Document:

NEITHER
THE ISSUANCE NOR SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal
    Amount: $840,000.00	Issue
    Date: January 30, 2018

 

PROMISSORY
NOTE

 

FOR
VALUE RECEIVED, AMEDICA CORPORATION, a Delaware corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of L2 CAPITAL, LLC, a Kansas limited liability company, or registered assigns (the “Holder”)
the principal sum of up to $840,000.00 (the “Principal Amount”), together with interest at the rate of eight percent
(8%) per annum (with the understanding that the initial six months of such interest of each tranche funded shall be guaranteed),
at maturity or upon acceleration or otherwise, as set forth herein (the “Note”). The consideration to the Borrower
for this Note is up to $750,000.00 (the “Consideration”) in United States currency, due to the prorated original issuance
discount of up to $75,000.00 (the “OID”). The Holder shall pay $500,000.00 of the Consideration (the “First
Tranche”) within a reasonable amount of time of the full execution of the transactional documents related to this Note.
At the closing of the First Tranche, the outstanding principal amount under this Note shall be $565,000.00, consisting of the
First Tranche, plus the prorated portion of the OID (as defined herein) and a $15,000.00 credit for the Holder’s transactional
expenses. The Holder may pay, in its sole discretion, such additional amounts of the Consideration and at such dates as the Holder
may choose in its sole discretion. The maturity date for each tranche funded shall be six (6) months from the effective date of
each payment (the “Maturity Date”), and is the date upon which the principal sum, as well as any accrued and unpaid
interest and other fees for each tranche, shall be due and payable. This Note may not be repaid in whole or in part except as
otherwise explicitly set forth herein. Any amount of principal or interest on this Note, which is not paid by the Maturity Date,
shall bear interest at the rate of the lesser of (i) eighteen percent (18%) per annum or (ii) the maximum amount allowed by law,
from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date
that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments
due hereunder (to the extent not converted into the Borrower’s common stock (the “Common Stock”) in accordance
with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address
as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever
any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead
be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date
on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining
the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other than
a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive
order to remain closed.

 

    	1

     

    

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following additional terms shall also apply to this Note:

 

ARTICLE
I. [Intentionally Omitted].

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1
Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely
in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment
or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which
is approved by a majority of the Borrower’s disinterested directors.

 

2.2
Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall
not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property
or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the
Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

2.3
Repayment from Proceeds. While any portion of this Note is outstanding, if the Borrower receives cash proceeds in excess
of $2,000,000 from any source or series of related or unrelated sources, including but not limited to, the issuance of equity
or debt, the conversion of outstanding warrants of the Borrower, the issuance of securities pursuant to an equity line of credit
of the Borrower or the sale of assets, the Borrower shall, within one (1) business day of Borrower’s receipt of such proceeds,
inform the Holder of such receipt, following which the Holder shall have the right in its sole discretion to require the Borrower
to immediately apply up to 50% of such proceeds to repay all or any portion of the outstanding amounts owed under this Note. Failure
of the Borrower to comply with this provision shall constitute an Event of Default. In the event that such proceeds are received
by the Holder prior to the Maturity Date, the required prepayment shall be subject to the terms of Section 4.9 herein.

 

    	2

     

    

 

ARTICLE
III. EVENTS OF DEFAULT

 

The
occurrence of each of the following events of default shall each be an “Event of Default”, with no right to notice
or right to cure except as specifically provided herein:

 

3.1
Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity, upon acceleration or otherwise.

 

3.2
Conversion and the Shares. The Borrower fails to reserve a sufficient amount of shares of common stock as required under
the terms of this Note, fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will
not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms
of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) shares
of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring
(or issuing) (electronically or in certificated form) shares of Common Stock to be issued to the Holder upon conversion of or
otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove
or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer
instructions in respect thereof) on any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to
this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to
honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement
or threat not to honor its obligations shall not be rescinded in writing) for two (2) business days after the Holder shall have
delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent.
It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance
owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s
transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within five (5)
business days, either in cash or as an addition to the balance of the Note, and such choice of payment method is at the discretion
of the Borrower.

 

3.3
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this
Note and any collateral documents and such breach continues for a period of three (3) days after written notice thereof to the
Borrower from the Holder or after five (5) days after the Borrower should have been aware of the breach.

 

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3.4
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith, shall be false or misleading in any material
respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights
of the Holder with respect to this Note.

 

3.5
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $150,000, and shall remain unvacated, unbonded or unstayed
for a period of ten (10) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

3.8
Delisting of Common Stock. The Borrower shall fail to maintain the listing or quotation of the Common Stock on the OTCQB
or an equivalent replacement exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the New York Stock Exchange, or the
NYSE American.

 

3.9
Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange
Act (including but not limited to becoming delinquent in its filings), and/or the Borrower shall cease to be subject to the reporting
requirements of the Exchange Act.

 

3.10
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to
pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as
a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.12
Financial Statement Restatement. The Borrower replaces its auditor, or any restatement of any financial statements filed
by the Borrower with the Securities and Exchange Commission (the “SEC”) for any date or period from two years prior
to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison
to the unrestated financial statement, have constituted an adverse effect on the Borrower or the rights of the Holder with respect
to this Note.

 

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3.13
Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice
to the Holder.

 

3.14
Replacement of Transfer Agent. In the event that the Borrower replaces its transfer agent, and the Borrower fails to provide
prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions (including but not limited
to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent
to Borrower and the Borrower that reserves the greater of (i) total amount of shares previously held in reserve for the Note with
the Borrower’s immediately preceding transfer agent and (ii) the Reserved Amount.

 

3.15
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents,
a breach or default by the Borrower of any covenant or other term or condition contained in any other financial instrument, including
but not limited to all convertible promissory notes, currently issued, or hereafter issued, by the Borrower, to the Holder or
any 3rd party (the “Other Agreements”), shall, at the option of the Holder, be considered a default under
this Note, in which event the Holder shall be entitled to apply all rights and remedies of the Holder under the terms of this
Note by reason of a default under said Other Agreement or hereunder.

 

3.16
Inside Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose,
or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material
non-public information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by
Borrower’s filing of a Form 8-K pursuant to Regulation FD on that same date.

 

3.17
No bid. At any time while this Note is outstanding, the lowest Trading Price on the OTCQB or other applicable principal
trading market for the Common Stock is equal to or less than $0.0001.

 

3.18
Prohibition on Debt and Variable Securities. So long as the Note is outstanding, the Borrower shall not, without written
consent of the Investor, issue any Variable Security (as defined herein), unless (i) the Borrower is permitted to pay off the
Note in cash at the time of the issuance of the respective Variable Security and (ii) the Borrower pays off the Note, pursuant
to the terms of the Note, in cash at the time of the issuance of the respective Variable Security. A Variable Security shall mean
any security issued by the Borrower that (i) has or may have conversion rights of any kind, contingent, conditional or otherwise
in which the number of shares that may be issued pursuant to such conversion right varies with the market price of the common
stock; (ii) is or may become convertible into common stock (including without limitation convertible debt, warrants or convertible
preferred stock), with a conversion or exercise price that varies with the market price of the common stock, even if such security
only becomes convertible or exercisable following an event of default, the passage of time, or another trigger event or condition;
or (iii) was issued or may be issued in the future in exchange for or in connection with any contract, security, or instrument,
whether convertible or not, where the number of shares of common stock issued or to be issued is based upon or related in any
way to the market price of the common stock, including, but not limited to, common stock issued in connection with a Section 3(a)(9)
exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange, provided, however, that a Variable Security
shall not include a security with conversion rights subject to a floor price per share of 50% or greater than the closing price
of the Common Stock on the issuance date of the security (such floor price shall not be subject to further lower adjustment for
any reason). Furthermore, Variable Security shall not include the security or securities issued or to be issued by the Borrower
pursuant to the terms of the Senior Secured Convertible Promissory Notes issued to MEF I, LP and Anson Investments Masterfund
LP, each dated January 3, 2018.

 

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3.19
Failure to Repay Upon Qualified Offering. The Borrower fails to repay the Note, in its entirety, pursuant to the terms
of the Note, with gross funds received from its next completed offering of $10,000,000.00 or more (consummated on or after the
Issue Date).

 

UPON
THE OCCURRENCE OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER
SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED
HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence of any Event of Default specified in Sections 3.1, 3.3, 3.4, 3.5, 3.6,
3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17, 3.18 and/or 3.19, the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 140% (plus an
additional 5% per each additional Event of Default that occurs hereunder) multiplied by the then outstanding entire balance
of the Note (including principal and accrued and unpaid interest) plus Default Interest, if any, plus any amounts
owed to the Holder pursuant to Sections 1.4(g) hereof (collectively, in the aggregate of all of the above, the “Default
Amount”), and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment
or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses,
of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. Each
time an Event of Default occurs while this Note is outstanding, an additional discount of five percent (5%) shall be factored
into the Conversion Price (as defined in this Note).

 

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Upon
the occurrence of any Event of Default, the Holder shall have the right at any time to convert all or any part of the Default
Amount into fully paid and non-assessable shares of Common Stock of the Borrower at a price per share equal to 70% multiplied
by the lowest VWAP of the common stock during the twenty (20) Trading Day (as defined herein) period ending, in Holder’s
sole discretion on each conversion, on either (i) the last complete Trading Day prior to the conversion date (each a “Conversion
Date”) or (ii) the Conversion Date (subject to adjustment as provided in this Note) (the “Conversion Price”).
In no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion
of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares
of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1)
of such proviso. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the principal
securities exchange or other securities market on which the Common Stock is then being traded. All expenses incurred by Holder
for the issuance and clearing of the Common Stock into which this Note is convertible into shall immediately and automatically
be added to the balance of the Note at such time as the expenses are incurred by Holder. If, at any time when the Note is issued
and outstanding, the Borrower issues or sells, or is deemed to have issued or sold, any shares of Common Stock for a consideration
per share less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common
Stock (a “Dilutive Issuance”), then the Holder shall have the right, in Holder’s sole discretion on each conversion
after such Dilutive Issuance, to utilize the price per share of the Dilutive Issuance as the Conversion Price for such conversion.
The Borrower is required at all times to have authorized and reserved three times the number of shares that is actually issuable
upon full conversion of the Note (based on the Conversion Price of the Note as if an Event of Default under the Note has occurred,
even if an Event of Default has not occurred) (the “Reserved Amount”). Upon receipt by the Borrower from the Holder
of a facsimile transmission or e-mail (or other reasonable means of communication) of a notice of conversion in the form attached
hereto as Exhibit A (the “Notice of Conversion”), the Borrower shall issue and deliver or cause to be issued and delivered
to or upon the order of the Holder the Common Stock issuable upon such conversion within two (2) business days after such receipt
(the “Deadline”). Without in any way limiting the Holder’s right to pursue other remedies, including actual
damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note
is not delivered by the Deadline, the Borrower shall pay to the Holder $3,000 per day in cash, for each day beyond the Deadline
that the Borrower fails to deliver such Common Stock. Until such time as the shares of Common Stock issuable upon conversion of
this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 or other available exemption, the Common
Stock issuable upon conversion of this Note shall bear a restrictive legend in form, substance, and scope customary for such legends.
Notwithstanding anything in this Note to the contrary, and in addition to the beneficial ownership limitations provided herein,
the total number of shares of Common Stock that may be issued under this Note, shall be limited to 19.99% of the Borrower’s
outstanding shares of Common Stock as of the date hereof (the “Exchange Cap”), unless (i) stockholder approval is
obtained to issue more than the Exchange Cap or (ii) the Common Stock is not listed for quotation on Nasdaq or NYSE American.
The Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse
stock split or other similar transaction.

 

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ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, facsimile, or electronic mail addressed as set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand delivery, upon electronic mail delivery, or delivery by facsimile,
with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on
the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or
upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If
to the Borrower, to:

 

AMEDICA
CORPORATION

1885
West 2100 South

Salt
Lake City, UT 84119

e-mail:
sbal@amedica.com and dobrien@amedica.com

 

If
to the Holder:

 

L2
CAPITAL, LLC

8900
State Line Rd., Suite 410 Leawood, KS 66206

e-mail:
investments@ltwocapital.com

 

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4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Neither the Borrower nor the Holder shall assign this Note or any rights or obligations
hereunder without the prior written consent of the other. Notwithstanding the foregoing, the Holder may assign its rights hereunder
to any “accredited investor” (as defined in Rule 501(a) of the 1933 Act) in a private transaction from the Holder
or to any of its “affiliates”, as that term is defined under the 1934 Act, without the consent of the Borrower. Notwithstanding
anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or
other lending arrangement. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that following conversion
of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than
the amount stated on the face hereof.

 

4.5
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Kansas without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state and/or federal courts of Johnson County, Kansas. The parties to this Note hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury.
In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Note or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law.

 

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4.7
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest
on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on
this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty
and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate
to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares
of Common Stock.

 

4.8
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

4.9
Repayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding
under this Note, during the 30 calendar day period after the Issue Date, by making a payment to the Holder of an amount in cash
equal to 110% multiplied the amount that the Borrower is repaying. Notwithstanding anything to the contrary contained in this
Note, the Borrower may repay any amount outstanding under this Note, during the 31st through 60th calendar day period after the
Issue Date, by making a payment to the Holder of an amount in cash equal to 120% multiplied the amount that the Borrower is repaying.
Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding under this Note,
after the 60th calendar day after the Issue Date, by making a payment to the Holder of an amount in cash equal to 125% multiplied
the amount that the Borrower is repaying. In order to repay this Note, the Borrower shall provide notice to the Holder ten (10)
business days prior to such respective repayment date, and the Holder must receive such repayment within twelve (12) business
days of the Holder’s receipt of the respective repayment notice, but not sooner than ten (10) business days from the date
of notice (the “Repayment Period”). The Holder may convert the Note in whole or in part at any time during the Repayment
Period, subject to the terms and conditions of this Note. Any repayment hereunder shall be applied to the tranches funded under
this Note in reverse chronological order (applied first to the most recently funded tranches under this Note).

 

4.10
Section 3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured
in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10)
Transaction”), then a liquidated damages charge of 100% of the outstanding principal balance of this Note at that time,
will be assessed and will become immediately due and payable to the Holder, either in the form of cash payment, an addition to
the balance of the Note, or a combination of both forms of payment, as determined by the Holder.

 

    	10

     

    

 

4.11
Reverse Split Penalty. If at any time while this Note is outstanding, the Borrower effectuates a reverse split with respect
to the Common Stock, then a liquidated damages charge of 30% of the outstanding principal balance of this Note at that time, will
be assessed and will become immediately due and payable to the Holder, either in the form of cash payment, an addition to the
balance of the Note, or a combination of both forms of payment, as determined by the Holder.

 

4.12
Restriction on Section 3(a)(9) Transactions. So long as this Note is outstanding, the Borrower shall not enter into any
3(a)(9) Transaction with any party other than the Holder, without prior written consent of the Holder. In the event that the Borrower
does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction while this Note is outstanding, a liquidated
damages charge of 25% of the outstanding principal balance of this Note, but not less than $15,000, will be assessed and will
become immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this
Note. Each time, while this Note is outstanding, the Borrower enters into a Section 3(a)(9) Transaction (as defined herein) (including
but not limited to the issuance of new promissory notes or of a replacement promissory note), or Section 3(a)(10) Transaction
(as defined herein), in which any 3rd party has the right to convert monies owed to that 3rd party (or receive shares pursuant
to a settlement or otherwise) at a discount to market greater than the Conversion Price in effect at that time (prior to all other
applicable adjustments in the Note), then the Conversion Price shall be adjusted at the option of the Holder to such greater discount
percentage (prior to all applicable adjustments in this Note) until this Note is no longer outstanding. Each time, while this
Note is outstanding, the Borrower enters into a Section 3(a)(9) Transaction (including but not limited to the issuance of new
promissory notes or of a replacement promissory note), or Section 3(a)(10) Transaction, in which any 3rd party has a look back
period greater than the look back period in effect under the Note at that time, then the Holder’s look back period shall
be adjusted at the option of the Holder to such greater number of days until this Note is no longer outstanding. The Borrower
shall give written notice to the Holder, with the adjusted Conversion Price and/or adjusted look back period (each adjustment
that is applicable due to the triggering event), within one (1) business day of an event that requires any adjustment described
in the two immediately preceding sentences, and the Holder shall have the sole discretion in determining whether to utilize the
adjusted term pursuant to this section. So long as this Note is outstanding, if any security of the Borrower contains any term
more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided
to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more favorable term and such term,
at Holder’s option, shall become a part of the transaction documents with the Holder. The foregoing provision shall not
be applicable to securities issued or to be issued by the Borrower pursuant to the terms of the Senior Secured Convertible Promissory
Notes issued to MEF I, LP and Anson Investments Masterfund LP, each dated January 3, 2018.

 

    	11

     

    

 

4.13
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries
of any security with any term more favorable to the holder of such security or with a term in favor of the holder of such security
that was not similarly provided to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more
favorable term and such term, at Holder’s option, shall become a part of the transaction documents with the Holder. The
types of terms contained in another security that may be more favorable to the holder of such security include, but are not limited
to, terms addressing conversion discounts, prepayment rate, conversion look back periods, interest rates, original issue discounts,
stock sale price, private placement price per share, and warrant coverage. The foregoing shall not apply to issuances of securities
by the Borrower pursuant to agreements entered into prior to the Issue Date of this Note, so long as the terms of such agreements
are not amended after the Issue Date.

 

4.14
Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
permitted under applicable law. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or
other law which would prohibit or forgive the Borrower from paying all or any portion of the principal of or interest on this
Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Note, and the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage
of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

4.15
[Intentionally Omitted].

 

4.16
Piggyback Registration Rights. The Borrower shall include on the next registration statement the Borrower files with SEC
(and on each subsequent registration statement thereafter) all shares issuable upon exercise of the Warrant (as defined in the
securities purchase agreement entered into between the Borrower and Holder on the Issue Date). Failure to do so will result in
liquidated damages of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand and No/100 United
States Dollars ($15,000), being immediately due and payable to the Holder at its election in the form of cash payment or addition
to the balance of this Note.

 

[signature
page to follow]

 

    	12

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this January 30, 2018.

 

AMEDICA
CORPORATION

 

	By:	 	 
	Name:	Sonny
    Bal	 
	Title:	Chief
    Executive Officer	 

 

    	13

     

    

 

EXHIBIT
A — NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $ _________________principal amount of the Note (defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of AMEDICA CORPORATION, a
Delaware corporation (the “Borrower”) according to the conditions of the promissory note of the Borrower dated as
of January 30, 2018 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion,
except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]
    	The
    Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name
of DTC Prime Broker: Account Number:

 

	 	[  ]
    	The
    undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock
    set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately
    below or, if additional space is necessary, on an attachment hereto:

 

L2
CAPITAL, LLC

8900
State Line Rd., Suite 410 Leawood, KS 66206

e-mail:
investments@ltwocapital.com

 

	 	Date of Conversion:	______________
	 	Applicable Conversion Price:	$_____________
	 	Number of Shares of
    Common Stock to be Issued Pursuant to Conversion of the Notes:	 ______________
	 	Amount of Principal
    Balance Due remaining Under the Note after this conversion:	 ______________

 

L2
CAPITAL, LLC

 

	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	Date:
    	 	 

 

    	14STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT dated December 1, 2017 (“Agreement”) by and among TraqIQ, Inc., a corporation organized and
existing under the laws of California having its principal place of business at 14205 S.E. 36th St., Suite 100, Bellevue, WA 98006
(“Buyer”), and Ajay Sikka, an individual residing at 4826 194th Avenue SE, Issaquah, WA 98027 (“Seller”)

 

W
I T N E S S E T H:

 

WHEREAS,
Buyer wishes to buy and the Seller wishes to sell to Buyer, on the terms and for the consideration hereinafter provided, the
capital stock of TransportIQ, Inc., a corporation organized and existing under the laws of Nevada having its principal place
of business at 1001 State Street Suite # 1400, Erie, PA 16501 (“Company”), which will represent one hundred
percent (100%) of the issued and outstanding capital stock of the Company.

 

NOW,
THEREFORE, in consideration of the promises and the respective agreements hereinafter set forth, Buyer and Seller hereby agree
as follows:

 

1.
PURCHASE OF COMPANY COMMON STOCK.

 

1.1
Sale of Common Stock. Upon the terms and subject to the provisions of this Agreement, the Seller agrees that he will sell,
convey, transfer, assign and deliver to Buyer at the Closing provided for in Article 2, free and clear of all claims, liens, pledges,
encumbrances, mortgages, charges, security interests, options, preemptive rights or other interests or equities whatsoever, 100,000,000
shares of duly and validly issued, fully paid and non-assessable, common stock, having a par value of $0.0001 dollars per share
(collectively, “Purchased Stock”) of the Company owned by the Seller.

 

1.2
Consideration for Sale and Transfer of the Purchased Stock. Subject to the terms and conditions of this Agreement and in
reliance upon the representations, warranties and covenants of Seller herein contained, and in full consideration of such sale,
conveyance, transfer, assignment and delivery of the Purchased Stock to Buyer, Buyer agrees to pay and deliver to the Seller,
in the form of cancellation of all of the debt of the Company owed to the Buyer by Seller , a purchase price for the Purchased
Stock of Eighteen Thousand One Hundred Nine dollars ($18,109) (the purchase price for the Purchased Stock is hereinafter referred
to as the “Stock Purchase Price”).

 

    	 	1	 

     

    

 

2.
THE CLOSING AND PAYMENT OF STOCK PURCHASE PRICE.

 

2.1
Closing. The closing (“Closing”) with respect to the acquisition of the Purchased Stock under this Agreement
and all other transactions contemplated hereby shall take place at 10 am local time on December 1, 2017 at 14205 S.E. 36th St.,
Suite 100, Bellevue, WA 98006 (or on such earlier time and date as the parties may agree). The time and date of the Closing is
hereinafter called the “Closing Date.”

 

2.2
Payment of Stock Purchase Price. At the Closing, the Buyer shall deliver the Stock Purchase Price in the form of a document,
acceptable to Seller and Company, indicating cancellation of Company’s debt to Buyer in the amount of Eighteen Thousand
One Hundred Nine dollars ($18,109).

 

2.3
Transfer of Purchased Stock. At the Closing, the Seller shall transfer to Buyer the Purchased Stock, free and clear of
all claims, liens, pledges, encumbrances, mortgages, charges, security interests, options, preemptive rights, restrictions or
any other interests or imperfections of title whatsoever. Said transfer shall be effected by delivery to Buyer of the stock certificates
representing the Purchased Stock duly executed in blank or accompanied by duly executed stock powers in blank.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE SELLERS.

 

Seller
hereby represents, warrant sand agrees as of the date hereof and as of the date of the Closing as follows:

 

3.1
Organization and Qualification of Company. The Company is duly organized, validly existing and in good standing under the
laws of Nevada. The Company has all requisite corporate power and authority to conduct its business in the manner and in the places
where such business is now conducted by it. Company is duly qualified, licensed and authorized to do business as a foreign corporation
and is in good standing as a foreign corporation in the jurisdictions, if any, shown on the Schedule of Jurisdictions attached
hereto as Schedule 3.1 and is not required to be so licensed, qualified or authorized to conduct its business or own its property
in any other jurisdiction.

 

    	 	2	 

     

    

 

The
minute books of the Company are current and contain correct and complete copies of the Certificate of Incorporation and Bylaws
of the Company, including all amendments thereto and restatements thereof, and of all minutes of meetings, resolutions and other
actions and proceedings of its stockholders and board of directors and all committees thereof, duly signed by the Secretary or
an Assistant Secretary, all directors or all stockholders. The stock record book of the Company is also current, correct and complete
and reflects the issuance of all of the outstanding shares of the Company’s capital stock since the date of its incorporation.

 

3.2
Authority of Company and the Seller. This Agreement and each of the agreements and other documents and instruments delivered
or to be delivered to Buyer pursuant to or in contemplation of this Agreement will constitute, when so delivered, the valid and
binding obligations of such of Seller as are parties thereto and shall be enforceable in accordance with their respective terms.
The execution, delivery and performance of this Agreement and each of the agreements and other documents and instruments delivered
or to be delivered to Buyer by Seller or the Company have been duly authorized by all necessary action of Seller and, with respect
to Company, are within Company’s corporate powers.

 

The
execution, delivery and performance of any such agreement, document or instrument by any of the Seller and the execution, delivery
and performance of this Agreement or any other agreement, document or instrument by the Seller and the Company.

 

3.3
Subsidiaries and Investments. The Company has no subsidiaries and does not own any securities of or other interests or
interests in, any firm, corporation, partnership, joint venture, trust, association, estate, joint stock company, organization,
enterprise or entity, except temporary investments in the ordinary course of business.

 

    	 	3	 

     

    

 

3.4
Capitalization. The authorized capital stock of the Company consists of 100,000,000 shares of common stock, and 10,000,000
of preferred stock, all having a par value of $0.0001 per share, of which 100,000,000 shares of common stock are issued and outstanding
and held by Ajay Sikka. The Purchased Stock has been duly and validly authorized, and is duly and validly issued, fully paid and
non-assessable. The Purchased Stock is free and clear of any and all claims, liens, pledges, charges, encumbrances, mortgages,
security interests, options, preemptive or other rights, restrictions on transfer, or other interests or equities or imperfections
of title whatsoever. There are no other equity securities of Company outstanding on the date hereof and there are no existing
warrants, preemptive or other rights, options, calls, commitments, conversion privileges, or other agreements (all of the foregoing
being collectively called “Options”) obligating Company to issue any or all of its authorized and unissued capital
stock, or any security convertible into and/or exchangeable for capital stock of the Company. The Company has no capital stock
of any class authorized or outstanding except as identified herein. The Purchased Stock represents one hundred percent (100%)
of the issued and outstanding capital stock of the Company. To the Best Knowledge of the Seller, the Purchased Stock issued to
date by the Company or any subsidiary were issued in transactions exempt from registration under the federal Securities Act of
1933, as amended (the “Securities Act”) and under applicable state securities or Blue Sky laws (the “State Laws”).
To the Best Knowledge of the Seller, said corporation has not nor will have violated the Securities Act or the State Laws in connection
with the issuance of any shares of capital stock or other securities from the date of incorporation through the Closing Date.

  

3.5
Valid Title to Purchased Stock. The Seller will deliver to Buyer, valid and marketable title to the Purchased Stock at
the Closing, free and clear of any claims, liens, pledges, charges, encumbrances, mortgages, security, interests, options, preemptive
or other rights, restrictions on transfer or other interest or equities or any other imperfections of title whatsoever. Seller
represents and warrants that he has full power and lawful authority to execute and deliver this Agreement and to consummate and
perform the transactions contemplated hereby; and that the execution and delivery of this Agreement by him and the consummation
and performance of the transactions contemplated hereby by him are and will be the legal, valid and binding obligation of such
Seller, enforceable against him in accordance with their terms. 

 

3.6
Assets.

 

(a)
Physical Assets, Cash, Machinery. All assets of the Company included in Company’s Interim Date Balance Sheet (as
hereinafter defined), other than those disposed of since the Interim Date in the ordinary course of business, are at the date
of the Closing, the assets associated with and necessary to the business and operations of Company, provided, however, that the
assets of the Company shall not include any cash at the Closing other than residual cash required to maintain the service requirements
of the Company’s bank accounts described in Schedule 3.6(a) which residual cash is approximately Four Hundred Eighty and
20/100 dollars ($480.20) in the aggregate.

 

    	 	4	 

     

    

 

(b)
Liens. Company has good and marketable title to all its assets (including, without limiting the generality of the foregoing,
those reflected in the Balance Sheet (as hereinafter defined), except as since sold or otherwise disposed of in the ordinary and
normal course of business on commercially reasonable terms), free and clear of all claims, liens, pledges, charges, mortgages,
security interests, encumbrances, equities or other imperfections of title of any nature whatsoever, except for liens for current
taxes and assessments not yet due and payable.

 

(c)
Inventory. The Company has no Inventory. 

 

(d)
Real Estate. The Company owns or leases no Real Estate.

 

(e)
Backlog. The aggregate backlog of the Company as of January 31, 2017 for which the Company has received written purchase
orders or contracts is set forth on Schedule 3.6(f) attached hereto. Such backlog has arisen only from bona fide transactions
in the ordinary course of business and was calculated by Seller in a manner consistent with past practices and experience of the
Company. To the best of the Seller’s knowledge, the purchase orders and other contracts giving rise to such backlog are
valid and binding obligations of the Company and the other parties thereto, enforceable in accordance with their respective terms
and conditions subject to bankruptcy or insolvency laws.

 

    	 	5	 

     

    

 

3.7
Conduct of the Business. The Company is not a party to, or subject to or bound by nor are any of its assets subject to
or bound by any agreement, oral or written, or any judgment, law, rule, regulation, order, writ, injunction or decree of any court
or governmental or administrative body which prohibits or adversely affects or upon the consummation of the transactions contemplated
hereby would prohibit or adversely affect: (i) the use of any or all of the assets and property of Company necessary for operation
in the ordinary and usual course of business; or (ii) the conduct of its business and operations, in each case, in all respects
in the same manner as such business has been conducted by it. Company has all properties and rights necessary to conduct the business
and operations of the Company in all material respects in substantially the same manner as such business has been conducted by
it prior to the date hereof. Neither Seller nor the Company is required by any person or governmental authority to obtain any
consents, authorizations, licenses, permits, orders, certificates, registrations, qualifications or security clearances for the
conduct of Company’s business (including qualifications to transact business as a foreign corporation in various states);
and Seller and Company have obtained all such consents, authorizations, licenses, permits, orders, certificates, registrations,
qualifications and security clearances; the same are valid and subsisting; and the consummation of this Agreement will not invalidate
the same. The business and operations of the Company have been, and are being conducted in compliance with all applicable statutes,
ordinances, orders, rules and regulations of any federal, state or local governmental authority (including without limitation
those relating to fair labor practices and standards, equal employment practices and occupational safety and health and federal
procurement). The Company has not failed in any material way to comply with any law, order or regulation, in any way applicable
to or affecting the Company’s business of any governmental commission, board or agency or instrumentality, domestic or foreign,
having jurisdiction over the Company or its operations, including, without limitation, laws, orders and regulations thereof relating
to zoning, building codes, antitrust, occupational safety and health, consumer product safety, product liability, hiring, wages,
employee benefit plans and programs, collective bargaining and the payment of withholding and Social Security taxes, and the Company
has not received any actual written or oral notices or other communication from any such agency with respect to an alleged, actual
or potential violation and/or failure of Company to comply with any of the foregoing.

 

The
Seller has no reason to believe that business relations currently maintained with Company’s significant suppliers, customers
and others will not be similarly maintained in all substantial respects after the date hereof and the date of the Closing. Without
limiting the generality of the foregoing, no supplier, distributor or customer of the Company has notified the Company that it
intends to discontinue its relationship with the Company.

 

3.8
Financial Statements and Undisclosed Liabilities.

 

(a)
The Company has delivered to the Buyer its [unaudited] balance sheet (“Balance Sheet”) as of [date]
(the “Interim Date”) and its [unaudited] balance sheet as of [date], and statements of income and retained
earnings for each of the [number] years or periods then ended, including, in each case, the related notes. In addition,
the Company has delivered to the Buyer all unaudited financial statements of the Company for the periods ended [date],
[date], [date] and [date], (all of which financial statements are collectively referred to as “Interim
Financial Statements”). The Interim Financial Statements and similar balance sheets and statements for periods subsequent
to those covered by the Interim Financial Statements are hereinafter referred to as “Financial Statements.”

 

    	 	6	 

     

    

 

(b)
All of the Financial Statements: (i) are true and correct in all material respects and present fairly the financial position of
the Company as of the dates thereof and the results of operations and changes in financial position for the respective periods
covered by such statements, and (ii) have been prepared in accordance with generally accepted accounting principles applied on
a basis consistent with Company’s past practices.

 

(c)
The Company does not have any indebtedness, liability, claim or obligation of any nature, fixed or contingent, choate or inchoate,
liquidated or unliquidated, secured or unsecured or otherwise of any kind or nature whatsoever, except: (i) as shown dollar for
dollar on the Balance Sheet or incurred in the ordinary course of business on commercially reasonable terms subsequent to the
Interim Date; or (ii) commercial obligations to perform pursuant to executory obligations not in default as disclosed pursuant
to this Agreement. To the best of Seller’s knowledge, there is no existing condition, situation or set of circumstances
that will result in any such liabilities.

 

(d)
The books of account of the Company reflect as of the dates shown thereon substantially all of its material items of income and
expense, and all of its assets, liabilities, liens and accruals required to be reflected therein.

 

3.9
Taxes. The amounts stated as provisions for taxes on the Balance Sheet are sufficient for the payment of all federal, state,
local and foreign taxes, assessments and other governmental charges or levies, and all employment and payroll-related taxes, including
any penalties and interest (collectively referred to in this Agreement as “taxes”) thereon, whether or not based upon
or measured by, in whole or in part, net income, and whether or not disputed, of the Company accrued for or applicable to all
periods ended on or prior to the Interim Date. The Company has duly made all deposits required by law with respect to employees
withholding taxes and has duly filed with all appropriate governmental agencies and bodies (whether federal, state, local or foreign)
all income, sales, use, license, franchise, excise, gross receipts, employment and payroll-related and real and personal property
tax returns and all other tax returns which were required to be filed, all of which properly reflect the taxes owed by the Company
or any subsidiary for the periods covered thereby, and has paid, or has established adequate reserves (as required by generally
accepted accounting principles) for the payment of, all taxes shown to be due on such returns, except in each case sales and use
taxes in those instances where the customers of the Company are contractually obligated to pay the tax. The Company has not received
any notice of assessment or deficiency or proposed assessment by the U.S. Internal Revenue Service or any other taxing authority
in connection with such tax returns and there is no pending tax examination of or tax claim immediately due and payable asserted
against the Company or its properties. There is no tax lien on any of the assets of the Company, except for liens for taxes not
yet due and payable. No federal or state income tax return filed by the Company has been audited, and no agreements for the extension
of time or the waiver of the statute of limitations for the assessment of any deficiency or adjustment for any year is in effect.

 

    	 	7	 

     

    

 

3.10
Patents, Trade Names, Trademarks and Copyrights.

 

The
Company does not own any Patents, Trade Names, Trademarks and Copyrights. Neither the Seller nor, to the best of Seller’s
knowledge, any officer, director or key employee (which shall mean any person at or above the office of Vice President), of the
Company is a party to any non-competition agreement, non-disclosure agreement, or similar agreement with any third party. 

 

3.11
List of Contracts. The Company is not a party to, nor is any of its properties or assets subject to or otherwise bound
by, any:

 

(a)
Contract with any present or former Stockholder, director, officer or employee, agent or consultant; 

 

(b)
Collective bargaining agreement (or any side agreement, local understanding or settlement agreement relating to any such collective
bargaining agreement) or any agreement or contract with any labor union or other employees’ association;

 

(c)
Lease or similar agreement regarding any real property or personal property involving annualized payments or potential payments
by or to the Company of at least One Thousand dollars ($1,000.00);

 

(d)
Any contract involving more than One Thousand dollars ($1,000.00) for the future purchase of commodities, materials, inventory,
ingredients, supplies, products, merchandise, services or equipment;

 

    	 	8	 

     

    

 

(e)
Bonus, pension, profit-sharing, retirement or any hospitalization, or insurance or similar plan or practice, formal or informal,
in effect with respect to employees of the Company or any other person or entity;

 

(f)
Franchise, dealer, distribution, sales or agency contract or commitment; 

 

(g)
Any other outstanding contract of sale involving more than One Thousand dollars ($1,000.00) or any distribution agreement, representative
or sales agency agreement, creating any obligation of Company to sell or distribute products;

 

(h)
Guarantees or indemnities, direct or indirect, current or contingent, of the obligations of customers of the Company or any other
person or entity; 

 

(i)
Contracts with suppliers, vendors, distributors, clients, customers or others for the future performance of services or provision
of goods by or for Company that are not terminable by the Company on less than [number] days prior notice without penalty;

 

(j)
Insurance policy; 

 

(k)
Advertising contract or commitment;

 

(l)
Bank account, lock box or similar depository arrangements; 

 

(m)
Any license or franchise agreement (as licensor/franchisor or licensee/franchisee); 

 

(n)
Any real estate mortgage, loan or credit agreement with any lender, any indenture, pledge, conditional sale or title retention
agreement, equipment obligation or lease, or lease purchase agreement;

 

(o)
Any agreement restricting the freedom of the Company or of its employees, to compete in any line of business, in any geographic
area or with any person or entity. 

 

(p)
Any other material contracts affecting the Company. 

 

(q)
Any contract of the Company to which the United States government or any agency thereof is a party. 

 

There
has been no breach or default of any provisions of any such contract, commitment, lease or other agreement by the Company, or
to the best of Seller’s knowledge, any other party thereto, and nothing has occurred which, with lapse of time or the giving
of notice or both, would constitute a breach or default by the Company, or to the best of Seller’s knowledge, by any other
party thereto with respect to any such contract or commitment or which would cause acceleration of any obligation of any party
thereto or the creation of any lien, encumbrance, security interest in or upon the Purchased Stock, or the assets of Company.
Buyer has been furnished with true and complete copies of all scheduled contracts and commitments.

 

    	 	9	 

     

    

 

3.12
Litigation. There is no action, suit, proceeding or investigations pending against the Company, and, to the best of Seller’s
knowledge after reasonable inquiry, there is no threatened action, suit, proceeding or investigation against the Company, nor
has Seller received any written or oral actual notice of any such action, suit, proceeding or investigation. No judgment, order,
writ, injunction or decree or award has been issued by or, so far as is known by Seller after reasonable inquiry, requested of
any court or governmental agency which might result in an adverse change in the business, property or assets, or in the condition,
financial or otherwise, of Company or which might adversely affect the transactions contemplated by this Agreement. The Company
has never been subject to any bankruptcy or other insolvency proceedings.

 

3.13
Absence of Changes. Since the Interim Date, the Company has conducted its business only in the ordinary course and Company
has not, as of the date hereof, either directly or indirectly since the Interim Date:

 

(a)
incurred any obligation or liability (absolute, accrued, contingent or otherwise), other than current liabilities incurred and
obligations otherwise permitted by this Agreement; 

 

(b)
mortgaged, pledged or subjected to lien, charge or any encumbrance or other imperfections of title any of its assets, tangible
or intangible; 

 

(c)
purchased, sold, assigned, transferred, abandoned or otherwise disposed of any assets other than on commercially reasonable terms
in the ordinary and normal course of its business, or cancelled any debts or claims, other than in the ordinary and normal course
of business on commercially reasonable terms and in amounts which in the aggregate are not material;

 

(d)
experienced any materially adverse change in its financial position, assets, liabilities or business; 

 

(e)
entered into any transaction other than in the ordinary and normal course of business on commercially reasonable terms in amounts
in the aggregate that are not material; 

 

    	 	10	 

     

    

 

(f)
issued any stock, bonds, convertible securities or other securities, or become obligated to issue any such securities or granted
any stock options, warrants, calls, conversion privileges, commitments or rights with respect to such securities;

 

(g)
declared, set aside or paid any dividend on, or made any other distribution in respect of, the capital stock of Company or made
any direct or indirect redemption, purchase or other acquisition by Company of its own capital stock (or any agreement under which
Company has become obligated to do any of the foregoing);

 

(h)
entered into any compromise or settlement of any litigation, proceeding or governmental investigation relating to Company or its
assets, properties, rights or business; 

 

(i)
changed or amended the Articles of Incorporation or By-Laws of the Company; 

 

(j)
suffered any damage, destruction or loss whether or not covered by insurance which might materially adversely affect the property,
business or operations of the Company;

 

(k)
made or suffered any amendment, modification or termination of any material contract or agreement which might adversely affect
the properties, business or operations of the Company;

 

(l)
received actual notice of any labor trouble, difficulty, dispute or organizing effort involving any employees of the Company;

 

(m)
made any loans (other than travel expense advances, and other loans in amounts of less than One Thousand dollars ($1,000.00) each)
to any stockholders, directors, officers or employees of Company; 

 

(n)
except as provided for in this Agreement, changed the number or kind of shares of capital stock authorized, issued or outstanding;

 

(o)
formed any subsidiaries or merged or consolidated, or obligated itself to do so, with or into any other entity;

 

(p)
repaid any loans or other advances from stockholders or partners or repaid any indebtedness of the Company for which any stockholder
was a guarantor or was otherwise directly or indirectly liable;

 

(q)
waived any rights, contractual or otherwise, whether or not in the ordinary course of business; 

 

(r)
paid or discharged any lien or liability of Company which was not shown on the Interim Date Balance Sheet or incurred in the ordinary
course of business thereafter; 

 

    	 	11	 

     

    

 

(t)
entered into any lease or sublease, pledge or hypothecation of real or personal property or of any of the Company’s assets.

 

3.14
Insurance. The Schedule of Insurance attached hereto as Schedule 3.14 contains a correct and complete list of all policies
(including binders) of insurance held by or on behalf of the Company or relating to its business or any of its assets (specifying
the insurer, the amount of coverage, type of insurance, risks insured, any pending claims thereunder and claims history in the
last twelve months). To the Best Knowledge of the Seller, such policies are valid and enforceable in accordance with their respective
terms and are outstanding and duly in force as of the date hereof. Except as set forth in Schedule 3.14, there is no default with
respect to any provision contained in any such policy, nor has there been any failure to give any notice or present any claim
under any such policy in a timely fashion or in the manner or detail required thereby, which has had or reasonably might have
a material adverse effect on the enforceability of substantial rights of the Company under any such policy. There are no claims
that are not accrued on the Balance Sheet, and there are no unusual provisions for retroactive or retrospective premium adjustments
or cancellation or non-renewal. No notice of cancellation or non-renewal with respect to, or disallowance of any claim under,
any policy has been received by the Company. No policy of the Company has been cancelled by the issuer within the last three (3)
years. Except, as set forth on any Schedule hereto, to the Seller’ Best Knowledge, there is no state of facts and no event
has occurred which reasonably might form the basis of any claim against or relating to the Company or its business or operations
or any of its assets which are covered by any of such policies, or which might materially increase the premiums (other than general
increases and additions to assets covered) payable under any such policy. Schedule 3.14 also contains a true and complete description
of all outstanding bonds and other surety arrangements issued or entered into in connection with the Company or its business.

 

3.15
Insider Indebtedness. Except as set forth in Schedule 3.15, no officer, director or stockholder of Company is indebted
to Company or otherwise owes Company any money.

 

3.16
Employee Benefit Plans. The Company does not have any Employee Benefit Plans.

 

3.17
Governmental and Other Approvals. All requisite consents, authorizations, licenses, permits, orders, certificates and approvals
of all governmental authorities or other parties necessary for the Seller and the Company to consummate the transactions contemplated
by this Agreement will be obtained as of the time of Closing. The Company has all consents, licenses, permits, registrations,
approvals and certificates required under applicable law or regulation, federal, state and local, necessary to the ownership of
all of the assets of the Company and necessary to the operation of the Company’s business as presently conducted and as
presently contemplated. The Company and its operations have conformed and presently conform to all laws, ordinances, requirements,
regulations or orders, including, without limitation, those relating to fair labor practices and standards, equal employment practices,
or occupational safety and health applicable to the conduct of the Company’s business and the ownership and management of
any of its property.

 

    	 	12	 

     

    

 

3.18
Environmental Protection.

 

(a)
The Company has obtained and will maintain through the Closing Date all permits, licenses, certificates and other authorizations
which are required with respect to the operation of its business under federal, state, local and foreign environmental, health
and safety laws, codes and ordinances and all rules and regulations promulgated thereunder, including laws relating to emissions,
discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances
or wastes into the environment (including, without limitation, air, surface water, ground water, land surface or subsurface strata)
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, chemicals, or industrial, solid, toxic or hazardous substances or wastes (the “Environmental Laws”).

 

(b)
To the best of Company’s and Seller’s knowledge, the Company is in compliance in all respects with all terms and conditions
of the required permits, licenses and authorizations required by the Environmental Laws, and is also in full compliance with all
other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained
in the Environmental Laws or contained in any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter
issued, entered, promulgated or approved thereunder. The Company has heretofore delivered to Buyer true and complete copies of
all environmental studies made in the last [number] years relating to its business.

 

(c)
To the best of Company’s and Seller’s knowledge, there is no civil, criminal or administrative action, suit, demand,
claim, hearing, notice of violation, investigation, proceeding, notice or demand letter pending, relating to the Company’s
business or, to the best knowledge of the Company, threatened against the Company, relating in any way to the Environmental Laws
or any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter issued, entered, promulgated or approved
thereunder.

 

    	 	13	 

     

    

 

(d)
To the best of Company’s and Seller’s knowledge, there are no past or present (or, to the best knowledge of the Seller,
anticipated) events, conditions, circumstances, activities, practices, incidents, actions or plans which may interfere with or
prevent compliance or continued compliance with the Environmental Laws or with any regulation, code, plan, order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated or approved thereunder, or which may give rise to any common
law or legal liability, including, without limitation, liability under the Clean Water Act, the Clear Air Act, Occupational Safety
and Health Act of 1970, as amended, the Environmental Protection Act, the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, or similar state or local laws, or otherwise form
the basis of any claim, action, demand, suit, proceeding, hearing, notice of violation, study or investigation, based on or related
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling, or the emission, discharge,
release or threatened release into the environment, by the Company of any pollutant, contaminant, chemical, or industrial, toxic
or hazardous substance or waste.

 

(e)
To the best of Company’s and Seller’s knowledge, there has been no emission, spill, release or discharge whether from
any Company location or disposal site, into or upon (i) the air, (ii) soils or improvements, (iii) surface water or ground water,
or (iv) the sewer, septic system or waste treatment, storage or disposal system servicing such sites of any toxic or hazardous
substances or wastes used, stored, generated, treated or disposed at or from any of the aforementioned sites (any of which events
is hereafter referred to as “Hazardous Discharge”). Except for inventory of raw materials, supplies, work in process
and finished goods listed in Schedule 3.18 that is to be used or sold in the ordinary course of its business, all of the Company’s
assets are free of all toxic or hazardous substances or wastes.

 

(f)
To the best of Company’s and Seller’s knowledge, there has been no complaint, order, directive, claim, citation or
notice by any governmental authority or any other person or entity with respect to (i) air emissions, (ii) spills, releases or
discharges to soils or any improvements located thereon, surface water, ground water or the sewer, septic system or waste treatment,
storage or disposal systems servicing any Company location or disposal site, (iii) noise emissions, (iv) solid or liquid waste
disposal, (v) the use, generation, storage, transportation or disposal of toxic or hazardous substances or wastes or (vi) other
environmental, health or safety matters affecting the Company, any real property related to the operation of the Company’s
business, any improvements located thereon or the business therein conducted (any of which is hereafter referred to as an “Environmental
Complaint”).

 

    	 	14	 

     

    

 

(g)
To the best of Company’s and Seller’s knowledge, prior to the Closing there shall not occur any Hazardous Discharge.

 

3.19
Certificate of Incorporation. The Certificate of Incorporation of the Company and all amendments thereto to the Articles
have been validly adopted by the stockholders and directors of the Company and the Certificate of Incorporation, as amended, is
in full force and effect and is legal, valid, binding and enforceable in accordance with its terms.

 

3.20
Bylaws. The Bylaws of the Company, and all amendments to the Bylaws, have been validly adopted, and the Bylaws, as amended,
are in full force and effect and are legal, valid, binding and enforceable in accordance with their terms.

 

3.21
Financial Advisor. Seller has not dealt with any financial advisor, broker or finder in connection with the transactions
contemplated herein, and agree to indemnify and hold Buyer harmless in connection with any claims for commissions or other compensation
made by any financial advisor, broker or finder claiming to have been employed by or on behalf of Seller or Company in connection
with the transactions contemplated herein.

 

3.22
Labor Relations. To the best of Company’s and Seller’s knowledge, the Company is in compliance in all respects
with all federal, state and local laws respecting employment and employment practices, terms and conditions of employment and
wages and hours, and is not engaged in any unfair labor practice; (b) there is no unfair labor practice complaint against the
Company pending or, to the best knowledge of Seller, threatened. There are no proceedings pending or, to the best knowledge of
Seller, threatened before the National Labor Relations Board with respect to the Company; (c) there are no discrimination charges
(relating to sex, age, race, national origin, handicap or veteran status) pending before any federal or state agency or authority;
(d) there is no labor strike or similar material dispute pending or, to the best knowledge of Seller, threatened against or involving
the Company; (e) there is no pending representation question involving an attempt to organize a bargaining unit including any
employees of the Company and no labor grievance has been filed within the past twelve (12) months with the Company which has had
or will have a material adverse effect on the Company; (e) there is no arbitration proceeding under any collective bargaining
agreement pending or, to the best knowledge of Seller, threatened. The Company is and has been subject to and bound by a collective
bargaining agreement, a true copy of which has been furnished to Buyer. The Company is not a party to any other collective bargaining
agreement nor is any such agreement currently being negotiated by the Company. 

 

    	 	15	 

     

    

3.23
Labor Relations [Alternative Provision]. To the best of Company’s and Seller’s knowledge, all collective bargaining
agreements (including all amendments and supplements thereto) of the Company with any labor union or other representative of employees
to which the Company is a party or is otherwise bound.

 

3.24
Shareholders. The Company has no stockholders other than the Seller.

 

3.25
Non-Affiliation. Neither Seller nor the Company nor any corporation or firm in which any of them owns stock or has any
beneficial interest, is a party to or has any beneficial interest in any contract, agreement, undertaking, obligation or arrangement
to which the Company is a party or by which the Company or any of its properties is bound or subject, or has any ownership interest
(other than an investment in a publicly held corporation, not exceeding fifty (50%) percent (50%) of the outstanding capital stock
of such corporation) with any customer, competitor, supplier or distributor of the Company. 

 

3.26
Disclosure. No representation or warranty in this and no statement contained elsewhere in this Agreement or in any Schedule,
Exhibit, Certificate or other document furnished or to be furnished to Buyer pursuant hereto or in connection with the transactions
contemplated under this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state
a material fact or any fact necessary to make the statements contained therein not materially misleading. There is no fact, which
materially and adversely affects, or, to the best of Seller’ knowledge, in the future may materially and adversely affect,
the condition of the Company which has not been set forth herein. With respect to all representations and warranties herein which
are made “to the best of Seller’ knowledge,” a Seller shall be deemed to have knowledge of any matter or fact
(a) if such Seller has actual personal knowledge of such matter or fact, (b) if such Seller has information from which a person
of reasonable intelligence would infer that the matter or fact in question exists, (c) if such Seller should have ascertained
such matter or fact in the performance of any duty he may have as an officer, director or employee of the Company, if and only
to the extent that the failure by such Seller who is an officer, director or employee of the Company to so ascertain such matter
of fact in the performance of any duty he may have as an officer, director or employee of the Company would constitute gross negligence,
or (d) if any of the Company’s senior management, which shall mean any person at or above the office of Vice President,
has actual personal knowledge of such matter or fact. 

 

    	 	16	 

     

    

 

4.
REPRESENTATIONS AND WARRANTIES BY BUYER. 

 

As
of the date hereof and as of the date of the Closing, Buyer represents and warrants as follows:

 

4.1
Organization and Qualification of Buyer. Buyer is duly organized, validly existing and in good standing under the laws
of California. Buyer has full corporate power and authority to own or lease all of its properties and assets and to conduct its
business in the manner and in the places where such properties are owned and leased or such business is now conducted by it. Buyer
is duly qualified, licensed and authorized to do business as a foreign corporation and is in good standing as a foreign corporation
in the jurisdictions, if any, shown on the Schedule of Jurisdictions attached hereto as Schedule 3.1 and is not required to be
so licensed, qualified or authorized to conduct its business or own its property in any other jurisdiction. 

 

4.2
Authority of Buyer. This Agreement and each of the agreements and other documents and instruments delivered or to be delivered
by Buyer pursuant to or in contemplation of this Agreement will constitute, when so delivered, the valid and binding obligation
of Buyer and shall be enforceable in accordance with their respective terms. The execution, delivery and performance of this Agreement
and each such agreement, document and instrument has been duly authorized by all necessary corporate action of Buyer and is within
Buyer’s corporate powers. The execution, delivery and performance of any such agreement, document or instrument by Buyer
and the execution, delivery and performance of this Agreement or any other agreement, document or instrument by the Buyer does
not and will not with the passage of time or the giving of notice or both: 

 

(i)
result in a breach of or constitute a default under any indenture or loan or credit agreement or under any agreement of the Buyer,
or any other material agreement, lease or instrument to which Buyer is a party or by which the property of Buyer is bound or affected;

 

(ii)
result in a violation of or default under any law, rule, or regulation, or any order, writ, judgment, injunction, decree, determination,
award, indenture, material agreement, lease or instrument now in effect having applicability to Buyer;

 

(iii)
violate any provisions of the Certificate of Incorporation or Bylaws of Buyer; or 

 

(iv)
except as set forth in Schedule 3.2 require any approval, consent or waiver of, or filing with, any entity, private or governmental,
which has not been obtained. 

 

4.3
Governmental Approvals. Except as set forth on Schedule 3.2, all requisite consents, authorizations, licenses, permits,
orders, certificates and approvals of all third parties and/or governmental agencies, including without limitation any governmental
agency or authority of the United States, or other jurisdiction whose approval is necessary for Buyer to consummate the transactions
contemplated by this Agreement have been obtained.

 

4.4
Financial Advisors. Buyer has not dealt with any financial advisor, broker or finder in connection with the transaction
contemplated herein and agrees to indemnify and hold Seller harmless in connection with any claims for commissions or other compensation
made by any financial advisor, broker or finder claiming to have been employed by or on behalf of Buyer in connection with the
transactions contemplated herein. 

 

4.5
Disclosure. No representation or warranty in this Article 4, and no statement contained elsewhere in this Agreement or
in any schedule, exhibit, certificate or other document furnished or to be furnished by Buyer to Seller pursuant hereto or in
connection with the transactions contemplated under this Agreement contains any untrue statement of a material fact or omits or
will omit to state a material fact or any fact necessary to make the statements contained therein not materially misleading.

 

    	 	17	 

     

    

 

4.6
Purchase for Investment. Buyer hereby represents and warrants to Seller that Purchaser is acquiring the Purchased Stock
for its own account, for investment, and not with a view to the distribution thereof in violation of the Securities Act of 1933
or of the State Laws. Buyer understands that the Purchased Stock have not been registered under the Securities Act of 1933 or
the State Laws, by reason of their sale to the Seller in transactions exempt from registration; and, that the Purchased Stock
must be held by Purchaser indefinitely unless a subsequent disposition thereof is registered under the Securities Act of 1933
and the State Laws or is exempt from registration. 

 

Buyer
represents and warrants to the Seller that the sale of the Purchased Stock to it hereunder is exempt from registration under the
provisions of Section 4(a)(2) of the Securities Act of 1933. 

 

4.7
Acknowledgment of Disclaimer of Profits. Buyer expressly acknowledges and agrees that Seller has not made any representation
or warranty with respect to the future profitability or financial prospects of the Company after the Closing Date. 

 

5.
COVENANTS OF THE SELLER. 

 

The
Seller covenants and agrees as follows throughout the period from the date hereof through and including the Closing:

 

5.1
Restrictions. Seller shall cause the Company to conduct the business and operations in which it is engaged only in the
ordinary course and in accordance with sound business practices in substantially the manner in which such business and operations
have been previously conducted and, furthermore, without limiting the generality of the foregoing, Seller shall cause the Company
to not (except with the prior written consent of the Buyer):

 

(a)
Redeem, purchase, repurchase or retire any of the capital stock of the Company, or declare or pay any dividends or make any other
payments or distribution upon any of the capital stock of the Company; 

 

(b)
Make or permit any material change in or cease in whole or in significant part its present business; 

 

    	 	18	 

     

    

 

(c)
Sell, lease, transfer or otherwise dispose of all or any material portion of its assets including, without limitation, rights
to patents, know-how, intellectual property or other intangible assets or cancel any debts or claims, except sales of inventory
in the ordinary course of business or immaterial amounts of other intangible personal property not required in the business;

 

(d)
Incur, enter into, create, assume or permit to exist any indebtedness or liability for borrowed money or any other indebtedness
(not including taxes) except: (a) financing arrangements in existence at the date hereof which have heretofore been disclosed
to Buyer; (b) indebtedness to Buyer; and (c) accounts payable and accrued liabilities incurred in the ordinary course of business
and any other indebtedness incurred in the ordinary course of business;

 

(e)
Enter into any contract or agreement other than in the ordinary course of business consistent with the Company’s past practices,
or, amend, modify or terminate any material contract or agreement to which the Company is a party which involves not more than
one thousand dollars ($1,000) in the aggregate;

 

(f)
Increase or commit to increase, the compensation (including fringe benefits) payable to any officer, director or employee or agent
of the Company other than routine increases made in the ordinary course of business consistent with the Company’s past practices
or pursuant to any collective bargaining agreement; or enter into any fixed term agreement with respect to the employment of any
employee;

 

(g)
Make any change in the Certificate of Incorporation or Bylaws of the Company;

 

(h)
Make any change in the authorized or issued and outstanding capital stock of the Company including any changes involving treasury
shares; 

 

(i)
Grant any options or rights to purchase any securities of the Company; 

 

(j)
Make any alteration in the manner of keeping the books, accounts or records of the Company, or in the accounting practices therein
reflected, other than those alterations required by changes in generally accepted accounting principles;

 

(k)
Enter into any transaction in which any officer or director of the Company or any record or beneficial holder of any securities
of the Company has any interest, directly or indirectly except immaterial transactions consistent with the Company’s past
practices; 

 

    	 	19	 

     

    

 

(l)
Effect any dissolution, winding up, liquidation or termination of the business of the Company;

 

(m)
Effect any merger or consolidation of the Company whether or not the Company is the survivor thereof or effect any reorganization
or recapitalization;

 

(n)
Terminate the employment of the auditors of the Company;

 

(o)
Effect any acquisition by the Company of any interest or participation in any entity of any kind, whether represented by shares
or otherwise or effect the formation of a subsidiary or purchase or otherwise invest in or hold securities, non-operating real
estate or other non-operating assets, except direct obligations of the United States of America, or Certificates of Deposit or
equivalent securities issued by financial institutions or investments in securities consistent with the Company’s past practices;

 

(p)
Mortgage, pledge, grant or permit to exist a security interest in or lien or encumbrance on any of its assets or property, real
or personal, tangible or intangible, now owned or hereafter acquired except: (a) liens in favor of Buyer; (b) liens in existence
at the date hereof which are set forth on Schedule 3.6(b); and (c) liens arising by operation of law with respect to obligations
of the Company not yet due and payable;

 

(q)
Make any investment in, or make any loan, advance or credit to any person, partnership or corporation, including officers, stockholders
or directors of the company, other than credits and allowances to customers or advances to officers, stockholders or directors
for reasonable travel and entertainment expenses in the ordinary course of business;

 

(r)
Assume, endorse, guarantee or otherwise become liable for or upon the obligation of any person, partnership, corporation or other
entity (other than endorsements for deposit in the ordinary course of business);

 

(s)
Effect any agreement for the leasing or hire of any real property without regard to the amount of rental therefor or any personal
property except in the ordinary course of business;

 

(t)
Make any change in the executive management of the Company except for termination for cause;

 

(u)
Without a demonstrably valid business reason, accelerate or defer any item of income or expense of the Company; or

 

    	 	20	 

     

    

 

(v)
Institute any litigation, claim or other proceeding before any court or governmental agency, except collection actions in the
ordinary course of business. or

 

5.2
Notice of Breach. To the extent Seller obtains actual knowledge that any of the representations or warranties contained
in Article 3 hereof would be incorrect in any material respect were those representations or warranties made immediately after
such knowledge was obtained, Seller shall notify Buyer in writing promptly of such fact and exercise their reasonable efforts
to remedy same to the extent within Seller’s control.

 

5.3
Access. Seller will permit Buyer, its counsel, its auditors and its appraisers to inspect and copy all records and documents
in the Company’s and Seller’s custody, care or control and to have access to all places of their business throughout
all regular business hours, provided such inspections do not unduly disrupt the conduct of business, provided, further, that Buyer
shall not contact the Company’s customers or suppliers without the prior written consent of Seller, which consent shall
not be unreasonably withheld or delayed.

 

5.4
No Transfer of Interest. Seller shall not sell, transfer, assign, alienate, encumber, pledge or otherwise convey to any
person or entity other than Buyer any of the Purchased Stock, or any interest therein.

 

5.5
Authorization from Others. Seller shall use reasonable efforts to obtain all authorizations, consents and approvals of
third parties or governmental agencies that may be required to permit the consummation of the transactions contemplated by this
Agreement.

 

5.6
Consummation of Agreement. Seller shall use reasonable efforts to satisfy all conditions to the Closing that are within
their control to the end that the transactions contemplated by this Agreement shall be fully carried out. 

 

5.7
Business Intact; Relationships with Customers and Suppliers. Seller shall use best efforts to keep intact the business
of the Company, to keep available its key employees and to maintain the goodwill of its customers, distributors and suppliers
and other persons having business dealings with it.

 

6.
COVENANTS OF SELLER AND BUYER.

 

6.1
Regulatory Filings. Each of the parties hereto will furnish to the other party hereto such necessary information and reasonable
assistance as such other party may reasonably request in connection with its preparation of necessary filings or submissions to
any governmental agency. 

 

    	 	21	 

     

    

 

6.2
Consummation of Agreement. Buyer shall use its reasonable efforts to satisfy all conditions to the Closing that are within
its control to the end that the transaction contemplated by this Agreement shall be fully carried out.

 

6.3
Authorization From Others. Buyer shall use its reasonable efforts to obtain all authorizations, consents and approvals
of third parties or governmental agencies that may be required to permit the consummation of the transactions contemplated by
this Agreement.

 

7.
CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER TO CLOSE. 

 

The
obligation of Buyer to acquire the Purchased Stock as contemplated hereby, and to perform its other obligations hereunder to be
performed on or after the Closing, shall be subject to the fulfillment, on or prior to the Closing Date, unless otherwise waived
in writing by Buyer, of the following conditions: 

 

7.1
Representations and Warranties. The representations and warranties of Seller set forth in Article 3 hereof shall be true
and correct in all material respects on the Closing Date as if made on and as of such date.

 

7.2
Performance of Covenants. Seller shall have performed all of their covenants and obligations contained in this Agreement
to be performed on or prior to the Closing Date. 

 

7.3
Threatened or Pending Proceedings. No proceedings shall have been initiated or threatened by any governmental department,
commission, bureau, board, agency or instrumentality, foreign or domestic, or any other bona fide third party seeking to enjoin
or otherwise restrain or to obtain an award for damages in connection with the consummation of the transactions contemplated hereby.

 

7.4
Delivery of Certificates and Documents to Buyer. Seller shall have delivered, or cause to be delivered, to the Buyer certificates
as to the legal existence and good standing of the Company and copies of its Certificate of Incorporation, as amended, issued
or certified by the Secretary of State of Nevada and/or such other appropriate official thereof.

 

7.5
Consents. Except as otherwise provided in Schedule 3.2, the Seller and Buyer shall have obtained the approvals, consents
and authorizations of all third parties and/or governmental agencies necessary for the consummation of the transactions contemplated
hereby in accordance with the requirements of applicable laws and agreements. 

 

    	 	22	 

     

    

 

7.6
Damage or Destruction. The property owned or leased by the Company shall not have suffered prior to the Closing Date any
loss on account of fire, flood, accident or any other calamity to an extent that would materially interfere with the conduct of
its business or materially impair the value of the Company as a going concern, regardless of whether any such loss or losses have
been insured against.

 

8.
CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER TO CLOSE. 

 

The
obligation of Seller to sell the Purchased Stock as contemplated hereby, and to perform its other obligations hereunder to be
performed on or after the Closing, shall be subject to the fulfillment, on or prior to the Closing Date, unless otherwise waived
in writing by the Seller, of the following conditions: 

 

8.1
Representations and Warranties. The representations and warranties of Buyer set forth in Article 4 hereof shall be true
and correct in all material respects on the Closing Date as if made on and as of such date. 

 

8.2
Performance of Covenants. Buyer shall have performed all of its covenants and obligations contained in this Agreement to
be performed on or prior to the Closing Date. 

 

8.3
Corporate Action. All corporate action necessary to authorize (i) the execution, delivery and performance by Buyer of this
Agreement and any other agreements or instruments contemplated hereby to which Buyer is a party and (ii) the consummation of the
transactions and performance of its other obligations contemplated hereby and thereby shall have been duly and validly taken by
Buyer, and the Seller shall have been furnished with copies of all applicable resolutions adopted by the Board of Directors of
Buyer, certified by the Secretary or Assistant Secretary of Buyer.

 

8.4
Threatened or Pending Proceedings. No proceedings shall have been initiated or threatened by any governmental department,
commission, board, bureau, agency or instrumentality, foreign or domestic, or any other bona fide third party seeking to enjoin
or otherwise restrain or to obtain an award for damages in connection with the consummation of the transactions contemplated hereby.

 

    	 	23	 

     

    

 

8.5
Consents. Except as otherwise provided in Schedule 3.2, Buyer and Seller shall each have obtained the approvals, consents
and authorizations of all third parties and/or governmental agencies necessary for the consummation of the transactions contemplated
hereby in accordance with the requirements of applicable laws and agreements.

 

9.
TERMINATION OF AGREEMENT.

 

9.1
Termination. At any time prior to the Closing Date, this Agreement may be terminated (i) by the consent of the Buyer and
Seller, (ii) by Seller if there has been a material misrepresentation, breach of warranty or breach of covenant by Buyer in its
representations, warranties and covenants set forth herein, (iii) by Buyer if there has been a material misrepresentation, breach
of warranty or breach of covenant by the Seller in their representations, warranties and covenants set forth herein, (iv) by the
Seller if the conditions stated in Article 8 have not been satisfied at or prior to the Closing Date or (v) by Buyer if the conditions
stated in Article 7 have not been satisfied at or prior to the Closing Date.

 

9.2
Effect of Termination. If this Agreement shall be terminated as above provided, this Agreement shall become null and void
and have no effect all obligations of the parties hereunder shall terminate without liability of any party to the other; provided
however, that nothing in this Section 9.2 shall prevent any party from seeking or obtaining damages or appropriate equitable relief
for the breach of any representation, warranty or covenant made by any other party hereto. 

 

9.3
Right to Proceed. Anything in this Agreement to the contrary notwithstanding, if any of the conditions specified in Article
7 hereof have not been satisfied at or prior to the Closing, Buyer, having otherwise satisfied its obligations or met conditions
to Closing hereunder, shall have the right to proceed with the transactions contemplated hereby without waiving any of its rights
hereunder, and if any of the conditions specified in Article 8 hereof have not been satisfied at or prior to the Closing, the
Seller, having otherwise satisfied their obligations or met conditions to Closing hereunder, shall have the right to proceed with
the transactions contemplated hereby without waiving any of their rights hereunder.

 

9.4
Notice of Breach. To the extent Buyer obtains knowledge before the Closing Date that any of the representations or warranties
contained in Article 4 hereof would be incorrect in any material respect were those representations or warranties made immediately
after such knowledge was obtained, the Buyer shall notify Seller in writing promptly of such fact and exercise its reasonable
efforts to remedy same to the extent within Buyer’s control. 

 

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10.
RIGHTS AND OBLIGATIONS SUBSEQUENT TO CLOSING. 

 

10.1
Survival of Representations and Warranties. All representations, warranties, covenants and obligations herein or in any
Exhibit, Schedule, certificate or financial statement delivered by either party to the other party incident to the transactions
contemplated hereby shall be deemed to have been relied upon by the other party, shall survive the execution and delivery of this
Agreement, any investigation at any time made by any party hereto, and the issuance, sale and purchase of the Purchased Stock
and payment therefor until one (1) year after the Closing Date (the “Cut-off Date”); provided, however,
that (a) the representations and warranties of Seller contained in Sections 3.1, 3.2, 3.3, 3.4 and 3.5 shall survive indefinitely
after the Closing Date, (b) the representations and warranties of Seller contained in Section 3.9 shall survive until the expiration
of the applicable statutes of limitation as the same may be extended by the Company or Buyer, provided any such extension must
be with the prior written approval of Seller, which approval shall not be unreasonably withheld and (c) the covenants and obligations
of the parties contained herein shall be enforceable after the Cut-Off Date subject to any limitations therein set forth. No claim
of misrepresentation or breach of any representation, warranty, covenant or obligation may be made by any party hereunder unless
notice of such claim is given to the party claimed against on or before the Cut-off Date, or such later survival date as is prescribed
for such representation, warranty or covenant in the proviso of the immediately preceding sentence. 

 

10.2
Further Assurances. From time to time after the Closing and without further consideration, the parties will execute and
deliver, or arrange for the execution and delivery of such other instruments of conveyance and transfer and take such other action
or arrange for such other actions as may reasonably be requested to more effectively complete any of the transactions provided
for in this Agreement or any document annexed hereto.

 

    	 	25	 

     

    

 

11.
INDEMNIFICATION AND SETOFF.

 

11.1
Indemnification by the Seller. The Seller hereby agrees to defend, indemnify and hold Buyer, the Company and their respective
officers, directors, shareholders, employees, agents, attorneys and representatives, harmless from and against any damages, liabilities,
losses and expenses (including, without limitation, reasonable attorneys’ fees) which may be sustained or suffered by Buyer
or Company arising out of, based upon, or by reason of a breach of any representation or warranty, or a failure to perform any
agreement or covenant made by the Seller in this Agreement or in any exhibit, schedule, certificate or financial statement delivered
hereunder, or arising out of, based upon, or by reason of any claim, action or proceeding asserted or instituted growing out of
any matter or thing covered by such breached representations, warranties or covenants; provided, however, that (a)
no indemnification shall be payable with respect to any claim for breach of any representation, warranty or covenant asserted
by Buyer or Company after the Cut-Off Date or such later survival date as is prescribed for such representation, warranty or covenant
in the proviso of the first sentence of Section 10.1 hereof, and (b) except as otherwise expressly provided herein, no indemnification
shall be payable by Seller except to the extent that the total of claims for indemnification by Buyer or Company shall exceed
one thousand dollars ($1,000) (the “Deductible”) (such amount being a deductible amount versus merely a threshold).
Notwithstanding the foregoing, in no event shall Seller’ liability under this Section exceed an amount equal to the Stock
Purchase Price which the parties agree is eighteen thousand one hundred nine dollars ($18,109).

 

11.2
Indemnification by the Buyer. The Buyer hereby agrees to defend, indemnify and hold the Seller and his respective employees,
agents, attorneys, and representatives, harmless from and against any damages, liabilities, losses and expenses (including, without
limitation, reasonable attorneys’ fees) which may be sustained or suffered by the Seller arising out of, based upon, or
by reason of a breach of any representation or warranty, or a failure to perform any agreement or covenant, made by the Buyer
in this Agreement or in any exhibit, schedule, certificate or financial statement delivered hereunder, or arising out of, based
upon, or by reason of any claim, action or proceeding asserted or instituted growing out of any matter or thing covered by such
breached representations, warranties or covenants; provided, however, that (a) no indemnification shall be payable with respect
to any claim for breach of any representation, warranty or covenant asserted by Seller after the Cut-Off Date or such later survival
date as is prescribed for such representation, warranty or covenant in the proviso of the first sentence of Section 10.1 hereof
and (b) no indemnification shall be payable by Buyer except to the extent that the total of claims for indemnification by Seller
shall exceed US one thousand dollars ($1,000) (such amount being a deductible amount versus merely a threshold). Notwithstanding
the foregoing, in no event shall Buyer’s liability under this Section exceed an amount equal to the Stock Purchase Price
which the parties agree is eighteen thousand one hundred nine dollars ($18,109).

 

    	 	26	 

     

    

 

11.3
Notice; Defense of Claims. Each party to this Agreement shall give prompt written notice to the other party or parties
to this Agreement under each claim for indemnification hereunder specifying the amount and nature of the claim, and of any matter
which is likely to give rise to an indemnification claim. Each party to this Agreement has the right to participate at its own
expense in the defense of any such matter or its settlement, or the indemnified party may direct the indemnifying party to take
over the defense of such matter so long as such defense is expeditious. Failure to give timely notice of a matter which may give
rise to an indemnification claim shall not affect the rights of the indemnified party to collect such claims from the indemnifying
party so long as such failure to so notify does not materially adversely affect the indemnifying party’s ability to defend
such claim against a third party. No indemnifying party, in the defense of any claim or litigation shall, except with the consent
of an indemnified party, which consent shall not be unreasonably withheld or delayed, consent to entry of any judgment or enter
into any settlement by which such indemnified party is to be bound and which judgment or settlement does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such
claim or litigation. 

 

12.
NON-DISCLOSURE COVENANTS.

 

12.1
Disclosure of Transaction. Neither party shall disclose the contents of this Agreement or the terms of the sale contemplated
hereunder without the prior written consent of the other party or as required by law. 

 

13.
MISCELLANEOUS.

 

13.1
Taxes. Any taxes in the nature of a sales or transfer tax and any stock transfer tax, payable on the sale or transfer of
all or any portion of the Purchased Stock or the consummation of any other transaction contemplated hereby shall be paid by Seller.

 

    	 	27	 

     

    

 

13.2
Assignability. Neither this Agreement nor any rights or obligations hereunder, are assignable by Seller or the Company.
The rights of Buyer under this Agreement are assignable in part or wholly to any company controlled by, controlling or under common
control with Buyer and any assignee of Buyer shall succeed to and be possessed of the rights of Buyer hereunder to the extent
of the assignment made; provided, however, that and such assignment by Buyer shall not relieve Buyer of its obligations hereunder.
In addition, after the Closing, Buyer may assign all of its rights and/or obligations under this Agreement to any person who acquires
either the stock of Buyer or the Company, or substantially all of the assets of the Company; provided, however, that any such
assignment by Buyer shall not relieve Buyer of its obligations hereunder.

 

13.3
Publicity. Except as otherwise required by law, none of the parties hereto shall issue any press release or make any other
public statement relating to or connected with, or arising out of, this Agreement or the matters contained herein, without obtaining
the prior approval of the Buyer to the contents and the manner of presentation and publication thereof.

 

13.4
Section Headings. The Section and paragraph headings in this Agreement are for convenience of reference only and shall
not be deemed to alter or affect provisions thereof. All Exhibits and/or Schedules hereto shall be initialed for identification
or may be physically annexed hereto, but in either event such Exhibits or Schedules shall be deemed to be a part hereof. 

 

13.5
Waiver. Neither the failure nor any delay on the part of any party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, or of any other right, power or remedy or preclude any further or other exercise thereof, or
the exercise of any other right, power or remedy.

 

13.6
Expenses. Except as otherwise provided herein, the Buyer and Seller shall pay the fees and expenses of their respective
accountants and legal counsel incurred in connection with the transactions contemplated by this Agreement.

 

13.7
Notices. Any notices required or permitted to be given hereunder shall be given in writing and delivered in person or sent
certified mail, postage prepaid, return receipt requested, to the respective parties at their addresses set forth at the beginning
of this Agreement or at such other addresses as may hereinafter be designated by such party in writing to other parties.

 

    	 	28	 

     

    

 

13.8
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of California. 

 

13.9
Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the transaction
contemplated herein and shall not be modified or amended except by an instrument in writing signed by the parties hereto. 

 

13.10
Validity. The invalidity or unenforceability of any particular provision of this Agreement shall not affect any other provisions
hereof, and this Agreement shall be construed in all other respects as if such invalid and unenforceable provisions were omitted.

 

13.11
Execution Capacity of Seller. Seller hereby acknowledges that his execution of this Agreement as provided below, whether
personally or through their attorney-in-fact, shall be in this individual capacity as well as in this capacity as sole shareholder
of the Company. 

 

13.12
Counterparts. This Agreement may be signed in any number of counterparts each of which shall be deemed to be an original
and all of which together shall constitute but one and the same instrument. 

 

IN
WITNESS WHEREOF, we have set our hands and seals as of the date first above written. 

 

	 	 
	Ajay Sikka (“Seller”)	 
	 	 	 
	TraqIQ, Inc. (“Buyer”)	 
	 	 
	By:	                   	 
	Its:		 
	 	 	 
	TransportIQ, Inc. (“Company”)	 
	 	 
	By:		 
	Its:		 

 

    	 	29	 

     

    

 

SCHEDULES

 

Schedule
3.1           Jurisdictions 

Domestic
Corporation in Nevada

Foreign
Corporation in New York, Washington, Pennsylvania

 

    	 	30	 

     

    

 

Schedule
3.14           Insurance 

Schedule
3.15           Insider Indebtedness 

 

    	 	31

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