Document:

Exhibit
10.1

 

STOCK
PURCHASE AGREEMENT

 

by
and among

 

OXIGENESIS,
INC.,

 

THE
SELLING SHAREHOLDERS

 

and

 

VERONI
BRANDS CORP.

 

Dated:
December 19, 2022

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE
    I PURCHASE AND SALE	1
	 	 
	Section
    1.01 Purchase and Sale.	1
	 	 
	Section 1.02 Post Closing
    Capitalization	1
	 	 
	Section
    1.02 Payment at Closing.	1
	 	 
	ARTICLE
    II CLOSING	2
	 	 
	Section
    2.01 Closing.	2
	 	 
	Section
    2.02 Company and Sellers Closing Deliverables.	3
	 	 
	Section
    2.03 Buyer’s Deliveries.	4
	 	 
	ARTICLE
    III REPRESENTATIONS AND WARRANTIES OF SELLER	4
	 	 
	Section
    3.01 Organization and Authority of the Company and Sellers.	4
	 	 
	Section
    3.02 Capitalization.	4
	 	 
	Section
    3.03 No Subsidiaries.	5
	 	 
	Section
    3.04 No Conflicts or Consents.	5
	 	 
	Section
    3.05 Financial Statements.	5
	 	 
	Section
    3.06 Liabilities.	6
	 	 
	Section
    3.07 Absence of Certain Changes, Events, and Conditions.	6
	 	 
	Section
    3.08 Material Contracts.	6
	 	 
	Section
    3.09 Real Property; Title to Assets.	7
	 	 
	Section
    3.10 Intellectual Property.	7
	 	 
	Section
    3.11 Material Customers and Suppliers.	8
	 	 
	Section
    3.12 Insurance.	8
	 	 
	Section
    3.13 Legal Proceedings; Governmental Orders.	9
	 	 
	Section
    3.14 Compliance with Laws; Permits.	9
	 	 
	Section
    3.15 Environmental Matters.	9
	 	 
	Section
    3.16 Employee Benefit Matters.	10
	 	 
	Section
    3.17 Employment Matters.	11
	 	 
	Section
    3.18 Taxes.	12
	 	 
	Section
    3.19 Books and Records.	13
	 	 
	Section
    3.20 Brokers.	13
	 	 
	Section
    3.21 Full Disclosure.	13

 

    	 

     

    

 

	ARTICLE
    IV REPRESENTATIONS AND WARRANTIES OF BUYER	14
	 	 
	Section
    4.01 Organization and Authority of Buyer.	14
	 	 
	Section
    4.02 No Conflicts; Consents.	14
	 	 
	Section
    4.03 Investment Purpose.	15
	 	 
	Section
    4.04 Brokers.	15
	 	 
	ARTICLE
    V COVENANTS	15
	 	 
	Section
    5.01 Confidentiality.	15
	 	 
	Section
    5.02 Non-Competition; Non-Solicitation.	15
	 	 
	Section
    5.03 Further Assurances.	15
	 	 
	ARTICLE
    VI TAX MATTERS	18
	 	 
	Section
    6.01 Tax Covenants.	18
	 	 
	Section
    6.02 Straddle Period.	18
	 	 
	Section
    6.03 Termination of Existing Tax Sharing Agreements.	18
	 	 
	Section
    6.04 Tax Indemnification.	19
	 	 
	Section
    6.05 No Section 336(e) Election.	19
	 	 
	Section
    6.06 Cooperation and Exchange of Information.	19
	 	 
	Section
    6.07 Survival.	19
	 	 
	ARTICLE
    VII INDEMNIFICATION	19
	 	 
	Section
    7.01 Indemnification by Seller.	19
	 	 
	Section
    7.02 Indemnification by Buyer.	20
	 	 
	Section
    7.03 Indemnification Procedures.	20
	 	 
	Section
    7.04 Survival.	20
	 	 
	Section
    7.05 Tax Claims.	21
	 	 
	Section
    7.06 Cumulative Remedies.	21
	 	 
	ARTICLE
    VIII MISCELLANEOUS	21
	 	 
	Section
    8.01 Expenses.	21
	 	 
	Section
    8.02 Notices.	21
	 	 
	Section
    8.03 Interpretation; Headings.	22
	 	 
	Section
    8.04 Severability.	22
	 	 
	Section
    8.05 Entire Agreement.	22
	 	 
	Section
    8.06 Successors and Assigns.	22
	 	 
	Section
    8.07 Amendment and Modification; Waiver.	22
	 	 
	Section
    8.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.	23
	 	 
	Section
    8.09 Counterparts.	23

 

    	 

     

    

 

STOCK PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (this “Agreement”),
dated as of December 19, 2022 is entered into among Oxigenesis, Inc., a California corporation (“Oxigenesis” or the
“Company”), and the selling shareholders as set forth on the signature page hereto (the “Selling Shareholders,”
and together with the Company, collectively, the “Sellers”), and Veroni Brands Corp., a Delaware corporation (“Buyer”).
Capitalized terms used in this Agreement have the meanings given to such terms herein.

 

RECITALS

 

WHEREAS,
the Selling Shareholders own all of the issued and outstanding shares of the Company’s capital stock (collectively, the “Selling
Shares” and each a “Selling Share”), each with a par value of $0.001 per share;

 

WHEREAS,
Sellers wish to sell to Buyer, and Buyer wishes to purchase from Sellers, all of the Shares, subject to the terms and conditions set
forth herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

Purchase and sale

 

Section
1.01 Purchase and Sale. Subject to the terms and conditions set forth herein, at the
Closing, Sellers shall sell to Buyer, and Buyer shall purchase from Sellers, the Selling Shares, free and clear of any mortgage, pledge,
lien, charge, security interest, claim, community property interest, option, equitable interest, restriction of any kind (including any
restriction on use, voting, transfer, receipt of income, or exercise of any other ownership attribute), or other encumbrance (each, an
“Encumbrance”).

 

Section
1.02 Post-Closing Capitalization. After Closing, the Company’s capitalization will be as
shown in Schedule 1.02 of the Disclosure Schedules. The
term “Disclosure Schedules” means the disclosure schedules, attached hereto, and made a part hereof, delivered by
Seller concurrently with the execution, closing, and delivery of this Agreement.

 

Section
1.03 Payment at Closing. Upon the terms and subject to the conditions set forth in
this Agreement, including, but not limited to Section 5.06, as set forth below, Buyer shall do the following (collectively, “Buyer
Deliveries”):

 

(a)
at the Closing, pay to Sellers an amount in cash equal to $3,000,000 at the Closing by wire transfer of immediately available funds in
accordance with the wire transfer instructions set forth in Section 1.03 of the Disclosure Schedules (the “Cash Consideration”);

 

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(b)
at the Closing, issue and deliver to Stephen Krauss, trustee of THE STEPHEN AND SHERRIE KRAUSS FAMILY TRUST 2022 and Randal Moos, trustee
of THE MOOS 2002 REVOCABLE TRUST secured convertible promissory notes in substantially the form attached hereto as Exhibit A (each
a “Secured Notes” and together, the “Secured Notes”), having principal amount equal to such Seller’s
pro rata portion of $2,000,000, interest at a rate of 6% per annum, with no interest accruing during the first year, then accrued interest
paid annually starting in the second year, with the outstanding principal and interest then outstanding on such Secured Note due in a
single payment on the date that is twenty-four (24) months from the date of issuance (the “Maturity Date”), with the
Sellers having an option, exercisable at any time prior to the Maturity Date, to convert the then outstanding principal and interest
into shares of Buyer’s Common Stock at a conversion price equal to $1.75 per share;

 

(c)
at the Closing, issue and deliver to Stephen Krauss, trustee of THE STEPHEN AND SHERRIE KRAUSS FAMILY TRUST 2022 and Randal Moos, trustee
of THE MOOS 2002 REVOCABLE TRUST shares of the Buyer’s common stock, par value $0.001 per share (the “Buyer’s Common
Stock”), equal to $5,000,000 divided by $1.75 (or 2,857,142 shares of Buyer’s Common Stock) (the “Stock Consideration”);
and

 

(d)
at the Closing, Buyer shall issue and deliver to Stephen Krauss, trustee of THE STEPHEN AND SHERRIE KRAUSS FAMILY TRUST 2022 and Randal
Moos, trustee of THE MOOS 2002 REVOCABLE TRUST, pursuant to the Buyer’s equity incentive plan, a non-qualified stock option for
up to 2,857,143 shares of the Buyer’s Common Stock, exercisable until the thirty-six (36) month anniversary of the Closing Date
at a price equal to $1.75 per share (the “Stock Option Consideration” and, together with the Stock Consideration,
the “Securities”).

 

Section
1.04 During the applicable Lock-up Period (as defined below), each Seller irrevocably agrees that it will not offer, sell, contract
to sell, pledge or otherwise dispose of, directly or indirectly, any of the Securities received pursuant to this Agreement (including
any securities convertible into, or exchangeable for, or representing the rights to receive shares) (the “Lock-up Shares”),
enter into a transaction that would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole
or in part, any of the economic consequences of ownership of such Lock-up Shares, whether any of these transactions are to be settled
by delivery of any such Lock-up Shares, in cash or otherwise, publicly disclose the intention to make any offer, sale, pledge or disposition,
or to enter into any transaction, swap, hedge or other arrangement, or engage in any short sales with respect to any security of the
Buyer. “Lock-up Period” means a period of ninety (90) days following the Company’s uplist of its common shares
to a national exchange.

 

ARTICLE
II

CLOSING

 

Section
2.01 Closing. Upon the terms and satisfaction of the conditions contained in Section
5.06 of this Agreement, the closing of the transactions contemplated by this Agreement (the “Closing”) shall take
place at the offices of Lucosky Brookman LLP, 101 Wood Avenue South, Woodbridge, New Jersey 08830, or remotely by exchange of documents
and signatures (or their electronic counterparts) no later than the second Business Day following the date on which the conditions set
forth in Section 5.06 have been satisfied (other than the conditions with respect to actions the respective parties hereto will take
at the Closing itself) or, to the extent permitted, waived by the applicable party in writing, or at such other place and times and the
parties may mutually agree. The date and time at which the Closing actually occurs is herein referred to as the “Closing Date”).

 

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Section
2.02 Company and Seller Closing Deliverables.
At the Closing, the Company and Sellers, as applicable, shall deliver to Buyer the following:

 

(a)
A certificate of the Secretary (or other officer) of the Company certifying: (i) that attached thereto are true and complete copies of
all resolutions of the board of directors and the stockholders of the Company authorizing the execution, delivery, and performance of
this Agreement, and the other agreements, instruments, and documents required to be delivered in connection with this Agreement or at
the Closing (collectively, the “Transaction Documents”) to which Seller and the Company are a party and the consummation
of the transactions contemplated hereby and thereby, and that such resolutions are in full force and effect; (ii) the names, titles,
and signatures of the officers of the Company authorized to sign this Agreement and the other Transaction Documents; and (iii) that attached
thereto are true and complete copies of the governing documents of the Company, including any amendments or restatements thereof, and
that such governing documents are in full force and effect.

 

(b)
A good standing certificate (or its equivalent) for the Company from the secretary of state or similar Governmental Authority of the
jurisdiction in which the Company is organized and each jurisdiction where the Company is required to be qualified, registered, or authorized
to do business. The term “Governmental Authority” means any federal, state, local, or foreign government or political
subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court, or tribunal
of competent jurisdiction.

 

(c)
A certificate pursuant to Treasury Regulations Section 1.1445-2(b) that Seller is not a foreign person within the meaning of Section
1445 of the Internal Revenue Code of 1986 (as amended, the “Code”).

 

(d)
An executive employment agreement for an initial term of three (3) years, in form and substance reasonably satisfactory to Buyer, duly
executed by each of Stephen Krauss and Randal Moos (the “Executive Employment Agreements”).

 

(e)
Accepted offers of employment on terms and conditions reasonably satisfactory to Buyer to each of Rachel Krauss, Elizabeth Krauss, Lee
Area, Timothy Novoa and Kate Howell (collectively, the “Employment Offers”).

 

(f)
Duly executed resignation letters from all officers and directors of the Company to be effective immediately after the Closing.

 

(g)
An Assignment, substantially in the form attached hereto as Exhibit B and duly executed by the Sellers.

 

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(h)
A confirmatory intellectual property assignment agreement in favor of the Company duly executed by all current employees of the Company,
in form and substance reasonably satisfactory to the Buyer.

 

Section
2.03 Buyer’s Deliveries. At the Closing, Buyer shall deliver, pay or issue, as
applicable, the following to Sellers:

 

(a)
the Cash Consideration;

 

(b)
the Secured Notes;

 

(c)
the Stock Option Consideration;

 

(d)
the Employment Agreements duly executed by the Buyer; and

 

(e)
the Employment Offers made by the Buyer.

 

ARTICLE
III

Representations and warranties of the company and sellers

 

The
Company and the Sellers, as applicable, represent and warrant to Buyer that the statements contained in this Article ARTICLE III are
true and correct as of the date hereof. For purposes of this Article ARTICLE III, “Seller’s knowledge,” “knowledge
of Seller,” and any similar phrases shall mean the actual or constructive knowledge of any director or officer of the Company.

 

Section
3.01 Organization and Authority of the Company. The
Company is a corporation duly organized, validly existing, and in good standing under the Laws (as defined in Section Section 3.04) of
the state of California. The Company has full power and authority to enter into this Agreement and the other Transaction Documents to
which it and Sellers are a party, to carry out the obligations hereunder and thereunder, and to consummate the transactions contemplated
hereby and thereby. The execution and delivery of this Agreement and any other Transaction Document to which the Company and Sellers
are a party, the performance by Sellers of their obligations hereunder and thereunder, and the consummation by the Company and Sellers
of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of the Company.
This Agreement and each Transaction Document to which the Company and Sellers are a party constitute legal, valid, and binding obligations
of the Company and Sellers enforceable against the Company and Sellers in accordance with their respective terms.

 

Section
3.02 Capitalization.

 

(a)
All of the Shares have been duly authorized, are validly issued, fully paid and nonassessable, and are owned of record and beneficially
by Seller, free and clear of all Encumbrances. Upon the transfer, assignment, and delivery of the Shares and payment therefor in accordance
with the terms of this Agreement, Buyer shall own all of the Selling Shares, free and clear of all Encumbrances.

 

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(b)
All of the Shares were issued in compliance with applicable Laws. None of the Shares were issued in violation of any agreement or commitment
to which Seller or the Company is a party or is subject to or in violation of any preemptive or similar rights of any individual, corporation,
partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other
entity (each, a “Person”).

 

(c)
Except as set out in Schedule 3.02(c), there are no outstanding or authorized options, warrants, convertible securities,
stock appreciation, phantom stock, profit participation, or other rights, agreements, or commitments relating to the shares of the Company
or obligating Seller or the Company to issue or sell any shares of, or any other interest in, the Company. There are no voting trusts,
stockholder agreements, proxies, or other agreements in effect with respect to the voting or transfer of any of the Shares.

 

Section
3.03 No Subsidiaries. The Company does not have,
or have the right to acquire, an ownership interest in any other Person.

 

Section
3.04 No Conflicts or Consents. The execution, delivery,
and performance by the Company and Sellers of this Agreement and the other Transaction Documents to which they are a party, and the consummation
of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate
of incorporation, by-laws, or other governing documents of the Company; (b) violate or conflict with any provision of any statute, law,
ordinance, regulation, rule, code, treaty, or other requirement of any Governmental Authority (collectively, “Law”)
or any order, writ, judgment, injunction, decree, determination, penalty, or award entered by or with any Governmental Authority (“Governmental
Order”) applicable to Sellers or the Company; (c) require the consent, notice, or filing with or other action by any Person
or require any Permit, license, or Governmental Order; (d) violate or conflict with, result in the acceleration of, or create in any
party the right to accelerate, terminate, or modify any contract, lease, deed, mortgage, license, instrument, note, indenture, joint
venture, or any other agreement, commitment, or legally binding arrangement, whether written or oral (collectively, “Contracts”),
to which Sellers or the Company are a party or by which Sellers or the Company is bound or to which any of their respective properties
and assets are subject; or (e) result in the creation or imposition of any Encumbrance on any properties or assets of the Company.

 

Section
3.05 Financial Statements. Complete copies of the
Company’s audited financial statements consisting of the balance sheet of the Company as at December 31 in each of the years in
existence and the related statements of income and retained earnings, stockholders’ equity, and cash flow for the years then ended
(the “Financial Statements”) have been delivered to Buyer; provided, however, that if the Sellers do not have audited
financial statements for the Company, it will cooperate if the Buyer determines at any time that is needs audited financial statements
of the Company. Except as disclosed in Schedule 3.05, the Financial Statements have been prepared in accordance with generally
accepted accounting principles in effect in the United States from time to time (“GAAP”), applied on a consistent
basis throughout the period involved. The Financial Statements are based on the books and records of the Company and fairly present the
financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for
the periods indicated. The balance sheet of the Company as of December 31, 2021 is referred to herein as the “Balance Sheet”
and the date thereof as the “Balance Sheet Date”. The Company maintains a standard system of accounting established
and administered in accordance with GAAP.

 

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Section
3.06 Liabilities. The Company has no liabilities, obligations, or commitments of any
nature whatsoever, whether asserted, known, absolute, accrued, matured, or otherwise (collectively, “Liabilities”),
except: (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date; and (b) those
which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and which are
not, individually or in the aggregate, material in amount. Except as disclosed in Schedule 3.06, the Company further represents
and warrants that as of the Closing Date:

 

a.
Except as set forth on Schedule 3.06(a)
the Company’s outstanding debt will equal US$0; and

 

b.
Schedule 3.06(b) lists all in-house orders as of the Closing Date and the anticipated cost of completion for all such
orders.

 

Section
3.07 Absence of Certain Changes, Events, and Conditions. Since
the Balance Sheet Date, and other than in the ordinary course of business consistent with past practice, there has not been, with respect
to the Company, any change, event, condition, or development that is, or could reasonably be expected to be, individually or in the aggregate,
materially adverse to the business, results of operations, condition (financial or otherwise), or assets of the Company.

 

Section
3.08 Material Contracts.

 

(a)
Schedule 3.08(a) lists each Contract that is material to the Company (such Contracts, together with all Contracts concerning
the occupancy, management, or operation of any Real Property (as defined in Section Section 3.09), being “Material Contracts”),
including the following:

 

(i)
each Contract of the Company involving aggregate consideration in excess of $50,000 and which, in each case, cannot be cancelled by the
Company without penalty or without more than 30 days’ notice;

 

(ii)
all Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax (as defined in Section Section
3.18(a)), environmental, or other Liability of any Person;

 

(iii)
all Contracts relating to Intellectual Property (as defined in Section Section 3.10(a)), including all licenses, sublicenses, settlements,
coexistence agreements, covenants not to sue, and permissions;

 

(iv)
all Contracts relating to trade payables;

 

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(v)
all Contracts relating to indebtedness (including, without limitation, guarantees) of the Company; and

 

(vi)
all Contracts that limit or purport to limit the ability of the Company to compete in any line of business or with any Person or in any
geographic area or during any period of time.

 

(b)
Each Material Contract is valid and binding on the Company in accordance with its terms and is in full force and effect. None of the
Company or, to Seller’s knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or
default under) or has provided or received any notice of any intention to terminate, any Material Contract. Complete and correct copies
of each Material Contract (including all modifications, amendments, and supplements thereto and waivers thereunder) have been made available
to Buyer.

 

Section
3.09 Real Property; Title to Assets. Schedule 3.9(a) lists all real property
in which the Company has an ownership or leasehold (or subleasehold) interest (together with all buildings, structures, and improvements
located thereon, the “Real Property”), including: (i) the street address of each parcel of Real Property; (ii) for
Real Property that is leased or subleased by the Company, the landlord under the lease, the rental amount currently being paid, and the
expiration of the term of such lease or sublease, and any termination or renewal rights of any party to the lease; and (iii) the current
use of each parcel of Real Property. Sellers have delivered or made available to Buyer true, correct, and complete copies of all Contracts,
title insurance policies, and surveys relating to the Real Property.

 

Section
3.10 Intellectual Property.

 

(a)
The term “Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i)
issued patents and patent applications; (ii) trademarks, service marks, trade names, and other similar indicia of source or origin, together
with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of,
any of the foregoing; (iii) copyrights, including all applications and registrations; (iv) trade secrets, know-how, inventions (whether
or not patentable), technology, and other confidential and proprietary information and all rights therein; (v) internet domain names
and social media accounts and pages; and (vi) other intellectual or industrial property and related proprietary rights, interests, and
protections.

 

(b)
Schedule 3.10(b) lists all issued patents, registered trademarks, domain names and copyrights, and pending applications
for any of the foregoing and all material unregistered Intellectual Property that are owned by the Company (the “Company IP
Registrations”). The Company owns or has the valid and enforceable right to use all Intellectual Property used or held for
use in or necessary for the conduct of the Company’s business as currently conducted or as proposed to be conducted (the “Company
Intellectual Property”), free and clear of all Encumbrances. All of the Company Intellectual Property is valid and enforceable,
and all Company IP Registrations are subsisting and in full force and effect. The Company has taken all necessary steps to maintain and
enforce the Company Intellectual Property.

 

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(c)
The conduct of the Company’s business as currently and formerly conducted and as proposed to be conducted has not infringed, misappropriated,
or otherwise violated and will not infringe, misappropriate, or otherwise violate the Intellectual Property or other rights of any Person.
No Person has infringed, misappropriated, or otherwise violated any Company Intellectual Property.

 

Section
3.11 Material Customers and Suppliers.

 

(a)
Schedule 3.11(a) sets forth each customer who has paid aggregate consideration to the Company for goods or services rendered
in an amount greater than or equal to $50,000 for each of the two most recent fiscal years (collectively, the “Material Customers”).
The Company has not received any notice, and has no reason to believe, that any of its Material Customers has ceased, or intends to cease
after the Closing, to purchase or use its goods or services or to otherwise terminate or materially reduce its relationship with the
Company.

 

(b)
Schedule 3.11(b) sets forth each supplier to whom the Company has paid consideration for goods or services rendered in
an amount greater than or equal to $5,000 for each of the two most recent fiscal years (collectively, the “Material Suppliers”).
The Company has not received any notice, and has no reason to believe, that any of its Material Suppliers has ceased, or intends to cease,
to supply goods or services to the Company or to otherwise terminate or materially reduce its relationship with the Company.

 

Section
3.12 Insurance. Schedule 3.12
sets forth a true and complete list of all current policies or binders of insurance maintained by Sellers or its Affiliates (including
the Company) and relating to the assets, business, operations, employees, officers, and directors of the Company ( collectively, the
“Insurance Policies”). Such Insurance Policies: (a) are in full force and effect; (b) are valid and binding in accordance
with their terms; (c) are provided by carriers who are financially solvent; and (d) have not been subject to any lapse in coverage. Neither
Sellers nor any of their Affiliates (including the Company) has received any written notice of cancellation of, premium increase with
respect to, or alteration of coverage under, any of such Insurance Policies. All premiums due on such Insurance Policies have been paid.
None of Sellers or any of their Affiliates (including the Company) is in default under, or has otherwise failed to comply with, in any
material respect, any provision contained in any Insurance Policy. The Insurance Policies are of the type and in the amounts customarily
carried by Persons conducting a business similar to the Company and are sufficient for compliance with all applicable Laws and Contracts
to which the Company is a party or by which it is bound. For purposes of this Agreement: (x) “Affiliate” of a Person
means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person; and (y) the term “control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities or other ownership interests, by contract, or otherwise.

 

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Section
3.13 Legal Proceedings; Governmental Orders.

 

(a)
There are no claims, actions, causes of action, demands, lawsuits, arbitrations, inquiries, audits, notices of violation, proceedings,
litigation, citations, summons, subpoenas, or investigations of any nature, whether at law or in equity (collectively, “Actions”)
pending or, to Seller’s knowledge, threatened against or by the Company, Sellers, or any Affiliate of Sellers: (i) relating to
or affecting the Company or any of the Company’s properties or assets; or (ii) that challenge or seek to prevent, enjoin, or otherwise
delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as
a basis for, any such Action.

 

(b)
There are no outstanding, and the Company is in compliance with all, Governmental Orders against, relating to, or affecting the Company
or any of its properties or assets.

 

Section
3.14 Compliance with Laws; Permits.

 

(a)
The Company has complied, and is now complying, with all Laws applicable to it or its business, properties, or assets.

 

(b)
All permits, licenses, franchises, approvals, registrations, certificates, variances, and similar rights obtained, or required to be
obtained, from Governmental Authorities (collectively, “Permits”) in order for the Company to conduct its business,
including, without limitation, owning or operating any of the Real Property, have been obtained and are valid and in full force and effect.
Schedule 3.14(b) lists all current Permits issued to the Company and no event has occurred that would reasonably be expected
to result in the revocation or lapse of any such Permit.

 

Section
3.15 Environmental Matters.

 

(a)
The terms: (i) “Environmental Laws” means all Laws, now or hereafter in effect, in each case as amended or supplemented
from time to time, relating to the regulation and protection of human health, safety, the environment, and natural resources, including
any federal, state, or local transfer of ownership notification or approval statutes; and (ii) “Hazardous Substances”
means: (A) “hazardous materials,” “hazardous wastes,” “hazardous substances,” “industrial wastes,”
or “toxic pollutants,” as such terms are defined under any Environmental Laws; (B) any other hazardous or radioactive substance,
contaminant, or waste; and (C) any other substance with respect to which any Environmental Law or Governmental Authority requires environmental
investigation, regulation, monitoring, or remediation.

 

(b)
The Company has complied, and is now complying, with all Environmental Laws. Neither the Company nor Sellers have received notice from
any Person that the Company, its business or assets, or any real property currently or formerly owned, leased, or used by the Company
is or may be in violation of any Environmental Law or any applicable Law regarding Hazardous Substances.

 

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(c)
There has not been any spill, leak, discharge, injection, escape, leaching, dumping, disposal, or release of any kind of any Hazardous
Substances in violation of any Environmental Law: (i) with respect to the business or assets of the Company; or (ii) at, from, in, adjacent
to, or on any real property currently or formerly owned, leased, or used by the Company. There are no Hazardous Substances in, on, about,
or migrating to any real property currently or formerly owned, leased, or used by the Company, and such real property is not affected
in any way by any Hazardous Substances.

 

Section
3.16 Employee Benefit Matters.

 

(a)
Schedule 3.16(a) contains a true and complete list of each “employee benefit plan” as defined in Section 3(3)
of the Employee Retirement Income Security Act of 1974 (as amended, and including the regulations thereunder, “ERISA”),
whether or not written and whether or not subject to ERISA, and each supplemental retirement, compensation, employment, consulting, profit-sharing,
deferred compensation, incentive, bonus, equity, change in control, retention, severance, salary continuation, and other similar agreement,
plan, policy, program, practice, or arrangement which is or has been established, maintained, sponsored, or contributed to by the Company
or under which the Company has or may have any Liability (each, a “Benefit Plan”).

 

(b)
For each Benefit Plan, Sellers have made available to Buyer accurate, current, and complete copies of each of the following: (i) the
plan document with all amendments, or if not reduced to writing, a written summary of all material plan terms; (ii) any written contracts
and arrangements related to such Benefit Plan, including trust agreements or other funding arrangements, and insurance policies, certificates,
and contracts; (iii) in the case of a Benefit Plan intended to be qualified under Section 401(a) of the Code, the most recent favorable
determination or national office approval letter issued by the Internal Revenue Service and any legal opinions issued thereafter with
respect to the Benefit Plan’s continued qualification; (iv) the most recent Form 5500 filed with respect to such Benefit Plan;
and (v) any material notices, audits, inquiries, or other correspondence from, or filings with, any Governmental Authority relating to
the Benefit Plan.

 

(c)
Each Benefit Plan and related trust has been established, administered, and maintained in accordance with its terms and in compliance
with all applicable Laws (including ERISA and the Code). Nothing has occurred with respect to any Benefit Plan that has subjected or
could subject the Company or, with respect to any period on or after the Closing Date, Buyer, or any of its Affiliates, to a civil action,
penalty, surcharge, or Tax under applicable Law or which would jeopardize the previously determined qualified status of any Benefit Plan.
All benefits, contributions, and premiums relating to each Benefit Plan have been timely paid in accordance with the terms of such Benefit
Plan and all applicable Laws and accounting principles. Benefits accrued under any unfunded Benefit Plan have been paid, accrued, or
adequately reserved for to the extent required by GAAP.

 

    	10

     

    

 

(d)
The Company has not incurred and does not reasonably expect to incur: (i) any Liability under Title I or Title IV of ERISA, any related
provisions of the Code, or applicable Law relating to any Benefit Plan; or (ii) any Liability to the Pension Benefit Guaranty Corporation.
No complete or partial termination of any Benefit Plan has occurred or is expected to occur.

 

(e)
The Company has not now or at any time within the previous six years contributed to, sponsored, or maintained: (i) any “multiemployer
plan” as defined in Section 3(37) of ERISA; (ii) any “single-employer plan” as defined in Section 4001(a)(15) of ERISA;
(iii) any “multiple employer plan” as defined in Section 413(c) of the Code; (iv) any “multiple employer welfare arrangement”
as defined in Section 3(40) of ERISA; (v) a leveraged employee stock ownership plan described in Section 4975(e)(7) of the Code; or (vi)
any other Benefit Plan subject to required minimum funding requirements.

 

(f)
Other than as required under Sections 601 to 608 of ERISA or other applicable Law, no Benefit Plan provides post-termination or retiree
welfare benefits to any individual for any reason.

 

(g)
Neither the execution of this Agreement nor any of the transactions contemplated by this Agreement will, either alone or in combination
with any other event: (i) entitle any current or former director, officer, employee, independent contractor, or consultant of the Company
to any severance pay, increase in severance pay, or other payment; (ii) accelerate the time of payment, funding, or vesting, or increase
the amount of compensation (including stock-based compensation) due to any such individual; (iii) limit or restrict the right of the
Company to amend or terminate any Benefit Plan; (iv) increase the amount payable under any Benefit Plan; (v) result in any “excess
parachute payments” within the meaning of Section 280G(b) of the Code; or (vi) require a “gross-up” or other payment
to any “disqualified individual” within the meaning of Section 280G(c) of the Code.1

 

Section
3.17 Employment Matters.

 

(a)
Schedule 3.17(a) lists: (i) all employees, independent contractors, and consultants of the Company; and (ii) for each individual
described in clause (i), (A) the individual’s title or position, hire date, and compensation, (B) any Contracts entered into between
the Company and such individual, and (C) the fringe benefits provided to each such individual. All compensation payable to all employees,
independent contractors, or consultants of the Company for services performed on or prior to the Closing Date have been paid in full.

 

(b)
The Company is not, and has not been, a party to or bound by any collective bargaining agreement or other Contract with a union or similar
labor organization (collectively, “Union”), and no Union has represented or purported to represent any employee of
the Company. There has never been, nor has there been any threat of, any strike, work stoppage, slowdown, picketing, or other similar
labor disruption or dispute affecting the Company or any of its employees.

 

 

1
Note to Sellers: This provision is stating that there will be no severance payments or acceleration to the timing of compensation
payments required by entering into this Agreement. Additionally, entering into the Agreement will not limit Oxigenesis’ right to
amend/terminate any benefit plan, increase any amounts payable under the plan or result excess parachute payments or other types of payments
under Section 280(G) of the Code.

 

    	11

     

    

 

(c)
The Company is and has been in compliance with: (i) all applicable employment Laws and agreements regarding hiring, employment, termination
of employment, plant closings and mass layoffs, employment discrimination, harassment, retaliation, and reasonable accommodation, leaves
of absence, terms and conditions of employment, wages and hours of work, employee classification, employee health and safety, engagement
and classification of independent contractors, payroll taxes, and immigration with respect to all employees, independent contractors,
and contingent workers; and (ii) all applicable Laws relating to the relations between it and any labor organization, trade union, work
council, or other body representing employees of the Company.

 

(d)
The Company is and has been in compliance with all tax filings and taxes owed relating to personnel listed on Schedule 3.17(a).

 

Section
3.18 Taxes.

 

(a)
All returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns
and claims for refund) (collectively, “Tax Returns”) required to be filed by the Company on or before the Closing
Date have been timely filed. Such Tax Returns are true, correct, and complete in all respects. All Taxes due and owing by the Company
(whether or not shown on any Tax Return) have been timely paid. No extensions or waivers of statutes of limitations have been given or
requested with respect to any Taxes of the Company. Seller has delivered to Buyer copies of all Tax Returns and examination reports of
the Company and statements of deficiencies assessed against, or agreed to by, the Company, for all Tax periods ending after 2018. The
term “Taxes” means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad
valorem, transfer, franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment,
estimated, excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits,
customs, duties, or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties
with respect thereto.

 

(b)
The Company has not been a member of an affiliated, combined, consolidated, or unitary Tax group for Tax purposes. The Company has no
Liability for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision
of state, local, or foreign Law), as transferee or successor, by contract, or otherwise.

 

(c)
There are no liens for Taxes (other than for current Taxes not yet due and payable) upon the assets of the Company.

 

(d)
Sellers are not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2. The Company is not, nor
has it been, a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period
specified in Section 897(c)(1)(a) of the Code.

 

    	12

     

    

 

(e)
The Company is and has been in compliance with all tax filings and taxes owed relating to personnel listed on Schedule 3.17(a)

 

Section
3.19 Books and Records. The minute books and share
record and transfer books of the Company, all of which are in the possession of the Company and have been made available to Buyer, are
complete and correct.

 

Section
3.20 Brokers. No broker, finder, or investment banker
is entitled to any brokerage, finder’s, or other fee or commission in connection with the transactions contemplated by this Agreement
or any other Transaction Document based upon arrangements made by or on behalf of Sellers.

 

Section
3.21 Full Disclosure. No representation or warranty by the Company or Sellers in this
Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or
to be furnished to Buyer pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact
necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

 

Section
3.22 Own Account. The Selling Shareholders understand that the Securities are “restricted
securities” and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”),
or any applicable state securities law and is acquiring the Securities. The Sellers acknowledge that Buyer has not registered the offer
and sale of the Securities under the Securities Act or any state securities laws, and that the Securities may not be pledged, transferred,
sold, offered for sale, hypothecated, or otherwise disposed of except pursuant to the registration provisions of the Securities Act or
pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable. Each Selling Shareholders
are acquiring the Securities for its own account and not with a view to or for distributing or reselling such Securities or any part
thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such
Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable
state securities law (this representation and warranty not limiting such Selling Shareholder’s right to sell the Securities pursuant
to a registration statement covering the resale of such security or otherwise in compliance with applicable federal and state securities
laws.

 

Section
3.23 Sophisticated Seller. Each Selling Shareholder is sophisticated in financial matters
and is able to evaluate the risks and benefits attendant to the ownership of the Buyer’s securities. Each Selling Shareholder is
an accredited investor as defined in Rule 501(d) promulgated under the Securities Act.

 

    	13

     

    

 

Section
3.24 General Solicitation. Each Selling Shareholder is not, to such Selling Shareholder’s knowledge, purchasing the Securities
because of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar or, to the knowledge of such Selling Shareholder, any
other general solicitation or general advertisement.

 

Section
3.25 Access to Information. Each Selling Shareholder acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the Buyer’s public filings made with the United States Securities and Exchange
Commission (the “SEC”) and has been afforded: (i) the opportunity to ask such questions as it has deemed necessary
of, and to receive answers from, representatives of the Buyer concerning the terms and conditions of the offering of the Securities and
the merits and risks of investing in the Securities; (ii) access to information about the Buyer and its financial condition, results
of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment, including the Buyer’s
(a) Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on April 15, 2022 (which can be obtained through
this link https://www.sec.gov/ix?doc=/Archives/edgar/data/0001693690/000149315222010136/form10-k.htm), and (b) Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2022 as filed with the SEC on December 16, 2022 (which can be obtained through this
link https://www.sec.gov/ix?doc=/Archives/edgar/data/1693690/000149315222035694/form10-q.htm); and (iii) the opportunity to obtain such
additional information that the Buyer possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
investment decision with respect to the investment in the Securities.

 

ARTICLE
IV

Representations and warranties of buyer

 

Buyer
represents and warrants to Sellers as follows:

 

Section
4.01 Organization and Authority of Buyer. Buyer is a corporation duly organized, validly
existing, and in good standing under the Laws of the state of Delaware. Buyer has requisite corporate power and authority to enter into
this Agreement and the other Transaction Documents to which Buyer is a party, to carry out its obligations hereunder and thereunder,
and to consummate the transactions contemplated hereby and thereby, including without limitation issuance of the Buyer Common Stock.
The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by
Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby (including without
limitation issuance of the Buyer Common Stock) and thereby have been duly authorized by all requisite corporate action on the part of
Buyer. This Agreement and each Transaction Document constitute legal, valid, and binding obligations of Buyer enforceable against Buyer
in accordance with their respective terms.

 

Section
4.02 No Conflicts; Consents. The execution, delivery,
and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions
contemplated hereby and thereby (including without limitation issuance of the Buyer Common Stock), do not and will not: (a) violate or
conflict with any provision of the certificate of incorporation, by-laws, or other governing documents of Buyer; (b) violate or conflict
with any provision of any Law or Governmental Order applicable to Buyer; or (c) require the consent, notice, declaration, or filing with
or other action by any Person or require any Permit, license, or Governmental Order.

 

    	14

     

    

 

Section
4.03 Buyer Common Stock. The shares of Buyer Common Stock issuable pursuant hereto, when issued
by Buyer in accordance with this Agreement, will be duly issued, fully paid, and non-assessable.

 

Section
4.04 Condition of Assets/Cash Resources. Buyer has good and marketable title to all owned property
used in its business, and Buyer has (or will have at Closing) available to it sufficient funds to satisfy its monetary obligations in
order to consummate the transactions contemplated hereby.

 

Section
4.05 Brokers. No broker, finder, or investment banker is entitled to any brokerage,
finder’s, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction
Document based upon arrangements made by or on behalf of Buyer.

 

ARTICLE
V

Covenants AND OTHER AGREEMENTS OF THE PARTIES

 

Section
5.01 Confidentiality. From and after the Closing,
Sellers shall, and shall cause its Affiliates and its and their respective directors, officers, employees, consultants, counsel, accountants,
and other agents (collectively, “Representatives”) to, hold in confidence any and all information, in any form, concerning
the Company, except to the extent that Sellers can show that such information: (a) is generally available to and known by the public
through no fault of Sellers, any of their Affiliates, or their respective Representatives; or (b) is lawfully acquired by Sellers, any
of their Affiliates, or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing
such information by any obligation. If Sellers or any of their Affiliates or their respective Representatives are compelled to disclose
any information by Governmental Order or Law, Sellers shall promptly notify Buyer in writing and shall disclose only that portion of
such information which is legally required to be disclosed; provided, however, Sellers shall use reasonable best efforts to obtain
as promptly as possible an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such
information.

 

Section
5.02 [Reserved]

 

Section
5.03 Further Assurances. Following the Closing, each of the Parties hereto shall, and
shall cause their respective Affiliates to, execute and deliver such additional documents and instruments and take such further actions
as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and
the other Transaction Documents.

 

    	15

     

    

 

Section
5.04 Transfer Restrictions.

 

(a)
The Stock Consideration may only be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Stock Consideration other than pursuant to an effective registration statement or Rule 144, the Buyer may require the transferor thereof
to provide to the Buyer an opinion of counsel selected by the transferor and reasonably acceptable to the Buyer, the form and substance
of which opinion shall be reasonably satisfactory to the Buyer, to the effect that such transfer does not require registration of such
transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by
the terms of this Agreement and shall have the rights and obligations of a Selling Shareholder under this Agreement.

 

(b)
The Selling Shareholders agree to the imprinting, so long as is required by this Section 5.04, of a legend on any of the Securities in
the following form:

 

[NEITHER]
THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [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.

 

(c)
Certificates evidencing the shares underlying the Securities (the “Underlying Shares”) shall not contain any legend
(including the legend set forth in Section 5.04(b) hereof): (i) while a registration statement covering the resale of such security is
effective under the Securities Act, (ii) following any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such legend is
not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the SEC). The Buyer shall, at its expense, cause its counsel, or at the option of a Selling Shareholder, counsel determined
by such Selling Shareholder, to issue a legal opinion to the Transfer Agent or the Selling Shareholder promptly if required by the Transfer
Agent to effect the removal of the legend hereunder, or if requested by a Selling Shareholder, respectively subject to compliance with
the Securities Act and/or Rule 144 (for the avoidance of doubt, the Buyer shall pay all costs associated with such opinions).

 

    	16

     

    

 

Section
5.05 Resale Registration. The Buyer agrees to use its commercially reasonable efforts to cause the filing of a registration statement
with the SEC covering the resale of the Underlying Shares by December 31, 2024 and shall use commercially reasonable efforts to cause
such registration statement to become effective by December 31, 2024. The Buyer shall qualify or register the Underlying Shares in such
states as are reasonably requested by the Selling Shareholders; provided, however, that in no event shall the Buyer be
required to register the Underlying Shares in a state in which such registration would cause the Buyer to be obligated to register or
license to do business in such state or submit to general service of process in such state. The Buyer shall cause any registration statement
filed pursuant to this section to remain effective for a period of at least twelve (12) consecutive months after the date that the registration
becomes effective. The Buyer shall bear all fees and expenses attendant to the foregoing registration, other than any and all underwriting
discounts, selling commissions, applicable to the sale of the Underlying Shares.

 

Section
5.06 Closing Conditions. In the event that any of the foregoing conditions are not performed or fulfilled at or before the Closing,
the Buyer or the Seller shall have the right, in their respective sole discretion, to terminate this Agreement and the transactions contemplated
hereby, and the Buyers and Sellers shall be so released from their respective obligations under this Agreement. The following conditions
are for the benefit of the Buyer and the Seller only and accordingly the Buyer and the Seller will be entitled to waive compliance with
any such condition it sees fit to do so, without prejudice to its rights and remedies at law and in equity and also without prejudice
to any of its rights of termination in the event of non-performance of any other conditions in this agreement in whole or in part:

 

(a)
Financing Condition. The transactions contemplated by this Agreement shall be contingent upon and subject to Buyer successfully
obtaining financing of at least $4,000,000 (the “Financing”) by the Closing Date (the “Financing Condition”).
If the Buyer is unable to obtain the Financing, the Buyer may provide written notice to Sellers stating that the Buyer has been unable
to obtain the Financing and notify Sellers that the Buyer has, subject to the express written permission of the Sellers, elected to either
(i) waive the Financing Condition as set forth in this Section 5.06(a), in which event this Agreement will continue as if the
Financing had been obtained or (ii) terminate this Agreement. In the event the contemplated financing is frustrated due to reasons outside
of the Buyer’s control and through no fault of the Buyer, then Buyer may elect to terminate this Agreement and the Buyer and Sellers
shall be released from all further obligations under this Agreement (except those in relation to confidentiality obligations) or the
Buyer may elect to proceed to Closing, subject to the express written permission of the Seller, which permission shall not be unreasonably
withheld.

 

(b)
Due Diligence. On or prior to the Closing, the Buyer shall have completed and reasonably satisfied itself, in its sole discretion,
with the final results of its due diligence review of the Company’s contracts, books, records and other information or documents
reasonably requested by the Buyer.

 

(c)
Completion of Satisfactory Audit. On or prior to the Closing, the auditors of the Company (the “Auditors”)
shall have completed the Company’s audit in compliance with PCAOB standards (the “Audit”) and such Audit shall
not materially deviate from what is shown in the Financial Statements, which shall be solely determined by the Auditors.

 

    	17

     

    

 

ARTICLE
VI

Tax matters

 

Section
6.01 Tax Covenants.

 

(a)
Without the prior written consent of Buyer, Sellers shall not, to the extent it may affect or relate to the Company: (i) make, change,
or rescind any Tax election; (ii) amend any Tax Return; (iii) take any position on any Tax Return; or (iv) take any action, omit to take
any action, or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset
of Buyer or the Company, in respect of any taxable period that begins after the Closing Date or, in respect of any taxable period that
begins before and ends after the Closing Date (each such period, a “Straddle Period”), the portion of any Straddle
Period beginning after the Closing Date.

 

(b)
All transfer, documentary, sales, use, stamp, registration, value added, and other such Taxes and fees (including any penalties and interest)
incurred in connection with this Agreement and the other Transaction Documents shall be borne and paid by Sellers when due. Sellers shall,
at their own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with
respect thereto as necessary).

 

(c)
Buyer shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Company after the Closing Date with respect
to any taxable period or portion thereof ending on or before the Closing Date and all Straddle Period Tax Returns. Any such Tax Return
shall be prepared in a manner consistent with past practice (unless otherwise required by Law) and without a change of any election or
any accounting method.

 

Section
6.02 Straddle Period. In the case of Taxes that are
payable with respect to a Straddle Period, the portion of any such Taxes that are allocated to Pre-Closing Tax Periods (as defined in
Section Section 6.04) for purposes of this Agreement shall be: (a) in the case of Taxes: (i) based upon, or related to, income, receipts,
profits, wages, capital, or net worth; (ii) imposed in connection with the sale, transfer, or assignment of property; or (iii) required
to be withheld, the amount of Taxes which would be payable if the taxable year ended with the Closing Date; and (b) in the case of other
Taxes, the amount of such Taxes for the entire period multiplied by a fraction, the numerator of which is the number of days in the period
ending on the Closing Date and the denominator of which is the number of days in the entire period.

 

Section
6.03 Termination of Existing Tax Sharing Agreements. Any and all existing Tax sharing
agreements (whether written or not) binding upon the Company shall be terminated as of the Closing Date. After such date neither the
Company, Sellers, nor any of Sellers’ Affiliates and their respective Representatives shall have any further rights or liabilities
thereunder.

 

    	18

     

    

 

Section
6.04 Tax Indemnification. Sellers shall indemnify the Company, Buyer, and each Buyer
Indemnitee (as defined in Section Section 7.01) and hold them harmless from and against (a) any loss, damage, liability, deficiency,
Action, judgment, interest, award, penalty, fine, cost or expense of whatever kind (collectively, including reasonable attorneys’
fees and the cost of enforcing any right to indemnification under this Agreement, “Losses”) attributable to any breach
of or inaccuracy in any representation or warranty made in Section Section 3.188; (b) any Loss attributable to any breach or violation
of, or failure to fully perform, any covenant, agreement, undertaking, or obligation in Article ARTICLE VI; (c) all Taxes of the Company
or relating to the business of the Company for all Pre-Closing Tax Periods (as defined below); (d) all Taxes of any member of an affiliated,
consolidated, combined, or unitary group of which the Company (or any predecessor of the Company) is or was a member on or prior to the
Closing Date by reason of a liability under Treasury Regulation Section 1.1502-6 or any comparable provisions of foreign, state, or local
Law; and (e) any and all Taxes of any Person imposed on the Company arising under the principles of transferee or successor liability
or by contract, relating to an event or transaction occurring before the Closing Date. In each of the above cases, together with any
out-of-pocket fees and expenses (including attorneys’ and accountants’ fees) incurred in connection therewith, Seller shall
reimburse Buyer for any Taxes of the Company that are the responsibility of Seller pursuant to this Section 6.04 within ten business
days after payment of such Taxes by Buyer or the Company. The term “Pre-Closing Tax Period” means any taxable period
ending on or before the Closing Date and, with respect to any taxable period beginning before and ending after the Closing Date, the
portion of such taxable period ending on and including the Closing Date.

 

Section
6.05 No Section 336(e) Election. Sellers shall not make an election under Section 336(e)
of the Code with respect to the transactions contemplated by this Agreement.

 

Section
6.06 Cooperation and Exchange of Information. Sellers
and Buyer shall provide each other with such cooperation and information as either of them reasonably may request of the other in filing
any Tax Return pursuant to this Article ARTICLE VI or in connection with any proceeding in respect of Taxes of the Company, including
providing copies of relevant Tax Returns and accompanying documents. Each of Sellers and Buyer shall retain all Tax Returns and other
documents in its possession relating to Tax matters of the Company for any Pre-Closing Tax Period (collectively, “Tax Records”)
until the expiration of the statute of limitations of the taxable periods to which such Tax Records relate.

 

Section
6.07 Survival. Notwithstanding anything in this Agreement
to the contrary, the provisions of Section Section 3.18 and this Article ARTICLE VI shall survive for the full period of all applicable
statutes of limitations (giving effect to any waiver, mitigation, or extension thereof) plus 90 days.

 

ARTICLE
VII

Indemnification

 

Section
7.01 Indemnification by Sellers. Subject to the other
terms and conditions of this Article ARTICLE VII, Sellers shall indemnify and defend each of Buyer and its Affiliates (including the
Company) and their respective Representatives (collectively, the “Buyer Indemnitees”) against, and shall hold each
of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed
upon, the Buyer Indemnitees based upon, arising out of, with respect to, or by reason of:

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Sellers contained in this Agreement or the other Transaction
Documents; or

 

    	19

     

    

 

(b)
any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Sellers pursuant to this Agreement or the
other Transaction Documents.

 

Section
7.02 Indemnification by Buyer. Subject to the other
terms and conditions of this Article ARTICLE VII, Buyer shall indemnify and defend each of Sellers and their Affiliates and their respective
Representatives (collectively, the “Seller Indemnitees”) against, and shall hold each of them harmless from and against,
and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based
upon, arising out of, with respect to, or by reason of:

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or the other Transaction
Documents;

 

(b)
any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement or

 

(c)
any acts, occurrences, or omissions related to the business or business activities of Company occurring after the Closing Date.

 

Section
7.03 Indemnification Procedures. Whenever any claim shall arise for indemnification
hereunder, the party entitled to indemnification (the “Indemnified Party”) shall promptly provide written notice of
such claim to the other party (the “Indemnifying Party”). In connection with any claim giving rise to indemnity hereunder
resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost
and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory
to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel
and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may,
but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including settling such Action,
after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken
by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations
herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any Action without the Indemnified
Party’s prior written consent (which consent shall not be unreasonably withheld or delayed).

 

Section
7.04 Survival. Subject to the limitations and other provisions of this Agreement, the
representations and warranties contained herein (other than any representations or warranties contained in Section Section 3.188 which
are subject to Article ARTICLE VI) and all related rights to indemnification shall survive the Closing and shall remain in full force
and effect until the date that is 12 months from the Closing Date; provided, however, the representations and warranties in Section
Section 3.01, Section Section 3.02, Section Section 3.03, Section Section 3.20, Section Section 4.01 and Section Section 4.05 shall survive
indefinitely. Subject to Article ARTICLE VI, all covenants and agreements of the parties contained herein shall survive the Closing indefinitely
unless another period is explicitly specified herein. Notwithstanding the foregoing, any claims which are timely asserted in writing
by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not
thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.

 

    	20

     

    

 

Section
7.05 Tax Claims. Notwithstanding any other provision of this Agreement, the control
of any claim, assertion, event, or proceeding in respect of Taxes of the Company (including, but not limited to, any such claim in respect
of a breach of the representations and warranties in Section Section 3.188 hereof or any breach or violation of or failure to fully perform
any covenant, agreement, undertaking, or obligation in Article ARTICLE VI) shall be governed exclusively by Article VI hereof.

 

Section
7.06 Cumulative Remedies. The rights and remedies provided for in this Article ARTICLE
VII (and in Article VI) are cumulative and are in addition to and not in substitution for any other rights and remedies available at
Law or in equity or otherwise.

 

ARTICLE
VIII

Miscellaneous

 

Section
8.01 Expenses. All costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

 

Section
8.02 Notices. All notices, claims, demands, and other
communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation
of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the
date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient,
and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by
certified or registered mail, return receipt requested, postage prepaid, if sent to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this Section 8.02):

 

	If
    to Seller:	 	Oxigenesis,
                                            Inc.

    2917
    Union Road, Suite B

    Paso
    Robles, CA 93446

    Email:

    Attention:
    Stephen Krauss, Founder and Chairman

    

	 	 	 
	with
    a copy (which shall not constitute notice) to:	 	Jonathan
                                            T. van Heel

    1324
    NW Jacksonville Ave.

    Bend,
    OR 97703

    Email:

    Attention:
    Jonathan T. van Heel

    

	 	 	 
	If
    to Buyer:	 	Veroni
                                            Brands Corp.

     

    350
    S. Northwest Highway, Suite 300

    Park
    Ridge, IL 60068

    Email:
    Attention: Igor Gabal, President

	 	 	 
	with
    a copy (which shall not constitute notice) to:	 	Lucosky
                                            Brookman LLP

     

    101
    Wood Avenue South

     

    Woodbridge,
    New Jersey 08830

    Facsimile:
    (732) 395-4401

    Email:

    Attention:
    Lawrence Metelitsa, Esq.

 

    	21

     

    

 

Section
8.03 Interpretation; Headings. This Agreement shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument
or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect the interpretation
of this Agreement.

 

Section
8.04 Severability. If any term or provision of this
Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect
any other term or provision of this Agreement.

 

Section
8.05 Entire Agreement. This Agreement and the other
Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained
herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to
such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction
Documents (and Exhibits, if any) and the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure
Schedules), the statements in the body of this Agreement will control.

 

Section
8.06 Successors and Assigns. This Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party
may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably
withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.

 

Section
8.07 Amendment and Modification; Waiver. This Agreement may only be amended, modified,
or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall
be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising,
any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof. No single or partial exercise of any
right or remedy hereunder shall preclude any other or further exercise thereof or the exercise of any other right or remedy.

 

    	22

     

    

 

Section
8.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)
This Agreement, including all matters arising out of or relating to this Agreement shall be governed by and construed in accordance with
the internal laws of the State of Illinois without giving effect to any choice or conflict of law provision or rule (whether of the State
of Illinois or any other jurisdiction). Any legal suit, action, proceeding, or dispute arising out of or related to this Agreement, the
other Transaction Documents, or the transactions contemplated hereby or thereby may be instituted in the federal courts of the United
States of America or the courts of the State of Illinois in each case located in the county of Cook, and each party irrevocably submits
to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.

 

(b)
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER TRANSACTION
DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT
OF A LEGAL ACTION; (II) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY;
AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

Section
8.09 Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.
A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect
as delivery of an original signed copy of this Agreement.

 

[signature
page follows] 

 

    	23

     

    

 

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

 

	 	COMPANY:
	 	 	 
	 	OXIGENESIS, INC.
	 	 	 
	 	By:	
	 	Name:	 Stephen Krauss
	 	Title:	Founder and Chairman

 

[Signature
Page to Asset Purchase Agreement]

 

    	 

     

    

 

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

 

	 	SellING SHAREHOLDERS:
	 	 	 
	 	THE STEPHEN AND SHERRIE KRAUSS FAMILY TRUST
    2022
	 	 	 
	 	By:	 
	 	Name:	Stephen Krauss
	 	Title:	Trustee
	 	 	 
	 	THE MOOS 2002 REVOCABLE TRUST
	 	 	 
	 	By:
    	
	 	Name:	Randal Moos
	 	Title:	Trustee
	 	 	 
	 	OXIGEN BEVERAGES INC
	 	 	 
	 	By: 	
	 	Name:	Scott Ogilvie
	 	Title:	Executive Chairman

 

[Signature
Page to Asset Purchase Agreement]

 

    	 

     

    

 

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

 

	 	BUYER:
	 	 	 
	 	VERONI BRANDS CORP.
	 	 	 
	 	By:	
	 	Name: 	 Igor Gabal
	 	

    Title:	President

 

[Signature
Page to Asset Purchase Agreement]

 

    	 

     

    

 

DEFINITIONS
CROSS-REFERENCE TABLE

 

The
following terms have the meanings set forth in the location in this Agreement referenced below:

 

	Term	 	Section
	Actions	 	Section
    Section 3.13(a)
	Affiliate	 	Section
    Section 3.12
	Agreement	 	Preamble
	Balance
    Sheet	 	Section
    Section 3.05
	Balance
    Sheet Date	 	Section
    Section 3.05
	Benefit
    Plans	 	Section
    Section 3.16(a)
	Buyer	 	Preamble
	Buyer
    Common Stock	 	Section
    1.02(b)
	Buyer
    Indemnitees	 	Section
    Section 7.01
	Cash
    Consideration	 	Section
    1.02(a)
	Closing	 	Section
    Section 2.01
	Closing
    Date	 	Section
    Section 2.01
	Code	 	Section
    Section 2.02(c)
	Company	 	Recitals
	Company
    Intellectual Property	 	Section
    Section 3.10(b)
	Company
    IP Registrations	 	Section
    Section 3.10(b)
	Contracts	 	Section
    Section 3.04
	Disclosure
    Schedules	 	Section
    Section 1.03
	Encumbrance	 	Section
    Section 1.01
	Environmental
    Laws	 	Section
    Section 3.15(a)
	ERISA	 	Section
    Section 3.16(a)
	Financial
    Statements	 	Section
    Section 3.05
	GAAP	 	Section
    Section 3.05
	Governmental
    Authority	 	Section
    Section 2.02(b)
	Governmental
    Order	 	Section
    Section 3.04
	Hazardous
    Substances	 	Section
    Section 3.15(a)

 

    	 

     

    

 

	Indemnified
    Party	 	Section
    Section 7.03
	Indemnifying
    Party	 	Section
    Section 7.03
	Insurance
    Policies	 	Section
    Section 3.12
	Intellectual
    Property	 	Section
    Section 3.10(a)
	Law	 	Section
    Section 3.04
	Liabilities	 	Section
    Section 3.06
	Losses	 	Section
    Section 6.04
	Material
    Contracts	 	Section
    Section 3.08(a)
	Material
    Customers	 	Section
    Section 3.11(a)
	Material
    Suppliers	 	Section
    Section 3.11(b)
	Net
    Income	 	Section
    1.03(a)
	Permits	 	Section
    Section 3.14(b)
	Person	 	Section
    Section 3.02(b)
	Pre-Closing
    Tax Period	 	Section
    Section 6.04
	Real
    Property	 	Section
    Section 3.09
	Representatives	 	Section
    Section 5.01
	Restricted
    Business	 	 
	Restricted
    Period	 	 
	Securities
    Act	 	 
	Sellers	 	Preamble
	Seller
    Indemnitees	 	Section
    Section 7.02
	Shares
    and Selling Shares	 	Recitals
	Straddle
    Period	 	Section
    Section 6.01(a)
	Target
    Amount	 	Section
    1.03(a)
	Taxes	 	Section
    Section 3.18(a)
	Tax
    Records	 	Section
    Section 6.06
	Tax
    Returns	 	Section
    Section 3.18(a)
	Territory	 	 
	Transaction
    Documents	 	Section
    Section 2.02(a)
	Union	 	Section
    Section 3.17(b)

 

    	 

     

    

 

EXHIBIT
A

 

Form
of Secured Convertible Promissory Note

 

[see
attached]

 

    	 

     

    

 

EXHIBIT
B

 

Form
of Assignment

 

[see
attached]Exhibit
10.2

 

SECURITY
AGREEMENT

 

THIS
SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) dated as
of [____], 2022 between Veroni Brands Corp., a Delaware corporation (the “Company”) (together with each other Person who
becomes a party to this Agreement by execution of a joinder in the form of Exhibit A attached hereto, which shall include all
wholly-owned or majority-owned subsidiaries of the Company acquired after the date hereof for so long as this Agreement remains in effect,
are hereinafter sometimes referred to individually as a “Debtor” and, collectively, as the “Debtors”) and [____],
in its capacity as Collateral Agent for the benefit of itself and each of the Note Holders (as hereinafter defined) (each, together with
its respective successors and assigns, a “Secured Party,” and collectively the “Secured Parties”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Note Holders as from time to time parties to the Purchase Agreement (as hereafter defined) (each a “Note Holder”, and
together with their successors and assigns and each other purchaser of a Note (as defined below) and their respective successors and
assigns, individually and collectively, the “Note Holders”), pursuant to which such Note Holders will receive from the Company
certain senior secured convertible notes each made by the Company and dated as of the date hereof in an original aggregate principal
amount of $2,000,000 (all such notes, together with any promissory notes or other securities issued in exchange or substitution therefor
or replacement thereof, and as any of the same may be amended, supplemented, restated or modified and in effect from time to time, the
“Notes”);

 

WHEREAS,
the Notes are being acquired by Note Holders, and Note Holders have made certain financial accommodations to the Company pursuant to
that certain Stock Purchase Agreement, dated as of the date hereof among the Company, and the Note Holders (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”). Capitalized terms used herein
but not otherwise defined shall have the meanings set forth in the Purchase Agreement;

 

WHEREAS,
each Debtor will derive substantial benefit and advantage from the financial accommodations to the Company set forth in the Purchase
Agreement and the Notes, and it will be to each such Debtor’s direct interest and economic benefit to assist the Company in procuring
said financial accommodations from Note Holders; and

 

WHEREAS,
to induce Note Holders to enter into the Purchase Agreement, each Debtor will pledge and grant a security interest in all of its right,
title and interest in and to the Collateral (as hereinafter defined) as security for its Obligations for the benefit of the Secured Party,
Note Holders and their respective successors and assigns.

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

Section
1. Definitions. Capitalized terms used herein
without definition and defined in the Purchase Agreement are used herein as defined therein. In addition, as used herein:

 

“Accounts”
means any “account,” as such term is defined in the UCC, and, in any event, shall include, without limitation, “supporting
obligations” as defined in the UCC.

 

“Chattel
Paper” means any “chattel paper,” as such term is defined in the UCC.

 

“Collateral”
shall have the meaning ascribed thereto in Section 3 hereof.

 

“Commercial
Tort Claims” means “commercial tort claims”, as such term is defined in the UCC.

 

“Contracts”
means all contracts, undertakings, or other agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in or
under which a Debtor may now or hereafter have any right, title or interest, including, without limitation, with respect to an Account,
any agreement relating to the terms of payment or the terms of performance thereof.

 

    	1

    	 

    

 

“Copyrights”
means any copyrights, rights and interests in copyrights, works protectable by copyrights, copyright registrations and copyright applications,
including, without limitation, the copyright registrations and applications listed on Schedule III attached hereto (if any), and
all renewals of any of the foregoing, all income, royalties, damages and payments now and hereafter due and/or payable under or with
respect to any of the foregoing, including, without limitation, damages and payments for past, present and future infringements of any
of the foregoing and the right to sue for past, present and future infringements of any of the foregoing.

 

“Deposit
Accounts” means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of a Debtor.

 

“Documents”
means any “documents,” as such term is defined in the UCC, and shall include, without limitation, all documents of title
(as defined in the UCC), bills of lading or other receipts evidencing or representing Inventory or Equipment.

 

“Equipment”
means any “equipment,” as such term is defined in the UCC and, in any event, shall include, Motor Vehicles.

 

“Event
of Default” shall have the meaning set forth in the Notes.

 

“Excluded
Assets” means each of the following: (1) any lease, license or other agreement or any property subject to a capital lease, purchase
money security interest or similar arrangement, to the extent that a grant of a Lien thereon in favor of Secured Party would violate
or invalidate such lease, license, agreement or capital lease, purchase money security interest or similar arrangement or create a right
of termination in favor of any other party thereto (other than the Debtors), so long as such provision exists and so long as such lease,
license or agreement was not entered into in contemplation of circumventing the obligation to provide Collateral hereunder or in violation
of the Purchase Agreement, other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law including
the bankruptcy code, or principles of equity.

 

“General
Intangibles” means any “general intangibles,” as such term is defined in the UCC, and, in any event, shall include,
without limitation, all right, title and interest in or under any Contract, models, drawings, materials and records, claims, literary
rights, goodwill, rights of performance, Copyrights, Trademarks, Patents, warranties, rights under insurance policies and rights of indemnification.

 

“Goods”
means any “goods”, as such term is defined in the UCC, including, without limitation, fixtures and embedded Software to the
extent included in “goods” as defined in the UCC.

 

“Governmental
Authority” means the government of the United States of America or any other nation, or any political subdivision thereof, whether
state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administration powers or functions of or pertaining to government over any Debtor or any
of its subsidiaries, or any of their respective properties, assets or undertakings.

 

“Instruments”
means any “instrument,” as such term is defined in the UCC, and shall include, without limitation, promissory notes, drafts,
bills of exchange, trade acceptances, letters of credit, letter of credit rights (as defined in the UCC), and Chattel Paper.

 

“Inventory”
means any “inventory,” as such term is defined in the UCC.

 

“Investment
Property” means any “investment property”, as such term is defined in the UCC.

 

“Obligations”
means all obligations, liabilities and indebtedness of every nature of Debtors from time to time owed or owing under or in respect of
this Agreement, the Notes, and any of the other Security Documents, as the case may be, including, without limitation, the principal
amount of all debts, claims and indebtedness, accrued and unpaid interest and all fees, costs and expenses, whether primary, secondary,
direct, contingent, fixed or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable whether before or after
the filing of a bankruptcy, insolvency or similar proceeding under applicable federal, state, foreign or other law and whether or not
an allowed claim in any such proceeding.

 

    	2

    	 

    

 

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

 

“Motor
Vehicles” shall mean motor vehicles, tractors, trailers and other like property, whether or not the title thereto is governed by
a certificate of title or ownership.

 

“Patents”
means any patents, pending patents and patent applications, including, without limitation, the inventions and improvements described
and claimed therein, all patentable inventions and those patents and patent applications listed on Schedule IV attached hereto
(if any), and the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing, and all
income, royalties, damages and payments now or hereafter due and/or payable under or with respect to any of the foregoing, including,
without limitation, damages and payments for past, present and future infringements of any of the foregoing and the right to sue for
past, present and future infringements of any of the foregoing.

 

“Permitted
Indebtedness” has the meaning set forth in the Notes.

 

“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 the Company) have been established in accordance
with GAAP, and (b) Liens imposed by law which were incurred in the ordinary course of the Company’s business, such as carriers’,
warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other similar Liens arising in the ordinary course
of the Company’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 the Company 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.

 

“Pledged
Collateral” means all Instruments and Investment Property whether or not physically delivered to the Collateral Agent according
to this Agreement.

 

“Proceeds”
means “proceeds,” as such term is defined in the UCC and, in any event, includes, without limitation, (a) any and all proceeds
of any insurance, indemnity, warranty or guaranty payable with respect to any of the Collateral, (b) any and all payments (in any form
whatsoever) made or due and payable from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture
of all or any part of the Collateral by any Governmental Authority (or any person acting under color of Governmental Authority), and
(c) any and all other amounts from time to time paid or payable under, in respect of or in connection with any of the Collateral.

 

“Representative”
means any Person acting as agent, representative or trustee on behalf of the Secured Party from time to time.

 

“Security
Documents” means this Agreement, and any other documents securing the Liens of the Secured Party hereunder.

 

“Software”
means all “software” as such term is defined in the UCC, now owned or hereafter acquired by a Debtor, other than software
embedded in any category of Goods, including, without limitation, all computer programs and all supporting information provided in connection
with a transaction related to any program.

 

    	3

    	 

    

 

“Trademarks”
means any trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks,
logos, other business identifiers, prints and labels on which any of the foregoing have appeared or appear, all registrations and recordings
thereof, and all applications in connection therewith, including, without limitation, the trademarks and applications listed in Schedule
V attached hereto (if any) and renewals thereof, and all income, royalties, damages and payments now or hereafter due and/or payable
under or with respect to any of the foregoing, including, without limitation, damages and payments for past, present and future infringements
of any of the foregoing and the right to sue for past, present and future infringements of any of the foregoing.

 

“Transaction
Documents” means the Purchase Agreement, the Notes, the Security Documents, the Warrants and any other related agreements.

 

“UCC”
shall mean the Uniform Commercial Code as in effect from time to time in the State of Delaware; provided, that to the extent that the
Uniform Commercial Code is used to define any term herein and such term is defined differently in different Articles or Divisions of
the Uniform Commercial Code, the definition of such term contained in Article or Division 9 shall govern.

 

Section
2. Representations, Warranties and Covenants of
Debtors. Each Debtor represents and warrants to, and covenants with, the Secured Party as follows:

 

(a) Subject
to the Permitted Liens such Debtor has or will have rights in and the power to transfer the Collateral in which it purports to grant
a security interest pursuant to Section 3 hereof (subject, with respect to after acquired Collateral, to such Debtor acquiring the same)
and no Lien other than Permitted Liens exists or will exist upon such Collateral at any time.

 

(b) Subject
to the Permitted Liens, this Agreement is effective to create in favor of Secured Party a valid security interest in and Lien upon all
of such Debtor’s right, title and interest in and to the Collateral, and upon (i) the filing of appropriate UCC financing statements
in the jurisdictions listed on Schedule I attached hereto, (ii) creation of each Deposit Account, (iii) filings in the United
States Patent and Trademark Office, or United States Copyright Office with respect to Collateral that constitutes Patents and Trademarks,
or Copyrights, as the case may be, (iv) the filing of the Mortgages in the jurisdictions listed on Schedule I hereto, (v) the
delivery to the Secured Party of the Pledged Collateral together with assignments in blank, (vi) the security interest created hereby
being noted on each certificate of title evidencing the ownership of any Motor Vehicle in accordance with Section 4.1(d) hereof and (v)
delivery to the Secured Party or its Representative of Instruments duly endorsed by such Debtor or accompanied by appropriate instruments
of transfer duly executed by such Debtor with respect to Instruments not constituting Chattel Paper, such security interest will be a
duly perfected first priority perfected security interest (subject to Permitted Liens) in all of the Collateral. Each Debtor shall, upon
request from the Secured Party, enter into a Deposit Account Control Agreement, the form and substance of which shall be mutually agreed
upon by the parties in good faith.

 

(c) All
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I attached hereto.
Except as disclosed on Schedule I, none of the Collateral is in the possession of any bailee, warehousemen, processor or consignee.
Schedule I discloses such Debtor’s name as of the date hereof as it appears in official filings in the state or province,
as applicable, of its incorporation, formation or organization, the type of entity of such Debtor (including corporation, partnership,
limited partnership or limited liability company), organizational identification number issued by such Debtor’s state of incorporation,
formation or organization (or a statement that no such number has been issued), such Debtor’s state or province, as applicable,
of incorporation, formation or organization and the chief place of business, chief executive office and the office where such Debtor
keeps its books and records and the states in which such Debtor conducts its business. Such Debtor has only one state or province, as
applicable, of incorporation, formation or organization. Such Debtor does not do business and has not done business during the past five
years under any trade name or fictitious business name except as disclosed on Schedule II attached hereto.

 

(d) No
Copyrights, Patents or Trademarks listed on Schedules III, IV and V, respectively, if any, have been adjudged invalid or unenforceable
or have been canceled, in whole or in part, or are not presently subsisting. Each of such Copyrights, Patents and Trademarks (if any)
is valid and enforceable. Subject to the Permitted Liens, such Debtor is the sole and exclusive owner of the entire and unencumbered
right, title and interest in and to each of such Copyrights, Patents and Trademarks, identified on Schedules III, IV and V, as
applicable, as being owned by such Debtor, free and clear of any liens (subject to the Permitted Lien), charges and encumbrances, including
without limitation licenses, shop rights and covenants by such Debtor not to sue third persons. Such Debtor has adopted, used and is
currently using, or has a current bona fide intention to use, all of such Trademarks and Copyrights. Such Debtor has no notice of any
suits or actions commenced or threatened with reference to the Copyrights, Patents or Trademarks owned by it.

 

    	4

    	 

    

 

(e) Each
Debtor agrees to deliver to the Secured Party an updated Schedule I, II, III, IV and/or V within five Business Days of any change
thereto.

 

(f) All
depositary and other accounts including, without limitation, Deposit Accounts, securities accounts, brokerage accounts and other similar
accounts, maintained by each Debtor are described on Schedule VI hereto, which description includes for each such account the
name of the Debtor maintaining such account, the name, address and telephone and telecopy numbers of the financial institution at which
such account is maintained, the account number and the account officer, if any, of such account. No Debtor shall open any new Deposit
Accounts, securities accounts, brokerage accounts or other accounts unless such Debtor shall have given Secured Party 10 Business Days’
prior written notice of its intention to open any such new accounts. Each Debtor shall deliver to Secured Party a revised version of
Schedule VI showing any changes thereto within five Business Days of any such change. Each Debtor hereby authorizes the financial
institutions at which such Debtor maintains an account to provide Secured Party with such information with respect to such account as
Secured Party from time to time reasonably may request, and each Debtor hereby consents to such information being provided to Secured
Party. In addition, all of such Debtor’s depositary, security, brokerage and other accounts including, without limitation, Deposit
Accounts shall be subject to the provisions of Section 2 hereof.

 

(g) Such
Debtor does not own any Commercial Tort Claim except for those disclosed on Schedule VII hereto (if any).

 

(h) Such
Debtor does not have any interest in real property with respect to real property except as disclosed on Schedule VIII (if any).
Each Debtor shall deliver to Secured Party a revised version of Schedule VIII showing any changes thereto within 10 Business Days
of any such change. Except as otherwise agreed to by Secured Party, all such interests in real property with respect to such real property
are subject to a mortgage and deed of trust (in form and substance satisfactory to Secured Party) in favor of Secured Party (hereinafter,
a “Mortgage”).

 

(i) Each
Debtor shall duly and properly record each interest in real property held by such Debtor, except with respect to easements, rights of
way, access agreements, surface damage agreements, surface use agreements or similar agreements that such Debtor, using prudent customs
and practices in the industry in which it operates, does not believe are of material value or material to the operation of such Debtor’s
business or, with respect to state and federal rights of way, are not capable of being recorded as a matter of state and federal law.

 

(j) All
Equipment (including, without limitation, Motor Vehicles) owned by a Debtor and subject to a certificate of title or ownership statute
is described on Schedule IX hereto.

 

(k) All
representations, warranties and covenants of the Debtors in the Purchase Agreement, the Notes or any other documents contemplated thereby
are hereby incorporated herein by reference as though fully set forth herein.

 

(l) Subordination
Covenants. Each Debtor hereby covenants and agrees, while any amounts remain outstanding under the Note, to: (i) permit the Company,
without first obtaining the Debtor’s consent and without requiring any advance action on behalf of the Debtor, to incur debt in
the ordinary course of business to finance the Company’s ongoing business activities; and (ii) use its commercially reasonable
efforts to assist the Company in securing any such debt, including, but not limited to, signing such intercreditor or similar agreements
reasonably requested to be signed in connection with the incurrence of such debt and the subordination of the obligations of the Company
under this Agreement and the Note to any such debt. The Holder further covenants and agrees that its rights under this Agreement and
the Note shall be subordinate to any and all debt incurred by the Company in connection with the financing of the transactions contemplated
by the Purchase Agreement.

 

    	5

    	 

    

 

Section
3. Collateral. As collateral security for
the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the obligations due the Secured Party
under the Notes, each Debtor hereby pledges and grants to the Secured Party, for the benefit of itself and each Note Holder, a Lien on
and security interest in and to all of such Debtor’s assets, including all right, title and interest in the following properties
and assets of such Debtor, whether now owned by such Debtor or hereafter acquired and whether now existing or hereafter coming into existence
and wherever located (all being collectively referred to herein as “Collateral”):

 

(a) all
Instruments, together with all payments thereon or thereunder;

 

(b) all
Accounts;

 

(c) all
Inventory;

 

(d) all
General Intangibles (including payment intangibles (as defined in the UCC) and Software);

 

(e) all
Equipment;

 

(f) all
Documents;

 

(g) all
Contracts;

 

(h) all
Goods;

 

(i) all
Investment Property, including without limitation all equity interests now owned or hereafter acquired by such Debtor;

 

(j) all
Deposit Accounts, including, without limitation, the balance from time to time in all bank accounts maintained by such Debtor;

 

(k) all
Commercial Tort Claims specified on Schedule VII;

 

(l) all
Trademarks, Patents and Copyrights;

 

(m) all
books and records pertaining to the other Collateral;

 

(n) all
Software; and

 

(o) all
other tangible and intangible property and other assets of such Debtor, including, without limitation, all interests in real property,
Proceeds, tort claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and to any
of the property of such Debtor described in the preceding clauses of this Section 3 (including, without limitation, any proceeds of insurance
thereon, insurance claims and all rights, claims and benefits against any Person relating thereto), other rights to payments not otherwise
included in the foregoing, and all books, correspondence, files, records, invoices and other papers, including without limitation all
tapes, cards, computer runs, computer programs, computer files and other papers, documents and records in the possession or under the
control of such Debtor, or any computer bureau or service company from time to time acting for such Debtor.

 

Notwithstanding
anything to the contrary contained herein or in any Transaction Document, in no event shall the security interest granted herein or therein
attach to any Excluded Assets.

 

Section
4. Covenants; Remedies. In furtherance of
the grant of the pledge and security interest pursuant to Section 3 hereof, each Debtor hereby agrees with the Secured Party as follows
(subject to the Permitted Liens):

 

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4.1 Delivery
and Other Perfection; Maintenance, etc.

 

(a) Delivery
of Instruments, Documents, Etc. Each Debtor shall deliver and pledge to the Secured Party or its Representative any and all Instruments,
negotiable Documents, Chattel Paper and certificated securities (accompanied by stock powers executed in blank, which stock powers may
be filled in and completed at any time upon the occurrence of any Event of Default) duly endorsed and/or accompanied by such instruments
of assignment and transfer executed by such Debtor in such form and substance as the Secured Party or its Representative may request;
provided, that so long as no Event of Default shall have occurred and be continuing, each Debtor may retain for collection in
the ordinary course of business any Instruments, negotiable Documents and Chattel Paper received by such Debtor in the ordinary course
of business, and the Secured Party or its Representative shall, promptly upon request of a Debtor, make appropriate arrangements for
making any other Instruments, negotiable Documents and Chattel Paper pledged by such Debtor available to such Debtor for purposes of
presentation, collection or renewal (any such arrangement to be effected, to the extent deemed appropriate by the Secured Party or its
Representative, against a trust receipt or like document). If a Debtor retains possession of any Chattel Paper, negotiable Documents
or Instruments pursuant to the terms hereof, such Chattel Paper, negotiable Documents and Instruments shall be marked with the following
legend: “This writing and the obligations evidenced or secured hereby are subject to the security interest of [Collateral Agent],
in its capacity as Collateral Agent for the benefit of Note Holders, as secured party.”

 

(b) Other
Documents and Actions. Each Debtor shall give, execute, deliver, file and/or record any financing statement, registration, notice,
instrument, document, agreement, Mortgage or other papers that may be necessary or desirable (in the reasonable judgment of the Secured
Party or its Representative) to create, preserve, perfect or validate the security interest granted pursuant hereto (or any security
interest or mortgage contemplated or required hereunder, including with respect to Section 2(h) of this Agreement) or to enable the Secured
Party or its Representative to exercise and enforce the rights of the Secured Party hereunder with respect to such pledge and security
interest, provided that notices to account debtors in respect of any Accounts or Instruments shall be subject to the provisions
of clause (e) below. Notwithstanding the foregoing each Debtor hereby irrevocably authorizes the Secured Party at any time and from time
to time to file in any filing office in any jurisdiction any initial financing statements (and other similar filings or registrations
under other applicable laws and regulations pertaining to the creation, attachment, or perfection of security interests) and amendments
thereto that (a) indicate the Collateral (i) as all assets of such Debtor or words of similar effect, regardless of whether any particular
asset comprised in the Collateral falls within the scope of Article 9 of the UCC, or (ii) as being of an equal or lesser scope or with
greater detail, and (b) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment, including (i) whether such Debtor is an organization, the type of organization and
any organization identification number issued to such Debtor, and (ii) in the case of a financing statement filed as a fixture filing,
a sufficient description of real property to which the Collateral relates. Each Debtor agrees to furnish any such information to the
Secured Party promptly upon request. Each Debtor also ratifies its authorization for the Secured Party to have filed in any jurisdiction
any like initial financing statements or amendments thereto if filed prior to the date hereof.

 

(c) Books
and Records. Each Debtor (or a Company on behalf of a Debtor) shall maintain at its own cost and expense complete and accurate books
and records of the Collateral, including, without limitation, a record of all payments received and all credits granted with respect
to the Collateral and all other dealings with the Collateral. Upon the occurrence and during the continuation of any Event of Default,
each Debtor shall deliver and turn over any such books and records (or true and correct copies thereof) to the Secured Party or its Representative
at any time on demand. Each Debtor shall permit any Representative of the Secured Party, to inspect such books and records at any time
during reasonable business hours and will provide photocopies thereof at such Debtor’s expense to the Secured Party upon request
of the Secured Party.

 

(d) Motor
Vehicles. Each Debtor shall, promptly upon acquiring same, cause the Secured Party to be listed as the lienholder on each certificate
of title or ownership covering any items of Equipment, including Motor Vehicles, having a value in excess of $50,000 individually or
in the aggregate for all such items of Equipment of the Debtor, or otherwise comply with the certificate of title or ownership laws of
the relevant jurisdiction issuing such certificate of title or ownership in order to properly evidence and perfect Secured Party’s
security interest in the assets represented by such certificate of title or ownership.

 

    	7

    	 

    

 

(e) Notice
to Account Debtors; Verification. (i) Upon the occurrence and during the continuance of any Event of Default (or if any rights of
set-off (other than set-offs against an Account arising under the Contract giving rise to the same Account) or contra accounts may be
asserted, upon request of the Secured Party or its Representative, each Debtor shall promptly notify (and each Debtor hereby authorizes
the Secured Party and its Representative so to notify) each account debtor in respect of any Accounts or Instruments or other Persons
obligated on the Collateral that such Collateral has been assigned to the Secured Party hereunder, and that any payments due or to become
due in respect of such Collateral are to be made directly to the Secured Party, and (ii) the Secured Party and its Representative shall
have the right at any time or times to make direct verification with the account debtors or other Persons obligated on the Collateral
of any and all of the Accounts or other such Collateral.

 

(f) Intellectual
Property. Each Debtor represents and warrants that the Copyrights, Patents and Trademarks listed on Schedules III, IV and V,
respectively (if any), constitute all of the registered Copyrights and all of the Patents and Trademarks now owned by such Debtor. If
such Debtor shall (i) obtain rights to any new patentable inventions, any registered Copyrights or any Patents or Trademarks, or (ii)
become entitled to the benefit of any registered Copyrights or any Patents or Trademarks or any improvement on any Patent, the provisions
of this Agreement above shall automatically apply thereto and such Debtor shall give to Secured Party prompt written notice thereof.
Each Debtor hereby authorizes Secured Party to modify this Agreement by amending Schedules III, IV and V, as applicable, to include
any such registered Copyrights or any such Patents and Trademarks. Each Debtor shall have the duty (i) to prosecute diligently any patent,
trademark, or service mark applications pending as of the date hereof or hereafter, (ii) to preserve and maintain all rights in the Copyrights,
Patents and Trademarks, to the extent material to the operations of the business of such Debtor and (iii) to ensure that the Copyrights,
Patents and Trademarks are and remain enforceable, to the extent material to the operations of the business of such Debtor. Any expenses
incurred in connection with such Debtor’s obligations under this Section 4.1(f) shall be borne by such Debtor. Except for any such
items that a Debtor reasonably believes (using prudent industry customs and practices) are no longer necessary for the on-going operations
of its business, no Debtor shall abandon any material right to file a patent, trademark or service mark application, or abandon any pending
patent, trademark or service mark application or any other Copyright, Patent or Trademark without the prior written consent of Secured
Party, which consent shall not be unreasonably withheld.

 

(g) Further
Identification of Collateral. Each Debtor will, when and as often as requested by the Secured Party or its Representative, furnish
to the Secured Party or such Representative, statements and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as the Secured Party or its Representative may reasonably request, all in reasonable detail.

 

(h) Investment
Property. Each Debtor will take any and all actions required or requested by the Secured Party, from time to time, to (i) cause the
Secured Party to obtain exclusive control of any Investment Property owned by such Debtor in a manner acceptable to the Secured Party
and (ii) obtain from any issuers of Investment Property and such other Persons, for the benefit of the Secured Party, written confirmation
of the Secured Party’s control over such Investment Property. For purposes of this Section 4.1(h), the Secured Party shall have
exclusive control of Investment Property if (i) such Investment Property consists of certificated securities and a Debtor delivers such
certificated securities to the Secured Party (with appropriate endorsements if such certificated securities are in registered form);
(ii) such Investment Property consists of uncertificated securities and either (x) a Debtor delivers such uncertificated securities to
the Secured Party or (y) the issuer thereof agrees, pursuant to documentation in form and substance satisfactory to the Secured Party,
that it will comply with instructions originated by the Secured Party without further consent by such Debtor, and (iii) such Investment
Property consists of security entitlements and either (x) the Secured Party becomes the entitlement holder thereof or (y) the appropriate
securities intermediary agrees, pursuant to the documentation in form and substance satisfactory to the Secured Party, that it will comply
with entitlement orders originated by the Secured Party without further consent by any Debtor.

 

(i) Commercial
Tort Claims. Each Debtor shall promptly notify Secured Party of any Commercial Tort Claim acquired by it that concerns a claim in
excess of $50,000 and unless otherwise consented to by Secured Party, such Debtor shall enter into a supplement to this Agreement granting
to Secured Party a Lien on and security interest in such Commercial Tort Claim.

 

4.2 Other
Liens. Other than Permitted Liens, Debtors will not create, permit or suffer to exist, and will defend the Collateral against and
take such other action as is necessary to remove, any Lien on the Collateral except Permitted Indebtedness, and will defend the right,
title and interest of the Secured Party in and to the Collateral and in and to all Proceeds thereof against the claims and demands of
all Persons whatsoever.

 

    	8

    	 

    

 

4.3 Preservation
of Rights. Whether or not any Event of Default has occurred or is continuing, the Secured Party and its Representative may, but shall
not be required to, take any steps the Secured Party or its Representative deems necessary or appropriate to preserve any Collateral
or any rights against third parties to any of the Collateral, including obtaining insurance for the Collateral at any time when such
Debtor has failed to do so, and Debtors shall promptly pay, or reimburse the Secured Party for, all expenses incurred in connection therewith.

 

4.4 Formation
of Subsidiaries; Name Change; Location; Bailees.

 

(a) No
Debtor shall form or acquire any subsidiary unless (i) such Debtor pledges all of the stock or equity interests of such subsidiary to
the Secured Party pursuant to an agreement in a form agreed to by the Secured Party, (ii) such subsidiary becomes a party to this Agreement
and all other applicable Security Documents and (iii) the formation or acquisition of such subsidiary is not prohibited by the terms
of the Transaction Documents.

 

(b) No
Debtor shall (i) reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it is incorporated
or organized as of the date hereof, or (ii) otherwise change its name, identity or corporate structure, in each case, without the prior
written consent of Secured Party, which consent shall not be unreasonably withheld. Each Debtor will notify Secured Party promptly in
writing prior to any such change in the proposed use by such Debtor of any tradename or fictitious business name other than any such
name set forth on Schedule II attached hereto.

 

(c) Except
for the sale of Inventory in the ordinary course of business and other sales of assets expressly permitted by the terms of the Purchase
Agreement, each Debtor will keep the Collateral at the locations specified in Schedule I. Each Debtor will give Secured Party
thirty (30) day’s prior written notice of any change in such Debtor’s chief place of business or of any new location for
any of the Collateral.

 

(d) If
any Collateral is at any time in the possession or control of any warehousemen, bailee, consignee or processor, such Debtor shall, upon
the request of Secured Party or its Representative, notify such warehousemen, bailee, consignee or processor of the Lien and security
interest created hereby and shall instruct such Person to hold all such Collateral for Secured Party’s account subject to Secured
Party’s instructions.

 

(e) Each
Debtor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any
financing statement without the prior written consent of Secured Party and agrees that it will not do so without the prior written consent
of Secured Party, subject to such Debtor’s rights under Section 9-509(d)(2) to the UCC.

 

(f) No
Debtor shall enter into any Contract that restricts or prohibits the grant to Secured Party of a security interest in Accounts, Chattel
Paper, Instruments or payment intangibles or the proceeds of the foregoing.

 

4.5 Reserved.

 

4.6 Events
of Default, Etc. During the period during which an Event of Default shall have occurred:

 

(a) each
Debtor shall, at the request of the Secured Party or its Representative, assemble the Collateral and make it available to Secured Party
or its Representative at a place or places designated by the Secured Party or its Representative which are reasonably convenient to Secured
Party or its Representative, as applicable, and such Debtor;

 

    	9

    	 

    

 

(b) the
Secured Party or its Representative may make any reasonable compromise or settlement deemed desirable with respect to any of the Collateral
and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the Collateral;

 

(c) the
Secured Party shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC (whether or not
said UCC is in effect in the jurisdiction where the rights and remedies are asserted) and such additional rights and remedies to which
a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be asserted, including,
without limitation, the right, to the maximum extent permitted by law, to: (i) exercise all voting, consensual and other powers of ownership
pertaining to the Collateral as if the Secured Party were the sole and absolute owner thereof (and each Debtor agrees to take all such
action as may be appropriate to give effect to such right) and (ii) the appointment of a receiver or receivers for all or any part of
the Collateral or business of a Debtor, whether such receivership be incident to a proposed sale or sales of such Collateral or otherwise
and without regard to the value of the Collateral or the solvency of any person or persons liable for the payment of the Obligations
secured by such Collateral. Each Debtor hereby consents to the appointment of such receiver or receivers, waives any and all defenses
to such appointment and agrees that such appointment shall in no manner impair, prejudice or otherwise affect the rights of Secured Party
under this Agreement. Each Debtor hereby expressly waives notice of a hearing for appointment of a receiver and the necessity for bond
or an accounting by the receiver;

 

(d) the
Secured Party or its Representative in its discretion may, in the name of the Secured Party or in the name of a Debtor or otherwise,
demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any of the
Collateral, but shall be under no obligation to do so;

 

(e) the
Secured Party or its Representative may take immediate possession and occupancy of any premises owned, used or leased by a Debtor and
exercise all other rights and remedies which may be available to the Secured Party;

 

(f) the
Secured Party may, upon reasonable notice (such reasonable notice to be determined by Secured Party in its sole and absolute discretion,
which shall not be less than ten (10) days), with respect to the Collateral or any part thereof which shall then be or shall thereafter
come into the possession, custody or control of the Secured Party or its Representative, sell, lease, license, assign or otherwise dispose
of all or any part of such Collateral, at such place or places as the Secured Party deems best, and for cash or for credit or for future
delivery (without thereby assuming any credit risk), at public or private sale, without demand of performance or notice of intention
to effect any such disposition or of the time or place thereof (except such notice as is required above or by applicable statute and
cannot be waived), and the Secured Party or anyone else may be the purchaser, lessee, licensee, assignee or recipient of any or all of
the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private sale) and thereafter hold the same
absolutely, free from any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of
Debtors, any such demand, notice and right or equity being hereby expressly waived and released. The Secured Party may, without notice
or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and
place fixed for the sale, and such sale may be made at any time or place to which the sale may be so adjourned; and

 

(g) the
rights, remedies and powers conferred by this Section 4.6 are in addition to, and not in substitution for, any other rights, remedies
or powers that the Secured Party may have under any Transaction Document, at law, in equity or by or under the UCC or any other statute
or agreement. The Secured Party may proceed by way of any action, suit or other proceeding at law or in equity and no right, remedy or
power of the Secured Party will be exclusive of or dependent on any other. The Secured Party may exercise any of its rights, remedies
or powers separately or in combination and at any time.

 

The
proceeds of each collection, sale or other disposition under this Section 4.6 shall be applied in accordance with Section 4.9 hereof.

 

4.7 Deficiency.
If the proceeds of sale, collection or other realization of or upon the Collateral are insufficient to cover the costs and expenses of
such realization and the payment in full of the Obligations, Debtors shall remain jointly and severally liable for any deficiency.

 

    	10

    	 

    

 

4.8 Private
Sale. Each Debtor recognizes that the Secured Party may be unable to effect a public sale of any or all of the Collateral consisting
of securities by reason of certain prohibitions contained in the Securities Act of 1933, as amended (the “Act”), and applicable
state securities laws, but may be compelled to resort to one or more private sales thereof to a restricted group of purchasers who will
be obliged to agree, among other things, to acquire such Collateral for their own account for investment and not with a view to the distribution
or resale thereof. Each Debtor acknowledges and agrees that any such private sale may result in prices and other terms less favorable
to the seller than if such sale were a public sale and each Debtor agrees that it is not commercially unreasonable for Secured Party
to engage in any such private sales or dispositions under such circumstances. The Secured Party shall be under no obligation to delay
a sale of any of the Collateral to permit a Debtor to register such Collateral for public sale under the Act, or under applicable state
securities laws, even if Debtors would agree to do so. The Secured Party shall not incur any liability as a result of the sale of any
such Collateral, or any part thereof, at any private sale provided for in this Agreement conducted in a commercially reasonable manner,
and so long as Secured Party conducts such sale in a commercially reasonable manner each Debtor hereby waives any claims against the
Secured Party arising by reason of the fact that the price at which the Collateral may have been sold at such a private sale was less
than the price which might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the
Secured Party accepts the first offer received and does not offer the Collateral to more than one offeree.

 

Each
Debtor further agrees to do or cause to be done all such other acts and things as may be necessary to make such sale or sales of any
portion or all of any such Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs,
injunctions, decrees or awards of any and all courts, arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction
over any such sale or sales, all at such Debtor’s expense. Each Debtor further agrees that a breach of any of the covenants contained
in this Section 4.8 will cause irreparable injury to the Secured Party, that the Secured Party has no adequate remedy at law in respect
of such breach and, as a consequence, agrees that each and every covenant contained in this Section 4.8 shall be specifically enforceable
against Debtors, and each Debtor hereby waives and agrees not to assert any defenses against an action for specific performance of such
covenants except for a defense that no Event of Default has occurred and is continuing.

 

4.9 Application
of Proceeds. The proceeds of any collection, sale or other realization of all or any part of the Collateral, and any other cash at
the time held by the Secured Party under this Agreement, shall be applied to the Obligations on a pro-rata basis based on investments
made under the Securities Purchase Agreement as detailed on Schedule 4.9.

 

4.10 Attorney-in-Fact.
Each Debtor hereby irrevocably constitutes and appoints the Secured Party, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Debtor and in the name of such Debtor or in its own name, from
time to time in the discretion of the Secured Party, for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute and deliver any and all documents and instruments which may be necessary or desirable to perfect or
protect any security interest granted hereunder, to maintain the perfection or priority of any security interest granted hereunder, or
to otherwise accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, hereby gives the Secured
Party the power and right, on behalf of such Debtor, without notice to or assent by such Debtor (to the extent permitted by applicable
law), to do the following:

 

(a) to
take any and all appropriate action and to execute and deliver any and all documents and instruments which may be necessary or desirable
to accomplish the purposes of this Agreement;

 

(b) upon
the occurrence and during the continuation of an Event of Default, to ask, demand, collect, receive and give acquittance and receipts
for any and all moneys due and to become due under any Collateral and, in the name of such Debtor or its own name or otherwise, to take
possession of and endorse and collect any checks, drafts, notes, acceptances or other Instruments for the payment of moneys due under
any Collateral and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate
by the Secured Party for the purpose of collecting any and all such moneys due under any Collateral whenever payable and to file any
claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Secured Party for
the purpose of collecting any and all such moneys due under any Collateral whenever payable;

 

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(c) to
pay or discharge charges or liens levied or placed on or threatened against the Collateral, to effect any insurance called for by the
terms of this Agreement and to pay all or any part of the premiums therefor;

 

(d) to
direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due, and to become due thereunder,
directly to the Secured Party or as the Secured Party shall direct, and to receive payment of and receipt for any and all moneys, claims
and other amounts due, and to become due at any time, in respect of or arising out of any Collateral;

 

(e) upon
the occurrence and during the continuation of an Event of Default, to sign and indorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts
and other Documents constituting or relating to the Collateral;

 

(f) upon
the occurrence and during the continuation of an Event of Default, to commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other right in respect
of any Collateral;

 

(g) upon
the occurrence and during the continuation of an Event of Default, to defend any suit, action or proceeding brought against a Debtor
with respect to any Collateral;

 

(h) upon
the occurrence and during the continuation of an Event of Default, to settle, compromise or adjust any suit, action or proceeding described
above and, in connection therewith, to give such discharges or releases as the Secured Party may deem appropriate;

 

(i) to
the extent that a Debtor’s authorization given in Section 4.1(b) of this Agreement is not sufficient to file such financing statements
with respect to this Agreement, with or without such Debtor’s signature, or to file a photocopy of this Agreement in substitution
for a financing statement, as the Secured Party may deem appropriate and to execute in such Debtor’s name such financing statements
and amendments thereto and continuation statements which may require such Debtor’s signature;

 

(j) upon
the occurrence and during the continuation of an Event of Default, generally to sell, transfer, pledge, make any agreement with respect
to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party were the absolute owners thereof
for all purposes; and

 

(k) to
do, at the Secured Party’s option and at such Debtor’s expense, at any time, or from time to time, all acts and things which
the Secured Party reasonably deems necessary to protect or preserve or, upon the occurrence and during the continuation of an Event of
Default, realize upon the Collateral and the Secured Party’s lien therein, in order to effect the intent of this Agreement, all
as fully and effectively as such Debtor might do.

 

Each
Debtor hereby ratifies, to the extent permitted by law, all that such attorneys lawfully do or cause to be done by virtue hereof provided
the same is performed in a commercially reasonable manner. The power of attorney granted hereunder is a power coupled with an interest
and shall be irrevocable until the Obligations are indefeasibly paid in full in cash and this Agreement is terminated in accordance with
Section 4.12 hereof.

 

Each
Debtor also authorizes the Secured Party, at any time from and after the occurrence and during the continuation of any Event of Default,
(x) to communicate in its own name with any party to any Contract with regard to the assignment of the right, title and interest of such
Debtor in and under the Contracts hereunder and other matters relating thereto and (y) to execute, in connection with any sale of Collateral
provided for in Section 4.6 hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral.

 

    	12

    	 

    

 

4.11 Perfection.
Prior to or concurrently with the execution and delivery of this Agreement, each Debtor shall:

 

(a) file
such financing statements, assignments for security and other documents in such offices as may be necessary or as the Secured Party or
the Representative may request to perfect the security interests granted by Section 3 of this Agreement;

 

(b) at
Secured Party’s request, deliver to the Secured Party or its Representative the originals of all Instruments together with, in
the case of Instruments constituting promissory notes, allonges attached thereto showing such promissory notes to be payable to the order
of a blank payee;

 

(c) deliver
to the Secured Party or its Representative the originals of all Motor Vehicle Titles, duly endorsed indicating the Secured Party’s
interest therein as a lienholder, together with such other documents as may be required consistent with Section 4.1(d) hereof to perfect
the security interest granted by Section 3 in all such Motor Vehicles (if any).

 

(d) If
the Debtor has not done so, the Collateral Agent may do so at any later time at the sole cost of the Debtors.

 

4.12 Termination;
Partial Release of Collateral. This Agreement and the Liens and security interests granted hereunder shall not terminate until the
full and complete performance and indefeasible satisfaction of all of the Obligations (including, without limitation, the indefeasible
payment in full in cash of all such Obligations) (i) in respect of the Transaction Documents, and (ii) with respect to which claims have
been asserted by Collateral Agent and/or Note Holders, whereupon the Secured Party shall forthwith cause to be assigned, transferred
and delivered, against receipt but without any recourse, warranty or representation whatsoever, any remaining Collateral to or on the
order of Debtors. The Secured Party shall also execute and deliver to Debtors upon such termination and at Debtors’ expense such
UCC termination statements, certificates for terminating the liens on the Motor Vehicles (if any) and such other documentation as shall
be reasonably requested by Debtors to effect the termination and release of the Liens and security interests in favor of the Secured
Party affecting the Collateral. Notwithstanding anything to the contrary in this Agreement, upon full and complete satisfaction of the
Notes Debtors obligations under this Agreement shall terminate and any Liens shall thereupon be void.

 

4.13 Further
Assurances. At any time and from time to time, upon the written request of the Secured Party or its Representative, and at the sole
expense of Debtors, Debtors will promptly and duly execute and deliver any and all such further instruments, documents and agreements
and take such further actions as the Secured Party or its Representative may reasonably require in order for the Secured Party to obtain
the full benefits of this Agreement and of the rights and powers herein granted in favor of the Secured Party, including, without limitation,
using Debtors’ best efforts to secure all consents and approvals necessary or appropriate for the assignment to the Secured Party
of any Collateral held by Debtors or in which a Debtor has any rights not heretofore assigned, the filing of any financing or continuation
statements under the UCC with respect to the liens and security interests granted hereby, transferring Collateral to the Secured Party’s
possession (if a security interest in such Collateral can be perfected by possession), placing the interest of the Secured Party as lienholder
on the certificate of title of any Motor Vehicle, and obtaining waivers of liens from landlords and mortgagees. Each Debtor also hereby
authorizes the Secured Party and its Representative to file any such financing or continuation statement without the signature of such
Debtor to the extent permitted by applicable law.

 

4.14 Limitation
on Duty of Secured Party. The powers conferred on the Secured Party under this Agreement are solely to protect the Secured Party’s
interest on behalf of itself and the Note Holders in the Collateral and shall not impose any duty upon it to exercise any such powers.
The Secured Party shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and neither
the Secured Party nor its Representative nor any of their respective officers, directors, employees or agents shall be responsible to
Debtors for any act or failure to act, except for gross negligence or willful misconduct. Without limiting the foregoing, the Secured
Party and any Representative shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in their
possession if such Collateral is accorded treatment substantially equivalent to that which the relevant Secured Party or any Representative,
in its individual capacity, accords its own property consisting of the type of Collateral involved, it being understood and agreed that
neither the Secured Party nor any Representative shall have any responsibility for taking any necessary steps (other than steps taken
in accordance with the standard of care set forth above) to preserve rights against any Person with respect to any Collateral.

 

    	13

    	 

    

 

Also
without limiting the generality of the foregoing, neither the Secured Party nor any Representative shall have any obligation or liability
under any Contract or license by reason of or arising out of this Agreement or the granting to the Secured Party of a security interest
therein or assignment thereof or the receipt by the Secured Party or any Representative of any payment relating to any Contract or license
pursuant hereto, nor shall the Secured Party or any Representative be required or obligated in any manner to perform or fulfill any of
the obligations of Debtors under or pursuant to any Contract or license, or to make any payment, or to make any inquiry as to the nature
or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any Contract or license, or
to present or file any claim, or to take any action to collect or enforce any performance or the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time or times.

 

Section
5. Miscellaneous.

 

5.1 No
Waiver. No failure on the part of the Secured Party or any of its Representatives to exercise, and no course of dealing with respect
to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by the Secured Party or any of its Representatives of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies provided by law.

 

5.2 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
Illinois.

 

5.3 Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth in, and
shall be effective in accordance with the terms of, the Purchase Agreement. Debtors and Collateral Agent may change their respective
notice addresses by written notice given to each other party five (5) days prior to the effectiveness of such change.

 

5.4 Amendments,
Etc. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Debtor sought
to be charged or benefited thereby and each of the Note Holders. Any such amendment or waiver shall be binding upon the Secured Party
and the Debtor sought to be charged or benefited thereby and their respective successors and assigns.

 

5.5 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of each of the
parties hereto, provided, that no Debtor shall assign or transfer its rights hereunder without the prior written consent of each of the
Secured Parties. Any Secured Party, including the Collateral Agent in its capacity as Collateral Agent, may assign its rights hereunder
without the consent of Debtors, in which event such assignee shall be deemed to be Secured Party and/or Collateral Agent, as applicable,
hereunder with respect to such assigned rights; provided, so long as no Event of Default has occurred and is continuing, no Secured Party
shall assign any of its rights hereunder to a competitor of any Company.

 

5.6 Counterparts;
Headings. This Agreement may be authenticated in any number of counterparts, all of which taken together shall constitute one and
the same instrument and any of the parties hereto may authenticate this Agreement by signing any such counterpart. This Agreement may
be authenticated by manual signature or facsimile, .pdf or similar electronic signature, all of which shall be equally valid. The headings
in this Agreement are for convenience of reference only and shall not alter or otherwise affect the meaning hereof.

 

5.7 Severability.
If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other
provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Secured
Party and its Representative in order to carry out the intentions of the parties hereto as nearly as may be possible and (b) the invalidity
or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in
any other jurisdiction.

 

    	14

    	 

    

 

5.8 SUBMISSION
TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS. EACH DEBTOR HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN COOK COUNTY, CITY OF CHICAGO, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT AND EACH DEBTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT
OF SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY DEBTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY A DEBTOR
AGAINST SECURED PARTY, ANY PURCHASER OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN COOK COUNTY, CITY OF CHICAGO (AND SECURED PARTY AND
PURCHASERS HEREBY SUBMIT TO THE JURISDICTION OF SUCH COURT). EACH DEBTOR HERETO HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS
AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH ACTION OR PROCEEDING BY MAILING BY REGISTERED OR CERTIFIED MAIL A COPY THEREOF TO SUCH
DEBTOR AT THE ADDRESS FOR NOTICES TO IT IN ACCORDANCE WITH SECTION 5.3 OF THIS AGREEMENT AND AGREES THAT SUCH NOTICE SHALL CONSTITUTE
GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT OF
SECURED PARTY OR ANY PURCHASER TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.

 

5.9 WAIVER
OF RIGHT TO TRIAL BY JURY. EACH DEBTOR AND SECURED PARTY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR
OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS,
TORT CLAIMS, OR OTHERWISE. EACH DEBTOR AND SECURED PARTY AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL
WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION 5.9 AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT.

 

5.10 Joint
and Several. The obligations, covenants and agreements of Debtors hereunder shall be the joint and several obligations, covenants
and agreements of each Debtor, whether or not specifically stated herein without preferences or distinction among them.

 

5.11 Collateral
Agent and Note Holder Indemnification.

 

(a) Each
Note Holder has pursuant to the Purchase Agreement designated and appointed the Collateral Agent as the administrative agent of such
Note Holder under this Agreement and the related agreements.

 

(b) Nothing
in this Section 5.11 shall be deemed to limit or otherwise affect the rights of Secured Party or Note Holders to exercise any remedy
provided in this Agreement or any other Transaction Document.

 

    	15

    	 

    

 

(c) If
pursuant to any related agreement Secured Party is given the discretion to allocate proceeds received by Secured Party pursuant to the
exercise of remedies under the related agreements or at law or in equity (including without limitation with respect to any secured creditor
remedies exercised against the Collateral and any other collateral security provided for under any related agreement), Secured Party
shall apply such proceeds to the then outstanding Obligations in the following order of priority (with amounts received being applied
in the numerical order set forth below until exhausted prior to the application to the next succeeding category and each of the Note
Holders or other Persons entitled to payment shall receive an amount equal to its pro rata share of amounts available to be applied pursuant
to clauses second, third and fourth below):

 

first,
to payment of fees, costs and expenses (including reasonable attorney’s fees) owing to the Secured Party;

 

second,
to payment of all accrued unpaid interest and fees (other than fees owing to Collateral Agent) on the Obligations;

 

third,
to payment of principal of the Obligations;

 

fourth,
to payment of any other amounts owing constituting Obligations; and

 

fifth,
any remainder shall be for the account of and paid to whoever may be lawfully entitled thereto.

 

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

 

5.13 ENTIRE
AGREEMENT; AMENDMENT. THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, SUPERSEDES ALL OTHER PRIOR ORAL OR WRITTEN AGREEMENTS
BETWEEN SECURED PARTY, THE DEBTORS, THEIR AFFILIATES AND PERSONS ACTING ON THEIR BEHALF WITH RESPECT TO THE MATTERS DISCUSSED HEREIN,
AND THIS AGREEMENT, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS AND THE OTHER INSTRUMENTS REFERENCED HEREIN AND THEREIN, CONTAIN THE
ENTIRE UNDERSTANDING OF THE PARTIES WITH RESPECT TO THE MATTERS COVERED HEREIN AND THEREIN AND, EXCEPT AS SPECIFICALLY SET FORTH HEREIN
OR THEREIN, NEITHER THE SECURED PARTY NOR ANY DEBTOR MAKES ANY REPRESENTATION, WARRANTY, COVENANT OR UNDERTAKING WITH RESPECT TO SUCH
MATTERS. AS OF THE DATE OF THIS AGREEMENT, THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THE MATTERS DISCUSSED
HEREIN. NO PROVISION OF THIS AGREEMENT MAY BE AMENDED, MODIFIED OR SUPPLEMENTED OTHER THAN BY AN INSTRUMENT IN WRITING SIGNED BY THE
DEBTORS AND THE SECURED PARTY.

 

-
Remainder of Page Intentionally Left Blank; Signature Page Follows -

 

    	16

    	 

    

 

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

 

	DEBTOR:	 
	 	 	 
	VERONI
    BRANDS CORP., a Delaware corporation	 
	 	 	 
	By:	 	 
	Name: 	Igor Gabal	 
	Title:
    	President	 

 

Signature
Page to Security Agreement

 

    	 

    	 

    

 

	 	COLLATERAL AGENT:
	 	 	 
	 	[NAME]
	 	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Notice Address:

 

Signature
Page to Security Agreement

 

    	 

    	 

    

 

EXHIBIT
A

Form
of Joinder

Joinder
to Security Agreement

 

The
undersigned, ______________________________, hereby joins in the execution of that certain Security Agreement dated as of [____], 2022
(as amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”) by Veroni Brands Corp.,
a Delaware corporation, and the Note Holders (as defined therein), and each other Person that becomes a Debtor or a Note Holder thereunder
after the date thereof and hereof and pursuant to the terms thereof, to and in favor [______], in its capacity as Collateral Agent for
Note Holders. By executing this Joinder, the undersigned hereby agrees that it is a Debtor thereunder and agrees to be bound by all of
the terms and provisions of the Security Agreement. The undersigned represents and warrants that the representations and warranties set
forth in the Security Agreement are, with respect to the undersigned, true and correct as of the date hereof.

 

The
undersigned represents and warrants to Secured Party that:

 

(a) all
of the Equipment, Inventory and Goods owned by such Debtor is located at the places as specified on Schedule I and such Debtor
conducts business in the jurisdiction set forth on Schedule I;

 

(b) except
as disclosed on Schedule I, none of such Collateral is in the possession of any bailee, warehousemen, processor or consignee;

 

(c) the
chief place of business, chief executive office and the office where such Debtor keeps its books and records are located at the place
specified on Schedule I;

 

(d) such
Debtor (including any Person acquired by such Debtor) does not do business or has not done business during the past five years under
any tradename or fictitious business name, except as disclosed on Schedule II;

 

(e) all
Copyrights, Patents and Trademarks owned or licensed by the undersigned are listed in Schedules III, IV and V, respectively;

 

(f) all
Deposit Accounts, securities accounts, brokerage accounts and other similar accounts maintained by such Debtor, and the financial institutions
at which such accounts are maintained, are listed on Schedule VI;

 

(g) all
Commercial Tort Claims of such Debtor are listed on Schedule VII;

 

(h) all
interests in real property and mining rights held by such Debtor are listed on Schedule VIII;

 

(i) all
Equipment (including Motor Vehicles) owned by such debtor are listed on Schedule IX.

 

	 	________________, a ________
	 	 
	 	By:	 
	 	 	 
	 	Title:	 
	 	FEIN:	 ______________

 

    	 

    	 

    

 

SCHEDULE
I

Jurisdictions
and Debtor’s Information

 

Veroni
Brands Corp., a Delaware corporation

 

Organization
identification number:

Chief
place of business:

Chief
executive office:

Office
where Entity keeps its books and records:

States
or jurisdictions in which Entity conducts its business:

 

    	 

    	 

    

 

SCHEDULE
II

Trade
Names

 

    	 

    	 

    

 

SCHEDULE
III

Copyrights

 

    	 

    	 

    

 

SCHEDULE
IV

Patents

 

    	 

    	 

    

 

SCHEDULE
V

Trademarks

 

    	 

    	 

    

 

SCHEDULE
VI

Depository
and Other Accounts

 

Company
Banks where company funds are held

 

    	 

    	 

    

 

SCHEDULE
VII

Commercial
Tort Claims

 

    	 

    	 

    

 

SCHEDULE
VIII

Real
Property Interests

 

    	 

    	 

    

 

SCHEDULE
IX

Debtor’s
Equipment

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