Document:

EXHIBIT 10.32

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO BORROWER. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH
A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

 

THIS NOTE HAS BEEN ISSUED PURSUANT TO THE
EXERCISE OF AN ADDITIONAL INVESTMENT RIGHT ISSUED PURSUANT TO AN ASSET PURCHASE AGREEMENT AMONG HARRISON VICKERS AND WATERMAN INC.,
THE INITIAL HOLDER ON APRIL 21, 2015 (THE “PURCHASE AGREEMENT”) IN CONNECTION WITH TRANSACTIONS DESCRIBED THEREIN.

 

Original Issue Date: January 26,
2016

Principal Amount: $102,500.00

 

SECURED
CONVERTIBLE NOTE

DUE
JANUARY 26, 2018

 

THIS CONVERTIBLE NOTE is
one of a series of duly authorized and validly issued Notes of HARRISON VICKERS AND WATERMAN INC., a Nevada corporation, (the “Borrower”),
having its principal place of business at 4224 White Plains Road, 3rd Floor, Bronx, New York 10466, due January 26,
2018 (this note, the “Note” and, collectively with the other notes of such series, the “Notes”).

 

FOR VALUE RECEIVED, Borrower
promises to pay to TARPON BAY PARTNERS LLC, Executive Pavilion, 90 Grove Street, Ridgefield CT 06877 Fax: (203) 431–
8301 or its registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal
sum of One Hundred and Two Thousand, Five Hundred Dollars ($102,500.00) on January 26, 2018 (the “Maturity
Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest,
if any, to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions
hereof.

 

The Holder of this Note
has been granted a security interest in assets of the Borrower.

 

This Note is subject to
the following additional provisions:

 

Section 1.          Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein
shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:

 

    	 	1	 

     

    

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

“Bankruptcy
Event” means any of the following events: (a) Borrower or any Subsidiary thereof commences a case or other proceeding
under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction relating to Borrower or any Subsidiary thereof, (b) there is commenced against Borrower or any
Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) Borrower or any Subsidiary
thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered,
(d) Borrower or any Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its
property that is not discharged or stayed within 60 calendar days after such appointment, (e) Borrower or any Subsidiary thereof
makes a general assignment for the benefit of creditors, (f) Borrower or any Subsidiary thereof calls a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts or (g) Borrower or any Subsidiary thereof, by
any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any
corporate or other action for the purpose of effecting any of the foregoing.

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(v).

 

“Change
of Control Transaction” means, other than by means of conversion or exercise of the Notes and the Securities issued together
with the Notes, the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal
entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
through legal or beneficial ownership of capital stock of Borrower, by contract or otherwise) of in excess of 50% of the voting
securities of Borrower, (b) Borrower merges into or consolidates with any other Person, or any Person merges into or consolidates
with Borrower and, after giving effect to such transaction, the stockholders of Borrower immediately prior to such transaction
own less than 50% of the aggregate voting power of Borrower or the successor entity of such transaction, or (c) Borrower sells
or transfers all or substantially all of its assets to another Person and the stockholders of Borrower immediately prior to such
transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) the
execution by Borrower of an agreement to which Borrower is a party or by which it is bound, providing for any of the events set
forth in clauses (a) through (d) above.

 

“Closing
Price” means on any particular date (a) the last reported closing bid price per share of Common Stock on such date
on the Trading Market (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (b) if there is no such price on such
date, then the closing bid price on the Trading Market on the date nearest preceding such date (as reported by Bloomberg L.P. at
4:15 p.m. (New York City time)), or (c)  if the Common Stock is not then listed or quoted on a Trading Market and if prices
for the Common Stock are then reported in the “pink sheets” published by Pink OTC Markets, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported,
or (d) if the shares of Common Stock are not then publicly traded the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Holder and reasonably acceptable to Borrower, the fees and expenses of
which shall be paid by Borrower.

 

    	 	2	 

     

    

 

“Common
Stock” means the common stock of the Company, $0.0001 par value, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

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

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Price” shall have the meaning set forth in Section 4(b).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the
terms hereof.

 

“Distribution”
shall have the meaning set forth in Section 5(d).

 

“Event
of Default” shall have the meaning set forth in Section 8(a).

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(e).

 

“Interest
Payment Date” shall have the meaning set forth in Section 2(a).

 

“Loan
Documents” shall have the meaning set forth in Section 9.

 

“Mandatory
Conversion” shall have the meaning set forth in Section 6.

 

“Mandatory
Conversion Date” shall have the meaning set forth in Section 6.

 

“Mandatory
Default Amount” means the sum of (a) the greater of (i) the outstanding principal amount of this Note divided by the
Conversion Price on the date the Mandatory Default Amount is either (A) demanded (if demand or notice is required to create an
Event of Default) or otherwise due or (B) paid in full, whichever has a lower Conversion Price, multiplied by the VWAP on the date
the Mandatory Default Amount is either (x) demanded or otherwise due or (y) paid in full, whichever has a higher VWAP, or (ii)
115% of the outstanding principal amount of this Note and (b) all other amounts, costs, expenses and liquidated damages due in
respect of this Note.

 

“New
York Courts” shall have the meaning set forth in Section 9(d).

 

“Note
Register” shall have the meaning set forth in Section 2(c).

 

“Notice
of Mandatory Conversion” shall have the meaning set forth in Section 6.

 

    	 	3	 

     

    

 

“Original
Issue Date” means the date of the first issuance of the Notes, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Notes.

 

“Other
Holders” means the holders of Other Notes.

 

“Other
Notes” means Notes nearly identical to this Note issued to other Holders pursuant to the Purchase Agreement.

 

“Permitted
Indebtedness” means (x) any liabilities for borrowed money or amounts owed not in excess of $200,000 in the aggregate
(other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent
obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Borrower’s consolidated
balance sheet (or the notes thereto) not affecting more than $200,000 in the aggregate, except guaranties by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of
any lease payments not in excess of $200,000 due under leases required to be capitalized in accordance with GAAP. Neither the Borrower
nor any Subsidiary is in default with respect to any Indebtedness.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of Borrower) have
been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of Borrower’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of Borrower’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of Borrower and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
and (c) Liens incurred prior to the Closing Date in connection with Permitted Indebtedness under clauses (a), (b) thereunder, and
Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured
by assets of Borrower or its Subsidiaries other than the assets so acquired or leased.

 

“Purchase
Agreement” has the meaning set forth on the first page of this Note.

 

“Purchase
Rights” shall have the meaning set forth in Section 5(b).

 

“Reservation
Date” shall have the meaning set forth in Section 4(e)(vi).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

“Threshold
Period” shall have the meaning set forth in Section 6(b).

 

    	 	4	 

     

    

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing).

 

“Transaction
Documents” shall have the meaning set forth in the Purchase Agreement of even date herewith among the Borrower and other
parties thereto.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common
Stock are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the volume weighted average price of the Common Stock on the first
such facility (or a similar organization or agency succeeding to its functions of reporting prices), or (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers
of a majority in interest of the Securities then outstanding and reasonably acceptable to Borrower, the fees and expenses of which
shall be paid by Borrower.

 

Section 2.       
 Interest.

 

a)         Interest
in Cash or in Kind. Holders shall be entitled to receive, and Borrower shall pay, cumulative interest on the outstanding principal
amount of this Note compounded annually at the annual rate of 10% (subject to increase as set forth in this Note) payable
on each anniversary of the Original Issue Date and on the Maturity Date (each such date, an “Interest Payment Date”)
(if the Interest Payment Date is not a Trading Day, the applicable payment shall be due on the next succeeding Trading Day).

 

b)         Payment
Grace Period. The Borrower shall not have any grace period to pay any monetary amounts due under this Note.

 

c)         Conversion
Privileges. The Conversion Rights set forth in Section 4 shall remain in full force and effect immediately from the date hereof
and until the Note is paid in full regardless of the occurrence of an Event of Default. This Note shall be payable in full on the
Maturity Date, unless previously converted into Common Stock in accordance with Section 4 hereof.

 

d)         Application
of Payments. Interest on this Note shall be calculated on the basis of a 360-day year and the actual number of days elapsed.
Payments made in connection with this Note shall be applied first to amounts due hereunder other than principal and interest, thereafter
to interest and finally to principal.

 

    	 	5	 

     

    

 

e)         Pari
Passu. Except as otherwise set forth herein, all payments made on this Note and the Other Notes and all actions taken by the
Borrower with respect to this Note and the Other Notes, shall be made and taken pari passu with respect to this Note and
the Other Notes. Notwithstanding anything to the contrary contained herein or in the Transaction Documents, it shall not be considered
non-pari passu for a Holder or Other Holder to elect to receive interest paid in shares of Common Stock or for the Borrower to
actually pay interest in shares of Common Stock to such electing Holder or Other Holder.

 

f)         Manner
and Place of Payment. Principal and interest on this Note and other payments in connection with this Note shall be payable
at the Holder’s offices as designated above in lawful money of the United States of America in immediately available funds
without set-off, deduction or counterclaim. Upon assignment of the interest of Holder in this Note, Borrower shall instead make
its payment pursuant to the assignee’s instructions upon receipt of written notice thereof. This Note may not be prepaid
or mandatorily converted without the consent of the Holder.

 

Section 3.       
   Registration of Transfers and Exchanges.

 

a)          Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b)          Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder set forth in
the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal
and state securities laws and regulations.

 

c)          Reliance
on Note Register. Prior to due presentment for transfer to Borrower of this Note, Borrower and any agent of Borrower may treat
the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment
as herein provided and for all other purposes, whether or not this Note is overdue, and neither Borrower nor any such agent shall
be affected by notice to the contrary.

 

Section 4.     
     Conversion.

 

a)          Voluntary
Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, Note principal and/or at the
election of the Holder accrued interest shall be convertible, in whole or in part, into shares of Common Stock at the option of
the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(d) hereof). The
Holder shall effect conversions by delivering to Borrower a Notice of Conversion, the form of which is attached hereto as Annex
A (each, a “Notice of Conversion”), specifying therein the principal and/or interest amount of this Note
to be converted and the date on which such conversion shall be effected (such date, the “Conversion Date”).
If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion
is deemed delivered hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note
to Borrower unless the entire principal amount of this Note has been so converted. Conversions hereunder shall have the effect
of lowering the outstanding principal amount of this Note or accrued interest, at the option of the Holder, in an amount equal
to the applicable conversion. The Holder and Borrower shall maintain records showing the principal and interest amount(s) converted
and the date of such conversion(s). Borrower may deliver an objection to any Notice of Conversion only within one (1) Business
Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling
and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and
agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted
principal amount of this Note may be less than the amount stated on the face hereof.

 

    	 	6	 

     

    

 

b)          Conversion
Price. The conversion price for the principal and interest in connection with voluntary conversions by the Holder shall be
equal to the lesser of (i) $0.0025, or (ii) fifty percent (50%) of the lowest Closing Price of the Common Stock for the thirty
(30) Trading Days preceding the Conversion Date, subject to adjustment herein (the “Conversion Price”).

 

c)          Mechanics
of Conversion.

 

i.       
  Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon
a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note
to be converted plus interest elected by the Holder to be converted by (y) the Conversion Price.

 

ii.         Delivery
of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery
Date”), Borrower shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing the
Conversion Shares which, on or after the earlier of (i) the six month anniversary of the Original Issue Date or (ii) after the
effective date or a current registration statement, shall be free of restrictive legends and trading restrictions (other than those
which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon the conversion
of this Note. On or after the earlier of (i) the six month anniversary of the Original Issue Date or (ii) the effective date, Borrower
shall use its best efforts to deliver any certificate or certificates required to be delivered by Borrower under this Section 4(c)
electronically through the Depository Trust Company or another established clearing corporation performing similar functions.

 

iii.         Failure
to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to
Borrower at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event Borrower
shall promptly return to the Holder any original Note delivered to Borrower and the Holder shall promptly return to Borrower the
Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.

 

    	 	7	 

     

    

 

iv.         Obligation
Absolute; Partial Liquidated Damages. Borrower’s obligations to issue and deliver the Conversion Shares upon conversion
of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the
Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or
alleged breach by the Holder or any other Person of any obligation to Borrower or any violation or alleged violation of law by
the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of Borrower
to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall
not operate as a waiver by Borrower of any such action Borrower may have against the Holder. In the event the Holder of this Note
shall elect to convert any or all of the outstanding principal amount hereof, Borrower may not refuse conversion based on any claim
that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law, agreement or for any
other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion of all or part of
this Note shall have been sought and obtained, and Borrower posts a surety bond for the benefit of the Holder in the amount of
150% of the outstanding principal amount of this Note, which is subject to the injunction, which bond shall remain in effect until
the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to the Holder to
the extent it obtains judgment. In the absence of such injunction, Borrower shall issue Conversion Shares or, if applicable, cash,
upon a properly noticed conversion. If Borrower fails for any reason to deliver to the Holder such certificate or certificates
pursuant to Section 4(c)(ii) by the Share Delivery Date, Borrower shall pay to the Holder, in cash, as liquidated damages and not
as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the
fifth (5th) Trading Day after such liquidated damages being to accrue) for each Trading Day after such Share Delivery
Date until such certificates are delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right
to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for Borrower’s failure to deliver Conversion
Shares within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any
such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable
law.

 

v.           Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Conversion. In addition to any other rights available to the Holder,
if Borrower fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder or Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion
relating to such Share Delivery Date (a “Buy-In”), then Borrower shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number
of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the
attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares of
Common Stock that would have been issued if Borrower had timely complied with its delivery requirements under Section 4(c)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
Borrower shall be required to pay the Holder $1,000. The Holder shall provide Borrower written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of Borrower, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to Borrower’s failure to timely deliver certificates
representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

    	 	8	 

     

    

 

vi.         Reservation
of Shares Issuable Upon Conversion. Borrower covenants that it will from and after the Original Issue Date, and at all times
thereafter reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance
upon conversion of this Note as herein provided, free from preemptive rights or any other actual contingent purchase rights of
Persons other than the Holder (and the other holders of the Notes), not less than such aggregate number of shares of the Common
Stock as shall be issuable upon the conversion of the then outstanding principal amount of this Note and interest which has accrued
and would accrue on such principal amount, assuming such principal amount was not converted through the Maturity Date. Borrower
covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully
paid and non-assessable.

 

vii.         Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to
any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, Borrower shall at its election,
either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion
Price or round up to the next whole share.

 

viii.         Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without
charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery
of such certificates, provided that, Borrower shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note
so converted and Borrower shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting
the issuance thereof shall have paid to Borrower the amount of such tax or shall have established to the satisfaction of Borrower
that such tax has been paid. Borrower shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion.

 

    	 	9	 

     

    

 

d)          Holder’s
Conversion Limitations. Borrower shall not effect any conversion of this Note, and a Holder shall not have the right to convert
any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion,
the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the
Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For
purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall
include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is
being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted
principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the
unexercised or unconverted portion of any other securities of Borrower subject to a limitation on conversion or exercise analogous
to the limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned by the Holder
or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is
convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the
Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together
with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation.
To ensure compliance with this restriction, the Holder will be deemed to represent to Borrower each time it delivers a Notice of
Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and Borrower shall have
no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the
number of outstanding shares of Common Stock as stated in the most recent of the following: (i) Borrower’s most recent periodic
or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by Borrower, or (iii) a
more recent written notice by Borrower or Borrower’s transfer agent setting forth the number of shares of Common Stock outstanding. 
Upon the written or oral request of a Holder, Borrower shall within two Trading Days confirm orally and in writing to the Holder
the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of Borrower, including this Note, by the Holder or
its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder may decrease
the Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to Borrower, may
increase the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation
in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of
this Section 4(d) shall continue to apply. Any such increase will not be effective until the 61st day after such notice
is delivered to Borrower. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in
a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or
supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Note.

 

    	 	10	 

     

    

 

Section 5.       
   Certain Adjustments.

 

a)         Stock
Dividends and Stock Splits. If Borrower, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents
(which, for avoidance of doubt, shall not include any shares of Common Stock issued by Borrower upon conversion of the Notes),
(ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse
stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification
of shares of the Common Stock, any shares of capital stock of Borrower, then the Conversion Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of Borrower) outstanding immediately
before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

b)         Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time Borrower grants, issues or
sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder
had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record
holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the
Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or
beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right
to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the
Holder exceeding the Beneficial Ownership Limitation).

 

d)         Pro
Rata Distributions. During such time as this Note is outstanding, if Borrower shall declare or make any dividend or other distribution
of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Note, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Note (without regard to any limitations on exercise hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in
such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution
to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    	 	11	 

     

    

 

e)         Fundamental
Transaction. If, at any time while this Note is outstanding, (i) Borrower, directly or indirectly, in one or more related transactions
effects any merger or consolidation of Borrower with or into another Person, (ii) Borrower, directly or indirectly, effects any
sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or
a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by Borrower
or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv)
Borrower, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property, (v) Borrower, directly or indirectly, in one or more related transactions consummates a
stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination)
(each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have
the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence
of such Fundamental Transaction (without regard to any limitation in Section 4(d) and Section 4(e) on the conversion of this Note),
the number of shares of Common Stock of the successor or acquiring corporation or of Borrower, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental
Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 4(d) and Section 4(e) on the conversion of this Note). For purposes of
any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction,
and Borrower shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any conversion of this Note following such Fundamental Transaction. Borrower shall cause any successor
entity in a Fundamental Transaction in which Borrower is not the survivor (the “Successor Entity”) to assume
in writing all of the obligations of Borrower under this Note and the other Transaction Documents (as defined in the Purchase Agreement)
in accordance with the provisions of this Section 5(e) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option
of the holder of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Note which is convertible for a corresponding number of shares of
capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable
upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction,
and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account
the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value
of this Note immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form
and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other
Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every
right and power of Borrower and shall assume all of the obligations of Borrower under this Note and the other Transaction Documents
with the same effect as if such Successor Entity had been named as Borrower herein.

 

    	 	12	 

     

    

 

f)         Subsequent
Equity Sales. If, at any time while this Note is outstanding, Borrower or any Subsidiary, as applicable, sells or grants any
option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or
any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares
of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base
Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock
or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued
in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than
the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive
Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this
Section 6(b) in respect of an Exempt Issuance. If Borrower enters into a Variable Rate Transaction, despite the prohibition set
forth in the Purchase Agreement, Borrower shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest
possible conversion price at which such securities may be converted or exercised. Borrower shall notify the Holder in writing,
no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 6(b),
indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing
terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not Borrower provides
a Dilutive Issuance Notice pursuant to this Section 6(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled
to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless
of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.

 

g)         Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of Borrower) issued and outstanding.

 

h)         Notice
to the Holder.

 

i.            Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, Borrower shall
promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

    	 	13	 

     

    

 

ii.       
  Notice to Allow Conversion by Holder. If (A) Borrower shall declare a dividend (or any other distribution in
whatever form) on the Common Stock, (B) Borrower shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) Borrower shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of Borrower shall be required in
connection with any reclassification of the Common Stock, any consolidation or merger to which Borrower is a party, any sale or
transfer of all or substantially all of the assets of Borrower, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property or (E) Borrower shall authorize the voluntary or involuntary dissolution, liquidation or
winding up of the affairs of Borrower, then, in each case, Borrower shall cause to be filed at each office or agency maintained
for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear
upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to
such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
non-public information regarding Borrower or any of the Subsidiaries, Borrower shall simultaneously file such notice with the Commission
pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert this Note during the 20-day period commencing
on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly
set forth herein.

 

Section 6.          Redemption
and Mandatory Conversion. Borrower shall have no right to require the Holder to surrender the Note for redemption, nor convert
any part or all of this Note without the consent of the Holder.

 

Section 7.          Negative
Covenants. As long as any portion of this Note remains outstanding, unless the holders of at least 51% in principal amount
of the then outstanding Notes which must include the Lead Investor shall have otherwise given prior written consent, Borrower shall
not, and shall not permit any of the Subsidiaries to, directly or indirectly:

 

a)         other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

 

b)         other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

    	 	14	 

     

    

 

c)         amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

d)         repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common
Stock or Common Stock Equivalents other than as to the Conversion Shares as permitted or required under the Transaction Documents;

 

e)    
     redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or
cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise),
all or any portion of any Indebtedness (other than the Notes if on a pro-rata basis), whether by way of payment in respect of principal
of (or premium, if any) or interest on, such Indebtedness;

 

f)   
    pay cash dividends or distributions on any equity securities of Borrower;

 

g)      enter
into any transaction with any Affiliate of Borrower which would be required to be disclosed in any public filing with the Commission,
unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested directors
of Borrower (even if less than a quorum otherwise required for board approval);

 

h)         any
material damage to, or loss, theft or destruction of, any Collateral, whether or not insured, or any strike, lockout, labor dispute,
embargo, condemnation, or other casualty which causes, for more than fifteen (15) consecutive days, the cessation or substantial
curtailment of revenue producing activities at any facility of Borrower or any Subsidiary, if any such event or circumstance could
have a Material Adverse Effect; or

 

i)     
     enter into any agreement with respect to any of the foregoing.

 

Section 8.    
        Events of Default.

 

a)          
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

i.           any
default in the payment of (A) the principal amount of any Note or (B) liquidated damages and other amounts owing to a Holder on
any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration
or otherwise) which default, solely in the case of a default under clause (B) above, is not cured within 7 Trading Days after Borrower
has become or should have become aware of such default;

 

ii.         Borrower
shall fail to observe or perform any other covenant or agreement contained in the Notes (other than a breach by Borrower of its
obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (x) below) which
failure is not cured, if possible to cure, within the earlier to occur of (A) 7 Trading Days after notice of such failure sent
by the Holder or by any Other Holder to Borrower and (B) 15 Trading Days after Borrower has become or should have become aware
of such failure;

 

    	 	15	 

     

    

 

iii.         a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents, or (B) any other material agreement, lease, document or instrument to which
Borrower or any Subsidiary is obligated (and not covered by clause (vi) below);

 

iv.         any
representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any Other Holder shall be untrue or
incorrect in any material respect as of the date when made or deemed made;

 

v.           Borrower
or any Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event;

 

vi.         Borrower
or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement,
factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than
$200,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise become due and payable;

 

vii.         Borrower
shall be a party to any Change of Control Transaction or Fundamental Transaction or shall agree to sell or dispose of all or in
excess of 30% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a
Change of Control Transaction);

 

viii.        Borrower
does not meet the current public information requirements under Rule 144;

 

ix.        
 Borrower shall fail for any reason to deliver certificates to a Holder prior to the seventh Trading Day after a Conversion
Date pursuant to Section 4(c) or Borrower shall provide at any time notice to the Holder, including by way of public announcement,
of Borrower’s intention to not honor requests for conversions of any Notes in accordance with the terms hereof;

 

x.       
 any Person shall breach any agreement delivered to the initial Holders pursuant to Section 2.2 of the Purchase Agreement;

 

xi.       
 any monetary judgment, writ or similar final process shall be entered or filed against Borrower, any subsidiary or any of
their respective property or other assets for more than $50,000, and such judgment, writ or similar final process shall remain
unvacated, unbonded or unstayed for a period of 90 calendar days;

 

xii.         any
dissolution, liquidation or winding up by Borrower or a material Subsidiary of a substantial portion of their business;

 

xiii.         cessation
of operations by Borrower or a material Subsidiary;

 

    	 	16	 

     

    

 

xiv.         The
failure by Borrower or any material Subsidiary to maintain any material intellectual property rights, personal, real property,
equipment, leases or other assets which are necessary to conduct its business (whether now or in the future) and such breach is
not cured with twenty (20) days after written notice to the Borrower from the Holder;

 

xv.           An
event resulting in the Common Stock no longer being listed or quoted on a Trading Market, or notification from a Trading Market
that the Borrower is not in compliance with the conditions for such continued quotation and such non-compliance continues for twenty
(20) days following such notification;

 

xvi.         a
Commission or judicial stop trade order or suspension from its Principal Trading Market;

 

xvii.         except
as disclosed in the SEC Reports, the restatement after the date hereof of any financial statements filed by the Borrower with the
Commission for any date or period from two years prior to the Original Issue Date and until this Note is no longer outstanding,
if the result of such restatement would, by comparison to the unrestated financial statements, have constituted a Material Adverse
Effect. For the avoidance of doubt, any restatement related to new accounting pronouncements shall not constitute a default under
this Section;

 

xviii.         the
Borrower effectuates a reverse split of its Common Stock without ten (10) days prior written notice to the Holder;

 

xix.         the
Borrower fails to have authorized and reserved 150% of the Conversion Shares issuable upon conversion of the Notes including Conversion
Shares issuable upon conversion of interest through the Maturity Date;

 

xx.         a
failure by Borrower to notify Holder of any material event of which Borrower is obligated to notify Holder pursuant to the terms
of this Note or any other Transaction Document;

 

xxi.         a
default by the Borrower of a material term, covenant, warranty or undertaking of any other agreement to which the Borrower and
Holder are parties, or the occurrence of an event of default under any such other agreement to which Borrower and Holder are parties
which is not cured after any required notice and/or cure period;

 

xxii.         the
occurrence of an Event of Default under any Other Note; or

 

xxiii.         any
provision of any Transaction Document shall at any time for any reason (other than pursuant to the express terms thereof) cease
to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested
by any party thereto, or a proceeding shall be commenced by Borrower or any Subsidiary or any governmental authority having jurisdiction
seeking to establish the invalidity or unenforceability thereof, or Borrower or any Subsidiary shall deny in writing that it has
any liability or obligation purported to be created under any Transaction Document.

 

    	 	17	 

     

    

 

b)         Remedies
Upon Event of Default, Fundamental Transaction and Change of Control Transaction. If any Event of Default or a Fundamental
Transaction or a Change of Control Transaction occurs, the outstanding principal amount of this Note, liquidated damages and other
amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s election, immediately due
and payable in cash at the Mandatory Default Amount. Commencing on the Maturity Date and also five (5) days after the occurrence
of any Event of Default interest on this Note shall accrue at an interest rate equal to the lesser of 15% per annum or the maximum
rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender
this Note to or as directed by Borrower. In connection with such acceleration described herein, the Holder need not provide, and
Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the
Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this
Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

Section 9.          Security
Interest/Waiver of Automatic Stay. This Note is secured by a security interest granted to the Holder pursuant to a Security
Agreement, as delivered by Borrower to Holder. The Borrower acknowledges and agrees that should a proceeding under any bankruptcy
or insolvency law be commenced by or against the Borrower or a Subsidiary, or if any of the Collateral (as defined in the Security
Agreement) should become the subject of any bankruptcy or insolvency proceeding, then the Holder should be entitled to, among
other relief to which the Holder may be entitled under the Transaction Documents and any other agreement to which the Borrower
or a Subsidiary and Holder are parties (collectively, “Loan Documents”) and/or applicable law, an order from
the court granting immediate relief from the automatic stay pursuant to 11 U.S.C. Section 362 to permit the Holder to exercise
all of its rights and remedies pursuant to the Loan Documents and/or applicable law. THE BORROWER EXPRESSLY WAIVES THE BENEFIT
OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION 362. FURTHERMORE, THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER
11 U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE OR RULE (INCLUDING, WITHOUT LIMITATION, 11
U.S.C. SECTION 105) SHALL STAY, INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE HOLDER TO ENFORCE ANY OF
ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR APPLICABLE LAW. The Borrower hereby consents to any motion for relief
from stay that may be filed by the Holder in any bankruptcy or insolvency proceeding initiated by or against the Borrower and,
further, agrees not to file any opposition to any motion for relief from stay filed by the Holder. The Borrower represents, acknowledges
and agrees that this provision is a specific and material aspect of the Loan Documents, and that the Holder would not agree to
the terms of the Loan Documents if this waiver were not a part of this Note. The Borrower further represents, acknowledges and
agrees that this waiver is knowingly, intelligently and voluntarily made, that neither the Holder nor any person acting on behalf
of the Holder has made any representations to induce this waiver, that the Borrower has been represented (or has had the opportunity
to he represented) in the signing of this Note and the Loan Documents and in the making of this waiver by independent legal counsel
selected by the Borrower and that the Borrower has discussed this waiver with counsel.         

 

    	 	18	 

     

    

 

Section 10.      
    Miscellaneous.

 

a)          Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: (i) if to Borrower, to: Harrison Vickers and Waterman Inc., 4224 White Plains Road, 3rd
Floor, Bronx, New York 10466, Attn: Roy Warren, and (ii) if to the Holder, to: the address and fax number indicated on the front
page of this Note, with an additional copy by fax only to (which shall not constitute notice): Grushko & Mittman, P.C., 515
Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

b)          Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of Borrower,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note
at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of Borrower.
This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.         

 

c)          Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, Borrower shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to Borrower.

 

d)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other
manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated
hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred in
the investigation, preparation and prosecution of such action or proceeding. This Note shall be deemed an unconditional obligation
of Borrower for the payment of money and, without limitation to any other remedies of Holder, may be enforced against Borrower
by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar rule or statute in the jurisdiction
where enforcement is sought. For purposes of such rule or statute, any other document or agreement to which Holder and Borrower
are parties or which Borrower delivered to Holder, which may be convenient or necessary to determine Holder’s rights hereunder
or Borrower’s obligations to Holder are deemed a part of this Note, whether or not such other document or agreement was delivered
together herewith or was executed apart from this Note.

 

    	 	19	 

     

    

 

e)         Waiver.
Any waiver by Borrower or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of this Note. The failure of Borrower or the Holder
to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion.
Any waiver by Borrower or the Holder must be in writing.

 

f)         Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.

 

g)       Usury.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive Borrower from paying all or any portion of the principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and
Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has been enacted.

 

h)       Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

i)         Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

    	 	20	 

     

    

 

j)         Amendment.
Unless otherwise provided for hereunder, this Note may not be modified or amended or the provisions hereof waived without the written
consent of Borrower and the Holder.

 

k)        Facsimile
Signature. In the event that the Borrower’s signature is delivered by facsimile transmission, PDF, electronic signature
or other similar electronic means, such signature shall create a valid and binding obligation of the Borrower with the same force
and effect as if such signature page were an original thereof.

 

*********************

 

(Signature Pages Follow)

 

    	 	21	 

     

    

 

IN WITNESS WHEREOF, Borrower has caused
this Note to be signed in its name by an authorized officer as of the date written above.

 

	 	HARRISON VICKERS AND WATERMAN, INC.

 

	 	By:	/s/ Roy G. Warren
	 	 	Name: Roy G. Warren
	 	 	Title: President and CEO

 

WITNESS:

 

	/s/ Martha Warren	 

 

    	 	22	 

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal under the Convertible Note due November 13, 2017 of Harrison Vickers and Waterman, Inc., a Nevada corporation
(the “Borrower”), into shares of common stock (the “Common Stock”), of Borrower according
to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other
than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such
certificates and opinions as reasonably requested by Borrower in accordance therewith. No fee will be charged to the holder for
any conversion, except for such transfer taxes, if any.

 

By the delivery of this
Notice of Conversion the undersigned represents and warrants to Borrower that its ownership of the Common Stock does not exceed
the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock.

 

Conversion calculations:

	 	Date to Effect Conversion: ____________________________
	 	 
	 	Principal Amount of Note to be Converted: $__________________
	 	 
	 	Number of shares of Common Stock to be issued: ______________
	 	 
	 	* Interest Amount to be Converted: $_______________
	 	 
	 	Signature: _________________________________________
	 	 
	 	Name: ____________________________________________
	 	 
	 	Address for Delivery of Common Stock Certificates: __________
	 	_____________________________________________________ 
	 	_____________________________________________________
	 	 
	 	Or
	 	 
	 	DWAC Instructions: _________________________________
	 	 
	 	Broker No:_____________
	 	Account No: _______________

  

* Interest on Principal Amount of $____________ for period of ______________
through ________________.

 

    	 	23	 

     

    

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY
IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE CLASS A WARRANT

 

HARRISON
VICKERS AND WATERMAN INC.

 

	Warrant Shares: 82,000,000	Initial Exercise Date:  January 26, 2016
	Warrant No: 2016-1	 

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, TARPON BAY PARTNERS LLC, Executive Pavilion, 90 Grove Street, Ridgefield CT 06877 Fax:
(203) 431– 8301 or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”)
and on or prior to the close of business on the seven (7) year anniversary of the Initial Exercise Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from HARRISON VICKERS AND WATERMAN INC., a Nevada corporation
(the “Company”), up to 82,000,000 shares (as subject to adjustment hereunder, the “Warrant Shares”)
of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

 

Section 1.    Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Asset Purchase Agreement
(the “Purchase Agreement”), dated April 21, 2015, among the Company and the purchasers signatory thereto.

 

    	 	24	 

     

    

 

Section 2.    Exercise.

 

a)          Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as
it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within two (2) Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary (although
the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required
to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder
and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.
The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.
The Company shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery of such notice. The
Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face hereof.

 

b)          Exercise
Price. The initial exercise price per share of the Common Stock under this Warrant shall be $0.0025, subject to adjustment
hereunder (the “Exercise Price”).

 

c)          Cashless
Exercise. If at any time after the Initial Exercise Date, there is no effective registration statement registering, or no current
prospectus available for the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised at the Holder’s
election, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled
to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately
preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth
in the applicable Notice of Exercise;

 

(B) = the Exercise Price of this
Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares
that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means
of a cash exercise rather than a cashless exercise.

 

Notwithstanding anything herein to
the contrary, on the Termination Date, unless the Holder notifies the Company otherwise, if there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

    	 	25	 

     

    

 

		d)	Mechanics of Exercise.

 

i.            Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the
Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder
or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the
delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate
Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to
be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. The Company
understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss
to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty)
to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day
(increasing to $20 per Trading Day after the fifth (5th) Trading Day) after the Warrant Share Delivery Date for each
$1,000 of Exercise Price of Warrant Shares for which this Warrant is exercised which are not timely delivered. The Company shall
pay any payments incurred under this Section in immediately available funds upon demand. Furthermore, in addition to any other
remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant
Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall
be payable through the date notice of revocation or rescission is given to the Company.

 

    	 	26	 

     

    

 

ii.         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called
for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right, at any
time prior to issuance of such Warrant Shares, to rescind such exercise.

 

iv.         Compensation
for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant
Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its
broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the
Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation
was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder
the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery
obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In
with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation
of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon
request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock
upon exercise of the Warrant as required pursuant to the terms hereof.

 

    	 	27	 

     

    

 

v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.         Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any
Notice of Exercise.

 

vii.         Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

e)          Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth
in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company
is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares
of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company,
may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership
Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e)
shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is
delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this
Warrant.

 

    	 	28	 

     

    

 

Section 3.          Certain
Adjustments.

 

a)          Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into
a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the
Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall
be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise
of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.
Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

    	 	29	 

     

    

 

b)          Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).

 

c)          Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common
Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(b)), then in each such
case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed
for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP
determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable
to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments
shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned above.

 

    	 	30	 

     

    

 

d)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant) the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction,
(2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving
a person or entity not traded on a national securities exchange or trading market (with such exchange or market including, without
limitation, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, The New York Stock Exchange,
Inc., the NYSE or Amex), the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable
concurrently with the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder
the higher of (i) an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the
date of the consummation of such Fundamental Transaction, or (ii) the positive difference between the cash per share paid in such
Fundamental Transaction minus the then in effect Exercise Price. “Black Scholes Value” means the value of the
unexercised portion of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function
on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction
for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an
expected volatility equal to the greater of 100% and the 100 day volatility obtained from the “HVT” function on Bloomberg
as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying
price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value
of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the
time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The Company
shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents
in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory
to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option
of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and
with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the
relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 	31	 

     

    

 

e)           
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding,
shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise issue (or announce any offer, sale,
grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents, at an effective price per share
less than the Exercise Price then in effect, excluding Exempt Issuances as defined in the Purchase Agreement (such lower price,
the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and
agreed that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of
purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants,
options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at
an effective price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than
the Exercise Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation of
each Dilutive Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price and the number of Warrant
Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account
the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment. Such adjustment shall
be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustments shall
be made, paid or issued under this Section 3(e) in respect of an Exempt Issuance. The Company shall notify the Holder, in writing,
no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject
to this Section 3(e), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not
the Company provides a Dilutive Issuance Notice pursuant to this Section 3(e), upon the occurrence of any Dilutive Issuance, the
Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately
refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, despite the prohibition
thereon in the Purchase Agreement, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest
possible conversion or exercise price at which such securities may be converted or exercised. Notwithstanding the foregoing, the
issuance of any Common Stock or Common Stock Equivalents pursuant to the Purchase Agreement shall not be deemed a Dilutive Issuance.

 

    	 	32	 

     

    

 

f)          Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

g)          Notice
to Holder.

 

i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company, then, in each case, to the extent that such information constitutes material non-public information
(as determined in good faith by the Company) the Company shall follow the procedure described in Section 13 of the Subscription
Agreement and shall deliver to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least
fifteen (15) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date
on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record
is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such
notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	 	33	 

     

    

 

Section 4.    Transfer
of Warrant.

 

a)           Transferability.
Subject to compliance with any applicable securities laws and the provisions of the Purchase Agreement, this Warrant and all rights
hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this
Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially
in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver
a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)           New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

    	 	34	 

     

    

 

c)           
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the
“Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat
the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to
the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.          Miscellaneous.

 

a)           No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(a).

 

b)           Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)           Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding
Trading Day.

 

d)           Authorized
Shares.

 

The Company covenants that, during the period the Warrant
is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that
its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.
The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

    	 	35	 

     

    

 

Except and to the extent as waived or
consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate
to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would
result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company
shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

 

e)           Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

f)         Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, or unless exercised
in a cashless exercise when Rule 144 is available, and the Holder does not utilize cashless exercise, will have restrictions upon
resale imposed by state and federal securities laws.

 

g)           Non-waiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h)           Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

    	 	36	 

     

    

 

i)         Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j)         Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k)           Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

l)         Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders
of not less than a majority of the outstanding Warrants issued pursuant to the Purchase Agreement.

 

m)           Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)           Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

    	 	37	 

     

    

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	HARRISON VICKERS AND WATERMAN INC.
	 	 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	38	 

     

    

 

NOTICE OF EXERCISE

 

		To:	HARRISON VICKERS
AND WATERMAN INC.

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2) Payment shall take the
form of (check applicable box):

 

 ̈
in lawful money of the United States; or

 

 ̈
[if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3) Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

_______________________________

 

(4) After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

    	 	39	 

     

    

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

 

Signature of Authorized Signatory of Investing Entity: 

_________________________________________________

 

Name of Authorized Signatory:

 ___________________________________________________________________

 

Title of Authorized Signatory:

 ____________________________________________________________________

 

Date: 

________________________________________________________________________________________

 

    	 	40	 

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

HARRISON
VICKERS AND WATERMAN INC.

 

FOR VALUE RECEIVED, [____] all of
or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________ whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated: ______________, _______

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 

 

    	 	41	 

     

    

 

	 	 	 

 

Signature Guaranteed: ___________________________________________

 

NOTE: The signature to this Assignment Form must correspond with
the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed
by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file
proper evidence of authority to assign the foregoing Warrant.

 

    	 	42	 

     

    

 

NOTICE OF EXERCISE

 

	TO:	HARRISON VICKERS AND WATERMAN INC.
	 	4224 White Plains Road, 3rd Floor
	 	Bronx, New York 10466

 

(1) The undersigned hereby
elects to purchase $102,500 principal amount of secured convertible promissory notes of HARRISON VICKERS AND WATERMAN (the
“Company”) pursuant to the terms of the attached AIR and tenders herewith payment of the amount equal to such Stated
Value.

 

(2) Payment shall take the form of (check applicable box) in lawful
money of the United States,

 

€
Cash;

 

€
Wire Transfer; or

 

€
Check

 

(3) Please issue a certificate or certificates
representing said AIR Notes and AIR Warrants representing the right to purchase 82,000,000 shares of the Company’s
Common Stock in the name of the undersigned or in such other name as is specified below:

 

Tarpon Bay Partners LLC______________

 

The AIR Notes and AIR Warrants shall be delivered to the following:

 

Tarpon Bay Partners LLC ______________

 

Executive Pavilion, 90 Grove Street_______

 

Ridgefield CT 06877___________________

 

(4) ACCREDITED INVESTOR. The undersigned is an "accredited
investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: Tarpon Bay Partners LLC___________________________________

 

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY:

 

/s/ Steve Hicks

Name of Authorized Signatory: Stephen Hicks_________________________________________

Title of Authorized Signatory: Manager_______________________________________________

Date: January 26, 2016__________________________________________________________

 

    	 	43EXHIBIT 10.33

JOINT VENTURE AGREEMENT

 

This Joint Venture
Agreement is being entered into as of January 26, 2016, between Southeast Florida Craft LLC (“SFC”) , Attitude Beer
Holding Co. (“ABH”), Glenn E. Straub (“Straub”) and James D. Cecil (“Cecil” and together with
Straub the “Current Members”)(each a “Party,” collectively the “Parties”).

 

WHEREAS, SFC has entered
into an Area Development Agreement a copy of which is annexed hereto as Exhibit A (the “ADA”) with World of Beer Franchising,
Inc. (“Franchisor”);

 

WHEREAS, Franchisor
is in the business of entering into franchise agreement with third parties for such third parties to own and operate World of Beer
themed bar/ restaurants (“WOB Franchises”).

 

WHERES, ABH has access
to capital that would allow SFC to maximize the number of WOB Franchises it could develop pursuant to the ADA.

 

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

 

ARTICLE I

JOINT VENTURE

 

1.1           ADA.

 

a.           SFC
and the Current Members hereby grant ABH the right to participate in any WOB Franchise that SFC proposes to develop whether pursuant
to the current ADA or any other agreement with Franchisor. ABH shall have the option to become a 60% member of any new WOB Franchise
for the contribution of 100% of the budgeted development costs of developing such new WOB Franchise.

 

b.           Upon
SFC’s finalization of a location for a new WOB Franchise it shall give ABH notice of such new location. Upon the execution
of a letter of intent with a budget and forecasts (LOI) for a new location, ABH will be given notice of the LOI (the “LOI
Notice”). Within 30 days after receipt of the LOI Notice, ABH shall give SFC notice if it desires to exercise its option
to participate in such new WOB Franchise. ABH will have 14 days thereafter to sign a new Operating Agreement for that location
and must fund 100% of the costs of the new location within 90 days after lease execution in equal installments of twenty five percent
(25%). These installments will commence upon execution of the Operating Agreement & continue every 30 days until the capital
is contributed in full. There shall be a 7 day cure period after written notice is received that a payment has not been made.

 

    	

     

    

 

c.           If
ABH elects to not proceed forward with more than 2 new locations with SFC then SFC shall be allowed to operate such location with
other investors on the same terms as those offered to ABH. In the event SFC desires to continue with such location on different
terms than those previously rejected by ABH, SFC must first offer such terms to ABH in accordance with the procedure in 1.1(b).

 

d.           For
each new location that ABH participates in, SFC shall form a new limited liability company to be the Franchisee. SFC, ABH and the
new limited liability company shall enter in an operating agreement substantially the same as the operating agreement annexed hereto
as Exhibit B (the “Operating Agreement”).

 

e.           SFC
shall be entitled to a management fee for each location under the same terms as set forth in the Operating Agreement.

 

f.            ABH
will not invest in any other WOB locations other than with SFC.

 

1.2           Non-Circumvention
– Non-Compete. SFC shall have its principal, including those persons identified on Schedule 1.4, execute a non-circumvention
agreement in the form annexed hereto as Exhibit C.

 

1.3           Public
Disclosure. Attitude shall have the right to make disclosures and public announcements regarding this Agreement, and any agreement
or business entered into pursuant hereto, as it deems necessary to comply with its Securities and Exchange Commission reporting
obligations. Subject to the reasonable prior approval of Franchisor, Attitude will be allowed to use the World of Beer in its investor
and public relations materials.

 

1.4           Audits.
SFC and each WOB Franchise shall fully cooperate with ABH and Attitude in supplying all information to Attitude and its auditor
so Attitude can timely comply with its Securities and Exchange Commission reporting obligations.

 

1.5           Initial
Funding. ABH shall provide SFC with $140,000 in initial funding to be paid to WOB to acquire five (5) franchises. ABH shall
receive a $50,000 credit for it capital commitment first entity and a $22,500 for each of the other four entities..

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

Each Party hereby makes
the following representations and warranties for the benefit of all the other Parties:

 

2.1           Such
Party has full power and authority to enter into this Agreement. This Agreement has been duly and validly executed and delivered
by Such Party and constitutes the legal, valid and binding obligation of such Party, enforceable in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws from
time to time in effect that affect creditors’ rights generally, and by legal and equitable limitations on the availability
of specific remedies.

 

    	

     

    

 

2.2           The
execution, delivery and performance by such Party of this Agreement will not: (i) violate the organizational documents of such
Party, (ii) violate any decree or judgment of any court or other governmental authority applicable to or binding on such Party;
(iii) violate any provision of any federal or state statute, rule or regulation which is, to such Party’s knowledge, applicable
to such Party; or (iv) violate any contract to which such Party or any of its assets or properties are bound, or conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of , any agreement, indenture or instrument to which such Party
is a party. No consent or approval of, or filing with, any governmental authority or other person not a party hereto is required
for the execution, delivery and performance by such Party of this Agreement.

 

ARTICLE III

MISCELLANEOUS

 

3.1           Entire
Agreement; Amendments. The Agreement contains the entire understanding of the parties with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge
have been merged into such documents, exhibits and schedules.

 

3.2           Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Parties or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in
the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party
to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

 

3.3           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. Investor may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Holder.

 

3.4           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

3.5           Notices.
Any notice, demand or request required or permitted to be given by the respective parties hereto pursuant to the terms of this
Agreement shall be in writing and shall be deemed delivered (i) when delivered personally or by verifiable facsimile transmission,
unless such delivery is made on a day that is not a Business Day, in which case such delivery will be deemed to be made on the
next succeeding Business Day, (ii) on the next Business Day after timely delivery to an overnight courier and (iii) on the Business
Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid),
addressed as follows:

 

    	

     

    

 

If to SFC:

 

P.O. Box 810245

Boca Raton, Fl 33481

 

If to ABH:

 

712 US Highway 1, Suite 200

North Palm Beach, FL 33408

 

If to Straub:

 

P.O. Box 810245

Boca Raton, Fl 33481

 

If to Cecil:

 

P.O. Box 810245

Boca Raton, Fl 33481

 

Any Party may change
the address(es) to which all notices, requests and other communications are to be sent by giving written notice of such address
change to the other Parties in conformity with this Section 3.5, but such change shall not be effective until notice of such change
has been received by the other Party.

 

3.6           
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in New York County, New York for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery).
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence an action
or proceeding to enforce any provisions of the documents contemplated herein, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

    	

     

    

 

3.7           Survival.
The representations, warranties, agreements and covenants contained herein shall survive the termination of this Agreement.

 

3.8           Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
the same with the same force and effect as if such facsimile signature page were an original thereof.

 

3.9           Severability.
In case any one or more of the provisions of this Agreement shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not in any way be affecting or impaired thereby and
the parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable substitute therefore, and
upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

[REST OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

    	

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Joint Venture Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

	SOUTHEAST FLORIDA CRAFT, LLC	 	ATTITUDE BEER HOLDING CO.
	 	 	 
	/s/ Glenn E. Straub	 	/s/ Roy Warren
	By: Glenn E. Straub	 	By: Roy Warren
	Its: Manager	 	Its: President
	 	 	 
	JAMES D. CECIL	 	GLENN E. STRAUB
	 	 	 
	/s/ James D. Cecil	 	/s/ Glenn E. Straub

 

CONSENTS

 

World of Beer Franchising,
Inc., hereby consents to the above Joint Venture Agreement between Southeast Florida Craft, LLC and Attitude Beer Holding Co.

 

	WORLD OF BEER FRANCHISING, INC. 	 
	 	 
	/s/ Benjamin P. Novello	 
	By: Benjamin P. Novello	 
	Its: Chief Development Officer	 

 

New England WOB, LLC
(“NEWOB”) hereby consents to the above Joint Venture Agreement between Southeast Florida Craft LLC and Attitude Beer
Holding Co. and waives any rights NEWOB has under the Joint Venture Agreement between NEWOB and Attitude Beer Holding Co.

 

	NEW ENGLAND WOB, LLC	 
	 	 
	/s/ Glenn E. Straub	 
	By: Glenn E. Straub	 
	Its: Manager	 

 

    	

     

    

 

EXHIBIT A

 

 

 

WORLD OF BEER FRANCHISING, INC.

 

AREA DEVELOPMENT AGREEMENT

 

 

 

	 	 	 
	February 9, 2016	 	SOUTHEAST FLORIDA CRAFT, LLC
	AGREEMENT DATE	 	NAME OF DEVELOPER
	 	 	 
	SUMMARY DESCRIPTION OF	 	ADDRESS OF DEVELOPER:
	DEVELOPMENT AREA:	 	 
	 	 	 
	The Counties of Broward & Miami-Dade in	 	P.O. Box 810245
	The State of Florida	 	Boca Raton, FL 33481
	 	 	 

 

THIS AGREEMENT REQUIRES CERTAIN DISPUTES TO BE SUBMITTED
TO BINDING ARBITRATION.

 

    	

     

    

 

TABLE OF CONTENTS

 

	Section	 	 	Page
	 	 	 	 
	1.	INTRODUCTION	1
	 	1.1	The WORLD OF BEER® System	1
	 	1.2	Acknowledgments	1
	 	1.3	Representations.	2
	 	1.4	No Warranties	3
	 	1.5	Business Organization	3
	 	 	 	 
	2.	TERM	4
	 	 	 
	3.	GRANT OF DEVELOPMENT RIGHTS	4
	 	3.1	Development Rights	4
	 	3.2	Development Schedule	4
	 	3.3	Effect of Failure	4
	 	 	 	 
	4.	territorial protection and reservation of rights	5
	 	4.1	Territorial Protection	5
	 	4.2	Rights Retained	5
	 	 	 	 
	5.	DEVELOPMENT FEE	6
	 	5.1	Amount and Consideration	6
	 	5.2	Franchise Fees	6
	 	 	 	 
	6.	GRANT OF FRANCHISES.	7
	 	6.1	Site Selection and Acceptance	7
	 	6.2	Effect of Approval	7
	 	6.3	Franchise Agreement	7
	 	 	 	 
	7.	no right to operate or use marks	8
	 	 	 
	8.	CONFIDENTIAL INFORMATION	8
	 	8.1	Types of Confidential Information.	8
	 	8.2	Disclosure and Limitations on Use.	9
	 	8.3	Confidentiality Obligations.	9
	 	8.4	Exceptions to Confidentiality.	9
	 	 	 	 
	9.	EXCLUSIVE RELATIONSHIP	10
	 	 	 
	10.	MARKS	11
	 	10.1	Ownership and Goodwill of Marks	11
	 	10.2	Limitations on Your Use of Marks	11
	 	10.3	Notification of Infringements and Claims	11
	 	10.4	Discontinuance of Use of Marks	11
	 	10.5	Indemnification	12
	 	 	 	 
	11.	TRANSFERS	12
	 	11.1	By Us	12
	 	11.2	By You	12
	 	11.3	Franchise Transfers	12
	 	11.4	Franchise Transfers; Conditions for Approval of Transfer.	12
	 	11.5	Right of First Refusal	13
	 	11.6	Transfer to a Business Entity	14
	 	11.7	Death or Permanent Disability	15

 

    	

     

    

 

	Section	 	 	Page
	 	 	 
	12.	TERMINATION	15
	 	12.1	Termination by You	15
	 	12.2	Termination by Us	15
	 	 	 	 
	13.	RIGHTS AND OBLIGATIONS ON TERMINATION	16
	 	13.1	Continuing Obligations	16
	 	13.2	Payment of Amounts Owed to Us	16
	 	13.3	Competitive Restrictions	16
	 	13.4	Grant of Franchises	17
	 	13.5	Marks and Confidential Information	17
	 	 	 	 
	14.	RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.	17
	 	14.1	Independent Contractors	17
	 	14.2	No Liability for Acts of Other Party	18
	 	14.3	Taxes	18
	 	14.4	Indemnification	18
	 	 	 	 
	15.	ENFORCEMENT	18
	 	15.1	Conflicts with Other Agreements	18
	 	15.2	Severability; Substitution of Valid Provisions	18
	 	15.3	Waivers	19
	 	15.4	Limitation of Liability	19
	 	15.5	Approval and Consents	19
	 	15.6	Waiver of Punitive Damages	19
	 	15.7	Limitations of Claims	19
	 	15.8	Governing Law	20
	 	15.9	Jurisdiction	20
	 	15.10	Waiver of Jury Trial	20
	 	15.11	Cumulative Remedies	20
	 	15.12	Costs and Attorneys' Fees	20
	 	15.13	Binding Effect	20
	 	15.14	Entire Agreement	20
	 	15.15	No Liability to Others; No Other Beneficiaries	20
	 	15.16	Construction	20
	 	15.17	Certain Definitions	21
	 	15.18	Timing	21
	 	15.19	Private Disputes	21
	 	 	 	 
	16.	DISPUTE RESOLUTION	21
	 	16.1	Mediation	21
	 	16.2	Agreement to Arbitrate	22
	 	16.3	Place and Procedure	22
	 	16.4	Awards and Decisions	22
	 	16.5	Specific Performance	23
	 	16.6	Third Parties	23
	 	16.7	Survival	23
	 	 	 	 
	17.	NOTICES AND PAYMENTS.	23

 

EXHIBITS:

 

	 	Exhibit A	Index
	 	 	 
	 	Exhibit B	Development Area and Development Schedule

 

    	

     

    

 

WORLD OF BEER FRANCHISING, INC.

AREA DEVELOPMENT AGREEMENT

 

THIS
AREA DEVELOPMENT AGREEMENT (this “Agreement”) is effective as of February 9, 2016 (the “Agreement
Date”). The parties to this Agreement are WORLD OF BEER FRANCHISING, INC., a Florida corporation, with its principal
office located at 10910 Sheldon Road, Tampa, Florida 33626 (referred to in this Agreement as “we,” “us”
or “our”) and SOUTHEAST FLORIDA CRAFT, LLC, a Florida limited liability company, whose principal address
is P.O. Box 810245, Boca Raton, FL 33481(referred to in this Agreement as “you,” “your” or
“Developer”).

 

		1	INTRODUCTION

 

The WORLD OF
BEER® System. We and our affiliates have expended considerable time and effort in developing retail alcohol establishments
that offer and sell bottled and canned imported and domestic beers, wines, cigars and certain other products we authorize from
time to time for retail take out as well as serving draft, bottled and canned domestic and imported beers, wines, cigars and certain
food products and other products we authorize from time to time for on-premises consumption in a distinctive and innovative store
and pub environment (“WOB Taverns” or “Taverns”). WOB Taverns operate under the Marks (defined
below) and under distinctive business formats, methods, procedures, designs, layouts, signs, equipment, menus, recipes, trade
dress, standards and specifications, all of which we may improve, further develop or otherwise modify from time to time (collectively,
the “System”).

 

We use, promote and
license certain trademarks, service marks and other commercial symbols in the operation of WOB Taverns, including the trade name,
trademark and service mark “WORLD OF BEER®” and other associated logos, designs, artwork and trade dress, which
have gained and continue to gain public acceptance and goodwill, and may create, use and license additional trademarks, service
marks and commercial symbols in conjunction with the operation of WOB Taverns (collectively, the “Marks”).

 

We grant to persons
who meet our qualifications and are willing to undertake the investment and effort (each an “Area Developer”),
the right to acquire franchises to develop and operate a certain number of WOB Taverns within a specific geographic area, subject
to the terms and conditions of an Area Development Agreement with us. You have applied for the right to be an Area Developer. You
understand and acknowledge that your right to own and operate each WOB Tavern is governed by a separate franchise agreement. This
Agreement does not confer franchise rights.

 

Acknowledgments.
You acknowledge and agree that:

 

you have
read this Agreement and our Franchise Disclosure Document;

 

you understand
and accept the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain our high standards
of quality and service and the uniformity of those standards at each WOB Tavern and to protect and preserve the goodwill of the
Marks;

 

you have
conducted an independent investigation of the business venture contemplated by this Agreement and recognize that, like any other
business, the nature of the business conducted by a WOB Tavern developer may evolve and change over time;

 

    	 	1	 

     

    

 

an investment
in a WORLD OF BEER® development business involves business risks and that your business abilities and efforts are vital to
the success of the venture;

 

any information
you acquire from other WOB Tavern franchisees or developers relating to their sales, profits or cash flows does not constitute
information obtained from us, nor do we make any representation as to the accuracy of any such information;

 

in all of
their dealings with you, our officers, directors, employees and agents act only in a representative, and not in an individual,
capacity. All business dealings between you and such persons as a result of this Agreement are solely between you and us;

 

we have advised
you to have this Agreement reviewed and explained to you by an attorney; and

 

you have
received our Franchise Disclosure Document at least 14 days before signing a binding agreement or before making any payment to
us or our affiliate(s) relating to this Agreement.

 

Representations.
As an inducement to our entry into this Agreement, you represent and warrant to us that:

 

all statements
you have made and all materials you have submitted to us in connection with your purchase of these development rights and the unit
franchises are accurate and complete and you have made no misrepresentations or material omissions in obtaining these rights or
the franchises;

 

you will
at all times faithfully, honestly and diligently perform your obligations, continuously exert your best efforts to promote and
enhance the business and not engage in any other business or activity that conflicts with your obligations to operate the business
in compliance with this Agreement;

 

you will
comply with and/or assist us to the fullest extent possible in our efforts to comply with Executive Order 13224 issued by the President
of the United States, the USA PATRIOT Act, and all other present and future federal, state and local laws, ordinances, regulations,
policies, lists and any other requirements of any governmental authority addressing or in any way relating to terrorist acts and
acts of war (the “Anti-Terrorism Laws”); and

 

neither you
nor any of your owners, employees, agents, or property or interests are subject to being “blocked” under any of the
Anti-Terrorism Laws and that neither you nor they are otherwise in violation of any of the Anti-Terrorism Laws.

 

Our approval of your request to purchase these development rights
is made in reliance on all of your representations and warranties. Any violation of these representations and warranties, or any
Anti-Terrorism Laws, by you or your owners, or your or your owners’ agents or employees, or any “blocking” of
your or their assets under the Anti-Terrorism Laws, will constitute grounds for immediate termination of this Agreement and any
other agreements you have entered into with us or any of our affiliates.

 

    	 	2	 

     

    

 

No Warranties.
We expressly disclaim the making of, and you acknowledge that you have not received or relied upon, any warranty or guaranty,
express or implied, as to the revenues, sales, profits or success of the business venture contemplated by this Agreement or the
extent to which we will continue to develop and expand the network of WOB Taverns. You acknowledge and understand the following:

 

any statement
regarding the potential or probable revenues, sales or profits of the business venture, or of any services, benefits or commitments
we are to make available to you, are made solely in the Franchise Disclosure Document delivered to you prior to signing this Agreement;

 

any statement
regarding the potential or probable revenues, sales or profits of the business venture or statistical information regarding any
existing WOB Tavern owned by us or our affiliates that is not contained in our Franchise Disclosure Document is unauthorized, unwarranted
and unreliable and should be reported to us immediately; and

 

you have
not received or relied on any representations about us or our franchising program or policies made by us, or our officers, directors,
employees or agents, that are contrary to the statements made in our Franchise Disclosure Document or to the terms of this Agreement.
If there are any exceptions to any of the foregoing, you agree to: (i) immediately notify our president; and (ii) note
such exceptions by attaching a statement of exceptions to this Agreement prior to signing it.

 

Business Organization.
If you are, or at any time become, a business corporation, partnership, limited liability company or other legal entity (“Business
Entity”), you agree and represent that:

 

you have
the authority to execute, deliver and perform your obligations under this Agreement and are duly organized or formed and validly
existing in good standing under the laws of the state of your incorporation or formation;

 

your organizational
or governing documents will recite that the issuance and transfer of any ownership interests in you are restricted by the terms
of this Agreement, and all certificates and other documents representing ownership interests in you will bear a legend referring
to the restrictions of this Agreement;

 

you will
complete a “Principal Owner’s Statement,” which will completely and accurately describe all of your owners and
their interests in you, and everyone who has voting or management rights and obligations. A copy of our current form of Principal
Owner’s Statement is attached to the Franchise Disclosure Document;

 

you and your
owners agree to revise the Principal Owner’s Statement as may be necessary to reflect any ownership changes and to furnish
such other information about your organization or formation as we may request (no ownership changes may be made without our approval);

 

each of your
owners during the term of this Agreement will sign and deliver to us our standard form of Principal Owner’s Guaranty undertaking
to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us. A copy of our
current form of Principal Owner’s Guaranty is attached to the Franchise Disclosure Document; and

 

at our request,
you will furnish true and correct copies of all documents and contracts governing the rights, obligations and powers of your owners
and agents (like articles of incorporation or organization and partnership, operating or shareholder agreements).

 

    	 	3	 

     

    

 

		2	TERM

 

This Agreement commences
on the Agreement Date and expires on the earlier of: (i) the last day of the Development Schedule (as defined in Section 3.1);
or (ii) the opening of the last WOB Tavern specified in the Development Schedule. This Agreement may be terminated before it expires
in accordance with the termination provisions of this Agreement. Upon expiration or termination of this Agreement, you will not
have any further rights to acquire franchises to operate WOB Taverns, but you may continue to develop, own and operate all WOB
Taverns then subject to fully-executed franchise agreements with us in accordance with their terms. Upon termination or expiration
of this Agreement, we may operate, or grant other persons the right to operate, WOB Taverns within the Development Area (as defined
below).

 

		3	GRANT OF DEVELOPMENT RIGHTS

 

Development
Rights. During the term of this Agreement, subject to the terms and conditions of this Agreement, we grant you the exclusive
right to establish and operate WOB Taverns within the geographic area described in Exhibit B (the “Development Area”).
The Development Area does not include, even though such areas may be within the geographic area described in Exhibit B, airport
facilities, arenas, stadiums, universities or any other facility that operates on a concessionaire basis. You agree that you will
construct, open and maintain in operation a minimum number of WOB Taverns in the Development Area on or before the dates and time
periods set forth on the development schedule (the “Development Schedule”) attached as Exhibit B. Each WOB
Tavern to be established under this Agreement must be located in the Development Area. Within our discretion, we may consider
sites proposed by you outside the Development Area, which will count toward the Development Schedule if approved by us in writing.
The operation of any WOB Tavern established pursuant to this Agreement will be governed by an individual franchise agreement to
be entered into between you and us in accordance with Section 6 below (each a “Franchise Agreement”).

 

The rights granted
to you pursuant to this Agreement are sometimes collectively referred to herein as the “Development Rights”.

 

Development
Schedule. You must (i) establish and open the specified minimum number of Taverns on or before each of the dates specified
in the Development Schedule and (ii) maintain the specified minimum number of Taverns in continuous operation as specified in
the Development Schedule. Your failure to comply with the foregoing requirements will constitute a default under this Agreement.
You understand that time is of the essence with respect to your obligations to comply with the Development Schedule. You acknowledge
and understand that this Agreement requires you to open Taverns in the future pursuant to the Development Schedule. You further
acknowledge and understand that the estimated investment requirement and fees and expenses set forth in our Franchise Disclosure
Document are subject to increase and change over time, and that future Taverns developed under this Agreement will most likely
require a greater initial investment and increased operating capital than those detailed in the Franchise Disclosure Document
we provided to you in connection with the execution of this Agreement.

 

Effect of Failure.
Strict compliance with the Development Schedule is of the essence of this Agreement. If you do not timely meet your development
obligations as of the end of any time period shown on the Development Schedule, you will be in default of your obligations under
this Agreement. If such a default occurs, it will constitute a material breach of this Agreement and we may then, in our sole
discretion, elect to:

 

terminate
this Agreement;

 

    	 	4	 

     

    

 

have the
right to operate (directly or through affiliates) or grant franchises for the operation of WOB Taverns within the Development Area;

 

grant you
an extension under the Development Schedule for such period of time and for a non-refundable extension fee equal to the balance
of the Franchise Fees for the number of WOB Taverns remaining to be opened under the Development Schedule; or

 

reduce the
Development Schedule to a size and magnitude that we reasonably believe you are capable of operating otherwise in accordance with
this Agreement.

 

		4	territorial protection and reservation of rights

 

Territorial
Protection. You may establish the Taverns required to be developed under this Agreement
at any location within the Development Area provided that we, in our sole discretion, consent in writing to the location. If you
are in full compliance with all of the provisions of this Agreement and all of the Franchise Agreements, then during the term
of this Agreement, we will not operate (directly or through an affiliate), or grant a franchise for the operation of, a full-service
WOB Tavern at a fixed or permanent location within the Development Area, except for: (i) those franchises granted to you pursuant
to this Agreement; (ii) any WOB Taverns open and operating in the Development Area as of the Agreement Date; and (iii) any WOB
Taverns located at Special Locations (as defined in Section 4.2 below).

 

Rights Retained.
We reserve all rights that we have not expressly granted to you under this Agreement. We (and our affiliates) retain the right,
in our sole discretion, to:

 

establish
and operate, and grant to others the right to establish and operate, businesses under the System and Marks at any location outside
of the Development Area (even immediately outside the border of the Development Area, but not within the protected territory granted
under a Franchise Agreement for a WOB Tavern affiliated with you), on such terms and conditions as we deem appropriate;

 

establish
and operate, and grant to others the right to establish and operate, businesses of any kind whatsoever under other systems and
using other proprietary marks, both within and outside the Development Area, as we deem appropriate;

 

establish
and operate, and grant to others the right to establish and operate, businesses using the Marks at any location within or outside
the Development Area, on such terms and conditions as we deem appropriate; provided, however, that such other businesses will not
be substantially similar to WOB Taverns if located within the Development Area;

 

market,
sell and provide the products and/or services authorized for sale by WOB Taverns under the Marks or other trade names, trademarks,
service marks and commercial symbols through alternative channels (like mail order, kiosk, co-branded sites and sites located within
other retail businesses, Intranet, Internet, websites, or other forms of e-commerce), including the sale and distribution of products
in grocery and other retail stores, for distribution within and outside of your Development Area and pursuant to such terms and
conditions as we consider appropriate;

 

    	 	5	 

     

    

 

establish
and operate, and license others to establish and operate, WOB Taverns identified in whole or in part by the name and mark WORLD
OF BEER® and/or utilizing the System anywhere including the Development Area that are located in facilities like airports,
train stations, bus stations, service plazas, stadiums, arenas, convention centers, military and governmental facilities, educational
institutions and campuses, hospitals, recreational theme parks, business or industrial food service venues, venues in which food
service is or may be provided by a master of concessioner or contract food service provider, warehouse clubs, Indian reservations,
casinos, gas stations, convenience stores, hotels, parks and other seasonal facilities, or any similar institutional or captive
market location not reasonably available to you ("Special Locations");

 

acquire
the assets or ownership interests of one or more businesses providing products and services similar to those provided at WOB Taverns,
and franchising, licensing or creating similar arrangements with respect to these businesses once acquired, wherever these businesses
(or the franchisees or licensees of these businesses) are located or operating (including in your Development Area);

 

be
acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a
business providing products and services similar to those provided at WOB Taverns, or by another business, even if such business
operates, franchises and/or licenses Competitive Businesses in the Development Area; and

 

engage in
any other activity, action or undertaking that we are not expressly prohibited from taking under this Agreement.

 

		5	DEVELOPMENT FEE

 

Amount and Consideration.
We currently charge an initial franchise fee (the “Franchise Fee”) of $50,000 for each WOB Tavern. The Franchise
Fee for the second and each subsequent WOB Tavern to be opened under this Agreement is reduced to $45,000. When you sign this
Agreement, you agree to pay us a development fee (the “Development Fee”) equal to 100% of the Franchise Fee
for the first WOB Tavern plus 1⁄2 of the Franchise Fee for each additional WOB Tavern to be developed under this Agreement.
For example, if you commit to develop 5 Taverns, you will pay a Development Fee of $140,000, which is the sum of (i) $50,000 for
your first Tavern and (ii) $22,500 for each additional Tavern. You acknowledge and agree that the Development Fee constitutes
payment only for the exclusive rights we grant to you under this Agreement, and that the Development Fee is fully earned by us
at the time this Agreement is executed and is not refundable for any reason. Provided that a Tavern is established in accordance
with the Development Schedule, that portion of the Development Fee applicable to the initial franchise fee due under the Franchise
Agreement for such Tavern will be credited against the payment of such Franchise Fee. In the event a Tavern is not established
in accordance with the Development Schedule, that portion of the Development Fee that would have otherwise been credited against
the payment of the Franchise Fee will be forfeited and retained by us. If, for any reason, this Agreement terminates before all
or a portion of the Development Fee has been applied to the Franchise Fees, we will retain the unapplied portion of the Development
Fee to compensate ourselves for our time, effort and foregone opportunities.

 

Franchise Fees.
As long as you are in compliance with the Development Schedule, the amount of the Franchise Fee for the second and each subsequent
Tavern to be established under this Agreement is $45,000. The Franchise Fee for each Tavern you develop is to be paid in addition
to the Development Fee; provided, however, that the Development Fee may be credited against Franchise Fees as provided for in
Section 5.1 above. Each Franchise Fee associated with a WOB Tavern, to the extent any is due and owing, will be paid upon execution
of the lease covering such Tavern, which shall be not less than 120 days prior to the date the Tavern must be open and operating
in accordance with the Development Schedule.

 

    	 	6	 

     

    

 

		6	GRANT OF FRANCHISES.

 

Site Selection
and Acceptance. You are responsible for locating proposed sites for the WOB Taverns to be established under this Agreement.
We, in our sole discretion, may counsel and offer advice to you with respect to such site selection; provided, however, that in
no event will we be liable to you in connection with providing advice or any assistance. Upon your selection of a proposed site
for a Tavern, you must promptly submit to us such site, demographic and other data and information about the proposed site as
we may reasonably request, using such forms as we may require, and a copy of any lease, sublease or purchase agreement to be entered
into in connection with the acquisition of such site. We will either accept or reject the proposed site utilizing our then-current
site selection policies and procedures. You agree to obtain our prior written consent to the proposed site before you sign any
lease, sublease or binding purchase agreement for the proposed site. We have the right to reject any proposed site if you are
in default of this Agreement, any Franchise Agreement, or any other agreement between you and us. You acknowledge that we may
withhold our consent to a proposed site for reasons based on our good faith business judgment. We will, by delivery of written
notice to you, approve or disapprove each site proposed by you for the operation of a Tavern. We agree to exert commercially reasonable
efforts to notify you within 30 days after we have received the site, demographic and other data and information we have requested.

 

Effect of Approval.
Our approval of the proposed site (including its location, appearance and size) indicates only that we believe it falls within
the acceptable criteria we have established at that time. You acknowledge and agree that:

 

our approval
of the proposed site does not imply, assure, guaranty, warrant or predict profitability or success, express or implied.

 

application
of criteria that have been effective with respect to other sites may not be predictive of the potential for all sites and that,
subsequent to our approval of a site, demographic and/or economic factors included in, or excluding from, our criteria could change,
thereby altering the potential of a site;

 

the uncertainty
and instability of such criteria are beyond our control and we are not responsible for the failure of a site approved by us to
meet expectations as to potential revenue or operational criteria; and

 

your acceptance
of a franchise for the operation of a Tavern at a site you propose is based upon your own independent investigation of the suitability
of that location and that site even though we may provide guidance and assistance to you in selecting the site for your Tavern.

 

Franchise Agreement.
If we have approved the site, we will offer you a franchise to operate a WOB Tavern at the proposed site by delivering to you
a Franchise Agreement in a form ready for signing by you. The Franchise Agreement will be the standard form of Franchise Agreement
we are then using to grant franchises for WOB Taverns, except that the Franchise Fee will be reduced to $45,000 if the Tavern
is your second or a subsequent Tavern being developed under this Agreement. The Franchise Fee for each Tavern must be paid on
the date of the Franchise Agreement for that Tavern, but consistent with Section 5 above. Within 30 days after your receipt of
the Franchise Agreement, you must: (a) sign and deliver such Franchise Agreement, together with any ancillary agreements required
by the Franchise Agreement, to us and (b) pay us the applicable then-current Franchise Fee required by the Franchise Agreement,
but consistent with Section 5 above. If you do not timely sign and return such Franchise Agreement and tender payment of the Franchise
Fee, we may revoke our offer to grant you a franchise to operate a Tavern at such proposed site. Contemporaneously with the signing
of the Franchise Agreement, each of your direct or indirect owners must sign and deliver to us a Principal Owner’s Guaranty
in the form attached to the Franchise Agreement.

 

    	 	7	 

     

    

 

You understand that
any obligation or liability you incur with respect to the proposed Tavern or location before we have approved it in writing and
countersigned the Franchise Agreement is at your sole risk and will be your sole responsibility. We will be under no obligation
to execute and deliver a Franchise Agreement unless you have complied in a timely manner with all of the terms and conditions of
this Agreement and satisfied all requirements set forth herein to the execution of the Franchise Agreement. In addition, we will
be under no obligation to execute a Franchise Agreement if you are in breach or default of any other Franchise Agreement, Area
Development Agreement, or any other agreement between you and us. If any Franchise Agreement contemplated by this Agreement is
executed by us, it will supersede this Agreement in all respects and govern the relationship between the parties with respect to
the Tavern that is the subject matter of such Franchise Agreement.

 

		7	no right to operate or use marks

 

You acknowledge and
agree that (i) until a Franchise Agreement has been entered into for a specific Tavern, you will not have, nor be entitled to exercise,
any of the rights, powers and privileges granted by the Franchise Agreement, including, without limitation, the right to use the
Marks or the System; (ii) the execution of this Agreement will not be deemed to grant any such rights, powers or privileges to
you; and (iii) you may not, under any circumstances, commence operations of any WOB Tavern prior to our execution of a Franchise
Agreement for that particular Tavern.

 

		8	CONFIDENTIAL INFORMATION

 

Types of Confidential
Information. We possess (and will continue to develop and acquire) certain confidential information (the “Confidential
Information”) relating to the development and operation of WOB Taverns and Area Developers, which includes (without
limitation):

 

the System
and the know-how related to its use;

 

plans, specifications,
size and physical characteristics of WOB Taverns;

 

site selection
criteria, land use and zoning techniques and criteria;

 

methods in
obtaining licensing and meeting regulatory requirements;

 

sources,
design and methods of use of equipment, furniture, forms, materials, supplies, Websites, Internet or Intranet, “business
to business” or “business to customer” networks or communities and other e-commerce methods of business;

 

marketing,
advertising and promotional programs for WOB Taverns;

 

staffing
and delivery methods and techniques for personal services;

 

the selection,
testing and training of managers and other employees for WOB Taverns;

 

methods concerning
the recruitment, qualification, investigation, selection, testing and training of personnel for Taverns and Area Developers;

 

any computer
software and related passwords we make available or recommend for WOB Taverns;

 

    	 	8	 

     

    

 

methods,
techniques, formats, specifications, procedures, information and systems related to and knowledge of and experience in the development,
operation, advertising, marketing and franchising of WOB Taverns;

 

knowledge
of specifications for and identities of and suppliers of certain products, materials, supplies, furniture, furnishings and equipment;

 

serving methods,
presentation methods, merchandising techniques and customer retention programs;

 

recipes,
formulas, preparation methods and serving techniques for food products; and

 

knowledge
of operating results and financial performance of WOB Taverns (other than those operated by you or your affiliates).

 

Disclosure and
Limitations on Use. We will disclose much of the Confidential Information to you and personnel of the WOB Tavern
by (i) furnishing our manuals to you, consisting of such materials (including, as applicable, audiotapes, videotapes, magnetic
media, computer software and written materials) that we generally furnish to Franchisees and Area Developers (the “Manuals”);
and (ii) providing training, guidance and assistance to you. In addition, in the course of the operation of your Taverns or the
performance of your duties as an Area Developer, you or your employees may develop ideas, concepts, methods, techniques or improvements
(“Improvements”) relating to your Taverns or your business as an Area Developer, which you agree to disclose
to us. We will be deemed to own the Improvements and may use them and authorize you and others to use them in the operation of
WOB Taverns or as Area Developers. Improvements will then also constitute Confidential Information.

 

Confidentiality
Obligations. You agree that your relationship with us does not vest in you any interest in the Confidential Information
other than the right to use it in the development and operation of your Taverns, and that the use or duplication of the Confidential
Information in any other business would constitute an unfair method of competition. You acknowledge and agree that the Confidential
Information is proprietary, includes trade secrets belonging to us and our affiliates, and is disclosed to you or authorized for
your use solely on the condition that you agree, and you therefore do agree, that you:

 

will not
use the Confidential Information in any other business or capacity;

 

will maintain
the absolute confidentiality of the Confidential Information during and after the term of this Agreement;

 

will not
make unauthorized copies of any portion of the Confidential Information disclosed via electronic medium, in written form or in
other tangible form, including, for example, the Manuals; and

 

will adopt
and implement all reasonable procedures we may prescribe from time to time to prevent unauthorized use or disclosure of the Confidential
Information, including restrictions on disclosure to your employees and the use of nondisclosure and noncompetition agreements
we may prescribe for employees or others who have access to the Confidential Information.

 

Exceptions to
Confidentiality. The restrictions on your disclosure and use of the Confidential Information will not apply to
the following:

 

    	 	9	 

     

    

 

disclosure
or use of information, processes, or techniques which are generally known and used in the retail alcohol establishment business
(as long as the availability is not because of a disclosure by you), provided that you have first given us written notice of your
intended disclosure and/or use; and

 

disclosure
of the Confidential Information in judicial or administrative proceedings when and only to the extent you are legally compelled
to disclose it, provided that you have first given us the opportunity to obtain an appropriate protective order or other assurance
satisfactory to us that the information required to be disclosed will be treated confidentially.

 

		9	EXCLUSIVE RELATIONSHIP

 

You acknowledge and
agree that we would be unable to protect Confidential Information against unauthorized use or disclosure or to encourage a free
exchange of ideas and information among WOB Taverns if Area Developers were permitted to hold interests in or perform services
for a Competitive Business (as defined below). You also acknowledge that we have granted these Development Rights to you in consideration
of and reliance upon your agreement to deal exclusively with us. You agree that, during the term of this Agreement, neither you
nor any of your owners will, directly or indirectly (e.g., through a spouse or child):

 

have any
direct or indirect interest as a disclosed or beneficial owner in a Competitive Business (as defined below), wherever located;

 

perform services
as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever
located;

 

recruit or
hire any person who is our employee or the employee of any WOB Tavern owned by us, our affiliates or our franchisees without obtaining
the prior written permission of that person's employer; or

 

divert or
attempt to divert any business or customer of the Tavern to any Competitive Business or otherwise take any action injurious or
prejudicial to the goodwill associated with the Marks and the System.

 

The term “Competitive Business,”
as used in this Agreement, means any business or facility owning, operating or managing, or granting franchises or licenses to
others to do so, any bar, pub, tavern, restaurant, food or alcoholic beverage service facility, or any retail establishment (like
a liquor store or convenience store) that (a) features beer, wine, and related products as a primary menu item; (b) serves craft
beer; or (c) has more than 6 beers on tap, other than a WOB Tavern operated under a franchise agreement with us. This Section does
not prohibit you or your owners from having a direct or indirect interest as a disclosed or beneficial owner in a publicly held
Competitive Business, as long as such securities represent less than 5% of the number of shares of that class of securities which
are issued and outstanding.

 

    	 	10	 

     

    

 

		10	MARKS

 

Ownership and
Goodwill of Marks. Your right to use the Marks is derived solely from this Agreement and the Franchise Agreements and
limited to your operation of the WOB Taverns at the Sites pursuant to and in compliance with the Franchise Agreements and all
standards and specifications we prescribe from time to time during term of the Franchise Agreements. Your unauthorized use of
the Marks will be a breach of this Agreement and an infringement of our rights in and to the Marks. You acknowledge and agree
that your use of the Marks and any goodwill established by such use will be exclusively for our benefit and that neither this
Agreement nor the Franchise Agreements confer any goodwill or other interests in the Marks upon you (other than the right to operate
the WOB Taverns in compliance with the Franchise Agreements). All provisions of this Agreement and the Franchise Agreements applicable
to the Marks apply to any additional proprietary trade and service marks and commercial symbols we authorize you to use.

 

Limitations
on Your Use of Marks. You agree to use the Marks as the sole identification of the WOB Taverns, except that you agree
to identify yourself as the independent owner in the manner we prescribe in the Manuals or otherwise. We will place a conspicuous
notice at a place we designate in each of your Taverns identifying you as its independent owner and operator. You agree not to
remove, destroy, cover or alter that notice without our prior consent. If you do not do so, we may accomplish the notice or identification
as we see fit, and you agree to reimburse us for doing so. You may not use any Mark as part of any corporate or legal business
name or with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we license to you), or in
any modified form, nor may you use any Mark in connection with the performance or sale of any unauthorized services or products
or in any other manner we have not expressly authorized in writing. No Mark may be used in any advertising concerning the transfer,
sale or other disposition of any Tavern or an ownership interest in you. You agree to display the Marks prominently in the manner
we prescribe at the Taverns, on supplies or materials we designate and in connection with forms and advertising and marketing
materials. You agree to give such notices of trade and service mark registrations as we specify and to obtain any fictitious or
assumed name registrations required under applicable law.

 

Notification
of Infringements and Claims. You agree to notify us immediately of any apparent infringement or challenge to your use
of any Mark, or of any claim by any person of any rights in any Mark, and you agree not to communicate with any person other than
us, our attorneys and your attorneys in connection with any such infringement, challenge or claim. We have sole discretion to
take such action as we deem appropriate and the right to control exclusively any litigation, U.S. Patent and Trademark Office,
U.S. Copyright Office proceeding or any other administrative proceeding arising out of any such infringement, challenge or claim
or otherwise relating to any Mark. You agree to sign any and all instruments and documents, render such assistance and do such
acts and things as, in the opinion of our attorneys, may be necessary or advisable to protect and maintain our interests in any
litigation or U.S. Patent and Trademark Office, U.S. Copyright Office, or other proceeding or otherwise to protect and maintain
our interests in the Marks.

 

Discontinuance
of Use of Marks. If it becomes advisable at any time in our sole discretion for us and/or you to modify or discontinue
the use of any Mark and/or use one or more additional or substitute trade or service marks, including the complete replacement
of any Mark and usage of other marks (due to merger, acquisition or otherwise), you agree to comply with our directions within
a reasonable time after receiving notice. We will reimburse you for your reasonable direct expenses of changing any of the WOB
Taverns’ signs. However, we will not be obligated to reimburse you for any direct or indirect loss, including loss of revenue
attributable to any modified or discontinued Mark or for any expenditures you make to promote a modified or substitute trademark
or service mark.

 

    	 	11	 

     

    

 

Indemnification.
We will indemnify you against and reimburse you for all damages for which you are held liable in any proceeding arising out of
your authorized use of any of our Marks, pursuant to and in compliance with this Agreement, resulting from claims by third parties
that your use of any of the Marks infringes their trademark rights, and for all costs you reasonably incur in the defense of any
such claim in which you are named as a party, so long as you have timely notified us of the claim and have otherwise complied
with the terms of this Agreement. We will not indemnify you against the consequences of your use of the Marks except in accordance
with the requirements of this Agreement. You must provide written notice to us of any such claim within 10 days of your receipt
of such notice and you must tender the defense of the claim to us. We will have the right to defend any such claim and if we do
so, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any attorney retained by you. If
we elect to defend the claim, we will have the right to manage the defense of the claim including the right to compromise, settle
or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.

 

		11	TRANSFERS

 

By Us.
This Agreement is fully transferable by us, and inures to the benefit of any assignee or other legal successor to our interest,
as long as such assignee or successor agrees to be bound by, and assumes all of our continuing obligations under this Agreement.

 

By You.
You understand and acknowledge that the rights and duties created by this Agreement are personal to you (or your owners) and that
we have granted our approval of you as an Area Developer in reliance upon our perceptions of the individual or collective character,
skill, aptitude, attitude, business ability and financial capacity of you (or your owners). Therefore, neither this Agreement
(nor any interest in it) nor any part or all of the ownership or other interest in you, your Tavern(s) or your Development Rights
may be transferred by you or your owners without our prior written approval. Any such transfer without our prior written approval
constitutes a breach of this Agreement and is void and of no effect. As used in this Agreement, the term “transfer”
includes your (or your owners') voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition of any
interest in: (a) this Agreement; (b) you; (c) your Tavern(s); or (d) your Development Rights.

 

Franchise Transfers.
A transfer of any Tavern developed pursuant to this Agreement may be made only in connection with the transfer of the Franchise
Agreement for such Tavern, and a transfer of the Franchise Agreement for any such Tavern may be made only in connection with the
transfer of all interests of yours in such Tavern (or the affiliate that owns such Tavern).

 

Franchise Transfers;
Conditions for Approval of Transfer.

 

Application:
If you (or, if you are a Business Entity,
your owners) are in full compliance with this Agreement and all of the Franchise Agreements, we will not unreasonably withhold
our approval of a transfer that meets all the applicable requirements of this Section. The proposed transferee and its owners must
be individuals of good moral character and otherwise meet our then applicable standards for area developers.

 

Development
Rights: If the transfer is of the Development Rights granted under this Agreement or a controlling interest in the Developer,
or is one of a series of transfers which in the aggregate constitute the transfer of the Development Rights granted under this
Agreement or a controlling interest in the Developer, all of the following conditions must be met prior to or concurrently with
the effective date of the transfer:

 

the transferee
must have sufficient business experience, aptitude and financial resources to operate your business and develop the Taverns and
assume your obligations as an Area Developer;

 

you must transfer
all of the Taverns you have developed under this Agreement;

 

you have paid
all amounts owed to us or our affiliates which are then due and unpaid and submit all required reports and statements which have
not yet been submitted, under this Agreement, any Franchise Agreement or any other agreement between you (or an affiliate) and
us (or our affiliates);

 

    	 	12	 

     

    

 

the transferee
(or its owners) and personnel have agreed to complete our initial training program to our satisfaction;

 

the transferee
must agree to be bound by and expressly assume all of the terms and conditions of this Agreement for the remainder of its term;

 

you (and your
transferring owners) have signed a general release, in form satisfactory to us, of any and all claims against us, our affiliates
and our and their respective shareholders, officers, directors, employees and agents;

 

we must approve
the material terms and conditions of such transfer and determine that the price and terms of payment are not so burdensome as to
affect adversely the future development of the Development Area or the transferee’s operation of its Taverns;

 

if the transferee
finances any part of the sale price of the transferred interest, you (and your transferring owners) must agree that all obligations
of the transferee under or pursuant to any promissory notes, agreements or security interests reserved by you (or your owners)
must be subordinate to transferee's obligations to us and our affiliates to comply with this Agreement or Franchise Agreements
executed by the transferee;

 

you (and your
transferring owners) have signed and delivered to us a non-competition covenant in favor or us and the transferee, agreeing to
be bound, commencing on the effective date of the transfer, by the restrictions contained in this Agreement;

 

you have paid
us a transfer fee equal to $5,000 for each WOB Tavern for which a Franchise Agreement has not been executed; and

 

you have paid
us the transfer fees in accordance with the terms and conditions of any and all executed Franchise Agreements being transferred
in accordance with the transfer of your Development Rights.

 

In connection with
any transfer permitted under this Section, you agree to provide us with all documents to be signed by you and the proposed assignee
or transferee at least 30 business days prior to signing.

 

Right of First
Refusal. If you (or your owners) at any time determine to transfer this Agreement (as defined above) you will obtain a
bona fide, signed written offer and earnest money deposit (in the amount of 5% or more of the offering price) from a responsible
and fully disclosed purchaser and submit an exact copy of such offer to us. The offer must apply only to an interest in this Agreement
or you. It must not include the purchase of any other property or rights of you (or your owners). The offer must completely describe
the purchase price, payment terms, terms of the assumption of liabilities and all other material terms of the transfer (including
all exhibits and other information so that we may readily determine the foregoing). Within 30 days from the date we receive the
copy of such offer, we may purchase your rights under this Agreement and the assets of your business on the terms and conditions
contained in the offer provided to us, except that:

 

    	 	13	 

     

    

 

we may substitute
cash for any form of payment proposed in the offer (with a discounted amount if an interest rate will be charged on any deferred
payments);

 

our credit
will be deemed equal to the credit of any proposed purchaser;

 

we will have
no less than 90 days to prepare for a closing; and

 

we are entitled
to receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets
of a business or with the capital stock of an incorporated business, as applicable, including, without limitation, representations
and warranties as to:

 

ownership and
condition of and title to stock or other forms of ownership interests and/or assets;

 

liens and encumbrances
relating to the stock or other ownership interests and/or assets; and

 

validity of
contracts and the liabilities contingent or otherwise of the corporation whose stock is being purchased.

 

The 30-day period will
not commence until you have delivered to us full and complete documentation to enable us to fully evaluate the offer. If we do
not exercise our right of first refusal, you or your owners may complete the transfer on the terms contained in the offer, subject
to our approval of the transfer as described in this Section of this Agreement. If the transfer as described in the offer is not
completed within 120 days after delivery of the offer to us, or if there is a material change in the terms of the transfer, we
will again have the right of first refusal as described in this Agreement.

 

Transfer to
a Business Entity. If you are in full compliance with this Agreement, you may transfer this Agreement to a Business Entity
that conducts no business other than as an Area Developer and in developing and operating Taverns granted under this Agreement,
and, if applicable, other Taverns or services as an Area Developer, so long as you own, control and have the right to vote 51%
or more of the issued and outstanding ownership interests of the Business Entity (like stock or partnership interests) and you
guarantee its performance under this Agreement. All other owners are subject to our approval. The organizational or governing
documents of the Business Entity must recite that the issuance and transfer of any ownership interests in the Business Entity
are restricted by the terms of this Agreement, are subject to our approval, and all certificates or other documents representing
ownership interests in the Business Entity must bear a legend referring to the restrictions of this Agreement. As a condition
of our approval of the issuance or transfer of ownership interests to any person other than you, we may require (in addition to
the other requirements we have the right to impose) that the proposed owner sign an agreement, in a form provided or approved
by us, agreeing to be bound jointly and severally by, to comply with, and to guarantee the performance of, all of your obligations
under this Agreement.

 

    	 	14	 

     

    

 

Death or Permanent
Disability. Upon your death or permanent disability or, if you are a Business Entity, the death or disability of the owner
of a controlling interest in you, your or such owner’s executor, administrator, conservator or other personal representative
must transfer your interest in this Agreement or such owner’s interest in you to a third party. Such disposition of this
Agreement or the interest in you (including, without limitation, transfer by bequest or inheritance) must be completed within
a reasonable time, not to exceed 6 months from the date of death or disability, and will be subject to all of the terms and conditions
applicable to transfers contained in this Section 11. A failure to transfer your or such owner’s interest within this time
period constitutes a breach of this Agreement. For purposes of this Agreement, the terms “disability” means
a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you or
an owner of a controlling interest in you from performing your duties as an Area Developer pursuant to this Agreement. Our consent
to a transfer of any interest subject to the restrictions of this Section does not constitute a waiver of any claims we may have
against the assignor; nor will it be deemed a waiver of our right to demand the assignee’s exact compliance with any of
the terms or conditions of this Agreement or any Franchise Agreements.

 

		12	TERMINATION

 

Termination
by You. You may terminate this Agreement if you (and your owners) are in substantial compliance with this Agreement and
we materially breach this Agreement and do not correct or commence correction of such failure within 60 days after written notice
of such material failure is delivered to us. You termination of this Agreement for any other reason or without such notice will
be deemed a termination without cause.

 

Termination
by Us. We may immediately terminate this Agreement effective upon written notice to you, without opportunity to cure,
if:

 

you (or any
of your owners) have made any material misrepresentation or omission in connection with your purchase of these Development Rights
or any of the Taverns;

 

you fail
to establish and open Taverns in accordance with the Development Schedule;

 

you fail
to maintain in continuous operation the minimum cumulative number of Taverns required by the Development Schedule to be in operation
during the applicable time period;

 

you fail
to pay when due any amount owed to us or our affiliates, whether under this Agreement or not, and do not correct such failure within
10 days after written notice of such failure is delivered to you;

 

you fail
to pay when due any amount owned to any creditor, supplier or lessor of any Tavern developed hereunder or any taxing authority
for any federal, state or local taxes (other than amounts being bona fide disputed through appropriate proceedings) and you do
not correct such failure within 10 days after written notice of such failure is delivered to you;

 

you surrender
or transfer control of this Agreement, the Development Rights or one or more of your Taverns without our prior written consent;

 

you (or any
of your owners) are or have been convicted by a trial court of, or plead or have pleaded no contest or guilty to, a felony or other
serious crime or offense that is likely to adversely affect the reputation of the System and the goodwill associated with the Marks;

 

you (or any
of your owners) engage in any dishonest or unethical conduct which may adversely affect your reputation, our reputation, or the
reputation of the System and the goodwill associated with the Marks;

 

you (or any
of your owners) make an unauthorized assignment of this Agreement, your Development Rights, and ownership interest in you (if you
are a Business Entity), or an interest in one or more of your Tavern(s);

 

    	 	15	 

     

    

 

in the event
of your death or disability (or the death or disability of the owner of a controlling interest in you), this Agreement (or such
owner’s interest in you) is not assigned as required under this Agreement;

 

you (or any
of your owners) make any unauthorized use of the Marks or any unauthorized use or disclosure of any Confidential Information;

 

you (or any
of your owners) make an assignment for the benefit of creditors or admit in writing your insolvency or inability to pay your debts
generally as they become due; or you (or any of your owners) consent to the appointment of a receiver, trustee or liquidator of
all or the substantial part of your property; or any order appointing a receiver, trustee or liquidator is not vacated within 30
days following the entry of such order;

 

we have delivered
to you a notice of termination of a Franchise Agreement in accordance with its terms and conditions or you have terminated a Franchise
Agreement without cause, as defined in such agreement;

 

you fail
to comply with any other provision of this Agreement or any other agreement with us or our affiliates and do not correct such failure
within 30 days after written notice of such failure to comply is delivered to you; or

 

you fail
on 2 or more separate occasions within any 12 consecutive month period or on 3 occasions during the term of this Agreement to comply
with this Agreement or any Franchise Agreement, after we have notified you of the failure (pursuant to the terms of this Agreement
or such Franchise Agreement), whether or not such failures to comply are corrected after notice of the failure is delivered to
you.

 

		13	RIGHTS AND OBLIGATIONS ON TERMINATION

 

Continuing Obligations.
All of the obligations under this Agreement which expressly or by their nature survive the expiration or termination of this Agreement
continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement, until they
are satisfied in full or by their nature expire.

 

Payment of Amounts
Owed to Us. You agree to pay us and our affiliates all amounts owed to us and our affiliates within the later of: (i) 15
days after the effective date of termination of expiration of this Agreement; or (ii) the date such amounts are due.

 

Competitive
Restrictions. Upon termination or expiration of this Agreement for any reason whatsoever, you and your owners agree that,
for a period of 2 years commencing on the effective date of termination or expiration (and for such longer period of time as may
be provided in any applicable Franchise Agreement), neither you nor any of your owners will, directly or indirectly (e.g.,
through a spouse or child):

 

have any
direct or indirect interest as a disclosed or beneficial owner in any Competitive Business located or operating within the Development
Area or within 10 miles of any WOB Tavern in operation or under construction on the effective date of the termination or expiration
of this Agreement;

 

    	 	16	 

     

    

 

perform services
as a director, officer, manager, employee, consultant, representative, agent or otherwise for any Competitive Business located
or operating within the Development Area or within 10 miles of any WOB Tavern in operation or under construction on the effective
date of the termination or expiration of this Agreement;

 

recruit or
hire any person who is our employee or the employee of any WOB Tavern owned by us, our affiliates or our franchisees without obtaining
the prior written permission of that person’s employer; or

 

divert or
attempt to divert any business or customer of WOB Taverns to any Competitive Business or otherwise take any action injurious or
prejudicial to the goodwill associated with the Marks and the System.

 

If any person restricted
by this Section refuses voluntarily to comply with the foregoing obligations, the 2 year period will be extended by the period
of noncompliance. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have
other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive
you of your personal goodwill or ability to earn a living.

 

Grant of Franchises.
Upon termination or expiration of this Agreement for any reason, your rights under this Agreement will terminate and you agree
to immediately and permanently cease your development activities. We will then have no further obligation to grant you additional
franchises for WOB Taverns and will be free to operate, or grant other persons franchises to operate, WOB Taverns within the Development
Area.

 

Marks and Confidential
Information. Except in connection with Taverns you are then operating under Franchise Agreements, or with respect to which
a Franchise Agreement has been signed, you agree to immediately and permanently cease to use, by advertising or in any manner
whatsoever, the Marks and the Confidential Information; slogan, trademarks, trade names, service marks, designs, trade dress or
logos which are similar in nature to the Marks; or any equipment, materials, forms, confidential methods, procedures, recipes
and techniques associated with or similar to the WORLD OF BEER® System or which display the Marks or any other distinctive
forms, slogans, signs, symbols, trade dress or devices associated with or belonging to us.

 

		14	RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.

 

Independent
Contractors. You and we understand and agree that this Agreement does not create a fiduciary relationship between the
parties. We and you are independent contractors. Nothing in this Agreement is intended to make either party a general or special
agent, joint venturer, partner or employee of the other for any purpose. You agree to conspicuously identify yourself in all dealings
as the owner of development rights granted under an Area Development Agreement with us in the ways we specify for doing so. If
you do not, we may place such notices to accomplish the foregoing and you must reimburse us for doing so. You agree to place notices
of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require from time
to time. If you do not do so, we may place the notices and accomplish the foregoing as we see fit, and you must reimburse us for
doing so.

 

    	 	17	 

     

    

 

No Liability
for Acts of Other Party. You agree not to employ any of the Marks in signing any contract or applying for any license
or permit, or in a manner that may result in our liability for any of your indebtedness or obligations, and you further agree
not to use the Marks in any way we have not expressly authorized. Neither we nor you will (i) make any express or implied agreements,
warranties, guarantees or representations, or incur any debt in the name, or on behalf, of the other; (ii) represent that our
respective relationship is other than franchisor and area developer/franchisee; or (iii) be obligated by, or have any liability
under, any agreements or representations made by the other that are not expressly authorized in writing. We will not be obligated
for any damages to any person or property directly or indirectly arising out of the operation of the Center(s) you conduct pursuant
to this Agreement.

 

Taxes.
We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, payroll, property or other
taxes, whether levied upon you or your assets or upon us, arising in connection with the business conducted by you pursuant to
this Agreement or any Franchise Agreement (except any taxes we are required by law to collect from you with respect to purchases
from us). Payment of all such taxes is solely your responsibility.

 

Indemnification.
Subject to Section 16.1, you agree to indemnify, defend and hold us and our affiliates and our respective shareholders, directors,
officers, employees, agents, successors and assignees (the “Indemnified Parties”) harmless from and against,
and to reimburse any one or more of the Indemnified Parties for, all claims, obligations and damages described in this Section,
any and all taxes described in this Agreement and any and all claims and liabilities directly or indirectly arising out of the
operation of one or more of your WOB Taverns (even if our negligence is alleged, but not proven), your operations as an Area Developer,
or your breach of this Agreement. For purposes of this indemnification, “claims” means and includes all obligations,
damages (actual, consequential or otherwise) and costs reasonably incurred in the defense of any claim against any of the Indemnified
Parties, including, without limitation, reasonable accountants', arbitrators', attorneys' and expert witness fees, costs of investigation
and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel and living
expenses. The Indemnified Parties have the right to defend any such claim against them in such manner as they deem appropriate
or desirable in their sole discretion. This indemnity will continue in full force and effect subsequent to and notwithstanding
the expiration or termination of this Agreement. Under no circumstances will we or any other Indemnified Party be required to
seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order
to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in
no way reduce or alter the amounts we or another Indemnified Party may recover from you.

 

		15	ENFORCEMENT

 

Conflicts with
Other Agreements. In the event that one or more of the provisions of this Agreement are inconsistent with one or more
provisions governing the same or similar subject matter in a separate agreement with us, the provisions providing the greatest
protection to us, or imposing the greatest burden on you, will govern.

 

Severability;
Substitution of Valid Provisions. Except as otherwise stated in this Agreement, each provision of this Agreement, and
any portion of any provision, are severable. The remainder of this Agreement will continue in full force and effect. To the extent
that any provision restricting your competitive activities is deemed unenforceable, you and we agree that such provisions will
be enforced to the fullest extent permissible under governing law. This Agreement will be deemed automatically modified to comply
with such governing law if any applicable law requires: (a) a greater prior notice of the termination of or refusal to renew
this Agreement; or (b) the taking of some other action not described in this Agreement. We may modify such invalid or unenforceable
provision to the extent required to be valid and enforceable. In such event, you will be bound by the modified provisions.

 

    	 	18	 

     

    

 

Waivers.
We will not be deemed to have waived our right to demand exact compliance with any of the terms of this Agreement, even if at
any time: (a) we do not exercise a right or power available to us under this Agreement; or (b) we do not insist on your
strict compliance with the terms of this Agreement; or (c) if there develops a custom or practice which is at variance with
the terms of this Agreement; or (d) if we accept payments which are otherwise due to us under this Agreement. Similarly,
our waiver of any particular breach or series of breaches under this Agreement or of any similar term in any other agreement between
you and us or between us and any other franchise owner, will not affect our rights with respect to any later breach by you or
anyone else.

 

Limitation of
Liability. Neither of the parties will be liable for loss or damage or deemed to be in breach of this Agreement if failure
to perform obligations results from:

 

compliance
with any law, ruling, order, regulation, requirement or instruction of any federal, state or municipal government or any department
or agency thereof;

 

acts of God,
terror, war or similar events;

 

acts or omissions
of a similar event or cause.

 

However, such events or delays do not excuse
payments of amounts owed at any time.

 

Approval and
Consents. Whenever this Agreement requires our advance approval, agreement or consent, you agree to make a timely written
request for it. Our approval or consent will not be valid unless it is in writing. Except where expressly stated otherwise in
this Agreement, we have the absolute right to refuse any request by you or to withhold our approval of any action or omission
by you. If we provide to you any waiver, approval, consent, or suggestion, or if we neglect or delay our response or deny any
request for any of those, we will not be deemed to have made any warranties or guarantees which you may rely on, and will not
assume any liability or obligation to you.

 

Waiver of Punitive
Damages. EXCEPT FOR YOUR OBLIGATIONS TO INDEMNIFY US AND CLAIMS FOR UNAUTHORIZED USE OF THE MARKS OR CONFIDENTIAL INFORMATION,
YOU AND WE EACH WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY RIGHT TO, OR CLAIM FOR, ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST
THE OTHER. YOU AND WE ALSO AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN YOU AND US, THE PARTY MAKING A CLAIM WILL BE LIMITED
TO EQUITABLE RELIEF AND RECOVERY OF ANY ACTUAL DAMAGES IT SUSTAINS.

 

Limitations
of Claims. ANY AND ALL CLAIMS ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP AMONG YOU AND US MUST BE MADE BY WRITTEN
NOTICE TO THE OTHER PARTY WITHIN 1 YEAR FROM THE OCCURRENCE OF THE FACTS GIVING RISE TO SUCH CLAIM (REGARDLESS OF WHEN IT BECOMES
KNOWN), EXCEPT FOR CLAIMS ARISING FROM: (A) CLAIMS FOR INDEMNIFICATION; AND/OR (B) UNAUTHORIZED USE OF THE MARKS. HOWEVER,
THIS PROVISION DOES NOT LIMIT THE RIGHT TO TERMINATE THIS AGREEMENT IN ANY WAY.

 

    	 	19	 

     

    

 

Governing Law.
EXCEPT TO THE EXTENT THIS AGREEMENT OR ANY PARTICULAR DISPUTE IS GOVERNED BY THE U.S. TRADEMARK ACT OF 1946 (LANHAM ACT, 15
U.S.C. §1051 AND THE SECTIONS FOLLOWING IT) OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE FRANCHISE ARE GOVERNED BY FLORIDA
LAW WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCLUDING ANY LAW REGULATING THE SALE OF FRANCHISES OR GOVERNING THE RELATIONSHIP
BETWEEN A FRANCHISOR AND FRANCHISEE, UNLESS THE JURISDICTIONAL REQUIREMENTS OF SUCH LAWS ARE MET INDEPENDENTLY WITHOUT REFERENCE
TO THIS SECTION. ALL MATTERS RELATING TO ARBITRATION ARE GOVERNED BY THE FEDERAL ARBITRATION ACT. References to any law or
regulation also refers to any successor laws or regulations and any implementing regulations for any statute, as in effect at
the relevant time. References to a governmental agency also refer to any successor regulatory body that succeeds to the function
of such agency.

 

Jurisdiction.
YOU AND WE CONSENT, AND IRREVOCABLY SUBMIT TO, THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND FEDERAL COURTS OF COMPETENT
JURISDICTION FOR HILLSBOROUGH COUNTY, FLORIDA, AND WAIVE ANY OBJECTION TO THE JURISDICTION AND VENUE OF SUCH COURTS. THE EXCLUSIVE
CHOICE OF JURISDICTION DOES NOT PRECLUDE THE BRINGING OF ANY ACTION BY THE PARTIES FOR THE ENFORCEMENT OF ANY JUDGMENT OBTAINED
IN ANY SUCH JURISDICTION, IN ANY OTHER APPROPRIATE JURISDICTION OR THE RIGHT OF THE PARTIES TO CONFIRM OR ENFORCE ANY ARBITRATION
AWARD IN ANY APPROPRIATE JURISDICTION.

 

Waiver of Jury
Trial. YOU AND WE EACH IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR
IN EQUITY, BROUGHT BY EITHER YOU OR US.

 

Cumulative Remedies.
The rights and remedies provided in this Agreement are cumulative and neither you nor we will be prohibited from exercising any
other right or remedy provided under this Agreement or permitted by law or equity.

 

Costs and Attorneys'
Fees. If a claim for amounts owed by you to us or any of our affiliates is asserted in any legal or arbitration proceeding
or if either you or we are required to enforce this Agreement in a judicial or arbitration proceeding, the party prevailing in
such proceeding will be entitled to reimbursement of its costs and expenses, including reasonable accounting and attorneys fees.
Attorneys fees will include, without limitation, reasonable legal fees charged by attorneys, paralegal fees, and costs and disbursements,
whether incurred prior to, or in preparation for, or contemplation of, the filing of written demand or claim, action, hearing,
or proceeding to enforce the obligations of the parties under this Agreement.

 

Binding Effect.
This Agreement is binding on and will inure to the benefit of our successors and assigns. Except as otherwise provided in this
Agreement, this Agreement will also be binding on your successors and assigns, and your heirs, executors and administrators.

 

Entire Agreement.
This Agreement, all exhibits to this Agreement and all ancillary agreements executed contemporaneously with this Agreement constitute
the entire agreement between the parties with reference to the subject matter of this Agreement and supersede any and all prior
negotiations, understandings, representations and agreements. Notwithstanding the foregoing, nothing in this Agreement shall disclaim
or require Franchisee to waive reliance on any representation that Franchisor made in the most recent disclosure document (including
its exhibits and amendments) that Franchisor delivered to Franchisee or its representative, subject to any agreed-upon changes
to the contract terms and conditions described in that disclosure document and reflected in this Agreement (including any riders
or addenda signed at the same time as this Agreement). Except as expressly provided otherwise in this Agreement, this Agreement
may be modified only by written agreement signed by both you and us.

 

No Liability
to Others; No Other Beneficiaries. We will not, because of this Agreement or by virtue of any approvals, advice or services
provided to you, be liable to any person or legal entity who is not a party to this Agreement. Except as specifically described
in this Agreement, no other party has any rights because of this Agreement.

 

Construction.
The headings of the sections are for convenience only. If two or more persons are at any time developers hereunder, whether or
not as partners or joint venturers, their obligations and liabilities to us are joint and several, and the term “you”
refers to all of them. This Agreement may be executed in multiple counterparts, each of which will be deemed an original and together
will constitute one and the same instrument. “A or B” means “A” or “B”
or both.

 

    	 	20	 

     

    

 

Certain Definitions.
The term “family member” refers to parents, spouses, offspring and siblings, and the parents and siblings of
spouses. The term “affiliate” means any Business Entity directly or indirectly owned or controlled by a person,
under common control with a person or controlled by a person. The terms “developer, franchisee, franchise owner, you
and your” are applicable to one or more persons or a Business Entity, as the case may be. The singular use of
any pronoun also includes the plural and the masculine and neuter usages include the other and the feminine. The term “person”
includes individuals, corporations, partnerships (general or limited), limited liability companies, and all artificial or legal
entities. The term “section” refers to a section or subsection of this Agreement. The word “control”
means the power to direct or cause the direction of management and policies. The word “owner” means any person
holding a direct or indirect, legal or beneficial ownership interest or voting rights in another person (or a transferee of this
Agreement or an interest in you), including any person who has a direct or indirect interest in you or this Agreement and any
person who has any other legal or equitable interest, or the power to vest in himself any legal or equitable interest, in the
revenue, profits, rights or assets.

 

Timing.
Time is of the essence of this Agreement. It will be a material breach of this Agreement to fail to perform any obligation within
the time required or permitted by this Agreement. In computing time periods from one date to a later date, the words “from”
and “commencing on” (and the like) mean “from and including”; and the words “to,” “until”
and “ending on” (and the like) mean “to but excluding.” Indications of time of day mean Tampa, Florida
time.

 

Private Disputes.
ANY DISPUTE AND ANY LITIGATION WILL BE CONDUCTED AND RESOLVED ON AN INDIVIDUAL BASIS ONLY AND NOT A CLASS-WIDE, MULTIPLE PLAINTIFF
OR SIMILAR BASIS. ANY SUCH PROCEEDING WILL NOT BE CONSOLIDATED, EXCEPT FOR DISPUTES INVOLVING AFFILIATES OF THE PARTIES.

 

		16	DISPUTE RESOLUTION

 

Mediation.
During the term of this Agreement, certain disputes may arise between you and us that may be resolvable through mediation. To
facilitate such resolution, you and we agree each party must, before commencing any arbitration proceeding, submit the dispute
to non-binding mediation at a mutually agreeable location (if you and we cannot agree on a location, the mediation will be conducted
at our headquarters) to 1 mediator, appointed under the American Arbitration Association's Commercial Mediation Rules. The mediator
will conduct the mediation in accordance with those rules. You and we agree that any statements made by either you or us in any
such mediation proceedings will not be admissible in any subsequent arbitration or legal proceeding. Each party will bear
its own costs and expenses of conducting the mediation and share equally the cost of any third parties who are required to participate.
Nevertheless, both you and we have the right in a proper case to obtain temporary restraining orders and temporary or preliminary
injunctive relief from a court of competent jurisdiction. However, the parties must immediately and contemporaneously submit the
dispute for non-binding mediation. If the dispute between you and us cannot be resolved through mediation within 60 days following
the appointment of the mediator, the parties must submit the dispute to arbitration subject to the following terms and conditions.

 

    	 	21	 

     

    

 

Agreement to
Arbitrate. EXCEPT FOR DISPUTES (AS DEFINED BELOW) RELATED TO OR BASED ON THE MARKS (WHICH AT OUR SOLE OPTION MAY BE SUBMITTED
TO ANY COURT OF COMPETENT JURISDICTION) AND EXCEPT AS OTHERWISE EXPRESSLY PROVIDED BY THIS AGREEMENT, ANY LITIGATION, CLAIM, DISPUTE,
SUIT, ACTION, CONTROVERSY, PROCEEDING OR OTHERWISE (“DISPUTE”) BETWEEN OR INVOLVING YOU AND US (AND/OR INVOLVING YOU
AND/OR ANY CLAIM AGAINST OR INVOLVING ANY OF OUR OR OUR AFFILIATES' SHAREHOLDERS, DIRECTORS, PARTNERS, OFFICERS, EMPLOYEES, AGENTS,
ATTORNEYS, ACCOUNTANTS, AFFILIATES, GUARANTORS OR OTHERWISE), WHICH ARE NOT RESOLVED WITHIN 45 DAYS OF NOTICE FROM EITHER YOU
OR WE TO THE OTHER, WILL BE SUBMITTED TO ARBITRATION TO THE PLACE OF BUSINESS OF THE AMERICAN ARBITRATION ASSOCIATION CLOSEST
TO OUR HEADQUARTERS IN TAMPA, FLORIDA. THE ARBITRATION WILL BE CONDUCTED BY THE AMERICAN ARBITRATION ASSOCIATION PURSUANT TO ITS
COMMERCIAL ARBITRATION RULES. ALL MATTERS RELATING TO ARBITRATION WILL BE GOVERNED BY THE FEDERAL ARBITRATION ACT (9 U.S.C. §§1,
ET SEQ.) AND NOT BY ANY STATE ARBITRATION LAW. THE PARTIES TO ANY ARBITRATION WILL EXECUTE AN APPROPRIATE CONFIDENTIALITY
AGREEMENT, EXCEPTING ONLY SUCH DISCLOSURES AND FILINGS AS ARE REQUIRED BY LAW.

 

Place and Procedure.
THE ARBITRATION PROCEEDINGS WILL BE CONDUCTED AT OUR HEADQUARTERS IN TAMPA, FLORIDA. ANY DISPUTE AND ANY ARBITRATION WILL BE CONDUCTED
AND RESOLVED ON AN INDIVIDUAL BASIS ONLY AND NOT A CLASS-WIDE, MULTIPLE PLAINTIFF OR SIMILAR BASIS. ANY SUCH ARBITRATION PROCEEDING
WILL NOT BE CONSOLIDATED WITH ANY OTHER ARBITRATION PROCEEDING INVOLVING ANY OTHER PERSON, EXCEPT FOR DISPUTES INVOLVING AFFILIATES
OF THE PARTIES TO SUCH ARBITRATION. THE PARTIES AGREE THAT, IN CONNECTION WITH ANY SUCH ARBITRATION PROCEEDING, EACH MUST SUBMIT
OR FILE ANY CLAIM WHICH WOULD CONSTITUTE A COMPULSORY COUNTERCLAIM (AS DEFINED BY RULE 13 OF THE FEDERAL RULES OF CIVIL PROCEDURE)
WITHIN THE SAME PROCEEDING AS THE DISPUTE TO WHICH IT RELATES. ANY SUCH DISPUTE WHICH IS NOT SUBMITTED OR FILED IN SUCH PROCEEDING
WILL BE BARRED.

 

Awards and Decisions.
THE PROCEEDINGS WILL BE HEARD BY A PANEL OF 3 ARBITRATORS. EACH PARTY WILL SELECT 1 ARBITRATOR, AND THE 2 ARBITRATORS WILL SELECT
THE THIRD ONE. THE ARBITRATORS WILL HAVE THE RIGHT TO AWARD ANY RELIEF WHICH THEY DEEM PROPER IN THE CIRCUMSTANCES, INCLUDING,
FOR EXAMPLE, MONEY DAMAGES (WITH INTEREST ON UNPAID AMOUNTS FROM THEIR DUE DATE(S)), SPECIFIC PERFORMANCE, TEMPORARY AND/OR PERMANENT
INJUNCTIVE RELIEF, AND REIMBURSEMENT OF ATTORNEYS' FEES AND RELATED COSTS TO THE PREVAILING PARTY. THE ARBITRATORS WILL NOT HAVE
THE AUTHORITY TO AWARD EXEMPLARY OR PUNITIVE DAMAGES EXCEPT AS OTHERWISE PERMITTED BY THIS AGREEMENT, NOR THE RIGHT TO DECLARE
ANY MARK GENERIC OR OTHERWISE INVALID. YOU AND WE AGREE TO BE BOUND BY THE PROVISIONS OF ANY LIMITATIONS OF THE TIME IN WHICH
CLAIMS MUST BE BROUGHT UNDER APPLICABLE LAW OR UNDER THIS AGREEMENT, WHICHEVER EXPIRES EARLIER. THE AWARD AND DECISION OF THE
ARBITRATORS WILL BE CONCLUSIVE AND BINDING AND JUDGMENT ON THE AWARD MAY BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION. THE
PARTIES ACKNOWLEDGE AND AGREE THAT ANY ARBITRATION AWARD MAY BE ENFORCED AGAINST EITHER OR BOTH OF THEM IN A COURT OF COMPETENT
JURISDICTION AND EACH WAIVES ANY RIGHT TO CONTEST THE VALIDITY OR ENFORCEABILITY OF SUCH AWARD. WITHOUT LIMITING THE FOREGOING,
THE PARTIES WILL BE ENTITLED IN ANY SUCH ARBITRATION PROCEEDING TO THE ENTRY OF AN ORDER BY A COURT OF COMPETENT JURISDICTION
PURSUANT TO AN OPINION OF THE ARBITRATORS FOR SPECIFIC PERFORMANCE OF ANY OF THE REQUIREMENTS OF THIS AGREEMENT. JUDGMENT UPON
AN ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION AND WILL BE BINDING, FINAL AND NON-APPEALABLE.

 

    	 	22	 

     

    

 

Specific Performance.
NOTHING IN THIS AGREEMENT WILL PREVENT YOU OR WE FROM OBTAINING TEMPORARY RESTRAINING ORDERS AND TEMPORARY OR PRELIMINARY INJUNCTIVE
RELIEF FROM A COURT OF COMPETENT JURISDICTION. HOWEVER, YOU AND WE MUST CONTEMPORANEOUSLY SUBMIT A DISPUTE FOR ARBITRATION ON
THE MERITS.

 

Third Parties.
THE ARBITRATION PROVISIONS OF THIS AGREEMENT ARE INTENDED TO BENEFIT AND BIND CERTAIN THIRD PARTY NON-SIGNATORIES, AND ALL OF
YOUR AND OUR PRINCIPAL OWNERS AND AFFILIATES.

 

Survival.
THIS PROVISION CONTINUES IN FULL FORCE AND EFFECT SUBSEQUENT TO AND NOTWITHSTANDING THE EXPIRATION OR TERMINATION OF THIS AGREEMENT
FOR ANY REASON.

 

		17	NOTICES AND PAYMENTS.

 

All written notices
and reports permitted or required under this Agreement or by the Manuals will be deemed delivered:

 

2 business
days after being placed in the hands of a commercial airborne courier service for next business day delivery; or

 

3 business
days after placement in the United States mail by certified mail, return receipt requested, postage prepaid.

 

We may direct notices
to your affiliates to you. All notices must be addressed to the parties as follows:

 

	 	If to Us:	WORLD OF BEER FRANCHISING, INC.
	 		10910 Sheldon Road
	 		Tampa, Florida 33626
	 		Attention: President
	 	 	 
	 	If to You:	SOUTHEAST FLORIDA CRAFT, LLC
	 	 	P.O. Box 810245
	 	 	Boca Raton, FL 33481
	 	 	Attention:  Glenn E. Straub

 

Either you or we may
change the address for delivery of all notices and reports and any such notice will be effective within 10 business days of any
change in address. Any required payment or report not actually received by us during regular business hours on the date due (or
postmarked by postal authorities at least 2 days prior to such date, or in which the receipt from the commercial courier service
is not dated prior to 2 days prior to such date) will be deemed delinquent.

 

    	 	23	 

     

    

 

[Signature Page on Following Page]

 

    	 	24	 

     

    

 

Intending to be bound,
you and we sign and deliver this Agreement effective as of the Agreement Date, regardless of the actual date of signature.

 

	“US”:	 	“YOU”:
	 	 	 
	WORLD OF BEER FRANCHISING, INC.,	 	SOUTHEAST FLORIDA CRAFT, LLC
	a Florida corporation	 	a Florida limited liability company
	 	 	 	 	 
	By:	/s/ Benjamin P. Novello	 	By:	/s/ James D. Cecil
	Print Name:	Benjamin P. Novello	 	Print Name:	James D. Cecil
	Title:	Chief Executive Officer	 	Title:	Managing M ember
	Date: 	2/9/16	 	Date:	1/6/16

 

[Signature Page to World of Beer Franchising,
Inc. Area Development Agreement]

 

    	 	25	 

     

    

 

EXHIBIT A

TO THE

AREA DEVELOPMENT AGREEMENT

 

INDEX

 

This Index is intended as a general guideline to assist you
in reading the Area Development Agreement. You must review the Area Development Agreement to get an exact definition of a term.

 

	 	Page
	affiliate	21
	Agreement	1
	Agreement Date	1
	Business Entity	3
	claims	18
	Competitive Business	10
	Confidential Information	8
	control	21
	Developer	1
	Development Area	4
	Development Fee	6
	Development Rights	4
	Development Schedule	4
	disability	15
	DISPUTE	22
	family member	21
	Franchise Agreement	4
	Franchise Fee	6
	franchise owner	21
	franchisee	21
	Improvements	9
	Indemnified Parties	18
	Manuals	9
	Marks	1
	owner	21
	person	21
	section	21
	System	1
	Taverns	1
	transfer	12
	WOB Taverns	1

 

    	

     

    

 

EXHIBIT B

TO THE

AREA DEVELOPMENT AGREEMENT

 

DEVELOPMENT AREA AND DEVELOPMENT SCHEDULE

 

Development Area (per Section 3.1):

 

	The Counties of Broward and Miami-Dade in the State of Florida	 
	 	 
	 	 

 

		 ̈	Check box if map is attached.

 

Development Schedule: You agree to have open and operating at
least the following minimum, cumulative number of Taverns by the date specified:

 

	Cumulative Number of Stores to be Developed	 	Last Date to Establish and Open the Store
	1	 	12 months from Agreement Date
	2	 	24 months from Agreement Date
	3	 	36 months from Agreement Date
	4	 	48 months from Agreement Date
	5	 	60 months from Agreement Date

 

	“US”:	 	“YOU”:
	 	 	 
	WORLD OF BEER FRANCHISING, INC.,	 	SOUTHEAST FLORIDA CRAFT, LLC
	a Florida corporation	 	a Florida limited liability company
	 	 	 	 	 
	By:	/s/ Benjamin P. Novello	 	By:	/s/ James D. Cecil
	Print Name:	Benjamin P. Novello	 	Print Name:	James D. Cecil
	Title:	Chief Executive Officer	 	Title:	Manager
	Date:	2/9/16	 	Date:	2/9/16

 

    	

     

    

 

EXHIBIT B

 

FORM OF OPERATING AGREEMENT_

 

_____________, LLC

 

 

 

OPERATING AGREEMENT

 

 

 

As of ___________, 2016

 

    	

     

    

 

OPERATING AGREEMENT

 

THIS OPERATING AGREEMENT
(the “Agreement”) of ___________, LLC, a Florida limited liability company (the “Company”), dated as of
___________, 2016, by and among Southeast Florida Craft, LLC and Attitude Beer Holding Co. (each a “Member and collectively
the “Members”).

 

WHEREAS, the Company,
was formed as a limited liability company pursuant to the laws of the State of Florida by filing the Articles of Organization with
the Florida Secretary of State on __________, as the same may be amended, supplemented or modified from time to time (the “Articles
of Organization”); and

 

WHEREAS, the undersigned desire to provide
for the regulation and establishment of the affairs of the Company, the conduct of its business and the relations among them as
Members of the Company.

 

NOW THEREFORE, for and in consideration
of the premises stated, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Members hereby agree as follows:

 

DEFINITIONS

 

Definitions.
As used herein, the following terms have the following respective meanings:

 

“Act”
shall mean the Limited Liability Company Law of the State of Florida and any successor statute, as amended from time to time.

 

“Adjusted
Capital Account” means the cash contributed by a Member, (i) reduced from time to time by cash distributions from the
Company to him in accordance with Section 5.2(b)(ii) herein, and (ii) increased from time to time by any additional cash contributions
made by him in accordance with Section 3.2(a) herein, and (iii) otherwise adjusted as required under Treasury Regulations § 1.704-1(b)(2)(iv).

 

“Affiliate”
means any Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, another Person.

 

“Agreement”
means this Operating Agreement, as amended from time to time.

 

“Available
Cash” means all cash of the Company after paying its current obligations and making the appropriate reservations for
foreseeable future expenses.

 

“Bankruptcy”,
with respect to any Person, means (i) making an assignment for the benefit of creditors, (ii) filing a voluntary petition in bankruptcy,
(iii) becoming the subject of an order for relief or being-declared insolvent in any federal or state bankruptcy or insolvency
proceeding (unless such order is dismissed within ninety (90) days following entry), (iv) filing a petition or answer seeking for
itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute,
law, or regulation, (v) filing an answer or other pleading admitting or failing to contest the material allegation of a petition
filed against it in any proceeding similar in nature to those described in the preceding clause, or otherwise failing to obtain
dismissal of such petition within one hundred- twenty (120) days following its filing, or (vi) seeking, consenting to, or acquiescing
in, the appointment of a trustee, receiver, or liquidator of all or any substantial part of its properties.

 

    	

     

    

 

“Capital
Contribution” means the aggregate capital contribution made from time to time in cash by a Member to the Company.

 

“Capital
Proceeds” means the proceeds of the sale of all or substantially all the assets of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor statute.

 

“Company”
means __________, a Florida limited liability company.

 

“Incompetency,”
with respect to any member who is a natural person, shall mean the entry by a court of competent jurisdiction of an order or decree
adjudicating such Member incompetent to manage his person or his estate.

 

“Interest(s)”
means an interest as a Member of the Company.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest, conditional sale agreement or encumbrance
of any kind, or any other type of preferential arrangement that has the practical effect of creating a security interest in respect
of such asset.

 

“Liquidator”
means the Manager, or if there are no Manager at the time in question, such other Person who is appointed in accordance with applicable
law to take all actions related to the winding up of the Company’s business and the distribution of the Company’s assets.

 

“Manager”
means Southeast Florida Craft , LLC.

 

“Management
Fee” shall mean 4% of Net Sales. Net Sales shall mean the total revenue from sales generated by a company, less deduction
of returns, allowances for damaged or missing goods and any discounts allowed.

 

“Member”
means any of those Persons identified above as Members and any substitute or additional Member in such Person’s capacity
as a member of the Company.

 

“Member
Majority” or “Majority of Members” means, at any time, any combination of Members holding, in the
aggregate, a majority of all of the Interests.

 

“Membership
Interest” shall mean the same thing as Interest as defined in Section 1.1(o) herein.

 

“Membership
Percentage” means, with respect to each Member, the percentage set forth in “Schedule A” attached
hereto.

 

“Net
Profits and Net Losses” means, for any period, the net profits and net losses, respectively, derived from the operation
of the Company for Federal income tax purposes, including gains and losses on the sale of all or any portion of the Company’s
assets.

 

    	 	2	 

     

    

 

“Notice”
means a written notice containing all information which is either desirable, relevant or necessary to satisfy the purposes for
which such notice is being delivered.

 

“Operating
Reserves” means cash reserves of the Company held by the Company to ensure it can make future payments despite any drop
in revenue. Operating Reserves shall not exceed two (“2”) months expenses determined by taking the average monthly
expense for the previous 12 months.

 

“P&L
Participant” means a person entitled to participate in the profits and losses of the Company but shall not be a Member
of the Company and shall not have any voting rights, equity interest or stake in the Company. A P&L Participant shall solely
have a contractual agreement with the Company.

 

“Person”
means any natural person, corporation (stock or nonstock), limited liability company, limited partnership, general partnership,
joint stock company, joint venture, association (profit or nonprofit), company, estate, trust, bank, trust company, land trust,
business trust or other organization, whether or not a legal entity, and any government agency or political subdivision thereof.

 

“Securities
Act” means the Securities Act of 1933, as amended, and any successor statute, and the rules and regulations promulgated
thereunder.

 

“Transfer”
means the sale, transfer, assignment, pledge, mortgage, hypothecation, encumbrance, distribution or other disposition of any Interests.

 

“Treasury
Regulations” means regulations adopted by the Treasury Department of the United States governing application and enforcement
of the Code. Any reference to a section or provision of the Treasury Regulations shall be deemed to refer also to such section
or provision as amended or superseded.

 

“Unreturned
Capital Contribution” of any Member means, at any date, the Capital Contributions of such Member reduced from time to
time (but not below zero) by any distribution to such Member pursuant to Section 5.2(b)(ii) hereof.

 

THE COMPANY; THE MEMBERS; VOTING RIGHTS

 

Registered
Office and Registered Agent. The address of the registered office of the Company is 505 S. Flagler Drive, Suite #1010, West
Palm Beach, FL, 33401 and the registered agent is _____________B, LLC.

 

Principal
Office. The address of the principal office of the Company shall be 505 S. Flagler Drive, Suite #1010, West Palm Beach, FL,
33401 or such other place as the Manager may from time to time determine.

 

Duration.
The Company’s existence shall continue until dissolved in accordance with the Act and this Agreement.

 

    	 	3	 

     

    

 

Maintenance.
The Members shall promptly sign and file all certificates, amendments or other instruments as required by law to maintain the Company
in good standing as a limited liability company in all jurisdictions in which it conducts business, including without limitation,
as required to comply with any fictitious name statutes.

 

Changes
in Registered Office, etc. The Manager may make such changes in the registered office, registered agent and principal office
as they may deem necessary or advisable, and shall give Notice to all Members promptly following any such change. The Company may
maintain such other or additional business offices at such other place or places as the Manager may from time to time deem advisable.

 

Business
Purpose. The Company is formed and organized to engage in the following business:

 

To own, improve,
develop, operate and manage a World of Beer Franchise in ______________; and

 

To engage in any
business related or incidental to one or more of the foregoing activities.

 

The Members have entered into a Joint Venture
Agreement dated January _, 2016, regarding the establishment of World of Beer franchises (the “JV Agreement”).

 

Authority
and Powers. The Company is authorized and empowered to do any and all acts and things necessary, appropriate, proper, advisable,
incidental to, or convenient for the furtherance and accomplishment of its purposes, and for the protection and benefit of the
Company, including without limitation, all acts and things permitted under the Act and this Agreement.

 

Juridical
Existence, Properties, Etc. The Company shall maintain, preserve, and keep in full force and effect its limited liability company
existence and all rights, franchises, licenses and permits necessary to the proper conduct of its business, and the ownership,
lease, or operation of its properties which, if not so maintained, could reasonably be expected to have a material adverse effect
on the Company, and to take all action which may be reasonably required to obtain, preserve, renew and extend all material licenses,
permits, authorizations, trade names, trademarks, service names, service marks, copyrights and patents which are necessary for
the continuance of the operation of any such property by the Company.

 

    	 	4	 

     

    

 

Members
and Membership Percentages. The Members and their respective Membership Percentages shall are set forth in “Schedule
A” attached hereto.

 

Voting
Rights. All Members shall have the right to vote their membership interest in proportion to their respective Membership Percentages
shall are set forth in “Schedule A” attached hereto.

 

SECTION 2.11         P&L
Participants. The Manger may grant solely to significant employees of the Company the rights to be a P&L Participant
of the Company, up to five percent (5%) of the Company’s profits and losses. Such P&L Participant shall participate in
the profits and losses as if such person was a Member. All P&L Participant shall be identified on Schedule C and their participation
with the Members in the profits and losses of the Company shall be set forth on Schedule B. No Member or employee of a Member may
be a P&L Participant. 

 

CAPITAL CONTRIBUTIONS

 

Initial
Capital Contributions. The members have made an initial capital contribution as set forth on Schedule A.

 

SECTION
3.2           Additional Capital Contributions.

 

Upon the consent
of a Majority of Members, the Manager shall have the right to require additional capital contributions (“Capital Calls”)
from the Members to be paid on a pro rata basis as to all Members in accordance with the percentages set forth on Schedule A.

 

The Manager may
obtain Company loans to cover any Company required Additional Capital Contributions, with the consent of the Members holding a
majority of the Membership Interest in the Company.

 

In the event that
a Member fails to, or refuses to contribute towards a Capital Call (the “Defaulting Member”), then either:

 

The remaining
Members may elect to purchase the Membership Interest from the Defaulting Member, at a 15% discount to the Defaulting Member’s
Initial Capital Contribution; or

 

The remaining
Members may elect to contribute the necessary funds (the “Lending Members”) on behalf of the Defaulting Member which
shall be considered a loan to the Defaulting Member, to be secured by its Membership Interest in the Company.

 

Any
loan given to the Company by the Lending Member on behalf of the Defaulting Member, shall accrue interest at a rate of 300 basis
points above LIBOR per annum. In the event of a Distribution by the Manager under Article 5 herein or under a dissolution of the
Company under Article 10 herein, the Manager shall use the funds attributable to the Defaulting Member, to first pay off any loans
to the Defaulting Member by the Lending Member.

 

    	 	5	 

     

    

 

In
furtherance of any loan to any Defaulting Member by the Lending Members in accordance with this Section, the Members hereby expressly
agree to execute any and all loan documents which the Company’s attorneys deem necessary, including but not limited to; a
Note, Guaranty, Loan Agreement, and Pledge Agreement. Furthermore, the Defaulting Member shall be responsible to pay for all legal
fees that the Company shall incur in furtherance of such loan.

 

SECTION
3.3            Return of Capital Contributions. The contributions of the Members to the capital of the Company shall be returned
to them in cash, in whole or in part, at any time in the discretion of the Manager in accordance with Section 5.2(b) herein.

 

SECTION
3.4           Time when Capital is Returned. Upon the satisfaction
of all the Company’s financing obligations, or a liquidation of the assets of the LLC, or the dissolution of the LLC, the
Capital Contributions shall be returned to the Members pro rata in accordance with each Member’s Capital Contributions.

 

SECTION
3.5            No Right to Priority. Except as otherwise expressly
provided in this Agreement, or as required to comply with the Code and Treasury Regulations, no Member shall have priority over
any other Member as to any allocations, distributions, or return of all or any part of its Capital Contributions.         

 

SECTION
3.6           Dilution. No dilution of the membership interest of
any member shall occur without the consent of World of Beer Franchising, Inc.

 

ALLOCATION OF PROFITS AND LOSSES TO
MEMBERS

 

Allocation
of Net Profits and Net Losses. Net profits and net losses shall be allocated in the proportions set forth on Schedule B.

 

Required
Special Allocations. Notwithstanding Section 4.1 hereof,

 

Appropriate adjustments
shall be made to the allocations of Net Profits and Net Losses to the extent required under Section 704(c) of the Code and the
Treasury Regulations thereunder and under Sections 1.704-1(b)(2)(iv)(d), (e), (f) and (g) of the Treasury Regulations;

 

    	 	6	 

     

    

 

Appropriate adjustments
shall be made to the allocations of Net Profits and Net Losses to the extent required to comply with the “qualified income
offset” provisions of Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations; the partnership “minimum gain chargeback”
provisions of Section 1.704-2(f) of the Treasury Regulations; and the “partner nonrecourse deduction” and “partner
nonrecourse debt minimum gain chargeback” provisions of Section 1.704-2(i) of the Treasury Regulations, all issued pursuant
to Section 704(b) of the Code. To the extent permitted by such Treasury Regulations, the allocations in such year and subsequent
years shall be further adjusted so that the cumulative effect of all the allocations shall be the same as if all such allocations
were made pursuant to Section 4.1 hereof (as adjusted by Section 4.3(a) hereof) without regard to this Section 4.3(b).

 

Other
Allocation Rules. For purposes of determining the Net Profits, Net Losses, or any other items allocable to any period, Net
Profits, Net Losses, and any such other items shall be determined on a daily, monthly, or other basis, as determined by the Manager
using any permissible method under Code § 706 and the Treasury Regulations applicable thereto.

 

Recapture
Income. “Recapture Income,” if any, realized by the Company pursuant to Sections 1245 or 1250 of the Code shall
be allocated to the Members to whom the prior corresponding depreciation deductions were allocated, in proportion to the amounts
of such depreciation deductions previously allocated to them.

 

DISTRIBUTIONS

 

Distributions
in Kind. No Member shall be entitled to demand and receive distributions other than in cash form. Any non-cash Company assets
distributed in kind shall be distributed to the Members entitled thereto as tenants-in-common owning undivided interests in the
same proportion as would be applicable to cash distributions, however, such distribution in kind may only be made with consent
of the Members holding a Member Majority.

 

Distribution
of Available Cash and Capital Proceeds.

 

Available Cash.
The Manager shall distribute Available Cash in the percentages set forth on Schedule B. It is anticipated the Manager shall make
distributions on a monthly basis.

 

Capital Proceeds.
Capital Proceeds remaining after the payment of any debts and liabilities of the Company due and payable at such time and the establishment
of any Operating Reserves which the Manager determines, in his sole discretion necessary for reasonable ongoing business requirements,
and necessary to provide for any contingent or unforeseen liabilities or obligations of the Company, shall be distributed in accordance
with the following order of priority:

 

First, to
repay the Capital Contributions of the Members as set forth on Schedule A; and

 

    	 	7	 

     

    

 

Second, in
the percentages set forth on Schedule B.

 

RESIGNATION OR BANKRUPTCY OF A MEMBER

RESTRICTIONS ON THE TRANSFER OF INTERESTS;

ADMISSION OF SUBSTITUTE AND ADDITIONAL MEMBERS;

 

Resignation
or Bankruptcy of a Member; Continuation of the Company.

 

A Member shall
have the right to withdraw his Capital Contribution upon the termination of the Company as provided in Section 10.2 hereof, provided,
however, that no part of the Capital Contribution of any Member shall be withdrawn unless all liabilities of the Company, except
obligations to Members on account of their Capital Contributions, have been paid, or unless the Company has assets sufficient to
pay them.

 

Within ninety
(90) days following the Resignation or the Bankruptcy (other than by reason of death or incompetency) of a Member, the Company
shall dissolve unless, within such applicable period, a majority in interest of the Members (excluding for such purpose the successor
in interest to the terminated Member’s Interest) elect in writing to continue the Company on such terms as they may agree
upon in writing. If an election to continue the Company is so made then the Company shall continue in existence until the end of
the term for which it has been formed, or until a subsequent Resignation (other than by reason of death or incompetency), Bankruptcy
or other event of dissolution occurs.

 

The death or Incompetency
of a Member shall neither dissolve nor terminate the Company.

 

Restrictions
on the Transfer of Interests.

 

Except as expressly
provided herein, no Member shall have the right to Transfer all or any part of its Interest without the prior written consent of
the Manager, which may be withheld in his sole discretion, according to reasonable terms.

 

Upon the consent
of the Manager, a Member may transfer his Membership Interest in the Company to a permitted transferee (“Transferee”).
Such Transferee shall be required to pay the Company’s legal fees in connection with effectuating such Transfer as a condition
precedent to the consent. Such Transferee shall be bound to the same extent as a Member hereunder in making a Transfer of his Interest.
Any purported Transfer in violation of the provisions of this Agreement shall be null and void ab initio.

 

Notwithstanding
subparagraph (a) above, any Member may Transfer all of his Interest during his lifetime to;

 

an entity
that is wholly controlled, and continues to be controlled by that Member. 

 

another Member
of the Company, pursuant to Section 6.2 herein.

 

    	 	8	 

     

    

 

an immediate family
member of the Member or a trust for the benefit of an immediate family member.

 

For purposes
of this subparagraph (b), the term “Entity” shall be limited to the transfer of Member’s interest to a Corporation,
LLC or Trust. If control of such Entity is transferred to another individual or another entity, such change and transfer shall
constitute an unauthorized transfer pursuant to the terms of this agreement.

 

Notwithstanding
anything to the contrary contained herein, pursuant to Section 6.1(a) or the applicability of Section 6.1(b) or 6.2 hereof:

 

No Transfer
of an Interest shall be made if the Interest which is the subject of a proposed Transfer when added to the total of all other Interests
Transferred within the period of twelve (12) consecutive months prior thereto would result in the termination of the Company under
Section 708 of the Code or if the Transfer would cause the Company to lose its status under the Code as a partnership for Federal
income tax purposes.

 

No Interest
shall be transferred unless the registration provisions of the Securities Act of 1933, as amended, and all applicable state “blue
sky laws” have been complied with or unless compliance with such provisions is not required, each Member recognizing that
no interest in the Company has been registered under Federal or state securities laws. The Manager may request in their sole discretion
an opinion from the Company’s counsel or any other counsel that such transfer will not violate applicable securities laws.
The costs of such opinion shall be paid for by the Transferee.

 

Although
a permitted Transferee pursuant to Sections 6.1(b) or 6.2 shall be treated as an assignee of, and be entitled to, all of the rights
of the Selling Member to receive profits, losses and distributions to the extent of the Interest assigned to him, no Transferee
whatsoever shall become substituted as a Member in the Company (x) without the prior written consent of a Majority of Members,
which may be withheld in their sole discretion, for any or no reason, and (y) unless and until such Transferee shall have evidenced
his consent and agreement to be bound by all of the terms and provisions of this Agreement, and to assume, as a substituted Member,
his pro rata share hereunder of the obligations of his transferor as a Member, by executing and acknowledging a counterpart of
an amendment of this Agreement and/or such other agreement to that effect as the Manager may request, each of which shall appropriately
reflect his admission as a member of the Company and his capital contribution thereto, and such other documents, all as may reasonably
be required by the Managing Member. Such substitution shall then take effect when the Manager have accepted such person as a Member
and the books and records of the Company reflect such Person as admitted to the Company as a Member. As a condition to such
Transferee becoming a substituted Member, such Transferee shall also be required to pay the Company’s costs and expenses,
including but not limited to legal fees and disbursements, in connection with his becoming a Member.

 

If a Transfer
or attempted Transfer of an Interest is made other than in accordance with the terms of this Agreement, it shall be null and void
and no right, title or interest in the Company shall be transferred.

 

(e)          No
assignment, transfer or other disposition of all or any part of the interest of any Member permitted under this Agreement shall
be binding upon the Limited Liability Company unless and until a duly executed and acknowledged counterpart of such assignment
or instrument of transfer, in form and substance satisfactory to the Company, has been delivered to the Company.

 

    	 	9	 

     

    

 

(f)          As
between a Member and an assignee or transferee of such Member's interest in accordance with this Agreement, allocations and distributions
for any fiscal year shall be apportioned as of the date of the assignment or transfer, on the basis of the number of days before
and after said date, without regard to the results of the Company's operations before or after the assignment or transfer.

 

(g)          No
assignment or other disposition of any interest of any Member may be made if such assignment or disposition, alone or when combined
with other transactions, would result in the termination of the Company within the meaning of Section 708 of the Internal Revenue
Code or under any other relevant section of the Code or any successor statute. No assignment or other disposition of any interest
of any Member may be made without an opinion of counsel satisfactory to the Company that such assignment or disposition is subject
to an effective registration under, or exempt from the registration requirements of, the applicable State and Federal securities
laws. No interest in the Company may be assigned or given to any person below the age of 21 years or to a person who has been adjudged
to be insane or incompetent.

 

RIGHT
OF FIRST REFUSAL

 

(a)          Anything
herein contained to the contrary, the Company shall be entitled to treat the record holder of the interest of a Member as the absolute
owner thereof, and shall incur no liability by reason of distributions made in good faith to such record holder, unless and until
there has been delivered to the Company the assignment or other instrument of transfer and such other evidence as may be reasonably
required by the Company to establish to the satisfaction of the Limited Liability Company that an interest has been assigned or
transferred in accordance with this Agreement.

 

(b)          Notwithstanding
the forgoing terms, and subject to Section 6.1(b) herein, if a Member desires to sell, or otherwise dispose of all or any part
of its interest in the Company, such Member (the “Selling Member”) shall first offer to sell and convey such interest
to any other Members before selling, or otherwise disposing of such interest to any other person, corporation or other entity.
Such offer shall be in writing, shall be given to every other Member, and shall set forth the interest to be sold, purchase price
to be paid, the date on which the closing is to take place, (which date shall be not less than thirty nor more than sixty days
after the delivery of the offer), the location within the State of New York at which the closing is to take place, and all other
material terms and conditions of the sale, transfer or the disposition.

 

(c)          Within
fifteen days after the delivery of said offer to the other Members shall deliver to the Selling Member a written notice either
accepting or rejecting the offer. Failure to deliver said notice within said fifteen days conclusively shall be deemed a rejection
of the offer. Any or all of the other Members may elect to accept the offer, and if more than one of the other Members elects to
accept the offer, the interest being sold and the purchase price therefor shall be allocated among the Members so accepting the
offer in proportion to their Members’ Percentage Interest, unless they otherwise agree in writing.

 

(d)          If
any or all of the other Members elect to accept the offer, then (a) upon such acceptance in writing, the Member(s) shall pay a
non-refundable ten percent (10%) down payment of the purchase price and (b) then the transfer of the Membership Interest shall
be held in accordance with the offer and the Selling Member shall deliver to the other Members who have accepted the offer an assignment
of the interest being sold by the Selling Member, and said other Member shall pay the remaining balance of the purchase price prescribed
in the offer.

 

    	 	10	 

     

    

 

(f)          If
no other Member accepts the offer, or if the Members who have accepted such offer default in the obligation to purchase the interest,
than the Selling Member within 120 days after the delivery of the offer may sell such interest to any other person or entity at
a purchase price which is not less than the purchase price prescribed in the offer and upon terms and conditions which are substantially
the same as the terms and conditions set forth in the offer, provided all other applicable requirements of the Agreement are complied
with. An assignment of such interest to a person or entity who is not a Member of the Limited Liability Company shall cause such
Person to become a member upon the execution of the such documents required by Section 6.2(c)(iii).

 

(g)          If
the Selling Member does not sell such interest within said 120 days, then the Selling Member may not thereafter sell such interest
without again offering such interest to the other Members in accordance with this Article 6.

 

Admission
of Persons as Additional Members. In regards to permitted Transferee’s pursuant to Section 6.1 and 6.2 herein, the Manager
shall have the right to admit, and each of the Members hereby consents to the admission of, such additional Members to the Company
as the Manager shall unanimously determine in his sole discretion; it being understood no Member shall have its Membership Percentage
reduced without his prior written consent. In the event that the Manager shall determine to admit one or more Members to the Company,
the Members hereby agree to execute and deliver such documents as the Manager shall request in order to effectuate the admission
of such additional Member(s). Any additional Member(s) admitted to the Company shall be required to execute a counterpart signature
page to this Agreement and, if required, an amendment to the Articles of Organization of the Company and such other documents as
the Manager may request in order to effectuate admission to the Company.

 

SECTION 6.5           Attitude
Beer Holding Co. The Company and Members acknowledge that Attitude Beer Holding Co. is majority owned by Attitude Drinks,
Inc., a publicly traded company. No change in the direct or indirect ownership of Attitude Beer Holding Co. shall be deemed a transfer
of Attitude Beer Holding Co.’s Membership Interest. The Company agrees to fully cooperate with Attitude Beer Holding Co.
and Attitude Drinks, Inc. in supplying all information to Attitude Drinks, Inc. and its auditor so Attitude Drinks, Inc. can timely
comply with its Securities and Exchange Commission reporting obligations.

 

SECTION 6.6           WOB.
The Members acknowledge that the business of the Company is subject to a franchising agreement with WOB and pursuant to the Franchise
Agreement, the Members may be required to or prohibited from transfering their membership interest or make other changes to this
agreement in accordance with the terms of the Franchise Agreement.

 

MANAGEMENT

 

Manager
Southeast Florida Craft, LLC is hereby appointed the Manager of the Company (the “Manager”). The business and affairs
of the Company shall be managed under the sole direction and control of the Manager, using reasonable business practices, and all
powers of the Company shall be exercised by or under the authority of the Manager. No other Person shall have any right or authority
to act for or bind the Company except as permitted in this Agreement or as required by law. The Manager may be removed by a Majority
of Members only for gross negligence or fraud.

 

    	 	11	 

     

    

 

SECTION 7.2           General
Powers. The Manager shall have the full power to execute and deliver, for and on behalf of the Company, any and all documents
and instruments which may be necessary or desirable to carry on the business of the Company, including, without limitation, any
and all deeds, contracts, leases, mortgages, deeds of trust, promissory notes, security agreements, and financing statements pertaining
to the Company's assets or obligations, and to authorize the confession of judgment against the Company. No person dealing with
the Manager need inquire into the validity or propriety of any document or instrument executed in the name of the Company by the
Manager, or as to the authority of the Manager in executing the same.

 

SECTION 7.3.          Limitation
on Authority of Members.

 

(a)          No
Member is an agent of the Company solely by virtue of being a Member, and no Member has authority to act for the Company solely
by virtue of being a Member.

 

(b)          This
Article 7 supersedes any authority granted to the Members pursuant to Section 412 of the Law. Any non-manager Member who takes
any action or binds the Company in violation of this Article 7 shall be solely responsible for any loss and expense incurred by
the Company as a result of the unauthorized action and shall indemnify and hold the Company harmless with respect to the loss or
expense.

 

SECTION 7.4           Appointment
of New Manager. A new Manager can be appointed only by Members holding a Member Majority. Such new Manager need not be
a Member of the company.

 

SECTION 7.5           Liability
and Indemnification.

 

(a)          The
Manager shall not be liable, responsible, or accountable, in damages or otherwise, to any Member or to the Company for any act
performed by the Manager within the scope of the authority conferred on the Manager by this Agreement, except for fraud, bad faith,
gross negligence, or an intentional breach of this Agreement.

 

(b)          The
Company shall indemnify the Manager for any act performed by the Manager within the scope of the authority conferred on the Manager
by this Agreement, except for fraud, bad faith, gross negligence, or an intentional breach of this Agreement.

 

SECTION 7.6           Major
Decisions

 

Approval of Major
Decisions. Notwithstanding anything to the contrary in this Agreement, certain decisions or actions as set forth in this Section
7.6 (“Major Decisions”) may not be taken solely in the Manager’s discretion and shall require the affirmative
vote of a Member Majority. Approval of Major Decisions may be given at a Meeting called for that purpose or by written consent.

 

    	 	12	 

     

    

 

Designation of
Major Decisions. The following shall constitute Major Decisions subject to this Section:

 

Other than
in the regular course of business, the sale of all or a substantial portion of the assets owned by the Company. For this purpose,
Twenty Percent (20%) of the fair market value of the assets owned by the Company shall constitute a “substantial portion.”

 

The dissolution,
liquidation or other termination or cessation of the business operations of the Company, including without limitation the filing
of a voluntary petition in Bankruptcy, the assignment of all or substantially all of the assets of the Company for the benefit
of the Company’s creditors or the appointment of trustee, liquidator, administrator or like person or entity for the purpose
of winding up the business and affairs of the Company.

 

Any change
in the principal purpose of the Company’s business, as set forth in Section 2.6 above.

 

Any borrowing
or pledge of assets owned by the Company in excess of $50,000 in the aggregate or any loan to a Member or Manager.

 

The admission
of new Member.

 

RELATED PARTY DEALINGS

 

Outside
Business Interests; Business Opportunity. The Members may each engage in or possess interests in other business ventures of
every kind and description for its own account, including without limitation, serving as a member, partner or shareholder of other
entities which own, either directly or through interests in other entities, properties similar to the assets of the Company and
neither the Company nor any of the Members shall have any rights by virtue of this Agreement in or to such other business ventures
or to the income or profits derived therefrom, or to any business opportunities as may become available to the Manager or any Member,
whether or not similar in nature to the Company’s then existing business activities.

 

Member
Dealing With the Company. The fact that a Member or an affiliate thereof is employed by or is directly or indirectly interested
in or connected with any person, firm or corporation employed by the Company for real estate management or otherwise to perform
a service, or from or with which the Company may purchase any property or have other business dealings, shall not prohibit the
Member from employing or otherwise dealing with such person, firm or corporation, so long as such business dealing, contract, or
agreement follows and contains reasonable business terms. Neither the Company nor any of the Members shall have any rights in or
to any income or profits derived therefrom. The said Member or his affiliated company shall not receive any benefit of any kind,
other that is specifically and contractually agreed upon, in writing, between the respective companies and or parties.

 

    	 	13	 

     

    

 

MEMBER LIABILITY; INDEMNIFICATION AND
LIABILITY LIMITATION

 

Liability
of Members; Enforcement of Obligations. Except to the extent otherwise expressly stated in this Agreement or prescribed under
the Act, (a) the Members shall have no fiduciary or partnership relationship between or among themselves solely by reason of their
status as Members, and (b) the rights of each of the Members and the Company to sue for matters and claims arising out of or pertaining
to this Agreement shall not be dependent upon the dissolution, winding-up or termination of the Company.

 

Indemnification
of Members . Except as provided in Section 9.4, every Person who was or is a party, or who is threatened to be made a party,
to any pending, completed or impending action, suit or proceeding of any kind, whether civil, criminal, administrative, arbitrative
or investigative (whether or not by or in the right of the Company) by reason of (a) being or having been a Member of the Company,
(b) being or having been a Member, manager, partner, officer or director of any other entity at the request of the Company, or
(c) serving or having served in a representative capacity for the Company in connection with any partnership, joint venture, committee,
trust, employee benefit plan or other enterprise, shall be indemnified by the Company against all expenses (including reasonable
attorneys’ fees and expenses), judgments, fines, penalties, awards, costs, amounts paid in settlement and liabilities of
all kinds, actually incurred by such Person incidental to or resulting from such action, suit or proceeding to the fullest extent
permitted under the Act, without limiting any other indemnification rights to which such Person otherwise may be entitled. The
Company may, but shall not be required to, purchase insurance on behalf of such Person against liability asserted against or incurred
by such Person in its capacity as a Manager or Member of the Company, or arising from such Person’s status as a Manager or
Member, whether or not the Company would have authority to indemnify such Person against the same liability under the provisions
of this Section 9.2 or the Act.

 

    	 	14	 

     

    

 

Limitation
of Liability. Except as otherwise expressly provided in this Agreement, no Member or Manager shall have liability to the Company
or other Members for monetary damages resulting from errors made in the exercise of good-faith judgment.

 

Qualification
of Indemnification and Liability Limitation. 

 

The indemnification
rights and limitations on liabilities set forth in Sections 9.2 and 9.3 shall not apply to claims based upon any willful misconduct,
intentional breach or disregard of the terms of this Agreement or knowing violation of criminal law or any federal or state securities
law, including without limitation, unlawful insider trading or market manipulation for any security, nor shall such indemnification
rights and limitations on liabilities preclude the Company or any Member from recovery for any loss or damage otherwise covered
under any insurance policy or fidelity bonding. Nothing herein shall be deemed to prohibit or limit the Company’s right to
pay, or obtain insurance covering, the costs (including reasonable attorneys’ fees and expenses) to defend an indemnitee,
Member or Manager against any such claims, subject to a full reservation of rights to reimbursement in the event of a final adjudication
adverse to such indemnitee, Member or Manager.

 

An indemnitee
shall be entitled to recover from an indemnitor all legal costs or expenses, including reasonable attorney’s fees and expenses,
incurred by such indemnitee to enforce its rights hereunder, or to collect any sums due from the indemnitor hereunder.

 

DISSOLUTION AND LIQUIDATION OF THE
COMPANY

 

Dissolution
of the Company. The Company shall be dissolved on the earlier of the expiration of the term of the Company or upon:

 

The Resignation
(other than by reason of death or incompetency) or Bankruptcy of a Member unless a majority in interest of the Members (as defined
in Section 6.1(b)) elect to continue the Company pursuant to Section 6.1(b);

 

The Resignation
or Bankruptcy of a Member which leaves only one (1) Member remaining, and no additional or substitute Member is admitted to the
Company in accordance with this Agreement within ninety (90) days thereafter;

 

The expiration
of thirty (30) days following the sale or other disposition of all or substantially all of the Company’s assets;

 

The election by
a majority of the Members to liquidate the Company; or

 

The occurrence
of any other event of dissolution under the provisions of this Agreement or the Act.

 

    	 	15	 

     

    

 

Winding-up
and Distribution of the Company.

 

Upon the dissolution
of the Company pursuant to Section 10.1, the Company’s business shall be wound up and its assets liquidated by the Liquidator
as provided in this Section 10.2, and the net proceeds of such liquidation shall be distributed as follows:

 

First, to
payment of all debts and liabilities of the Company, including, without limitation, any loans from Members and the expenses of
liquidation;

 

Second, to
establishment of any reserves reasonably deemed necessary by the Liquidator for contingent, unmatured or unforeseen liabilities
or obligations of the Company. Said reserves shall be paid over to an attorney-at-law of the State of New York, as escrowee, to
be held by him for the purpose of disbursing such reserves in payment of any of the aforementioned contingencies, and, at the expiration
of such period as shall be deemed advisable, to distribute the balance thereafter remaining in the manner hereinafter provided,
together with accrued interest thereon, if any;

 

Third, to
those Members having positive Capital Account balances pro rata in the proportion that each such Member’s positive Capital
Account balance bears to the aggregate of the positive Capital Account balances of all such Members, until all Member’s Capital
Account balances are equal to zero;

 

Fourth, any
funds remaining shall be distributed in the percentages set forth on Schedule B.

 

The Liquidator
shall file all certificates and notices of the Company’s dissolution required by law. The Liquidator shall sell and otherwise
liquidate the Company’s assets without unnecessary delay. Upon the complete liquidation of the Company’s assets and
distribution to the Members, they shall cease to be Members of the Company, and the Liquidator shall execute, acknowledge and cause
to be filed all certificates and notices required by law to terminate the existence of the Company.

 

AMENDMENTS

 

Adoption
of Amendments Generally. Amendments to this Agreement to reflect the substitution or addition of a Member shall be made by
written instrument executed by the substituted Member, the added Member, or the resigned Member (or its authorized representative),
as applicable. Any other amendments to this Agreement may be made by a written instrument executed by Members holding, in the aggregate,
at least two-thirds of Membership Interests; provided, however, that no amendment to this Agreement may:

 

substantially
alter the purposes of the Company without the written consent of all Members;

 

expand the obligations
or liabilities of any Member under this Agreement, or modify any Member’s limited liability, without the written consent
of such Member;

 

    	 	16	 

     

    

 

modify the computational
method of determining, or priority applicable to, allocations or distributions under Articles 4 and 5 and Section 10.2, without
the written consent of all Members; or

 

amend this Article
11 without the written consent of all Members.

 

MISCELANEOUS

 

Non-Recourse
Company Loans. Any loans taken by the Company, shall be non-recourse loans as to any and all individual Members or the Manger,
and no Member or Manager shall be required to sign a personal guaranty to in order to secure such loan(s), unless unanimously consented
to by the Members.

 

GENERAL PROVISIONS.

 

Books
and Records. All records of the Company shall be kept at the principal office of the Company and shall be available for examination
by any Member, or such Member’s duly authorized representatives, at all reasonable times at the office of the Company and
by way of internet access to Company bank accounts. The method of accounting on which the books shall be maintained shall be determined
by the majority of the Members . The Manager may make on behalf of the Company the election permitted by Section 754 of the Code.
Southeast Florida Craft, LLC shall be designated as the “tax matters partner” (the “TMP”) for purposes
of the Code and the “Designated Person” for purposes of maintaining an Investor List to the extent required by the
Code. The TMP is hereby authorized to take such actions as may be required by the Code and the regulations thereunder to continue
such designations. The determination by the TMP with respect to the treatment of any item or its allocation for Federal, state
or local tax purposes shall be binding upon all of the Members, so long as such determination is reasonable and will not be inconsistent
with any express terms hereof. No cause of action shall accrue to any Member under this Section 13.1 if the TMP acted in good faith
to comply with his obligations hereunder. No charge shall be made to the Company for his acting as tax matters partner. Upon the
Resignation or Bankruptcy of the TMP, a majority of the Members may select a Member to become the new “tax matter partner”
and “Designated Person”.

 

Fiscal
Year. The fiscal year of the Company shall be the calendar year.

 

    	 	17	 

     

    

 

Custody
of Company Funds; Bank Accounts.

 

The Manager shall
have a fiduciary responsibility for the safekeeping and use of all funds and assets of the Company, whether or not in their immediate
possession or control. The Company’s funds shall not be commingled with the funds of any other Person and the Manager shall
not use, or permit use of, the Company’s funds in any manner except for the benefit of the Company.

 

All funds of the
Company not otherwise invested shall be deposited in one or more internet–accessible accounts maintained in such federally
insured financial institutions as the Manager may deem appropriate, and withdrawals shall be made only in the regular course of
Company business on such signature or signatures as the Manager may deem appropriate. Usernames and passwords for access to all
accounts shall be made available to all members.

 

Notices.
Except as otherwise provided herein, all Notices, requests, consents and other communications hereunder to the Company or to any
Member shall be deemed to be sufficient if contained in a written instrument delivered in person or sent by telecopier, nationally-recognized
overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

if to the Company,
to its principal office set forth in Section 2.4, as such office may be changed in accordance with Section 2.7.

 

if to any Member,
to its respective address set forth on Schedule A hereto.

 

Any Member may, at
any time and from time to time, designate a substitute address or addresses for itself by delivering a Notice to the Company and
to each other Member in the manner set forth in this Section. All such Notices, requests, consents and other communications shall
be deemed to have been delivered (i) in the case of personal delivery or delivery by telecopier, on the date of such delivery,
(ii) in the case of delivery by nationally-recognized overnight courier, on the date of such delivery, and (iii) in the case of
mailing in the manner set forth in this Section, on the third business day after the posting thereof.

 

Burden
and Benefit. This Agreement shall be binding upon, and shall inure to the benefit of, the Members, and their respective heirs,
executors, administrators, successors and assigns. There shall be no third party beneficiaries of this Agreement.

 

Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute one Agreement binding on all parties hereto, notwithstanding that not all parties shall have signed the
same counterpart.

 

    	 	18	 

     

    

 

Severability
of Provisions. If any term or provision of this Agreement or the application thereof to any Person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such term or provision to Persons
or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term
and provision of this Agreement shall be valid and be enforceable to the fullest extent permitted by law.

 

Entire
Agreement. This Agreement sets forth all (and is intended by the Members to be an integration of all) of the promises, agreements
and understandings among the Members with respect to the Company, its business operations and management, the Property and all
other Company assets, and there are no promises, agreements, or understandings, oral or written, express or implied, among them
other than as set forth or incorporated herein.

 

Headings.
The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to
be a part of this Agreement.

 

Pronouns
and Plurals. Whenever the context may require, any pronouns used herein shall be deemed to refer to the masculine, feminine,
or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural, and vice versa.

 

Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York.

 

    	 	19	 

     

    

 

Dispute
Resolution.          Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in New York County, New York for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery). Nothing contained herein shall be deemed to limit in any way any right to serve process in
any manner permitted by law. Each party irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
If either party shall commence an action or proceeding to enforce any provisions of the documents contemplated herein, then the
prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

Agreement
in Counterparts. This Agreement may be executed in several counterparts, and all such executed counterparts shall constitute
one agreement, binding on all of the parties hereto, notwithstanding that all of the parties are not signatory to the original
or to the same counterpart.

 

[REST OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

    	 	20	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Operating Agreement as of the date first above written.

 

COMPANY:

 

_______________, LLC

 

	 	 	 

Name:

Title: Manager of its manager Southeast Florida Craft LLC

 

MEMBERS:

 

	Southeast Florida Craft LLC	 	Attitude Beer Holding Co.
	 	 	 
	 	 	 
	By:	 	By: Roy Warren
	Its: Manager	 	Its: President

 

    	 	21	 

     

    

 

SCHEDULE A

 

	Member	 	Percentage
 Interest	 	 	Initial
 Capital
 Contribution	 
	Southeast Florida Craft LLC 
 505 S. Flagler Drive, Suite 1010 
 West Palm Beach, FL 33401	 	 	40	%	 	$	1.00	 
	Attitude Beer Holding Co. 
 712 US Highway 1, Suite 200 
 North Palm Beach, FL 33408	 	 	60	%	 	$	1	*
	Total	 	 	100	%	 	$	 	1

 

* This amount shall
be paid on the following schedule:

1. $ on or before ____________;

2. $ on or before ____________;

3. $ on or before ____________;
and

4. $ on or before _________

 

    	 	22	 

     

    

 

EXHIBIT C

 

NON-CIRCUMVENTION – NO SHOP
AGREEMENT

 

This Non-Circumvention
– Commission Agreement (this “Agreement”) is entered into as of this January 26, 2016, among Southeast Florida
Craft, LLC (“SFC”), Attitude Beer Holding Co. (“ABH”) and the person identified on the signature page hereto
as the principal (“Principal”).

 

RECITALS

 

WHEREAS, SFC and ABH
have entered into a Joint Venture Agreement;

 

WHEREAS, the Principal
is a principal of SFC;

 

NOW, THEREFORE, for
good and adequate consideration, the receipt of which is hereby acknowledged, the parties hereto, agree as follows:

 

1.          SFC
and the Principals agree for themselves and all of their shareholders, members, directors, managers, officers, affiliates and beneficial
owners and any entity owned directly or indirectly, managed or related to them, along with any of their affiliates (collectively
the “Affiliates”), not to enter into any agreement that would impair ABH’s rights under the Joint Venture Agreement.

 

2.          It
is further understood and agreed that money damages would not be a sufficient remedy for any breach or threatened breach of this
agreement and that ABH would suffer immediate and irreparable injury, loss and damage and shall be entitled to specific performance
and injunctive or other equitable relief as a remedy for any such breach without posting a bond or other security and SFC and Principal
expressly waive any requirement for posting a bond. Such remedy shall not be deemed to be the exclusive remedy for a breach of
this agreement, but shall be in addition to all other remedies available at law or equity to ABH.

 

3.          This
Agreement will be governed by the substantive laws of the State of New York, without regards to the conflicts of laws provisions
thereof that would result in the application of the substantive law of any forum other than the State of York. The parties each
hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State and County of New
York for the adjudication of any dispute hereunder or in connection herewith and waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.

 

    	 	23	 

     

    

 

4.          Any
notice, demand or request required or permitted to be given by the respective parties hereto pursuant to the terms of this Agreement
shall be in writing and shall be deemed delivered (i) when delivered personally or by verifiable facsimile transmission, unless
such delivery is made on a day that is not a Business Day, in which case such delivery will be deemed to be made on the next succeeding
Business Day, (ii) on the next Business Day after timely delivery to an overnight courier and (iii) on the Business Day actually
received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), addressed to
the address set forth on the signature page hereto. Any party may change the address(es) to which all notices, requests and other
communications are to be sent by giving written notice of such address change to the other Parties in conformity with this Section,
but such change shall not be effective until notice of such change has been received by the other Party.

 

5.          This
Agreement may be executed in two or more counter parts. A facsimile signature will be deemed an original for all purposes. This
Agreement may be delivered by electronic means.

 

[REST OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

    	 	24	 

     

    

 

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

 

SFC

 

	SOUTHEAST FLORIDA CRAFT, LLC	 
	 	 
	/s/ Glenn E. Straub	 
	By: Glenn E. Straub	 
	Its: Manager	 
	P.O. Box 810245	 
	Boca Raton, Fl 33481	 

 

ABH

 

	ATTITUDE BEER HOLDING CO.	 
	 	 
	/s/ Roy Warren	 
	By: Roy Warren	 
	Its: President	 
	712 US Highway 1, Suite 200	 
	North Palm Beach, FL 33408	 

 

PRINCIPAL

 

	/s/ Glenn E. Straub	 
	Glenn E. Straub	 
	P.O. Box 810245	 
	Boca Raton, Fl 33481	 
	 	 
	/s/ James D. Cecil	 
	James D. Cecil	 
	P.O. Box 810245	 
	Boca Raton, Fl 33481 	 

 

    	 	25	 

     

    

 

WORLD OF BEER FRANCHISING, INC.

COMBINED ADDENDUM TO AREA DEVELOPMENT

AND FRANCHISE AGREEMENT

 

This
ADDENDUM (this "Addendum") is effective as of February 9, 2016 (the "Effective Date"),
regardless of the actual date of signature, between WORLD OF BEER FRANCHISING, INC., a Florida corporation, with its principal
business address at 10910 Sheldon Road, Tampa, Florida 33626 ("we," "us," "our"
or "Franchisor"), and SOUTHEAST FLORIDA CRAFT, LLC, a Florida limited liability company, with its principal
address is P.O. Box 810245, Boca Raton, FL 33481 ("you," "your"
or "Developer"), and amends the Area Development Agreement of even date herewith (the "Development Agreement")
and any Franchise Agreement (each a "Franchise Agreement" and collectively the "Franchise Agreements")
executed pursuant thereto (the Development Agreement and Franchise Agreements are collectively referred to as the "Agreements")
between Franchisor and Developer or its affiliates. You and we are sometimes referred to individually as a "party"
and collectively as the "parties."

 

OPERATIVE TERMS

 

Accordingly, the parties
agree as follows:

 

1.          Incorporation
and Precedence. This Addendum (a) is an integral part of, and is incorporated into, the Agreements and (b) governs, controls
and supersedes any inconsistent or conflicting provisions of the Agreements. Capitalized terms used but not defined in this Addendum
have the meanings as defined in the Agreements Any references to the Agreements will also include this Addendum, unless the context
expressly provides otherwise.

 

2.          Negotiated
Changes. After negotiations, the parties have agreed to certain modifications to the Agreements, at your request and for
your benefit. This Addendum contains the agreements between the parties based on those negotiations.

 

3.          Competitive
Business. The definition of Competitive Business as defined in Section 9 of the Development Agreement and Section 10 of
the Franchise Agreement shall be deleted in its entirety and replaced with the following:

 

“The term “Competitive Business,”
as used in this Agreement, means any business or facility owning, operating or managing, or granting franchises or licenses to
others to do so, any bar, pub, tavern, or other alcoholic beverage service facility or any retail establishment (like a liquor
store or convenience store) featuring beer, wine and related products as a primary menu item (other than a WOB Store operated under
a franchise agreement with us). This Section does not prohibit you or your owners from having a direct or indirect interest as
a disclosed or beneficial owner in a publicly held Competitive Business, as long as such securities represent less than 5% of the
number of shares of that class of securities which are issued and outstanding.”

 

4.          Modification
of System Standards. Section 11.3 of the Franchise Agreement is hereby deleted and replaced with:

 

    	 	26	 

     

    

 

“We may periodically modify System
Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional
capital in the WOB Store (“Capital Modifications”) and/or incur higher operating costs; provided, however, that such
modifications will not: (i) occur within 12 months of signing this Agreement; (ii) alter your fundamental status and rights under
this Agreement; nor (iii) require you to spend more than $150,000 on Capital Modifications during the term of this Agreement. You
are obligated to comply with all modifications to System Standards within the time periods we specify. We agree to give you 90
days to comply with Capital Modifications we require. However, if a Capital Modification requires an expenditure of more than $20,000,
we agree to give you 12 months from the date such request is made to comply with such Capital Modification. Capital Modifications
are in addition to the costs you will incur to replace or refurbish your WOB Store, equipment and fixtures from time to time. Capital
Modifications do not include any expenditures you must make, or choose to make, in order to comply with applicable laws, governmental
rules or regulations.”

 

5.          Remaining
Terms Unaffected. The remaining terms of the Agreements are unaffected by this Addendum and remaining binding on the parties.

 

6.          Background
Information. The "Background" information set forth above is true and correct, and is incorporated herein by
this reference.

 

7.          Headings.
The section and paragraph headings contained in this Addendum are for convenience only and do not define, limit or construe the
contents of such sections or paragraphs.

 

8.          Counterparts.
This Addendum may be signed in one or more counterparts, each of which will be deemed an original and together will constitute
one and the same instrument. A signature affixed to a counterpart of this Agreement and delivered by facsimile or other electronic
transmission by any party is intended to be its, his or her signature and shall be valid, binding and enforceable against such
party.

 

Intending to be legally
bound, the parties sign and deliver this Addendum effective on the Effective Date, regardless of the actual date of signature.

 

	WORLD OF BEER FRANCHISING, INC.,	 	SOUTHEAST FLORIDA CRAFT, LLC,
	a Florida corporation	 	a Florida limited liability company
	 	 	 
	By:	/s/ Benjamin P. Novello	 	By:	/s/ James D. Cecil
	Print Name:	Benjamin P. Novello	 	Print Name:	James D. Cecil
	Title:	Chief Development Officer	 	Title:	Managing Member
	Date 2/9/16	 	 	Date: 2/9/16	 

 

World of Beer Franchising Inc. Franchise Agreement has not been
included due to confidential and sensitive information to prevent competitors from seeing such information

    	 	27

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