board, or other principal exchange
which is at the time the principal trading exchange or market for the Common Stock.

 

"PURCHASE PRICE"
shall mean 90% of the Market Price on such date on which the Purchase Price is calculated in accordance with the terms and conditions
of this Agreement.

 

"PUT" shall
mean the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions of
this Agreement.

 

"PUT DATE"
shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).

 

    	 	4	 

     

    

 

"PUT NOTICE"
shall mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Investment Amount with
respect to which the Company intends to require Investor to purchase shares of Common Stock pursuant to the terms of this Agreement.

 

"PUT SHARES"
shall mean all shares of Common Stock issued or issuable pursuant to a Put that has been exercised or may be exercised in accordance
with the terms and conditions of this Agreement.

 

"REGISTERED SECURITIES"
shall mean the (a) Put Shares, and (b) any securities issued or issuable with respect to any of the foregoing by way of exchange,
stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization
or otherwise. As to any particular Registered Securities, once issued such securities shall cease to be Registrable Securities
when (i) a Registration Statement has been declared effective by the SEC and such Registrable Securities have been disposed of
pursuant to a Registration Statement, (ii) such Registrable Securities have been sold under circumstances under which all of the
applicable conditions of Rule 144 are met, (iii) such time as such Registrable Securities have been otherwise transferred to holders
who may trade such shares without restriction under the Securities Act or (iv) in the opinion of counsel to the Company, which
counsel shall be reasonably acceptable to Investor, such Registrable Securities may be sold without registration under the Securities
Act or the need for an exemption from any such registration requirements and without any time, volume or manner limitations pursuant
to Rule 144(b)(i) (or any similar provision then in effect) under the Securities Act.

 

"REGISTRATION
STATEMENT" shall mean the Company’s effective registration statement on file with the SEC, and any follow up registration
statement or amendment thereto.         

 

"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 Securities and Exchange Commission.

 

"SECURITIES ACT"
shall have the meaning specified in the recitals of this Agreement.

 

    	 	5	 

     

    

  

"SEC DOCUMENTS"
shall mean, as of a particular date, all reports and other documents filed by the Company pursuant to Section 13(a) or 15(d) of
the Exchange Act since the end of the Company's then most recently completed and reported fiscal year as of the time in question
(provided that if the date in question is within ninety days of the beginning of the Company's fiscal year, the term shall include
all documents filed since the beginning of the preceding fiscal year).

 

“SHORT SALES”
shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed
to include the location and/or reservation of borrowable shares of Common Stock).

 

"SUBSCRIPTION
DATE" shall mean the date on which this Agreement is executed and delivered by the Company and Investor.

 

"THIRD PARTY CLAIM"
shall have the meaning specified in Section 9.3(a).

 

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

 

“TRANSACTION
DOCUMENTS” shall mean this Agreement and the Registration Rights Agreement.

 

"TRANSFER AGENT"
shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common Stock upon
the Company's appointment of any such substitute or replacement transfer agent).

 

"UNDERWRITER"
shall mean any underwriter participating in any disposition of the Registered Securities on behalf of Investor pursuant to the
Registration Statement.

 

"VALUATION EVENT"
shall mean an event in which the Company at any time during a Valuation Period takes any of the following actions:

 

		(a)	subdivides or combines the Common Stock;

 

    	 	6	 

     

    

  

(b)          pays
a dividend in shares of Common Stock or makes any other distribution of shares of Common Stock, except for dividends paid with
respect to any series of preferred stock authorized by the Company, whether existing now or in the future;

 

(c)        issues any options or other
rights to subscribe for or purchase shares of Common Stock other than pursuant to this Agreement, and other than options or stock
grants issued or issuable to directors, officers and employees pursuant to a stock option program, whereby the price per share
for which shares of Common Stock may at any time thereafter be issuable pursuant to such options or other rights shall be less
than the Closing Price in effect immediately prior to such issuance;

 

(d)          issues
any securities convertible into or exchangeable for shares of Common Stock and the consideration per share for which shares of
Common Stock may at any time thereafter be issuable pursuant to the terms of such convertible or exchangeable securities shall
be less than the Closing Price in effect immediately prior to such issuance;

 

(e)        issues shares of Common Stock
otherwise than as provided in the foregoing subsections (a) through (d), at a price per share less, or for other consideration
lower, than the Closing Price in effect immediately prior to such issuance, or without consideration; or

 

(f)          makes
a distribution of its assets or evidences of indebtedness to the holders of Common Stock as a dividend in liquidation or by way
of return of capital or other than as a dividend payable out of earnings or surplus legally available for dividends under applicable
law or any distribution to such holders made in respect of the sale of all or substantially all of the Company's assets (other
than under the circumstances provided for in the foregoing subsections (a) through (e).

 

"VALUATION PERIOD"
shall mean the period of ten (10) Trading Days immediately following the Clearing Date associated with the applicable Put Notice
during which the Purchase Price of the Common Stock is valued; provided, however, that if a Valuation Event occurs during any
Valuation Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of such Valuation Event
and end on the tenth (10th) Trading Day thereafter. Investor shall notify the Company in writing of the occurrence
of the Clearing Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day following such written
notice from Investor.

  

    	 	7	 

     

    

  

ARTICLE II

 

PURCHASE AND SALE OF COMMON STOCK

 

Section
2.1              INVESTMENTS.

 

(a)             PUTS.
Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), on any Put Date
the Company may exercise a Put by the delivery of a Put Notice. The number of Put Shares that Investor shall purchase pursuant
to such Put shall be determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with respect
to such Put Notice.

 

(b)             PROMISSORY NOTE. As a condition
for the execution of this Agreement by the Investor, the Company shall issue to the Investor a 10% promissory note in the principal
amount equal to $25,000.00 (the “Note”) on the Subscription Date. The Note shall have no registration rights.

  

Section 2.2           MECHANICS.

 

(a)          PUT
NOTICE. At any time and from time to time during the Commitment Period, the Company may deliver a Put Notice to Investor, subject
to the conditions set forth in Section 7.2; provided, however, that the Investment Amount identified in the applicable Put Notice,
when taken together with all prior Put Notices, shall not exceed the Maximum Commitment Amount. On the Put Date the Company shall
deliver to Investor’s brokerage account estimated put shares equal to the Investment Amount indicated in the Put Notice divided
by the Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred twenty five percent (125%)
(the “Estimated Put Shares”). On the Trading Date immediately following delivery of the Estimated Put Shares, Investor
shall deliver payment by check or wire transfer to the Company an amount equal to the par value of the Estimated Put Shares (“Par
Value Payment”).

  

(b)          DATE
OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by Investor if such notice is received on or prior to 12:00 noon New York time, or (ii) the immediately succeeding Trading Day
if it is received by facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day which is not
a Trading Day.

 

    	 	8	 

     

    

  

(c)          FLOOR PRICE.
In the event that, during a Valuation Period, the Closing Price on any Trading Day falls to a price equal to seventy five percent
(75%) of the average of the closing trade prices for the ten (10) trading days immediately preceding the date of the Company’s
Put Notice (a “Low Bid Price”), then for each such Trading Day, the parties shall have no right to sell and shall be
under no obligation to purchase one tenth (1/10th) of the Investment Amount specified in the Put Notice, and the Investment Amount
shall accordingly be deemed reduced by such amount. In the event that during a Valuation Period there exists a Low Bid Price for
any three (3) Trading Days—not necessarily consecutive—then the balance of each party’s right and obligation
to sell and purchase the Investment Amount under such Put Notice shall terminate on such second Trading Day (“Termination
Day”), and the Investment Amount shall be adjusted to include only one-tenth (1/10th) of the initial Investment
Amount for each Trading Day during the Valuation Period prior to the Termination Day that the Bid Price equals or exceeds the Low
Bid Price.

 

Section 2.3           CLOSINGS.
At the end of the Valuation Period the Purchase Price shall be established and the number of Put Shares shall be determined for
a particular Put. If the number of Estimated Put Shares initially delivered to Investor is greater than the Put Shares purchased
by Investor pursuant to such Put, then immediately after the Valuation Period the Investor shall deliver to Company any excess
Estimated Put Shares associated with such Put. If the number of Estimated Put Shares delivered to Investor is less than the Put
Shares purchased by Investor pursuant to a Put, then immediately after the Valuation Period the Company shall deliver to Investor
the difference between the Estimated Put Shares and the Put Shares issuable pursuant to such Put. The Closing of a Put shall occur
upon the first Trading Day following the completion of the Valuation Period, whereby Investor shall deliver the Investment Amount
specified in the Put Notice, less the Par Value Payment, by wire transfer of immediately available funds to an account designated
by the Company. In lieu of delivering physical certificates representing the Common Stock issuable in accordance with clause (a)
of this Section 2.3, and provided that the Transfer Agent then is participating in the Depository Trust Company ("DTC")
Fast Automated Securities Transfer ("FAST") program, upon request of Investor, but subject to the applicable provisions
of Article VIII hereof, the Company shall use its commercially reasonable efforts to cause the Transfer Agent to electronically
transmit, prior to the applicable Closing Date, the applicable Put Shares by crediting the account of the Investor's prime broker
with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system, and provide proof satisfactory to the Investor
of such delivery. In addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each other all
documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement
in order to implement and effect the transactions contemplated herein.

 

    	 	9	 

     

    

  

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

Investor represents
and warrants to the Company that:

 

Section 3.1           INTENT.
Investor is entering into this Agreement for its own account and Investor has no present arrangement (whether or not legally binding)
at any time to sell the Registered Securities to or through any person or entity; provided, however, that Investor reserves the
right to dispose of the Registered Securities at any time in accordance with federal and state securities laws applicable to such
disposition.

 

Section 3.2           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.

 

Section 3.3           SOPHISTICATED
INVESTOR. Investor is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor
(as defined in Rule 501 of Regulation D), and Investor has such experience in business and financial matters that it is capable
of evaluating the merits and risks of an investment in the Registered Securities. Investor acknowledges that an investment in the
Registered Securities is speculative and involves a high degree of risk.

 

Section 3.4           AUTHORITY.
(a) Investor has the requisite power and authority to enter into and perform its obligations under this Agreement and the transactions
contemplated hereby in accordance with its terms; (b) the execution and delivery of this Agreement 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 Investor or its partners is required; and (c) this Agreement has been duly authorized and validly executed and delivered by
Investor and constitutes a valid and binding obligation of 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.

  

Section 3.5           NOT
AN AFFILIATE. Investor is not an officer, director or "affiliate" (as that term is defined in Rule 405 of the Securities
Act) of the Company.

 

Section 3.6        ORGANIZATION AND STANDING.
Investor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida
and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted.
Investor is duly qualified and in good standing in every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, other than those in which the failure so to qualify would not have a material adverse
effect on Investor.

 

    	 	10	 

     

    

  

Section 3.7           ABSENCE
OF CONFLICTS. The execution and delivery of this Agreement and any other document or instrument contemplated hereby, 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 Investor, (b) violate any provision of
any indenture, instrument or agreement to which Investor is a party or is subject, or by which 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 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 Investor is subject or to which any of its assets, operations or management
may be subject.

 

Section 3.8           DISCLOSURE;
ACCESS TO INFORMATION. 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.

 

Section 3.9           MANNER
OF SALE. At no time was Investor presented with or solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of general solicitation or advertising.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents
and warrants to Investor that, except as disclosed in the SEC Documents:

 

Section 4.1           ORGANIZATION
OF THE COMPANY. The Company is a corporation duly organized and validly existing and in good standing under the laws of the State
of Nevada and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now
being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, other than those in which
the failure so to qualify would not have a Material Adverse Effect.

 

    	 	11	 

     

    

  

Section 4.2           AUTHORITY.
(a) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement
and to issue the Put Shares; (b) the execution and delivery of this Agreement 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; and (c) each of this Agreement and has 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.

 

Section 4.3           CAPITALIZATION.
As of the date hereof, the authorized capital stock of the Company consists of 750,000,000 shares of Common Stock, $0.0001 par
value per share, of which 640,913,164 shares were issued and outstanding as of February 17, 2016, 2016, preferred stock, 20,000,000
shares authorized, 0 shares issued and outstanding; at February 17, 2016.

 

Except as otherwise
disclosed in the SEC Documents or on Schedule 4.3, there are no outstanding securities which are convertible into shares
of Common Stock, whether such conversion is currently exercisable or exercisable only upon some future date or the occurrence of
some event in the future.

 

All of the outstanding
shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable.

  

Section 4.4           COMMON
STOCK. The Company is in full compliance with all reporting requirements of the Exchange Act, and the Company has maintained all
requirements for the continued listing or quotation of the Common Stock, and such Common Stock is currently listed or quoted on
the Principal Market which is presently the OTCQB.

 

Section 4.5           SEC
DOCUMENTS. The Company may make available to Investor true and complete copies of the SEC Documents (including, without limitation,
proxy information and solicitation materials). To the Company’s knowledge, the Company has not provided to Investor any information
that, according to applicable law, rule or regulation, should have been disclosed publicly prior to the date hereof by the Company,
but which has not been so disclosed. As of their respective dates, the SEC Documents complied in all material respects with the
requirements of the Exchange Act, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the
SEC Documents 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 year-end audit adjustments).

 

    	 	12	 

     

    

  

Section 4.6           VALID
ISSUANCES. When issued and paid for as herein provided, the Put Shares shall be duly and validly issued, fully paid, and non-assessable.
The sales of the Put Shares pursuant to this Agreement, and the Company's performance of its obligations hereunder, shall not (a)
result in the creation or imposition of any liens, charges, claims or other encumbrances upon the Put Shares, or any of the assets
of the Company, or (b) entitle the holders of outstanding shares of Common Stock to preemptive or other rights to subscribe to
or acquire the Common Stock or other securities of the Company. The Put Shares shall not subject Investor to personal liability,
in excess of the subscription price by reason of the ownership thereof.

 

Section 4.7           NO
CONFLICTS. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including without limitation the issuance of the Put Shares, do not and will not (a) result in
a violation of the Company’s Articles of Incorporation or By-Laws or (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, or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement, indenture, instrument or any "lock-up"
or similar provision of any underwriting or similar agreement to which the Company 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 by which any property or asset of the Company 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 this Agreement
or issue and sell the Common Stock in accordance with the terms hereof (other than any SEC, FINRA or state securities filings that
may be required to be made by the Company subsequent to any Closing, 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.

 

    	 	13	 

     

    

  

Section 4.8           NO
MATERIAL ADVERSE CHANGE. Since September 30, 2015 no event has occurred that would have a Material Adverse Effect on the Company.

 

 

Section 4.9           LITIGATION
AND OTHER PROCEEDINGS. Except as disclosed in the Company’s SEC filings, there are no lawsuits or proceedings pending or
to the knowledge of the Company threatened, against the Company, nor has the Company received any written or oral notice of any
such action, suit, proceeding or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction
or decree or award has been issued by or, so far as is known by the Company, requested of any court, arbitrator or governmental
agency which would have a Material Adverse Effect.

  

Section 4.10         DILUTION.
The number of shares of Common Stock issuable as Put Shares may increase substantially in certain circumstances, including, but
not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the
Effective Date and the end of the Commitment Period. The Company’s executive officers and directors have studied and fully
understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect.
The board of directors of the Company has concluded in its good faith business judgment that such issuance is in the best interests
of the Company. The Company specifically acknowledges that, subject to Section 2.2(c), its obligation to issue the Put Shares is
binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other
shareholders of the Company.

 

ARTICLE V

 

COVENANTS OF INVESTOR

 

Section 5.1           COMPLIANCE
WITH LAW; TRADING IN SECURITIES. Investor's trading activities with respect to shares of the Common Stock will be in compliance
with all applicable state and federal securities laws, rules and regulations and the rules and regulations of FINRA and the Principal
Market on which the Common Stock is listed or quoted.

 

Section 5.2          SHORT SALES AND CONFIDENTIALITY.
Neither Investor nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it will execute any
Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance
with Regulation SHO, the sale after delivery of a Put Notice of such number of shares of Common Stock reasonably expected to be
purchased under a Put Notice shall not be deemed a Short Sale.

 

    	 	14	 

     

    

 

Other than to other Persons party to this Agreement,
Investor has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence
and terms of this transaction).

 

ARTICLE VI

 

COVENANTS OF THE COMPANY

 

Section 6.1           RESERVATION
OF COMMON STOCK. The Company will, from time to time as needed in advance of a Closing Date, reserve and keep available until the
consummation of such Closing, free of preemptive rights sufficient shares of Common Stock for the purpose of enabling the Company
to satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number of shares so reserved from time
to time, as theretofore increased or reduced as hereinafter provided, may be reduced by the number of shares actually delivered
hereunder.

 

Section 6.2           LISTING
OF COMMON STOCK. If the Company applies to have the Common Stock traded on any other Principal Market, it shall include in such
application the Put Shares, and shall take such other action as is necessary or desirable in the reasonable opinion of Investor
to cause the Common Stock to be listed on such other Principal Market as promptly as possible. 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 the FINRA and the Principal Market.

 

Section 6.3           CERTAIN
AGREEMENTS. So long as this Agreement remains in effect, the Company covenants and agrees that it will not, without the prior written
consent of the Investor, enter into any other equity line of credit agreement with a third party during the Commitment Period having
terms and conditions substantially comparable to this Agreement. For the avoidance of doubt, nothing contained in the Transaction
Documents shall restrict, or require the Investor's consent for, any agreement providing for the issuance or distribution of (or
the issuance or distribution of) any equity securities pursuant to any agreement or arrangement that is not commonly understood
to be an "equity line of credit."

 

    	 	15	 

     

    

  

ARTICLE VII

 

CONDITIONS TO DELIVERY OF

 

PUT NOTICES AND CONDITIONS TO CLOSING

 

Section 7.1           CONDITIONS
PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON STOCK. The obligation hereunder of the Company to issue and
sell the Put Shares to Investor is subject to the satisfaction of each of the conditions set forth below.

 

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

 

(b)          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 Investor at or prior to such Closing.

 

(c)          Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any
Put Shares, if the issuance of such 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”).

 

Section 7.2           CONDITIONS
PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right
of the Company to deliver a Put Notice and the obligation of Investor hereunder to acquire and pay for the Put Shares is subject
to the satisfaction of each of the following conditions:

 

(a)          EFFECTIVE
REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the sale
by Investor of the Registered Securities subject to such Put Notice, and (i) neither the Company nor 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 or withdrawal of the effectiveness of such Registration Statement or
related prospectus shall exist.

  

    	 	16	 

     

    

  

(b)          ACCURACY
OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct in
all material respects (except for representations and warranties specifically made as of a particular date), except for any conditions
which have temporarily caused any representations or warranties herein to be incorrect and which have been corrected with no continuing
impairment to the Company or Investor.

 

(c)          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.

 

(d)          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 this Agreement, and no proceeding shall have been commenced that may have the effect
of prohibiting or materially adversely affecting any of the transactions contemplated by this Agreement.

 

(e)          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.

 

(f)          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 the FINRA and the Common Stock shall have been approved for listing or quotation on and shall not have
been delisted from the Principal Market.

 

(g)          [INTENTIONALLY
OMITTED]

 

(h)          TEN
PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be purchased by Investor shall not exceed the number
of such shares that, when aggregated with all other shares of Common Stock then owned by Investor beneficially or deemed beneficially
owned by Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be outstanding on such
Closing Date, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes
of this Section, in the event that the amount of Common Stock outstanding as determined in accordance with Section 16 of the Exchange
Act and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which the Put Notice associated
with such Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for purposes of determining
whether Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than 9.99% of
the Common Stock following such Closing Date.

 

    	 	17	 

     

    

  

(i)          Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any Put
Shares, if the issuance of such shares would exceed the Exchange Cap.

 

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

 

(k)          NO
VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock with respect to the applicable Closing, if
any, shall not violate the shareholder approval requirements of the Principal Market. 

 

(l)          NO
VALUATION EVENT. No Valuation Event shall have occurred since the Put Date. 

 

(m)          OTHER.
On the date of delivery of each Put Notice, Investor shall have received a certificate in substantially the form and substance
of Exhibit B hereto, executed by an executive officer of the Company and to the effect that all the conditions to such Closing
shall have been satisfied as at the date of each such certificate.

 

ARTICLE VIII

 

LEGENDS

 

Section 8.1          NO STOCK LEGEND OR
STOCK TRANSFER RESTRICTIONS. No legend shall be placed on the share certificates representing the Put Shares.

 

Section 8.2           INVESTOR'S
COMPLIANCE. Nothing in this Article VIII shall affect in any way Investor's obligations under any agreement to comply with all
applicable securities laws upon the sale of the Common Stock.

 

    	 	18	 

     

    

  

ARTICLE IX

 

NOTICES; INDEMNIFICATION

 

Section 9.1          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, facsimile, 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 facsimile, with accurate confirmation generated by the
transmitting facsimile machine, or email as a PDF, at the address or number 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.

 

    	 	19	 

     

    

  

The addresses for such communications shall
be:

  

If to the Company: 

 

VNUE, INC.

 

104 W. 29th
Street, 11th FloorNew York, NY 10001

 

Attn: Matthew Carona

 

Chief Executive Officer

 

Copy to (which shall not constitute
notice):

 

Matheau J. W. Stout, Esq.

 

400 E. Pratt Street, 8th
FloorBaltimore, MD 21202

 

Tel: (410) 429-7076

 

Fax: (888) 907-1740

 

If to Investor:

  

Tarpon Bay Partners
LLC

 

17210 Germano Court

 

Naples, FL 34110

 

Tel:

 

Fax:

 

    	 	20	 

     

    

  

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

 

Section 9.2           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 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 Indemnified Party's failure to perform any covenant or agreement contained in this Agreement or 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).

 

Section 9.3           METHOD
OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party (as defined below) under Section 9.2
shall be asserted and resolved as follows:

 

(a)          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.

 

    	 	21	 

     

    

  

(i)          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 takeover 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.

 

(ii)         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.

 

    	 	22	 

     

    

  

(iii)        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.

 

(b)          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.

 

    	 	23	 

     

    

  

(c)          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.

 

(d)          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.

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.1         GOVERNING
LAW; JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without
regard to the principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the
United States Federal and state courts located in New York County, State of New York with respect to any dispute arising under
this Agreement, the agreements entered into in connection herewith or the transactions contemplated hereby or thereby.

 

Section 10.2         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.

 

Section 10.3         ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the Company and Investor and their respective successors. Neither
this Agreement nor any rights of Investor or the Company hereunder may be assigned by either party to any other person.

 

 Section 10.4         THIRD
PARTY BENEFICIARIES. This Agreement is intended for the benefit of the Company and Investor and their respective successors, and
is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section 10.5         TERMINATION.
The Company may terminate this Agreement at any time by written notice to the Investor. Additionally, this Agreement shall terminate
at the end of Commitment Period or as otherwise provided herein; provided, however, that the provisions of Articles IX, and Sections
10.1 and 10.2 shall survive the termination of this Agreement for a period of twenty four (24) months.

 

    	 	24	 

     

    

  

Section 10.6         ENTIRE
AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments referenced herein contain the entire understanding of the Company
and Investor with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. This Agreement
may not be amended.

 

Section 10.7         FEES
AND EXPENSES. The Company agrees to pay its own expenses in connection with the preparation of this Agreement and performance of
its obligations hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection with issuance
of the Put Shares pursuant hereto.

 

Section 10.8         COUNTERPARTS.
This Agreement 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. This Agreement may be delivered to the other parties hereto
by facsimile transmission or email of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

 

Section 10.9         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.

 

Section 10.10         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.

 

Section 10.11         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.

 

    	 	25	 

     

    

  

Section 10.12         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 Investor. The Company therefore agrees that Investor
shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

 

Section 10.13         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.

 

Section 10.14         REPORTING
ENTITY FOR THE COMMON STOCK. The reporting entity relied upon for the determination of the Closing Price for the Common Stock on
any given Trading Day for the purposes of this Agreement shall be Bloomberg Finance L.P. or any successor thereto. The written
mutual consent of Investor and the Company shall be required to employ any other reporting entity.

  

Section 10.15         PUBLICITY.
The Company and 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 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 parties with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of Investor without the prior written consent of such Investor, except to the extent required by law. Investor
acknowledges that this Agreement and all or part of 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. 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.

 

    	 	26	 

     

    

  

[SIGNATURE PAGE]

 

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

 

	 	TARPON BAY PARTNERS LLC
	 	 	 
	 	By:	/s/
	 	 	 
	 	 	Name:  Stephen Hicks
	 	 	 
	 	 	Title: Manager
	 	 	 
	 	VNUE, INC.
	 	 	 
	 	By:	/s/
	 	 	 
	 	 	Name: Matthew Carona
	 	 	 
	 	 	Title: Chief Executive Officer

 

     

     

    

 

Schedule 4.3 – Outstanding Securities

 

640,913,164 Common Shares

 

0 Preferred Shares

 

     

     

    

  

EXHIBITS

 

EXHIBIT A        Put Notice

 

EXHIBIT B        Closing Certificate

 

     

     

    

  

EXHIBIT A

 

FORM OF PUT NOTICE

 

TO: TARPON BAY PARTNERS LLC

 

We refer to the Equity Purchase Agreement dated February18,
2016 (the “Agreement”) entered into by VNUE, INC. (the “Company”) and you. Capitalized terms defined in
the Agreement shall, unless otherwise defined, have the same meaning when used herein.

 

We hereby:

 

1.          Give
you notice that we require you to purchase $_________ (the “Investment Amount”) in Put Shares;

 

2.          Determine
the Floor Price for this Put, as defined in Section 2.2(c) of the Agreement, to be $___________; and

 

3.          
Certify that, as of the date hereof, to the best of our knowledge, the conditions set forth in Section 7.2 of the Agreement are
satisfied.

 

Date: _____________, 2016

 

	 	VNUE, INC.
	 	 	 
	 	By:	/s/
	 	 	 
	 	Name: Matthew Carona
	 	 	 
	 	Title: Chief Executive Officer

 

     

     

    

  

EXHIBIT B

 

FORM OF

 

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER

 

OF

 

VNUE, INC.

 

Pursuant to Section 7.2(m) of that certain
Equity Purchase Agreement dated February 18, 2016 (the “Agreement”) by and between the Company and Tarpon Bay Partners
LLC (the “Investor”), the undersigned, in his capacity as the Chief Executive Officer of VNUE, INC. (the “Company”),
and not in his individual capacity, hereby certifies, as of the date hereof (such date, the “Condition Satisfaction Date”),
the

 

following:

 

1.          The
representations and warranties of the Company are true and correct in all material respects as of the Condition Satisfaction Date
as though made on the Condition Satisfaction Date (except for representations and warranties specifically made as of a particular
date) with respect to all periods, and as to all events and circumstances occurring or existing to and including the Condition
Satisfaction Date, except for any conditions which have temporarily caused any representations or warranties of the Company set
forth in the Agreement to be incorrect and which have been corrected with no continuing impairment to the Company or Investor;
and

 

2.          All
of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have been satisfied as of the Condition
Satisfaction Date.

 

Capitalized terms used
herein shall have the meanings set forth in the Agreement unless otherwise defined herein.

 

IN WITNESS WHEREOF,
the undersigned has hereunto affixed his hand as of the 18th day of February, 2016.

 

	 	By: 	/s/
	 	 	 
	 	 	Matthew Carona, Chief Executive Officer

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