Document:

Exhibit

Exhibit 10.37

INITIALS MES
LOAN PURPOSE Commercial
NOTE DATE 12/19/18 
MATURITY DATE 12/19/19
RATE 6.000%

ACCT. NUMBER
LOAN NAME HVE INC.
INDEX (w/Margin)
Not Applicable
LOAN NUMBER 120011219 
NOTE AMOUNT $400,000.00
Creditor Use Only

PROMISSORY NOTE
(Commercial  - Revolving Draw)

DATE AND PARTIES. The date of this Promissory Note (Note) is December 19, 2018. The parties and their addresses are:

LENDER:
CITIZENS NATIONAL BANK OF TEXAS
200 North Elm, PO Box 717
Waxahachie, TX 75168
Telephone:  (972) 938-4300

BORROWER:
HVE INC.
a Delaware Corporation 100 EXECUTIVE CT STE 2
WAXAHACHIE, TX 75165
		
	1.
	DEFINITIONS. As used in this Note, the terms have the following meanings:

A.    Pronouns. The pronouns "I," "me," and "my" refer to each Borrower signing this Note, individually and together with their heirs, successors and assigns, and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this Note. "You" and "Your" refer to the Lender, any participants or syndicators, successors and assigns, or any person or company that acquires an interest in the Loan.
		
	B.
	Note. Note refers to this document, and any extensions, renewals, modifications and substitutions of this Note.

C.    Loan. Loan refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction such as applications, security agreements, disclosures or notes, and this Note.
		
	D.
	Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan.

E.    Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan.

		
	F.
	Percent. Rates and rate change limitations are expressed as annualized percentages.

		
	G.
	Dollar Amounts. All dollar amounts will be payable in lawful money of the United States of America.

2.PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, amounts advanced from time to time under the terms of this Note up to the maximum outstanding principal balance of $400,000.00 (Principal), plus interest from the date of disbursement, on the unpaid outstanding Principal balance until this Note is paid in full and you have no further obligations to make advances to me under the Loan.
I may borrow up to the Principal amount more than one time.
		
	3.
	ADVANCES. Advances under this Note are made according to the following terms and conditions.

A.    Requests for Advances. My requests are a warranty that  I  am  in  compliance  with  all  the  Loan  Documents.  When required by you for a particular method of advance, my requests for an advance must  specify  the requested  amount  and the date and be accompanied with  any  agreements,  documents,  and  instruments  that  you  require  for  the Loan.  Any  payment by you of any check, share draft or other charge may, at  your  option,  constitute  an  advance  on  the  Loan  to  me.  All advances will be made in United States dollars.  I will indemnify you and hold you harmless for your reliance on any request for advances that you reasonably believe to be genuine. To the extent permitted by law, I will indemnify you and hold you  harmless when the person making any  request  represents  that  I authorized  this person  to  request  an advance even  when this person is unauthorized or this person's signature is not genuine.
I or anyone I authorize to act on my behalf may request advances by the following methods.
		
	(1)
	I make a request in person.

		
	(2)
	I make a request by phone.

B.    Advance Limitations. In addition to any other Loan conditions, requests for, and access to, advances are subject to the following limitations.
		
	(1)
	Obligatory Advances. You will make all Loan advances subject to this Agreement's terms and conditions.

(2)    Advance Amount. Subject to the terms and conditions contained in this Note, advances will be made in exactly the amount I request.
		
	(3)
	Maximum Frequency. Advances will be made no more frequently than Daily.

(4)    Cut-Off Time. Requests for an advance received before 4:00:00 PM will be made on any day that you are open for business, on the day for which the advance is requested.
(5)    Disbursement of Advances. On  my  fulfillment  of  this Note's terms and conditions,  you will disburse  the advance  in  any manner as you and I agree.
(6)    Credit Limit. I understand that you will not ordinarily grant a request for an advance that would cause the unpaid principal of my Loan to be greater than the Principal limit. You may, at your option, grant such a request without obligating yourselves to do so in the future.  I  will  pay  any  overadvances  in  addition  to  my  regularly  scheduled payments. I will repay any overadvance by repaying you in full within 10 days after the overadvance occurs.
(7)    Records. Your records will be conclusive evidence as to the amount of advances, the Loan’s unpaid principal balances and the accrued interest.
		
	C.
	Additional Conditions. Upon borrower request and loan officer approval

		
	4.
	INTEREST. Interest will accrue on the unpaid Principal balance of this Note at the rate of 6.000 percent {Interest Rate).

		
	A.
	Post-Maturity Interest. After maturity or acceleration, interest will accrue at the highest rate allowed by law per annum.

B.    Maximum Interest Amount. Any amount assessed or collected as interest under the terms of this Note will be limited to the maximum lawful amount of interest allowed by applicable law. Amounts collected in excess of the maximum lawful amount will be applied first to the unpaid Principal balance. Any remainder will be refunded to me.
C.    Statutory Authority. The amount assessed or collected on this Note is authorized by the Texas usury laws under Tex. Fin. Code, Ch. 303. The provisions of Tex. Fin. Code, Ch. 346 do not apply to this Note.
		
	D.
	Accrual. Interest accrues using an Actual/360 days counting method.

		
	5.
	ADDITIONAL CHARGES. As additional consideration, I agree to pay, or have paid, these additional fees and charges.

A. Nonrefundable Fees and Charges. The following fees are earned when collected and  will not  be refunded  if  I prepay  this Note before the scheduled maturity date.
UCC Search/Filing. A(n) UCC Search/Filing fee of $186 .00 payable from separate funds on or before today's date.
Certificate of Status. A(n) Certificate of Status fee of $10.00 payable from separate funds on or before today's date.

6.REMEDIAL CHARGES. In addition to interest or other finance charges, I agree that I will pay these additional fees based on my method and pattern of payment. Additional remedial charges may be described elsewhere in this Note.
A.    Late Charge. If a payment is more than 10 days late, I will be charged 5.000 percent of the Amount of Payment. However, this charge will not be greater than $1,500.00. I will pay this late charge promptly but only once for each late payment.
7.PAYMENT. I agree to pay all accrued interest on the balance outstanding from time to time in regular payments beginning January 19, 2019, then on the same day of each month thereafter.  A final payment of the entire unpaid outstanding balance of Principal and interest will be due December 19, 2019.
Payments will be rounded to the nearest $.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will, instead, be made on the last day of such month.
Interest payments will be applied first to any charges I owe other than late charges, then to accrued, but unpaid interest, then to late charges. Principal payments will be applied first to the outstanding Principal balance, then to any late charges.  If you and I agree to a different application of payments, we will describe our agreement on this Note. The actual amount of my final payment will depend on my payment record.
8.PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full.
		
	9.
	LOAN PURPOSE. The purpose of this Loan is for working capital.

10.ADDITIONAL TERMS. The interest rate on this loan may be increased by 2% for any violation or violations of the stated terms and conditions of this loan. The increased rate will stay in effect until the violation or violations are corrected to the satisfaction of the Bank.

		
	11.
	SECURITY. The Loan is secured by separate security instruments prepared together with this Note as follows:

Document Name
Security Agreement - HVE INC.
 Parties to Document
HVE INC.
 Date of Security Document
December 19, 2018
12.LIMITATIONS ON CROSS-COLLATERAUZATION. The Line of Credit is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with  a "consumer loan,"  as those terms  are defined  by federal  law  governing  unfair  and deceptive  credit  practices.  The Line of  Credit is not secured by a previously executed security instrument  if  you fail to  fulfill any  necessary  requirements  or fail to  conform  to any limitations of the Real Estate Settlement Procedures  Act,  (Regulation  X),  that  are  required  for  loans  secured  by  the Property or if, as a result, the other debt would become subject to  Section  670  of  the  John  Warner  National  Defense Authorization Act for Fiscal Year 2007.
The Line of Credit is not secured  by  a previously  executed  security  instrument  if  you  fail  to  fulfill  any  necessary  requirements or fail to conform to any limitations of the Truth in Lending Act, (Regulation Z),  that  are  required  for  loans  secured  by  the Property.
13.DEFAULT. I will be in default if any of the following events (known separately and collectively as an Event of Default) occur:
		
	A.
	Payments. I fail to make a payment in full when due.

B.    Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the  voluntary  or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or  state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me or any co-signer, endorser, surety or guarantor of this Note or any other obligations I have with you.
C.    Business Termination. I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared legally incompetent.
D.    New Organizations. Without your written consent, I organize, merge into, or consolidate with an entity; acquire all or substantially all of the assets of another; materially change the legal structure, management, ownership or financial condition; or effect or enter into a domestication, conversion or interest exchange.
		
	E.
	Failure to Perform. I fail to perform any condition or to keep any promise or covenant of this Note.

		
	F.
	Other Documents. A default occurs under the terms of any other Loan Document.

		
	G.
	Other Agreements. I am in default on any other debt or agreement I have with you.

H.    Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided.
		
	I.
	Judgment. I fail to satisfy or appeal any judgment against me.

		
	J.
	Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority.

		
	K.
	Name Change. I change my name or assume an additional name without notifying you before making such a change.

L Property Transfer. I transfer all or a substantial part of my money or property.
		
	M.
	Property Value. You determine in good faith that the value of the Property has declined or is impaired.

N.Material Change. Without first notifying you, there is a material change in my business, including ownership, management, and financial conditions.
O.Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from the conditions set forth in my most recent financial statement before the date of this Note or that the prospect for payment or performance of the Loan is impaired for any reason.
14.DUE ON SALE OR ENCUMBRANCE. You may, at your option, declare the entire balance of this Note to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law, as applicable.  However, if I am in default under this Agreement, I may not sell the inventory portion of the Property even in the ordinary course of business.
15.WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor.
A.    Additional Waivers By Borrower. In addition, I, and any party to this Note and Loan, to  the  extent  permitted  by  law, consent to certain actions you may take, and generally waive defenses that may  be  available  based  on these  actions  or based on the status of a party to this Note.
		
	(1)
	You may renew or extend payments on this Note, regardless of the number of such renewals or extensions.

		
	(2)
	You may release any Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer.

		
	(3)
	You may release, substitute or impair any Property securing this Note.

		
	(4)
	You, or any institution participating in this Note, may invoke your right of set-off.

(5)    You may enter into any sales, repurchases or participations of this Note to any person in any amounts and I waive notice of such sales, repurchases or participations.
(6)    I agree that any of us signing this Note as a Borrower is authorized to modify the terms of this Note or any instrument securing, guarantying or relating to this Note.
B.    No Waiver By Lender. Your course of dealing, or your forbearance from, or delay in, the exercise of any of your rights, remedies, privileges or right to insist upon my strict performance of any provisions contained in this Note, or any other Loan Document, shall not be construed as a waiver by you, unless any such waiver is in writing and is signed by you.
		
	16.
	REMEDIES. After I default, you may at your option do any one or more of the following.

		
	A.
	Acceleration. You may make all or any part of the amount owing by the terms of this Note immediately due.

		
	B.
	Sources. You may use any and all remedies you have under state or federal law or in any Loan Document.

C.    Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default.
D.    Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the balance owing under the terms of this Note, and accrue interest at the highest post-maturity interest rate.
E.    Termination. You may terminate my rights to obtain advances or other extensions of credit by any of the methods provided in this Note.

F.    Set-Off. You may use the right of set-off. This means you may set-off any amount due and payable under the terms of this Note against any right I have to receive money from you.
My right to receive money from you includes  any  deposit  or share account  balance I have with you;  any  money  owed to  me on an item presented to you or in your possession for collection or exchange; and any repurchase agreement  or  other non-deposit obligation. "Any amount  due and  payable  under  the terms  of  this Note"  means  the total  amount  to  which  you are entitled to demand payment under the terms of this Note at the time you set-off.
Subject to any  other  written contract,  if  my  right  to  receive money  from  you is also owned by someone who has not  agreed to pay this Note, your right  of  set-off  will apply  to  my  interest  in the obligation  and  to  any  other  amounts  I could withdraw on my sole request or endorsement.
Your right of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to any Individual Retirement Account or other tax-deferred retirement account.
You will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless from any such claims arising as a result of your exercise of your right of set-off.
G.    Waiver. Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a default and to use any remedies if the default continues or occurs again.
17.COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Note or any other Loan Document. Expenses include, but are not limited to, reasonable attorneys' fees, court costs, and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Note.  All fees and expenses will be secured by the Property I have granted to you, if any. In addition , to the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees incurred by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by or against me.
18.COMMISSIONS. I understand and agree that you (or your affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services that I buy through you or your affiliate.
19.WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Note is in effect:
A.    Power. I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power and authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so in each jurisdiction in which I operate.
B.    Authority. The execution, delivery and performance of this Note and the obligation evidenced by this Note are within my powers, have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my Property is subject.
C.    Name and Place of Business. Other than previously disclosed in writing to you I have not changed my name or principal place of business within the last 10 years and have not used any other trade or fictitious name. Without your prior written consent, I do not and will not use any other name and will preserve my existing name, trade names and franchises.

		
	20.
	INSURANCE. I agree to obtain the insurance described in this Loan Agreement.

A.    Property Insurance. I will insure or retain insurance coverage on the Property and abide by the insurance requirements of any security instrument securing the Loan.
B.    Insurance Warranties. I agree to purchase any insurance coverages that are required, in the amounts you require, as described in this or any other documents I sign for the Loan.  I will provide you with continuing proof of coverage.  I will buy or provide insurance from a firm licensed to do business in the State where the Property is located. I will have the insurance company name you as loss payee on any insurance policy. You will apply the insurance proceeds toward what I owe you on the outstanding balance. I agree that if the insurance proceeds do not cover the amounts I still owe you, I will pay the difference. I will keep the insurance until all debts secured by this agreement are paid. If I want to buy the insurance from you, I have signed a separate statement agreeing to this purchase.
21.APPLICABLE LAW. This Note is governed by the laws of Texas, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in Texas, unless otherwise required by law.
22.JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still be obligated to pay the Loan. This Note shall inure to the benefit of and be enforceable by you and your successors and assigns and shall be binding upon and enforceable against me and my personal representatives, successors, heirs and assigns.
23.AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral agreement. No amendment or modification of this Note is effective unless made in writing. This Note and the other Loan Documents are the complete and final expression of the agreement. If any provision of this Note is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. No present or future agreement securing any other debt I owe you will secure the payment of this Loan if, with respect to this loan, you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property or if, as a result, this Loan would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
24.INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Note.
25.NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers.  I will inform you in writing of any change in my name, address or other application information.  I will provide you any correct and complete financial statements or other information you request. I agree to  sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence.
26.CREDIT INFORMATION. I agree to supply you with whatever information you reasonably feel you need to decide whether to continue this Loan. You will make requests for this information without undue frequency, and will give me reasonable time in which to supply the information.

27.ERRORS AND OMISSIONS. I agree, if requested by you, to fully cooperate in the correction, if necessary, in the reasonable discretion of you of any and all loan closing documents so that all documents accurately describe the loan between you and me. I agree to assume all costs including by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to reasonably comply with your requests within thirty (30) days.
28.WAIVER OF JURY TRIAL All of the parties to this Note  knowingly  and intentionally,  irrevocably  and unconditionally, waive any and all right to a trial by jury in any litigation arising out of or concerning this Note or any other Loan Document or related obligation. All of these parties acknowledge that this section has either been brought to the attention of each party's legal counsel or that each party had the opportunity to do so.

THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND, TO THE EXTENT PERMITTED BY LAW, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

		
	29.
	SIGNATURES. By signing, I agree to the terms contained in this Note. I also acknowledge receipt of a copy of this Note.

BORROWER:
HVE INC.

By   /s/ Joseph O’Daniel                         Date 12/20/18        
JOSEPH O’DANIEL, President

By /s/ Christopher Cunningham                          Date 12/20/18        
CHRISTOPHER CUNNINGHAM, Senior Vice President

SECURITY AGREEMENT

DATE AND PARTIES. The date of this Security Agreement (Agreement) is December 19, 2018.  The parties and their addresses are:

SECURED PARTY:
CITIZENS NATIONAL BANK OF TEXAS
200 North Elm, PO Box 717
Waxahachie, TX 75168

DEBTOR:
HVE INC.
a Delaware Corporation
100 EXECUTIVE CT STE 2 WAXAHACHIE, TX 75165

Definitions. For the purposes of this document, the following terms have the following meanings.
"Line of Credit" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction.
The pronouns "you" and "your" refer to the Secured Party. The pronouns  "I,"  "me"  and  "my"  refer  to  each  person  or  entity signing this Agreement as Debtor and agreeing to give the Property described in  this  Agreement  as  security  for  the Secured Debts.
		
	1.
	SECURED DEBTS. The term "Secured Debts" includes and this Agreement will secure each of the following:

A.    Specific Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement, No. 120011219, dated December 19, 2018, from me to you, in the amount of
$400,000.00.
B.    All Debts. All present and future debts from me to you, even if this Agreement is not specifically referenced, the future debts are also secured by other collateral, or if the future debt is unrelated to or of a different type than this debt.  If more than one person signs this Agreement, each agrees that it will secure debts incurred either individually or with others who may not sign this Agreement. Nothing in this Agreement constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing.
This Agreement will not secure any debt which is also secured by real property or for which a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan,” as those terms are defined by federal law governing unfair and deceptive credit practices. In addition, this Agreement will not secure any other debt if, with respect to such other debt, you fail to fulfill any necessary requirements or fail to conform to any limitations of the Truth in Lending Act (Regulation Z) or the Real Estate Settlement Procedures Act (Regulation X) that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
C.Sums Advanced. All sums advanced and expenses incurred by you under the terms of this Agreement. Loan Documents refer to all the documents executed in connection with the Secured Debts.

2.LIMITATIONS ON CROSS-COLLATERAUZATION. The Line of Credit is not secured by a previously executed security instrument if a non-possessory, non-purchase money security interest is created in "household goods" in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. The Line of Credit is not secured by a previously executed security instrument if you fail to fulfill any necessary requirements or fail to conform to any limitations of the Real Estate Settlement Procedures Act, (Regulation X), that are required for loans secured by the Property or if, as a result, the other debt would become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.
The Line of Credit is not  secured  by  a previously  executed  security  instrument  if  you  fail to  fulfill  any  necessary  requirements or fail to conform to any limitations of the Truth in Lending Act, (Regulation  Z),  that  are  required  for  loans  secured  by  the Property.
3.SECURITY INTEREST. To secure the payment and performance of the Secured Debts, I grant you a security interest in all of the Property described in this Agreement that I own or have sufficient rights in which to transfer an interest, now or in the future, wherever the Property is or will be located, and all proceeds and products from the Property (including, but not limited to, all parts, accessories, repairs, replacements, improvements, and accessions to the Property).  Property is all the collateral given as security for the Secured Debts and described in this Agreement, and includes all obligations that support the payment or performance of the Property. "Proceeds" includes cash proceeds, non-cash proceeds and anything acquired upon the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on account of the Property.
This Agreement remains in effect until terminated in writing, even if the Secured Debts are paid and you are no longer obligated to advance funds to me under any loan or credit agreement.
		
	4.
	PROPERTY DESCRIPTION. The Property is described as follows:

A. Inventory. All inventory which I hold for ultimate sale or lease, or which has been or will be supplied under contracts of service, or which are raw materials, work in process, or materials used or consumed in my business. "Inventory" means goods, other than farm products, which: (A) are leased by a person as lessor; (B) are held by a person for sale or lease or to be furnished under a contract of service; (C) are furnished by a person under a contract of service; or (D) consist of raw materials, work in process, or materials used or consumed in a business. The term "Inventory" is as defined by the Uniform Commercial Code and further as modified or amended by the laws of the jurisdiction which governs this transaction.
B. Accounts and Other Rights to Payment. All rights I have now or in the future to payments including, but not limited to, payment for property or services sold, leased, rented, licensed, or assigned, whether or not I have earned such payment by performance. This includes any rights and interests (including all liens and security interests) which I may have by law or agreement against any Account Debtor or obligor of mine. "Account" means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned,  or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to  be issued,  (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State. The term includes health-care-insurance receivables. The term "Accounts" does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of 

the use of a credit or charge card or information contained on or for use with the card.  The term "Accounts" is as defined by the Uniform Commercial Code and further as modified or amended by the laws of the jurisdiction which governs this transaction.
5.WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Agreement is in effect:
A. Power. I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power and authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so in each jurisdiction in which I operate.
B. Authority. The execution, delivery and performance of this Agreement and the obligation evidenced by this Agreement are within my powers, have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my property is subject.
C.Name and Location. My name indicated in the DATE AND PARTIES section is my exact legal name. I am an entity organized and registered under the laws of Texas. I will provide verification of registration and location upon your request. I will provide you with at least 30 days notice prior to any change in my name, address, or state of organization or registration.
D.Business Name. Other than previously disclosed in writing to you I have not changed my name or principal place of business within the last 10 years and have not used any other trade or fictitious name.  Without your prior written consent, I do not and will not use any other name and will preserve my existing name, trade names and franchises.
E.Ownership of Property.  I represent that I own all of the Property.  Your  claim  to  the Property  is ahead of  the claims of  any other creditor, except  as disclosed  in writing  to  you prior  to  any  advance on the Secured  Debts.  I represent that I am the original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property.
		
	6.
	DUTIES TOWARD PROPERTY.

A. Protection of Secured Party's Interest. I will defend the Property against any other claim. I agree to do whatever you require to protect your security interest and to keep your claim in the Property ahead of the claims of other creditors.  I will not do anything to harm your position.
I will keep books, records and accounts about the Property and my business in general. I will let you examine these and make copies at any reasonable time. I will prepare any report or accounting you request which deals with the Property.
B. Use, Location, and Protection of the Property. I will keep the Property in my possession and in good repair. I will use it only for commercial purposes. I will not change this specified use without your prior written consent. You have the right of reasonable access to inspect  the Property  and I will immediately  inform  you of  any  loss or damage to the Property.  I will not cause or permit waste to the Property.
I will keep the Property at my address listed in the DATE AND PARTIES section unless we agree I may keep it at another location. If the Property is to be used in other states, I will give you a list of those states. The location of the Property is given to aid in the identification of the Property. It does not in any way limit the scope of the security interest granted to you. I will notify you in writing and obtain your prior written consent to any change in location of any of the Property. I will not use the Property in violation of any law. I will notify you in writing prior to any change in my address, name or, if an organization, any change in my identity or structure.
Until the Secured Debts are fully paid and this Agreement is terminated, I will not grant a security interest in any of the Property without your prior written consent. I will pay all taxes and assessments levied or assessed against me or the Property and provide timely proof of payment of these taxes and assessments upon request.

C.Selling, Leasing or Encumbering the Property. I will not sell, offer to sell, lease, or otherwise transfer or encumber the Property without your prior written permission, except for Inventory sold in the ordinary course of business at fair market value, or at a minimum price established between you and me. If I am in default under this Agreement, I may not sell the Inventory portion of the Property even in the ordinary course of business. Any disposition of the Property contrary to this Agreement will violate your rights. Your permission to sell the Property may be reasonably withheld without regard to the creditworthiness of any buyer or transferee. I will not permit the Property to be the subject of any court order affecting my rights to the Property in any action by anyone other than you. If the Property includes chattel paper or instruments, either as original collateral or as proceeds of the Property, I will note your security interest on the face of the chattel paper or instruments.
D.Additional Duties Specific to Accounts. I will not settle any Account for less than its full value without your written permission. Until you tell me otherwise, I will collect all Accounts in the ordinary course of business.  I will not dispose of the Accounts by assignment without your prior written consent. I will keep the proceeds from all the Accounts and any goods which are returned to me or which I take back. I will not commingle them with any of my other property.  I will deliver the Accounts to you at your request. If you ask me to pay you the full price on any returned items or items retaken by me, I will do so. I will make no material change in the terms of any  Account,  and I  will give you any  statements,  reports, certificates, lists of Account Debtors (showing names, addresses and amounts owing), invoices applicable to each Account, and other data in any way pertaining to the Accounts as you may request.
7.INSURANCE. I agree to keep the Property insured against the risks reasonably associated with the Property.  I will maintain this insurance in the amounts you require. This insurance will last until the Property is released from this Agreement.  I may choose the insurance company, subject to your approval, which will not be unreasonably withheld.
I will have the insurance company name you as loss payee on any insurance policy. I will give you and the insurance company immediate notice of any loss. You may apply the insurance proceeds toward what is owed on the Secured Debts. You may require added security as a condition of permitting any insurance proceeds to be used to repair or replace the Property.
If you acquire the Property in damaged condition, my right to any insurance policies and proceeds will pass to you to the extent of the Secured Debts.
I will immediately notify you of cancellation or termination of insurance. If I fail to keep the Property insured, you may obtain insurance to protect your interest in the Property and I will pay for the insurance on your demand. You may demand that I pay for the insurance all at once, or you may add the insurance premiums to the balance of the Secured Debts and charge interest on it at the rate that applies to the Secured Debts. This insurance may include lesser or greater coverages than originally required of me, may be written by a company other than one I would choose, and may be written at a higher rate than I could obtain if I purchased the insurance. I acknowledge and agree that you or one of your affiliates may receive commissions on the purchase of this insurance.
8.COLLATERAL PROTECTION INSURANCE. Property Insurance is required. I agree to buy insurance on the Property in the amount you specify, subject to applicable law. I shall have the option  of  furnishing  any  required  insurance  either  through existing policies of insurance owned or controlled by me or procuring and furnishing the equivalent coverage through any insurance company authorized to do business in Texas or an eligible surplus line insurer to the extent  permitted by law.  I will name you as loss payee under the policy.  I  may  be required  to  deliver  to  you  a copy  of  the collateral  protection  insurance  policy and proof of payment of premiums. If I fail to meet any of these requirements, you may obtain collateral protection insurance on my behalf.  You are not required to purchase any type or amount of insurance. To the extent permitted by law, you may obtain insurance that will cover either the actual amount of unpaid indebtedness or the replacement cost of improvements, subject to policy limits. If you purchase insurance for the Property, I will be responsible for the cost of that insurance, including interest and any other 

charges incurred by you in connection with the placement of collateral protection insurance to the extent permitted by law. I understand that insurance you obtain may cost significantly greater than the cost of insurance I could have obtained. Amounts that I owe are due and payable upon demand or on such other terms as you require to the extent permitted by law.
9.COLLECTION RIGHTS OF THE SECURED PARTY. Account Debtor means the person who is obligated on an account, chattel paper, or general intangible. I authorize you to notify my Account Debtors of your security interest and to deal with the Account Debtors' obligations at your discretion. You may enforce the obligations of an Account Debtor, exercising any of my rights with respect to the Account Debtors' obligations to make payment or otherwise render performance to me, including the enforcement of any security interest that secures such obligations. You may apply proceeds received from the Account Debtors to the Secured Debts or you may release such proceeds to me.
I specifically and irrevocably authorize you to exercise any of the following powers at my expense, without limitation, until the Secured Debts are paid in full:
		
	A.
	demand payment and enforce collection from any Account Debtor or Obligor by suit or otherwise.

B.enforce any security interest, lien or encumbrance given to secure the payment or performance of any Account Debtor or any obligation constituting Property.
C.file proofs of claim or similar documents in the event of bankruptcy, insolvency or death of any person obligated as an Account Debtor.
		
	D.
	compromise, release, extend, or exchange any indebtedness of an Account Debtor.

		
	E.
	take control of any proceeds of the Account Debtors' obligations and any returned or repossessed goods.

		
	F.
	endorse all payments by any Account Debtor which may come into your possession as payable to me.

		
	G.
	deal in all respects as the holder and owner of the Account Debtors' obligations.

10.AUTHORITY TO PERFORM. I authorize you to do anything you deem reasonably necessary to protect the Property, and perfect and continue your security interest in the Property. If I fail to perform any of my duties under this Agreement or any other Loan Document, you are authorized, without notice to me, to perform the duties or cause them to be performed.
These authorizations include, but are not limited to, permission to:
		
	A.
	pay and discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Property.

		
	B.
	pay any rents or other charges under any lease affecting the Property.

		
	C.
	order and pay for the repair, maintenance and preservation of the Property.

		
	D.
	file any financing statements on my behalf and pay for filing and recording fees pertaining to the Property.

		
	E.
	place a note on any chattel paper indicating your interest in the Property.

F.    take any action you feel necessary to realize on the Property, including performing any part of a contract or endorsing it in my name.
		
	G.
	handle any suits or other proceedings involving the Property in my name.

		
	H.
	prepare, file, and sign my name to any necessary reports or accountings.

		
	I.
	make an entry on my books and records showing the existence of this Agreement.

J.    notify any Account Debtor or Obligor of your interest in the Property and tell the Account Debtor or Obligor to make payments to you or someone else you name.
If you perform for me, you will use reasonable care. If you exercise the care and follow the procedures that you generally apply to the collection of obligations owed to you, you will be deemed to be using reasonable care. Reasonable care will not include: any steps necessary to preserve rights against prior parties; the duty to send notices, perform services or take any other action in connection with the management of the Property; 

or the duty to protect, preserve or maintain any security interest given to others by me or other parties. Your authorization to perform for me will not create an obligation to perform and your failure to perform will not preclude you from exercising any other rights under the law or this Loan Agreement.  All cash and non-cash proceeds of the Property may be applied by you only upon your actual receipt of cash proceeds against such of the Secured Debts, matured or unmatured, as you determine in your sole discretion.
If you come into actual or constructive possession of the Property, you will preserve and protect the Property. For purposes of this paragraph, you will be in actual possession of the Property only when you have physical, immediate and exclusive control over the Property and you have affirmatively accepted that control. You will be in constructive possession of the Property only when you have both the power and the intent to exercise control over the Property.
11.DEFAULT. I will be in default if any of the following events (known separately and collectively as an Event of Default} occur:
		
	A.
	Payments. I fail to make a payment in full when due.

B.    Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the  voluntary  or involuntary termination of existence by, or the commencement of any proceeding under any present  or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me, Obligor, or any co-signer, endorser, surety or guarantor of this Agreement or any other obligations Obligor has with you.
C.    Business Termination. I merge,  dissolve,  reorganize, end my  business  or existence,  or a partner  or majority  owner  dies  or is declared legally incompetent.
		
	D.
	Failure to Perform. I fail to perform any condition or to keep any promise or covenant of this Agreement.

		
	E.
	Other Documents. A default occurs under the terms of any other Loan Document.

		
	F.
	Other Agreements. I am in default on any other debt or agreement I have with you.

G.    Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided.
		
	H.
	Judgment. I fail to satisfy or appeal any judgment against me.

		
	I.
	Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority.

		
	J.
	Name Change. I change my name or assume an additional name without notifying you before making such a change.

		
	K.
	Property Transfer. I transfer all or a substantial part of my money or property.

 L. Property Value. You determine in good faith that the value of the Property has declined or is impaired.
M.Material Change. Without first notifying you, there is a material change in my business, including ownership, management, and financial conditions.
N.Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from the conditions set forth in my most recent financial statement before the date of this Agreement or that the prospect for payment or performance of the Secured Debts is impaired for any reason.
12.DUE ON SALE OR ENCUMBRANCE. You may, at your option, declare  the  entire  balance  of  this  Agreement  to  be immediately due and payable upon the creation of, or contract  for  the creation  of,  any  lien,  encumbrance,  transfer  or  sale of  all or any part of the Property. This right is subject to the restrictions imposed by federal law, as applicable.  However, if I am in default under this Agreement, I may not sell the inventory portion of the Property even in the ordinary course of business.
		
	13.
	REMEDIES. After I default, you may at your option do any one or more of the following.

		
	A.
	Acceleration. You may make all or any part of the amount owing by the terms of the Secured Debts immediately due.

		
	B.
	Sources. You may use any and all remedies you have under state or federal law or in any Loan Document.

C.    Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default.
D.    Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the Secured Debts.
		
	E.
	Assembly of Property. You may require me to gather the Property and make it available to you in a reasonable fashion.

F.    Repossession. You may repossess the Property so long as the repossession does not involve a breach of the peace. You may sell, lease or otherwise dispose of the Property as provided by law. You may apply what you receive from the disposition of the Property to your expenses, your attorneys' fees and legal expenses (where not prohibited by law), and any debt I owe you. If what you receive from the disposition of the Property does not satisfy the debt, I will be liable for the deficiency (where permitted by law). In some cases, you may keep the Property to satisfy the debt.
Where a notice is required, I agree that ten days prior written notice sent by first class mail to my address listed in this Agreement will be reasonable notice to me under the Texas Uniform Commercial Code. If the Property is perishable or threatens to decline speedily in value, you may, without notice to me, dispose of any or all of the  Property  in  a  commercially reasonable manner at my expense following any commercially reasonable preparation or processing (where permitted by law).
If any items not otherwise subject to this Agreement are contained in the Property when you take possession, you may hold these items for me at my risk and you will not be liable for taking possession of them (where permitted by law).
G.    Use and Operation. You may enter upon my premises and take possession of all or any part of my property for the purpose of preserving the Property or its value, so long as you do not breach the peace. You may use and operate my property for the length of time you feel is necessary to protect your interest, all without payment or compensation to me.
H.    Waiver. By choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a default and to use any remedies if the default continues or occurs again.
14.WAIVER OF CLAIMS. I waive all claims for loss or damage caused by your acts or omissions where you acted reasonably and in good faith.
15.PERFECTION OF SECURITY INTEREST AND COSTS. I authorize you to file a financing statement and/or security agreement, as appropriate, covering the Property. I will comply with, facilitate, and otherwise assist you in connection with obtaining perfection or control over the Property for purposes of perfecting your security interest under the Uniform Commercial Code. I agree to pay all taxes, fees and costs you pay or incur in connection with preparing, filing or recording any financing statements or other security interest filings on the Property. I agree to pay all actual costs of terminating your security interest.
16.APPLICABLE LAW. This Agreement is governed by the laws of Texas, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in Texas, unless otherwise required by law.
17.JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. Each Debtor's obligations under this Agreement are independent of the obligations of any other Debtor. You may sue each Debtor individually or together with any other Debtor.  You may release any part of the Property and I will still be obligated under 

this Agreement for the remaining Property.  Debtor agrees that you and any party to this Agreement may extend, modify or make any change in the terms of this Agreement or any evidence of debt without Debtor's consent. Such a change will not release Debtor from the terms of this Agreement. If you assign any of the Secured Debts, you may assign all or any part of this Agreement without notice to me or my consent, and this Agreement will inure to the benefit of your assignee to the extent of such assignment. You will continue to have the unimpaired right to enforce this Agreement as to any of the Secured Debts that are not assigned.  This Agreement  shall inure to the benefit of and be enforceable by you and your successors and assigns and any other person to whom you may grant an interest in the Secured Debts and shall be binding upon and enforceable against me and my personal representatives, successors, heirs and assigns.
18.AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification of this Agreement is effective unless made in writing. This Agreement and the other Loan Documents are the complete and final expression of the understanding between you and me. If any provision of this Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable.
19.INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular.  The section headings are for convenience only and are not to be used to interpret or define the terms of this Agreement.
20.NOTICE AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Debtor will be deemed to be notice to all Debtors.  I will inform you in writing of any change in my name, address or other application information. I will provide you any other, correct and complete information you request to effectively grant a security interest on the Property. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Agreement and to confirm your lien status on any Property. Time is of the essence.
21.WAIVER OF JURY TRIAL All of the parties to this Agreement knowingly and intentionally, irrevocably and unconditionally, waive any and all right to a trial by jury in any litigation arising out of or concerning this Agreement or any other Loan Document or related obligation. All of these parties acknowledge that this section has either been brought to the attention of each party's legal counsel or that each party had the opportunity to do so.

THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND, TO THE EXTENT PERMITTED BY LAW, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES

SIGNATURES. By signing, I agree to the terms contained in this Agreement. I also acknowledge receipt of a copy of this Agreement.

DEBTOR:
HVE INC.

By   /s/ Joseph O’Daniel                         Date 12/20/18        

JOSEPH O’DANIEL, President

By /s/ Christopher Cunningham                          Date 12/20/18        
CHRISTOPHER CUNNINGHAM, Senior Vice PresidentSUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) has been executed by the purchaser set forth on the signature
page hereof (the “Purchaser”) in connection with the private placement offering (the “Offering”)
by Blue Star Foods Corp., a Delaware corporation (the “Company”), of up to $300,000 of shares (the “Maximum
Amount”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”; each,
a “Share” and, collectively, the “Shares”) at a purchase price of $2.00 per
Share (the “Purchase Price”). The Maximum Amount may be increased by the Company in its sole discretion.

 

This
subscription is being submitted to you in accordance with and subject to the terms and conditions described in this Agreement.

 

There
is no minimum subscription amount to participate in the Offering.

 

The
Shares being subscribed for pursuant to this Agreement have not been registered under the U.S. Securities Act of 1933, as amended
(the “Securities Act”). The Offering is being made on a reasonable best efforts basis to “accredited
investors,” as defined in Regulation D under the Securities Act, in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.

 

Each
closing of the Offering is hereinafter referred to as “Closing,” and the date on which such Closing
occurs is hereinafter referred to as the “Closing Date”. will The Closing of the purchase and sale of
Shares shall occur simultaneously with the acceptance by the Company of the undersigned’s subscription, as evidenced by
the Company’s execution of this Subscription Agreement. A Closing will not occur unless the conditions set forth in Sections
7 and 8 shall have been satisfied.

 

The
Company may conduct one or more Closings for the sale of the Shares until the termination of the Offering. The Shares will be
offered through __________, 2019 (the “Initial Offering Period”), which period may be extended by the
Company in its sole discretion, without notice to any Purchaser or prospective Purchaser, to a date not later than sixty (60)
days after the Initial Offering Period (any such additional period and the Initial Offering Period are referred to as the “Offering
Period”). The final day of the Offering Period shall be referred to as the “Termination Date.”

 

“Affiliate”
means, with respect to any person, any other person that, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such person, as such terms are used in and construed under Rule 144 under the
Securities Act (“Rule 144”). With respect to a Purchaser, any investment fund or managed account that
is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such
Purchaser.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.

 

    	 

    	 	 	 

    

 

	 	1.	Subscription.
    The undersigned Purchaser hereby subscribes to purchase the number of Shares set forth on the Omnibus Signature Page attached
    hereto, for the aggregate Purchase Price as set forth on such Omnibus Signature Page, subject to the terms and conditions
    of this Agreement and on the basis of the representations, warranties, covenants and agreements contained herein.
	 	 	 
	 	2.	Subscription
    Procedure. To complete a subscription for the Shares, the Purchaser must fully comply with the subscription procedure
    provided in paragraphs a. through c. of this Section. on or before the Termination Date.

 

	 	 	a.	Subscription
    Documents. On or before the Closing Date, the Purchaser shall review, complete and execute the Omnibus Signature Page
    to this Agreement together with the Accredited Investor Certification, Investor Profile and Anti-Money Laundering
    Information Form, each attached hereto following the Omnibus Signature Page (collectively, the “Subscription
    Documents”), and deliver the completed Subscription Documents to the address set forth under the caption “How
    to subscribe for Shares in the private offering of Blues Star Foods Corp.” below. Executed documents may be
    delivered by facsimile or .pdf sent by electronic mail (e-mail), if the Purchaser delivers the original copies of the documents
    as soon as practicable thereafter.
	 	 	 	 
	 	 	b.	Purchase
    Price. Simultaneously with the delivery of the Subscription Documents as provided herein, the Purchaser shall deliver
    to the Company, the full Purchase Price by certified or other bank check, pursuant to the instructions set forth under the
    caption “How to subscribe for Shares in the private offering of Blue Star Foods Corp.” below. Such
    funds will be returned promptly, without interest or offset, if this Agreement is not accepted by the Company or the Offering
    is terminated pursuant to its terms prior to the Closing.
	 	 	 	 
	 	 	c.	Company
    Discretion. The Purchaser understands and agrees that the Company in its sole discretion reserves the right to accept
    or reject this or any other subscription for Shares, in whole or in part, notwithstanding prior receipt by the Purchaser of
    notice of acceptance of this subscription. The Company shall have no obligation hereunder until the Company shall execute
    and deliver to the Purchaser an executed copy of this Agreement. If this subscription is rejected in whole, or the Offering
    is terminated, all funds received from the Purchaser will be returned without interest or offset, and this Agreement shall
    thereafter be of no further force or effect. If this subscription is rejected in part, the funds for the rejected portion
    of this subscription will be returned without interest or offset, and this Agreement will continue in full force and effect
    to the extent this subscription was accepted.

 

    	 	2	 

    	 	 	 

    

 

	 	3.	Registration
    Rights.

 

	 	 	a.	The
    Shares, when issued, will have piggyback registration rights in the event that the Company files a registration statement
    with respect to its common stock (other than registration statements (i) filed in connection with any employee stock option
    or other benefit plan, (ii) for a dividend reinvestment plan or (iii) in connection with a merger or acquisition) provided,
    that if the offering with respect to which a registration statement is filed is an underwritten primary or secondary offering
    and the managing underwriter advises the Company in writing that in its opinion the number of securities requested to be included
    in such registration exceeds the number that can be sold in such offering without adversely affecting such underwriter’s
    ability to effect an orderly distribution of such securities or otherwise adversely effecting such offering (including, without
    limitation, causing a diminution in the offering price of the Company’s securities) the Company will include in such
    registration statement: (A) first, the securities being sold for the account of the Company; (B) second, the number of securities
    with respect to which the Company has granted rights to participate in such registration that, in the opinion of such underwriter,
    can be sold pro rata among the respective holders of such securities on the basis of the amount of such securities then owned
    by each such holder. The Shares removed from any such registration statement as a result of an underwriter’s determination
    or a “cutback comment” from the SEC shall have piggyback registration rights with respect to any future registration
    statement filed by the Company that would permit the inclusion of such shares. If, at any time the Company shall determine
    for any reason not to register or to delay registration of such securities, the Company may, at its election, give written
    notice of such determination to the Purchasers having piggyback rights hereunder and shall be relieved of its obligation to
    include the Purchaser’s Shares in connection with such abandoned or delayed registration. 
	 	 	 	 
	 	 	b.	The
    Company will pay all costs related to the registration statement to which a piggy-back registration relates, but will not
    pay costs of any holder, including legal fees, expert fees, or commissions, or other costs incurred by the holder of the Shares.
    
	 	 	 	 
	 	 	c.	Notwithstanding
    Section 3a above, the piggyback registration rights expire one year after the issuance of the Shares provided that Rule 144
    is then available for the resale of the Shares.

 

	 	4.	Representations
    and Warranties of the Company. The Company hereby represents and warrants to the Purchaser, as of the date hereof, the
    following:

 

	 	 	a.	Organization
    and Qualification. The Company and its subsidiary, John Keeler & Co., Inc. d//b/a Blue Star Foods, a Florida corporation
    (the “Subsidiary”), is a corporation or other business entity duly organized, validly existing and
    in good standing under the laws of the jurisdiction of its formation, and has the requisite corporate power to own its properties
    and to carry on its business as now being conducted. The Company and its Subsidiary are duly qualified as a foreign corporation
    to do business and is in good standing in every jurisdiction in which the nature of the business conducted by it makes such
    qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a
    material adverse effect on the assets, business, financial condition, results of operations or future prospects of the Company
    or its Subsidiary (a “Material Adverse Effect”).
	 	 	 	 
	 	 	b.	Authorization,
    Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority to enter
    into and perform its obligations under this Agreement and each of the other agreements and documents contemplated hereby or
    necessary or desirable to effect the transactions contemplated hereby (the “Transaction Documents”)
    and to issue the Shares in accordance with the terms hereof and thereof; (ii) the execution and delivery by the Company of
    each of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby, including,
    without limitation, the issuance of the Shares have been, or will be at the time of execution of such Transaction Document,
    duly authorized by the Company’s board of directors (the “Board of Directors”), and no further
    consent or authorization is, or will be at the time of execution of such Transaction Documents, required by the Company, its
    Board of Directors or its stockholders; (iii) each of the Transaction Documents will be duly executed and delivered by the
    Company; and (iv) the Transaction Documents when executed will constitute the valid and binding obligations of the Company
    enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles
    of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
    generally, the enforcement of creditors’ rights and remedies. 

 

    	 	3	 

    	 	 	 

    

 

	 	 	c.	Capitalization.
    The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of “blank
    check” preferred stock (“Preferred Stock”), 10,000 of which shares have been designated as
    Series A convertible preferred stock (“Series A Preferred Stock”). Not including any Shares issued
    in this Offering, as of December 31, 2018, the Company had outstanding 16,015,000 shares of Common Stock (the “Outstanding
    Common Stock”) and 1,413 shares of Series A Preferred Stock, which are convertible into 706,500 additional shares
    of the Company’s Common Stock (the “Conversion Shares”). All of the outstanding shares of
    Common Stock and Series A Preferred Stock have been duly authorized, validly issued and are fully paid and nonassessable.
    The Conversion Shares have been duly authorized and reserved for issuance, and upon conversion of the Series A Preferred Stock,
    will be validly issued, fully paid and nonassessable, and are free and clear from all taxes, liens and charges with respect
    to the issue thereof. At the time of the Closing, no shares of capital stock of the Company will be subject to preemptive
    rights or any other similar rights or any liens or encumbrances (other than as contemplated by Section 7f hereof) suffered
    or permitted by the Company. As of December 31, 2018, the Company had outstanding stock options (“Stock Options”)
    to purchase 6,240,000 shares of the Company’s Common Stock (the “Option Shares”) and warrants
    (“Warrants”) to purchase 353,250 shares of the Company’s Common Stock (the “Warrant
    Shares”). All of the outstanding Stock Options and Warrants have been duly authorized, validly issued and are
    fully paid and nonassessable. The Option Shares and Warrant Shares have been duly authorized and reserved for issuance, and
    upon exercise of the Stock Options and Warrants, respectively, in accordance with their terms, including payment of the exercise
    price therefor, will be validly issued, fully paid and nonassessable, and are free and clear from all taxes, liens and charges
    with respect to the issue thereof. Except for the Stock Options and Warrants, there are no outstanding options, warrants,
    scrip, rights to subscribe to, calls or commitments of any character whatsoever created by the Company relating to, or securities
    or rights created by the Company convertible into, any shares of capital stock of the Company, and there are no contracts,
    commitments, understandings or arrangements by which the Company to issue additional shares of capital stock of the Company.
    Other than with respect to the shares of Outstanding Common Stock, the Conversion Shares, the Options Shares, and all of the
    Warrant Shares, there are no agreements or arrangements pursuant to which the Company is obligated to register the sale of
    any of its securities under the Securities Act. There are no securities or instruments of the Company containing anti-dilution
    or similar provisions, including the right to adjust the exercise, exchange or reset price under such securities, that will
    be triggered by the issuance of the Shares as described in this Agreement. No co-sale right, right of first refusal or other
    similar right will exist with respect to the Shares or the issuance and sale thereof. Upon request, the Company will make
    available to the Purchaser true and correct copies of the Company’s Articles of Incorporation and Bylaws, as will be
    in effect as of the Closing Date.

 

    	 	4	 

    	 	 	 

    

 

	 	 	d.	Issuance
    of Shares. The Shares are duly authorized and, when issued and paid for in accordance with the terms hereof, shall be
    duly issued, fully paid and nonassessable, and are free and clear of all taxes, liens and charges with respect to the issue
    thereof. 
	 	 	 	 
	 	 	e.	No
    Conflicts. The execution, delivery and performance of each of the Transaction Documents by the Company, and the consummation
    by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Articles of Incorporation
    or the By-laws of the Company, as such documents will be in effect as of the Closing, or (ii) violate or conflict with, or
    result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both would
    become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
    indenture or instrument to which the Company is a party, except for those which would not reasonably be expected to have a
    Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
    U.S. 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 those which would not reasonably be expected to have a Material Adverse Effect. The
    Company is not in violation of any term of or in default under its Articles of Incorporation and Bylaws, as amended to date.
    Except for those violations or defaults which would not reasonably be expected to have a Material Adverse Effect, the Company
    is not in violation of any term of or in default under any material contract, agreement, mortgage, indebtedness, indenture,
    instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company. To the Company’s
    knowledge, the business of the Company is not being conducted in violation of any law, ordinance, or regulation of any governmental
    entity, except for any violation which would not reasonably be expected, individually or in the aggregate, to have a Material
    Adverse Effect. Except as specifically contemplated by this Agreement and as required under the Securities Act and any applicable
    state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or
    registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations
    under or contemplated by this Agreement or the other Transaction Documents in accordance with the terms hereof or thereof.
    Neither the execution and delivery by the Company of the Transaction Documents, nor the consummation by the Company of the
    transactions contemplated hereby or thereby, will require any notice, consent or waiver under any contract or instrument to
    which the Company is a party or by which the Company is bound or to which any of its assets is subject, except for any notice,
    consent or waiver the absence of which would not reasonably be expected, individually or in the aggregate, to have a Material
    Adverse Effect. All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant
    to the preceding two sentences have been or will be obtained or effected on or prior to the Closing. 

 

    	 	5	 

    	 	 	 

    

 

	 	 	f.	Absence
    of Litigation. There is no action, suit, claim, inquiry, notice of violation, proceeding (including any partial proceeding
    such as a deposition) or investigation before or by any court, public board, governmental or administrative agency, self-regulatory
    organization, arbitrator, regulatory authority, stock market, stock exchange or trading facility (an “Action”)
    now pending or, to the knowledge of the Company, threatened, against or affecting the Company or any of its officers or directors,
    which would be reasonably likely to (i) adversely affect the validity or enforceability of, or the authority or ability of
    the Company to perform its obligations under this Agreement or any of the other Transaction Documents, or (ii) have a Material
    Adverse Effect. For the purpose of this Agreement, the knowledge of the Company means the actual knowledge of
    the officers of the Company.
	 	 	 	 
	 	 	g.	Acknowledgment
    Regarding Purchaser’s Purchase of the Shares. The Company acknowledges and agrees that each Purchaser is acting
    solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
    hereby and thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the
    Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and
    any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction
    Documents and the transactions contemplated thereby is merely incidental to the Purchaser’s purchase of the Shares.
	 	 	 	 
	 	 	h.	No
    General Solicitation. Neither the Company, nor any of its Affiliates, nor, to the knowledge of the Company, any person
    acting on their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation
    D) in connection with the offer or sale of the Shares.
	 	 	 	 
	 	 	i.	No
    Integrated Offering. Neither the Company, nor any of its Affiliates, nor to the knowledge of the Company, any person acting
    on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy
    any security, under circumstances that would require registration of the Shares under the Securities Act or cause this Offering
    to be integrated with prior offerings by the Company for purposes of the Securities Act. 
	 	 	 	 
	 	 	j.	Employee
    Relations. The Company is not involved in any labor dispute nor, to the knowledge of the Company, is any such dispute
    threatened. The Company is not party to any collective bargaining agreement. The Company’s employees are not members
    of any union, and the Company believes that its relationship with its employees is good.
	 	 	 	 
	 	 	k.	Authorizations;
    Regulatory Compliance. The Company holds,
    and is operating in compliance with, all authorizations, licenses, permits, approvals, clearances, registrations, exemptions,
    consents, certificates and orders of any governmental authority and supplements and amendments thereto (collectively, “Authorizations”)
    required for the conduct of its business, and all such Authorizations are valid and in full force and effect and the Company
    is not in material violation of any terms of any such Authorizations, except, in each case, such as would not reasonably be
    expected to have a Material Adverse Effect; and the Company has not received written notice of any revocation or modification
    of any such Authorization, except to the extent that any such revocation or modification would not be reasonably expected
    to have a Material Adverse Effect. To the best of its knowledge, the Company is in compliance with all applicable federal,
    state, local and foreign laws, regulations, orders and decrees, including such laws and regulations applicable to import and
    export, except as would not reasonably be expected to have a Material Adverse Effect.

 

    	 	6	 

    	 	 	 

    

 

	 	 	n.	Title.
    The Company does not own any real property. The Company has good and marketable title to all of its personal property and
    assets, free and clear of any restriction, mortgage, deed of trust, pledge, lien, security interest or other charge, claim
    or encumbrance which would have a Material Adverse Effect.
	 	 	 	 
	 	 	o.	Tax
    Status. The Company has made and filed (taking into account any valid extensions) all federal and state income and all
    other tax returns, reports and declarations required by any jurisdiction to which it is subject (except in any case in which
    the failure to so file would not have a Material Adverse Effect) and (unless and only to the extent that the Company has set
    aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) has paid all taxes and
    other governmental assessments and charges shown or determined to be due on such returns, reports and declarations, except
    those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes
    for periods subsequent to the periods to which such returns, reports or declarations apply or as would not have a Material
    Adverse Effect. To the knowledge of the Company, there are no unpaid taxes in any material amount claimed to be due from the
    Company by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.
	 	 	 	 
	 	 	p.	Certain
    Transactions. Except for arm’s-length transactions pursuant to which the Company makes payments in the ordinary
    course of business upon terms no less favorable than it could obtain from third parties, none of the officers, directors or
    employees of the Company is a party to any transaction with the Company (other than for services as employees, officers and
    directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
    for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such
    employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director,
    or any such employee has a substantial interest or is an officer, director, trustee or partner.
	 	 	 	 
	 	 	q.	Financial
    Statements. The financial statements of the Company, comply in all material respects with applicable accounting requirements
    and relevant rules and regulations with respect thereto as in effect at the time of the Closing. Such financial statements
    have been prepared in accordance with generally accepted accounting principles of the United States (“GAAP”)
    applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements
    or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly
    present in all material respects the financial position of the Company and its consolidated subsidiaries taken as a whole
    as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case
    of unaudited statements, to normal, year-end audit adjustments.
	 	 	 	 
	 	 	v.	Undisclosed
    Liabilities. The Company has no material liabilities (contingent or otherwise) other than (i) trade payables, accrued
    expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (ii) liabilities
    not required to be reflected in financial statements if they were to be prepared as of the date of this Agreement or the Closing
    Date pursuant to GAAP.

 

    	 	7	 

    	 	 	 

    

 

	 	 	w.	Dividends.
    The Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
    redeemed or made any agreements to purchase or redeem any shares of its capital stock.
	 	 	 	 
	 	 	x.	Foreign
    Corrupt Practices. Neither the Company, nor to the Company’s knowledge, any agent or other person acting on behalf
    of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other
    unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic
    government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii)
    failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company
    is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices
    Act of 1977, as amended.
	 	 	 	 
	 	 	y.	Brokers’
    Fees. The Company has no liability or obligation to pay any fees or commissions to any broker, finder or agent with respect
    to the transactions contemplated by this Agreement.
	 	 	 	 
	 	 	z.	Investment
    Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing
    will not be required to register as, an “investment company” within the meaning of the Investment Company Act
    of 1940, as amended.
	 	 	 	 
	 	 	aa.	Reliance.
    The Company acknowledges that the Purchaser is relying on the representations and warranties made by the Company hereunder
    and that such representations and warranties are a material inducement to the Purchaser purchasing the Shares. The Company
    further acknowledges that without such representations and warranties of the Company made hereunder, the Purchaser would not
    enter into this Agreement. 
	 	 	 	 
	 	 	bb.	Use
    of Proceeds. The Company intends to use the net proceeds from the Offering for general working capital purposes.
	 	 	 	 
	 	 	cc.	No
    Disqualification Event.

 

	 	 	 	(i)	None
    of Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company
    participating in the Offering, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities,
    calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected
    with the Company in any capacity at the time of sale (each, an “Issuer Covered Person” and, together,
    “Issuer Covered Persons”) is subject to any of the “Bad Actor” disqualifications currently
    described in Rule 506(d)(1)(i) to (vii) under the Securities Act (a “Disqualification Event”), except
    for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether
    any Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure
    obligations under Rule 506(e).

 

    	 	8	 

    	 	 	 

    

 

	 	 	 	(ii)	The
    Company is not aware of any person, other than any Issuer Covered Person that has been or will be paid (directly or indirectly)
    remuneration for solicitation of purchasers in connection with the sale of the Securities.
	 	 	 	 	 
	 	 	 	(iii)	The
    Company will promptly notify the Buyer in writing of (A) any Disqualification Event relating to any Issuer Covered Person
    and (B) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.

 

	 	5.	Representations,
    Warranties and Agreements of the Purchaser. The Purchaser, severally and not jointly with any other Purchaser, hereby
    represents and warrants to, and agrees with, the Company as of the date hereof the following:

 

	 	 	a.	The
    Purchaser has the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of
    its prospective investment in the Company, and has carefully reviewed and understands the risks of, and other considerations
    relating to, the purchase of Shares and the tax consequences of the investment and has the ability to bear the economic risks
    of the investment. The Purchaser has carefully reviewed all of the Company’s filings made with the Securities and Exchange
    Commission (the “SEC”) under the Exchange Act. The Purchaser can afford the loss of his/her/its
    entire investment.
	 	 	 	 
	 	 	b.	The
    Purchaser is acquiring the Shares for investment for his/her/its own account and not with the view to, or for resale in connection
    with, any distribution thereof. The Purchaser understands and acknowledges that the Offering and sale of the Shares have not
    been registered under the Securities Act or any state securities laws, by reason of a specific exemption from the registration
    provisions of the Securities Act and applicable state securities laws, which depends upon, among other things, the bona fide
    nature of the investment intent as expressed herein. The Purchaser further represents that he/she/it does not have any contract,
    undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with respect
    to any of the Shares. The Purchaser understands and acknowledges that the Offering of the Shares will not be registered under
    the Securities Act nor under the state securities laws on the ground that the sale of the Shares to the Purchaser as provided
    for in this Agreement and the issuance of Shares hereunder is exempt from the registration requirements of the Securities
    Act and any applicable state securities laws. The Purchaser is an “accredited investor” as defined in Rule 501
    of Regulation D as promulgated by the SEC under the Securities Act, for the reason(s) specified on the Accredited Investor
    Certification attached hereto, as completed by Purchaser, and Purchaser shall submit to the Company such further assurances
    of such status as may be reasonably requested by the Company. The Purchaser resides in the jurisdiction set forth on the Purchaser’s
    Omnibus Signature Page affixed hereto. The Purchaser has not taken any of the actions set forth in, and is not subject to,
    the disqualification provisions of Rule 506(d)(1) of the Securities Act.

 

    	 	9	 

    	 	 	 

    

 

	 	 	c.	The
Purchaser acknowledges that the Shares purchased hereunder will not be registered under the Securities Act. Except as set forth
in Section 3 above, the Purchaser understands that the Company
is under no obligation to register the Shares under the Securities Act, or to assist the Purchaser in complying with the Securities
Act or the securities laws of any state of the United States or of any foreign jurisdiction.
	 	 	 	 
	 	 	d.	The
    Purchaser (i) if a natural person, represents that he or she is the greater of (A) 21 years of age or (B) the age of legal
    majority in his or her jurisdiction of residence, and has full power and authority to execute and deliver this Agreement and
    all other related agreements or certificates and to carry out the provisions hereof and thereof; (ii) if a corporation, partnership,
    limited liability company, association, joint stock company, trust, unincorporated organization or other entity, represents
    that such entity was not formed for the specific purpose of acquiring the Shares, such entity is duly organized, validly existing
    and in good standing under the laws of the state or jurisdiction of its organization, the consummation of the transactions
    contemplated hereby is authorized by, and will not result in a violation of state law or its charter or other organizational
    documents, such entity has full power and authority to execute and deliver this Agreement, the Transaction Documents and all
    other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Shares,
    the execution and delivery of this Agreement and the Transaction Documents have been duly authorized by all necessary action,
    this Agreement and the Transaction Documents have been duly executed and delivered on behalf of such entity and is a legal,
    valid and binding obligation of such entity; or (iii) if executing this Agreement and the Transaction Documents in a representative
    or fiduciary capacity, represents that it has full power and authority to execute and deliver this Agreement and the Transaction
    Documents in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or
    limited liability company or partnership, or other entity for whom the Purchaser is executing this Agreement, and such individual,
    partnership, ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right
    and power to perform pursuant to this Agreement and the Transaction Documents and make an investment in the Company, and represents
    that this Agreement and the Transaction Documents constitute a legal, valid and binding obligation of such entity. The execution
    and delivery of this Agreement and the Transaction Documents will not violate or be in conflict with any order, judgment,
    injunction, agreement or controlling document to which the Purchaser is a party or by which it is bound.
	 	 	 	 
	 	 	e.	The
    Purchaser understands that the Shares are being offered and sold to it in reliance on specific exemptions from the registration
    requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and
    accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and
    understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
    of such Purchaser to acquire such securities. The Purchaser further acknowledges and understands that the Company is relying
    on the representations and warranties made by the Purchaser hereunder and that such representations and warranties are a material
    inducement to the Company to sell the Shares to the Purchaser. The Purchaser further acknowledges that without such representations
    and warranties of the Purchaser made hereunder, the Company would not enter into this Agreement with the Purchaser.

 

    	 	10	 

    	 	 	 

    

 

 

	 	 	f.	The
    Purchaser understands that no public market exists for the Shares and that there can be no assurance that any public market
    for the Shares will exist or continue to exist. The Shares are not approved for quotation on the OTC Markets or any other
    quotation system or listed on any exchange. Except as otherwise set forth herein, the Company makes no representation, warranty
    or covenant with respect to the initiation of or continued quotation of the Shares on the OTC Markets or the listing of the
    Shares on any other market or exchange.
	 	 	 	 
	 	 	g.	The
    Purchaser has a substantial, pre-existing relationship with the Company. The Purchaser has received, reviewed and understood
    such information about the Company as the Purchaser has requested, and has had an opportunity to discuss the Company’s
    business, management and financial affairs, with the Company’s management. The Purchaser understands that such discussions
    were intended to describe the aspects of the Company’s business and prospects and the Offering which the Company believes
    to be material, but were not necessarily a thorough or exhaustive description, and except as expressly set forth in this Agreement,
    the Company makes no representation or warranty with respect to the completeness of such information and makes no representation
    or warranty of any kind with respect to any information provided by any entity other than the Company. Some of such information
    may include projections as to the future performance of the Company, which projections may not be realized, may be based on
    assumptions which may not be correct and may be subject to numerous factors beyond the Company’s control. Additionally,
    the Purchaser understands and represents that the Purchaser is purchasing the Shares notwithstanding the fact that the Company
    may disclose in the future certain material information the Purchaser has not received, including (without limitation) financial
    statements of the Company for the current or prior or subsequent fiscal periods, that the Purchaser is not relying on any
    such information in connection with its purchase of the Shares and that the Purchaser waives any right of action with respect
    to nondisclosure of any such information to the Purchaser prior to the Purchaser’s purchase of the Shares.. The Purchaser
    has sought such accounting, legal and tax advice as such Purchaser has considered necessary to make an informed investment
    decision with respect to its acquisition of the Shares.
	 	 	 	 
	 	 	h.	The
    Purchaser acknowledges that the Company is not acting as a financial advisor or fiduciary of the Purchaser (or in any similar
    capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and no investment
    advice has been given by the Company or any of its respective representatives or agents in connection with the Transaction
    Documents and the transactions contemplated hereby and thereby. The Purchaser further represents to the Company that the Purchaser’s
    decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Purchaser and
    its representatives.
	 	 	 	 
	 	 	i.	As
    of each Closing, all actions on the part of Purchaser, and its officers, directors and partners, if applicable, necessary
    for the authorization, execution and delivery of this Agreement and the performance of all obligations of the Purchaser hereunder
    shall have been taken, and this Agreement , assuming due execution by the parties hereto , shall constitute valid and legally
    binding obligations of the Purchaser, enforceable in accordance with their respective terms, subject to: (i) judicial principles
    limiting the availability of specific performance, injunctive relief, and other equitable remedies and (ii) bankruptcy, insolvency,
    reorganization, moratorium or other similar laws now or hereafter in effect generally relating to or affecting creditors’
    rights.

 

    	 	11	 

    	 	 	 

    

 

	 	 	j.	The
    Purchaser represents that neither the Purchaser nor, to the Purchaser’s knowledge, any person or entity controlling,
    controlled by or under common control with it, nor any person having a beneficial interest in it, nor any person on whose
    behalf the Purchaser is acting: (i) is a person listed in the Annex to Executive Order No. 13224 (2001) issued by the President
    of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to
    Commit, or Support Terrorism); (ii) is named on the List of Specially Designated Nationals and Blocked Persons maintained
    by the U.S. Office of Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to
    a non-U.S. shell bank; (iv) is a senior non-U.S. political figure or an immediate family member or close associate of such
    figure; or (v) is otherwise prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist
    and asset control laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Purchaser”).
    The Purchaser agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary
    or appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules
    and orders. The Purchaser consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and
    its Affiliates and agents of such information about the Purchaser as the Company reasonably deems necessary or appropriate
    to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders.
    If the Purchaser is a financial institution that is subject to the USA Patriot Act, the Purchaser represents that it has met
    all of its obligations under the USA Patriot Act. The Purchaser acknowledges that if, following its investment in the Company,
    the Company reasonably believes that the Purchaser is a Prohibited Purchaser or is otherwise engaged in suspicious activity
    or refuses to promptly provide information that the Company requests, the Company has the right or may be obligated to prohibit
    additional investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately
    require the Purchaser to transfer the Shares. The Purchaser further acknowledges that the Purchaser will have no claim against
    the Company or any of its Affiliates or agents for any form of damages as a result of any of the foregoing actions.
	 	 	 	 
	 	 	 	If
    the Purchaser is Affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser
    receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the
    Purchaser represents and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic
    address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains
    operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority
    that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to
    any other Foreign Bank that does not have a physical presence in any country and that is not a regulated Affiliate.

 

    	 	12	 

    	 

    

 

	 	 	k.	The
    Purchaser or the Purchaser’s duly authorized representative realizes that because of the inherently speculative nature
    of businesses of the kind conducted and contemplated by the Company, the Company’s financial results may be expected
    to fluctuate from month to month and from period to period and will, generally, involve a high degree of financial and market
    risk that could result in substantial or, at times, even total losses for investors in securities of the Company. The Purchaser
    has carefully considered such risks and has carefully reviewed the risk factors disclosed in the Company’s , before
    deciding to invest in the Shares.
	 	 	 	 
	 	 	l.	The
    Purchaser has adequate means of providing for its current and anticipated financial needs and contingencies, is able to bear
    the economic risk for an indefinite period of time and has no need for liquidity of the investment in the Shares and could
    afford complete loss of such investment.
	 	 	 	 
	 	 	m.	The
    Purchaser is not subscribing for Shares as a result of or subsequent to any advertisement, article, notice or other communication,
    published in any newspaper, magazine or similar media or broadcast over television, radio, or the internet, or presented at
    any seminar or meeting, or any solicitation of a subscription by a person not previously known to the Purchaser in connection
    with investments in securities generally.
	 	 	 	 
	 	 	n.	The
    Purchaser acknowledges that no U.S. federal or state agency or any other government or governmental agency has passed upon
    the Shares or made any finding or determination as to the fairness, suitability or wisdom of any investment therein.
	 	 	 	 
	 	 	o.	The
    Purchaser is aware that the anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934, as amended
    (the “Exchange Act”), may apply to sales of the Shares and other activities with respect to the
    Shares by the Purchaser.
	 	 	 	 
	 	 	p.	All
    of the information concerning the Purchaser set forth herein, and any other information furnished by the Purchaser in writing
    to the Company for use in connection with the transactions contemplated by this Agreement, is true, correct and complete in
    all material respects as of the date of this Agreement, and, if there should be any material change in such information prior
    or subsequent to the Purchaser’s subscription , the Purchaser will promptly furnish revised or corrected information
    to the Company.
	 	 	 	 
	 	 	q.	(For
    ERISA plans only) The fiduciary of the Employee Retirement Income Security Act of 1974 (“ERISA”)
    plan (the “Plan”) represents that such fiduciary has been informed of and understands the Company’s
    investment objectives, policies and strategies, and that the decision to invest “plan assets” (as such term is
    defined in ERISA) in the Company is consistent with the provisions of ERISA that require diversification of plan assets and
    impose other fiduciary responsibilities. The Purchaser fiduciary or Plan (a) is responsible for the decision to invest in
    the Company; (b) is independent of the Company or any of its Affiliates; (c) is qualified to make such investment decision;
    and (d) in making such decision, the Purchaser fiduciary or Plan has not relied primarily on any advice or recommendation
    of the Company or any of its Affiliates.

 

    	 	13	 

    	 	 	 

    

 

	 	6.	Transfer
    Restrictions. The Purchaser acknowledges and agrees as follows:

 

	 	 	a.	The
    Shares have not been registered for sale under the Securities Act, in reliance on the private offering exemption in Section
    4(a)(2) thereof and Rule 506 thereunder; other than as expressly provided herein, the Company does not currently intend to
    register the Shares under the Securities Act at any time in the future; and the undersigned will not immediately be entitled
    to the benefits of Rule 144 with respect to the Shares.
	 	 	 	 
	 	 	b.	The
    Purchaser understands that there are substantial restrictions on the transferability of the Shares and that the certificates
    representing the Shares shall bear a restrictive legend in substantially the following form (and a stop-transfer order may
    be placed against transfer of such certificates or other instruments):
	 	 	 	 
	 	 	 	THE
    SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
    ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST
    THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT
    THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION
    EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY,
    THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE
    REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THESE
    SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.
	 	 	 	 
	 	 	 	In
    addition, if any Purchaser is an Affiliate of the Company, certificates evidencing the Shares issued to such Purchaser may
    bear a customary “Affiliates” legend.
	 	 	 	 
	 	 	    	The
    legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the
    Shares upon which it is stamped, if (a) such Shares are sold pursuant to an effective registration statement under the Securities
    Act, or (b) such holder delivers to the Company an opinion of counsel, reasonably acceptable to the Company, that a disposition
    of the Shares is being made pursuant to an exemption from such registration and that the Shares, after such transfer, shall
    no longer be “restricted securities” within the meaning of Rule 144.

 

    	 	14	 

    	 	 	 

    

 

Subject
to the Company’s right to request an opinion of counsel as set forth in Section 6b, the legend set forth in
Section 6b above shall be removable and the Company shall issue or cause to be issued a certificate without such
legend or any other legend (except for any “Affiliates” legend as set forth in Section 6(b)) to the holder of the
applicable Shares upon which it is stamped as provided in this Section 6c, if (i) such Shares are registered for
resale under the Securities Act (provided that, if the Purchaser is selling pursuant to an effective registration statement registering
the Shares for resale, the Purchaser agrees to only sell such Shares during such time that such registration statement is effective
and not withdrawn or suspended, and only as permitted by such registration statement), or (ii) such Shares are sold or transferred
in compliance with Rule 144, including without limitation in compliance with the current public information requirements and volume
and manner-of-sale restrictions of Rule 144, if applicable at the time of such sale or transfer, and the holder and its broker
have delivered customary documents reasonably requested by the Company’s transfer agent and/or Company counsel in connection
with such sale or transfer. All costs and expenses related to the removal of the legends and the reissuance of any Shares, including
but not limited to costs and expenses with respect to the transfer agent, Company counsel or otherwise, shall be borne by the
Purchaser. Following the date on which the registration statement registering the Shares is first declared effective by the SEC,
or at such other time as a legend is no longer required for certain Shares, the Company will no later than three (3) Trading Days
(as defined below) following the delivery by a Purchaser to the Company or the transfer agent (with concurrent notice and delivery
of copies to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures
guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, and together with such other customary documents
as the transfer agent and/or Company counsel shall reasonably request), deliver or cause to be delivered to the transferee of
such Purchaser or such Purchaser, as applicable, a book entry position or a certificate representing such Shares that is free
from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the transfer
agent that enlarge the restrictions on transfer set forth in this Section 6. Certificates for Shares subject to legend removal
hereunder shall be transmitted by the transfer agent to the Purchaser by crediting the account of the Purchaser’s prime
broker with DTC, if the Company is then DTC eligible. “Trading Day” means (i) a day on which the Company’s
common stock is listed or quoted and traded on its principal trading market (unless the principal trading market is the OTC Bulletin
Board or the OTC Pink tier of the OTC Markets Group, Inc.), or (ii) if the common stock is not listed on a trading market (other
than the OTC Bulletin Board or the OTC QB, OTC QX or OTC Pink tier of the OTC Markets Group, Inc.), a day on which the common
stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the common stock is not quoted
on any trading market (other than the OTC QB, OTC QX or OTC Pink tier of the OTC Markets Group, Inc.), a day on which the common
stock is quoted in the over-the-counter market as reported by the OTC QB, OTC QX or OTC Pink tier of the OTC Markets Group, Inc.
(or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the
common stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

	 	7.	Conditions
    to Company’s Obligations at Closing. The Company’s obligation to complete the sale and issuance of the Shares
    to each Purchaser, individually, at each Closing shall be subject to the following conditions to the extent not waived by
    the Company:

 

	 	 	a.	Receipt
    of Payment. The Company shall have received payment, by certified or other bank check, in the full amount of the Purchase
    Price for the number of Shares being purchased by such Purchaser at such Closing.

 

    	 	15	 

    	 

    

 

	 	 	b.	Representations
    and Warranties. The representations and warranties made by the Purchaser in Section 5 hereof are true and correct
    in all material respects and do not omit to state a material fact necessary to prevent the statements made from being misleading
    (except in each case to the extent any such representation and warranty is qualified by materiality, in which case, such representation
    and warranty shall be true and correct in all respects as so qualified). The Purchaser shall have performed in all material
    respects all obligations and covenants herein required to be performed by it. 
	 	 	 	 
	 	 	c.	Receipt
    of Executed Documents. Such Purchaser shall have executed and delivered to the Company the Omnibus Signature Page
    to this Agreement, the Accredited Investor Certification, the Investor Profile and the Anti-Money Laundering
    Information Form, in the forms following the Omnibus Signature Page of this Agreement.

 

	 	8.	Conditions
    to Purchasers’ Obligations at Closing. Each Purchaser’s obligation to accept delivery of the Shares and to
    pay for the Shares shall be subject to the following conditions to the extent not waived by the Purchaser:

 

	 	 	a.	Representations
    and Warranties Correct. The representations and warranties made by the Company in Section 4 hereof shall be true
    and correct in all material respects (except to the extent any such representation and warranty is qualified by materiality
    or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all
    respects as so qualified) as of the Closing Date, except to the extent any such representation or warranty expressly speaks
    as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects correct
    as of such earlier date (except in each case to the extent any such representation and warranty is qualified by materiality
    or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all
    respects as so qualified). The Company shall have performed in all material respects all obligations and covenants herein
    required to be performed by it on or prior to such Closing Date.
	 	 	 	 
	 	 	b.	Receipt
    of Agreements. The Company shall have executed and delivered counterparts of this Agreement.
	 	 	 	 
	 	 	c.	Certificate.
    The Chief Executive Officer of the Company shall execute and deliver to the Purchasers a certificate addressed to the Purchasers
    to the effect that the representations and warranties of the Company in Section 4 hereof are true and correct in all
    material respects (except to the extent any such representation and warranty is qualified by materiality or reference to Material
    Adverse Effect, in which case, such representation and warranty shall be true and correct in all respects as so qualified)
    as of, and as if made on, the date of this Agreement and as of such Closing Date and that the Company has satisfied in all
    material respects all of the conditions set forth in this Section 8.
	 	 	 	 
	 	 	d.	Judgments.
    No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
    court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall
    have been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated
    hereby.

 

    	 	16	 

    	 

    

 

	 	9.	Indemnification.

 

	 	 	a.	The
    Purchaser agrees to indemnify and hold harmless the Company and any other broker, agent or finder engaged by the Company for
    the Offering, and their respective directors, officers, shareholders, members, partners, employees and agents (and any other
    persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other
    title), each person who controls such indemnified person (within the meaning of Section 15 of the Securities Act and Section
    20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other
    persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other
    title) of such controlling person, from and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever
    (including, but not limited to, any and all expenses incurred in investigating, preparing or defending against any litigation
    commenced or threatened) based upon or arising out of the Purchaser’s actual or alleged false acknowledgment, representation
    or warranty, or misrepresentation or omission to state a material fact, or breach by the Purchaser of any covenant or agreement
    made by the Purchaser, contained herein or in any other document delivered by the Purchaser in connection with this Agreement.
	 	 	 	 
	 	 	b.	The
    Company agrees to indemnify and hold harmless the Purchaser, and its directors, officers, shareholders, members, partners,
    employees and agents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding
    a lack of such title or any other title), each person who controls such Purchaser (within the meaning of Section 15 of the
    Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or
    employees (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack
    of such title or any other title) of such controlling person, from and against all losses, liabilities, claims, damages, costs,
    fees and expenses whatsoever (including, but not limited to, any and all expenses incurred in investigating, preparing or
    defending against any litigation commenced or threatened) based upon or arising out of the Company’s actual or alleged
    false acknowledgment, representation or warranty, or misrepresentation or omission to state a material fact, or breach by
    the Company of any covenant or agreement made by the Company contained herein; provided, however, that the Company will not
    be liable in any such case to the extent and only to the extent that any such loss, liability, claim, damage, cost, fee or
    expense arises out of or is based upon the inaccuracy of any representations made by such indemnified party in this Agreement,
    or the failure of such indemnified party to comply with the covenants and agreements contained herein. The liability of the
    Company under this paragraph shall not exceed the total Purchase Price paid by the Purchaser hereunder, except in the case
    of fraud.

 

    	 	17	 

    	 	 	 

    

 

	 	 	c.	Promptly
    after receipt by an indemnified party under this Section 9 of notice of the commencement of any Action, such indemnified party
    will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9, notify the indemnifying
    party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from
    any liability which it may have to any indemnified party otherwise than under this Section 9. In case any such Action is brought
    against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party
    will be entitled to participate therein, and to the extent that it may elect by written notice delivered to the indemnified
    party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with counsel
    satisfactory to such indemnified party; provided, however, if the defendants in any such Action include both the indemnified
    party and the indemnifying party and either (i) the indemnifying party or parties and the indemnified party or parties mutually
    agree or (ii) representation of both the indemnifying party or parties and the indemnified party or parties by the same counsel
    is inappropriate under applicable standards of professional conduct due to actual or potential differing interests between
    them, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to
    otherwise participate in the defense of such Action on behalf of such indemnified party or parties. Upon receipt of notice
    from the indemnifying party to such indemnified party of its election so to assume the defense of such Action and approval
    by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section
    9 for any reasonable legal or other expenses subsequently incurred by such indemnified party in connection with the defense
    thereof unless (i) the indemnified party shall have employed counsel in connection with the assumption of legal defenses in
    accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall
    not be liable for the expenses of more than one separate counsel in such circumstance), (ii) the indemnifying party shall
    not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time
    after notice of commencement of the Action or (iii) the indemnifying party has authorized the employment of counsel for the
    indemnified party at the expense of the indemnifying party. No indemnifying party shall (i) without the prior written consent
    of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry
    of any judgment with respect to any pending or threatened Action in respect of which indemnification or contribution may be
    sought hereunder (whether or not the indemnified parties are actual or potential parties to such Action) unless such settlement,
    compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such Action,
    or (ii) be liable for any settlement of any such Action effected without its written consent (which consent shall not be unreasonably
    withheld), but if settled with its written consent or if there be a final judgment of the plaintiff in any such Action, the
    indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason
    of such settlement or judgment.

 

	 	10.	Revocability;
    Binding Effect. The subscription hereunder may be revoked prior to the Closing thereon, provided that written notice of
    revocation is sent and is received by the Company at least three (3) Business Days prior to the Closing on such subscription.
    The Purchaser hereby acknowledges and agrees that this Agreement shall survive the death or disability of the Purchaser and
    shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors,
    legal representatives and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser hereunder
    shall be joint and several and the agreements, representations, warranties and acknowledgments herein shall be deemed to be
    made by and be binding upon each such person and such person’s heirs, executors, administrators, successors, legal representatives
    and permitted assigns. Notwithstanding the foregoing revocation provisions, in no case may a Purchaser revoke its purchase
    of Shares after the Purchaser’s funds have been closed upon.

 

    	 	18	 

    	 	 	 

    

 

	 	 	 
	 	11.	Modification.
    This Agreement shall not be amended, modified or waived except by an instrument in writing signed by the Company and the
    holders of at least a majority of the then held Shares. Any amendment, modification or waiver effected in accordance with
    this Section 11 shall be binding upon the Company and all Purchasers and each transferee of the Shares.
	 	 	 
	 	12.	Notices.
    Any notice, consents, waivers or other communication required or permitted to be given hereunder shall be in writing and
    will be deemed to have been delivered: (i) upon receipt, when personally delivered; (ii) upon receipt when sent by certified
    mail, return receipt requested, postage prepaid; (iii) upon receipt, when sent by facsimile (provided confirmation of transmission
    is mechanically or electronically generated and kept on file by the sending party); (iv) when sent, if by e-mail (provided
    that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does
    not receive an automatically generated message from the recipient’s e-mail server that such e-mail could not be delivered
    to such recipient); or (v) one (1) Business Day after deposit with an overnight courier service with next day delivery specified,
    in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and email addresses for
    such communications shall be: 

 

	 	 	(a)	if
    to the Company: 

 

Blue
Star Foods Corp.

3000
NW 109th Ave.

Miami,
Florida 33172

Attention:
Carlos Faria, CEO

Telephone:
(305) 836-6858

Facsimile:
(305) 836-6859

Email:
cfaria@bluestarfoods.com

 

with
copies (which shall not constitute notice) to:

 

The
Crone Law Group, P.C.

60
East 42nd Street

New
York, New York 10165

Attention:
Eric C. Mendelson, Esq.

Telephone:
(646) 278-0886

Facsimile:
(212) 840-8560

Email:
emendelson@cronelawgroup.com

 

		(b)	if
                                         to the Purchaser, at the address set forth on the Omnibus Signature Page hereof 

 

(or,
in either case, to such other address as the party shall have furnished in writing in accordance with the provisions of this Section).
Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for
a notice changing a party’s address which shall be deemed given at the time of receipt thereof.

 

    	 	19	 

    	 	 	 

    

 

	 	13.	Assignability.
    This Agreement and the rights, interests and obligations hereunder are not transferable or assignable by the Purchaser
    or the Company.
	 	 	 
	 	14.	Applicable
    Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without reference
    to the principles thereof relating to the conflict of laws. Any judicial proceeding brought against either of the parties
    to this Agreement or any dispute arising out of this Agreement or any matter related hereto shall be brought in the state
    or federal courts located in the County of New York in the State of New York and, by its execution and delivery of this Agreement,
    each party to this Agreement accepts the jurisdiction of such courts. The foregoing consent to jurisdiction shall not be deemed
    to confer rights on any person other than the parties to this Agreement.
	 	 	 
	 	15.	Arbitration.
    The parties hereto agree to submit all controversies to arbitration in accordance with the provisions set forth below
    and understand that:

 

	 	 	a.	Arbitration
    shall be final and binding on the parties.
	 	 	 	 
	 	 	b.	The
    parties are waiving their right to seek remedies in court, including the right to a jury trial.
	 	 	 	 
	 	 	c.	Pre-arbitration
    discovery is generally more limited and different from court proceedings.
	 	 	 	 
	 	 	d.	The
    arbitrator’s award is not required to include factual findings or legal reasoning and any party’s right to appeal
    or to seek modification of rulings by arbitrators is strictly limited.
	 	 	 	 
	 	 	e.	The
    panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
	 	 	 	 
	 	 	f.	All
    controversies which may arise between the parties concerning this Agreement shall be determined by arbitration pursuant to
    the rules then pertaining to the Financial Industry Regulatory Authority in New York, New York. Judgment on any award of any
    such arbitration may be entered in the Supreme Court of the State of New York or in any other court having jurisdiction of
    the person or persons against whom such award is rendered. Any notice of such arbitration or for the confirmation of any award
    in any arbitration shall be sufficient if given in accordance with the provisions of this Agreement. The parties agree that
    the determination of the arbitrators shall be binding and conclusive upon them. The prevailing party, as determined by such
    arbitrators, in a legal proceeding shall be entitled to collect any costs, disbursements and reasonable attorney’s fees
    from the other party. Prior to filing an arbitration, the parties hereby agree that they will attempt to resolve their differences
    first by submitting the matter for resolution to a mediator, acceptable to all parties, and whose expenses will be borne equally
    by all parties. The mediation will be held in the County of New York, State of New York, on an expedited basis. If the parties
    cannot successfully resolve their differences through mediation within sixty (60) days from the receipt of the written notice
    of a matter from the notifying party, the matter will be resolved by arbitration. The arbitration shall take place in the
    County of New York, State of New York, on an expedited basis.

 

    	 	20	 

    	 	 	 

    

 

	 	16.	Form
    D; Blue Sky Qualification. The Company agrees to timely file a Form D with respect to the Shares and to provide a copy
    thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine
    is necessary in order to obtain an exemption for, or to qualify the Shares for sale to the Purchaser at such Closing under
    applicable securities or “Blue Sky” laws of the states of the United States. 
	 	 	 
	 	17.	Use
    of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine,
    neuter, singular or plural as the identity of the person or persons referred to may require.
	 	 	 
	 	18.	Miscellaneous.

 

	 	 	a.	This
    Agreement between the Purchaser and the Company constitutes the entire agreement between the Purchaser and the Company with
    respect to the Offering and supersedes all prior oral or written agreements and understandings, if any, relating to the subject
    matter hereof.
	 	 	 	 
	 	 	b.	If
    the Shares are certificated and any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed,
    the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of
    and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the
    Company and, if applicable, the Company’s transfer agent of such loss, theft or destruction and the execution by the
    holder thereof of a customary lost certificate affidavit of that fact and an agreement to indemnify and hold harmless the
    Company and, if applicable, the Company’s transfer agent for any losses in connection therewith or, if required by the
    transfer agent, a bond in such form and amount as is required by the transfer agent. The applicants for a new certificate
    or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such
    replacement Shares. If a replacement certificate or instrument evidencing any Shares is requested due to a mutilation thereof,
    the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a
    replacement.
	 	 	 	 
	 	 	c.	Each
    of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or
    others engaged by such party) in connection with this Agreement the Transaction Documents and the transactions contemplated
    hereby, whether or not the transactions contemplated hereby are consummated.
	 	 	 	 
	 	 	d.	This
    Agreement may be executed in one or more original or facsimile or by an e-mail which contains a portable document format (.pdf)
    file of an executed signature page counterparts, each of which shall be deemed an original, but all of which shall together
    constitute one and the same instrument and which shall be enforceable against the parties actually executing such counterparts.
    The exchange of copies of this Agreement and of signature pages by facsimile transmission or in .pdf format shall constitute
    effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for
    all purposes. Signatures of the parties transmitted by facsimile or by e-mail of a document in pdf format shall be deemed
    to be their original signatures for all purposes.

 

    	 	21	 

    	 	 	 

    

 

	 	 	e.	Each
    provision of this Agreement shall be considered separable and, if for any reason any provision or provisions hereof are determined
    to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation of or affect the
    remaining portions of this Agreement.
	 	 	 	 
	 	 	f.	Paragraph
    titles are for descriptive purposes only and shall not control or alter the meaning of this Agreement as set forth in the
    text.
	 	 	 	 
	 	 	g.	The
    Purchaser understands and acknowledges that there may be multiple Closings for the Offering.
	 	 	 	 
	 	 	h.	The
    Purchaser hereby agrees to furnish the Company such other information as the Company may request prior to the Closing with
    respect to such Purchaser’s subscription hereunder.
	 	 	 	 
	 	 	i.	The
    representations and warranties of the Company and the Purchaser made in this Agreement shall survive the execution and delivery
    hereof and the delivery of the Shares.

 

	 	19.	Public
    Disclosure. Neither the Purchaser nor any officer, manager, director, member, partner, stockholder, employee, Affiliate,
    Affiliated person or entity of the Purchaser shall make or issue any press releases or otherwise make any public statements
    or make any disclosures to any third person or entity with respect to this Agreement or the transactions contemplated herein
    and will not make or issue any press releases or otherwise make any public statements of any nature whatsoever with respect
    to the Offering or the Company without the Company’s express prior written approval (which may be withheld in the Company’s
    sole discretion), except to the extent such disclosure is required by law or applicable governmental or principal trading
    market regulation.
	 	 	 
	 	20.	Potential
    Conflicts. Legal counsel to the Company and its Affiliates, principals, representatives or employees may now or hereafter
    own shares of the Company.
	 	 	 
	 	21.	Independent
    Nature of Each Purchaser’s Obligations and Rights. For avoidance of doubt, the obligations of the Purchaser under
    this Agreement are several and not joint with the obligations of any other Purchaser, and the Purchaser shall not be responsible
    in any way for the performance of the obligations of any other Purchaser under any other Subscription Agreement. Nothing contained
    herein and no action taken by the Purchaser shall be deemed to constitute the Purchaser as a partnership, an association,
    a joint venture, or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert
    or as a group with respect to such obligations or the transactions contemplated by this Agreement and any other subscription
    agreement. The Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the
    rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional
    party in any proceeding for such purpose.

 

[Signature
page follows.]

 

    	 	22	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company has duly executed this Agreement as of __________ __, 2019.

 

	 	BLUE
    STAR FOODS CORP.
	 	 	 
	 	By:	
	 	Name:	John
    Keeler
	 	Title:	Executive
    Chairman

 

[Signature
Page to Subscription Agreement]

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