Document:

Exhibit 10.11

 

INVESTMENT AGREEMENT

 

THIS
AGREEMENT dated as of the 24th day of December, 2014 (the “Agreement”) is by and between Beaufort Capital
Partners LLC (the “Investor”), and Axxess Pharma, Inc. (the “Company”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the
Investor, from time to time as provided herein, and the Investor shall purchase from the Company up to One Million Dollars ($1,000,000)
of the Company’s fully registered, freely tradable common stock (the “Common Stock”); and

 

WHEREAS,
such investments will be made in reliance upon the provisions of the Securities Act of 1933, as amended, and the regulations
promulgated thereunder (the “Securities Act”), and or upon such other exemption from the registration requirements
of the Securities Act as may be available with respect to any or all of the investments to be made hereunder.

 

NOW, THEREFORE,
the parties hereto agree as follows:

 

ARTICLE I.

Certain Definitions

 

Section 1.1.
“Advance” shall mean the portion of the Commitment Amount requested by the Company in the Advance Notice.

 

Section 1.2.
“Advance Date” shall mean the fifth Trading Day after expiration of the applicable Pricing Period for each Advance.

 

Section 1.3.
“Advance Notice” shall mean a written notice in the form of Exhibit A attached hereto to the Investor
executed by an officer of the Company and setting forth the Advance amount that the Company requests from the Investor. An Advance
Notice cannot be sent if a prior Advance has not yet been completed. No Advance Notice can be delivered by the Company on a day
which is not a Trading Day.

 

Section 1.4.
[Intentionally Omitted]

 

Section
1.5. “Advance Shares” shall mean the shares of Common Stock issued and sold to the Investor pursuant to an Advance
Notice under the terms and conditions hereof.

 

Section
1.6. “Average Daily Trading Volume” means the average trading volume of the Common Stock of the ten Trading
Days prior to the date of delivery of the Advance.

 

Section 1.7.
[Intentionally Omitted]

 

Section 1.8.
“Closing Daily Price” means, as related to the Common Stock as of any date, the last closing price for such
security during normal trading on the OTCQB, or, if the OTCQB is not the principal securities exchange or trading market for such
security, the last closing bid price during normal trading of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by such principal securities exchange or trading market, or if the foregoing
do not apply, the last closing bid price during normal trading of such security in the over-the-counter market on the electronic
bulletin board for such security.

 

Section 1.9.
“Closing” shall mean one of the closings of a purchase and sale of Common Stock pursuant to Section 2.3.

 

Section 1.10.
“Commitment Amount” shall mean the aggregate amount of One Million Dollars ($1,000,000) which the Investor has
agreed to provide to the Company in order to purchase the Common Stock pursuant to the terms and conditions of this Agreement.

 

Section 1.11.
“Commitment Period” shall mean the period commencing on the Effective Date, and expiring upon the termination
of this Agreement in accordance with Section 10.2.

 

Section 1.12.
“Common Stock” shall mean the Company’s freely tradable, fully registered and unencumbered common stock.

 

Section 1.13.
“Condition Satisfaction Date” shall have the meaning set forth in Section 7.2.

 

Section 1.14.
“Damages” shall mean any loss, claim, damage, liability, costs and expenses (including, without limitation,
reasonable attorney’s fees and disbursements and costs and expenses of expert witnesses and investigation).

 

Section 1.15.
“Effective Date” shall mean the date on which the SEC first declares effective a Registration Statement registering
the resale of the Registrable Securities as set forth in Section 7.2(a).

 

Section 1.16.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

    	 

    	 

    

 

Section 1.17.
“Environmental Laws” shall have the meaning set forth in Section 4.11.

 

Section 1.18. “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

Section
1.19. “Evaluation Date” shall have the meaning set forth in Section 4.30.

 

Section
1.20. “Event of Default” shall have the meaning set forth in Section 7.2.

 

Section
1.21. “Indemnified Liabilities” shall have the meaning set forth in Section 5.1(a).

 

Section
1.22. “Indemnified Party” and “Indemnifying Party” shall have the meaning set forth in Section
5.2.

 

Section
1.23. “Investor Indemnitees” shall have the meaning set forth in Section 5.1(a).

 

Section
1.24. “Losses” shall have the meaning set forth in Section 5.1(b).

 

Section 1.25.
“Material Adverse Effect” shall mean any condition, circumstance, or situation that may result in, or reasonably
be expected to result in (i) a material adverse effect on the legality, validity or enforceability of the Agreement, including
on the legal status of the Advance Shares as free trading, (ii) a material adverse effect on the results of operations, assets,
business or condition (financial or otherwise) of the Company, taken as a whole, (iii) a material adverse effect on the Company’s
ability to perform its obligations hereunder in any material respect on a timely basis its obligations under the Agreement, or
(iv) shares of the Company cease to be listed or trading of the Common Stock is suspended continuously for more than five (5) trading
days.

 

Section 1.26.
“Market Price” shall mean the median price for the average of the ten (10) Closing Daily Prices and the ten
(10) closing bid prices of the Company’s Common Stock during the Pricing Period.

 

Section 1.27.
“Maximum Advance Amount” The number of Advance Shares sold in each Advance shall not be greater than either
(i) two hundred fifty percent (250%) of the Average Daily Trading Volume, or (ii) the number of shares of Common Stock which would
cause the aggregate holdings of the Investor’s shares of common stock of the Company to be greater than 4.99% of the issued
and outstanding shares of common stock of the Company (including Common Stock and shares of restricted common stock).

 

Section
1.28. “Maximum Common Stock Issuance” shall have the meaning set forth in Section 2.8.

 

Section
1.29. “Ownership Limitation” shall have the meaning set forth in Section 2.2.

 

Section 1.30.
“Person” shall mean an individual, a corporation, a partnership, an association, a trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

 

Section 1.31.
“Pricing Period” shall mean the ten (10) consecutive Trading Days prior to the Advance Date. 

 

Section 1.32.
“Principal Market” shall mean whichever of the following markets or exchanges on which the Common Stock is listed
or quoted for trading on the date in question: the New York Stock Exchange, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq
Global Market, the Nasdaq Global Select Market, the Over-The-Counter Bulletin Board, or the OTC Market Group’s OTCQX, OTCQB
(or any successors to any of the foregoing)..

 

Section 1.33.
“Purchase Price” shall mean seventy percent (70%) of the Market Price during the Pricing Period.

 

Section 1.34.
“Registrable Securities” shall mean the Advance Shares to be issued hereunder (i) in respect of which a
Registration Statement has not been declared effective by the SEC, (ii) which have not been sold under circumstances meeting
all of the applicable conditions of Rule 144 or (iii) which have not been otherwise transferred to a holder who may trade
such Advance Shares without restriction under the Securities Act, and the Company has delivered a new certificate or other evidence
of ownership for such securities not bearing a restrictive legend.

 

Section
1.35. “Registration Limitation” shall have the meaning set forth in Section 2.2.

 

Section 1.36.
“Registration Rights Agreement” shall mean the Registration Rights Agreement dated the date hereof, regarding
the filing of the Registration Statement for the resale of the Registrable Securities, entered into between the Company and the
Investor.

 

Section 1.37.
“Registration Statement” shall mean a registration statement on Form S-1 or Form S-3 (if use of such form is
then available to the Company pursuant to the rules of the SEC and, if not, on such other form promulgated by the SEC for which
the Company then qualifies and which counsel for the Company shall deem appropriate, and which form shall be available for the
resale of the Registrable Securities to be registered thereunder in accordance with the provisions of this Agreement and the Registration
Rights Agreement, and in accordance with the intended method of distribution of such securities), for the registration of the resale
by the Investor of the Registrable Securities under the Securities Act.

 

    	 

    	 

    

Section 1.38.
[Intentionally Omitted]

 

Section
1.39. “Related Party” shall have the meaning set forth in Section 6.15.

 

Section
1.40. “Rule 144” shall mean Rule 144 (or any similar provision then in force) promulgated under the Securities
Act.

 

Section 1.41.
“SEC” shall mean the United States Securities and Exchange Commission.

 

Section 1.42.
“Securities Act” shall have the meaning set forth in the recitals.

 

Section
1.43. “Third Party Claim” shall have the meaning set forth in Section 5.2(b).

 

Section 1.44.
“Trading Day” shall mean any day during which the New York Stock Exchange shall be open for business.

 

Section 1.45.
“Valuation Event” shall have the meaning set forth in Section 2.10.

 

Section 1.46.
“Trading Day” shall mean any day during which the New York Stock Exchange shall be open for business.

 

Section 1.47.
“VWAP” means, as of any date, the daily dollar volume-weighted average price for such security as reported by
Bloomberg, LP through its “Historical Price Table Screen (HP)” with Market: Weighted Average function selected (or
comparable financial news service (U.S market only)), or, if no dollar volume-weighted average price is reported for such security
by Bloomberg, LP (or comparable financial news service (U.S market only)), the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as reported on OTC Markets.

 

ARTICLE II.

Advances

Section 2.1. Advances

 

Subject
to the terms and conditions of this Agreement (including, without limitation, the provisions of Article VII hereof), the Company,
at its sole and exclusive option, may issue and sell to the Investor, and the Investor shall purchase from the Company, Advance
Shares, by the delivery, in the Company’s sole discretion, of Advance Notices. The aggregate maximum amount of all Advances
that the Investor shall be obligated to make under this Agreement shall not exceed the Commitment Amount. Once an Advance Notice
is received by the Investor, it shall not be terminated, withdrawn or otherwise revoked by the Company except as set forth in this
Agreement.

 

Section 2.2. Mechanics.

 

(a) 
Advance Notice. At any time during the Commitment Period, the Company may require the Investor to purchase Advance Shares
by delivering an Advance Notice to the Investor, subject to the conditions set forth in Article VII; provided, however, that (i)
the amount for each Advance as designated by the Company in the applicable Advance Notice shall not be more than the Maximum Advance
Amount , (ii) the aggregate amount of the Advances pursuant to this Agreement shall not exceed the Commitment Amount, (iii) in
no event shall the number of Advance Shares issuable to the Investor pursuant to an Advance cause the aggregate number of shares
of Common Stock beneficially owned by the Investor and its affiliates to exceed 4.99% of the then outstanding Common Stock (the
“Ownership Limitation”) (as of the date of this Agreement, Investor and its affiliates held zero (0%) percent
of the outstanding Common Stock), (iv) under no circumstances shall the aggregate offering price or number of Advance Shares, as
the case may be, exceed the aggregate offering price or number of shares of Common Stock available for issuance under a Registration
Statement (the “Registration Limitation”) and (v) the Common Stock must be DWAC eligible and sent to the Investor
in electronic form, instead of certificate form. In the event that the Investor sends written acceptance of accepting a physical
certificate, all fees and expenses for this certificate will be paid by the Company.

 

(b) 
Date of Delivery of Advance Notice. An Advance Notice shall be deemed delivered on (i) the Trading Day it is received
by email (to the address set forth in Section 11.1 herein) by the Investor if such notice is received prior to 5:00 pm Eastern
Time, or (ii) the immediately succeeding Trading Day if it is received by email after 5:00 pm Eastern Time on a Trading Day
or at any time on a day which is not a Trading Day. No Advance Notice may be deemed delivered on a day that is not a Trading Day.
The Company acknowledges and agrees that the Investor shall be entitled to treat any email it receives from officers whose email
addresses are identified by the Company purporting to be an Advance Notice as a duly executed and authorized Advance Notice from
the Company.

 

Section 2.3.
Closings.

 

(a) Within
five (5) Trading Days of the Advance Date, the Company shall deliver to the Investor’s brokerage account in electronic form,
such number of Advance Shares of the DWAC eligible Common Stock registered in the name of the Investor in accordance with the Advance
Notice and pursuant to this Agreement. Once such Advance Shares have been accepted by the Investor, the Investor shall immediately
deliver to the Company the amount of the Advance by wire transfer of immediately available funds as determined by the Purchase
Price. On or prior to the Advance Date, each of the Company and the Investor shall deliver to the other all documents, instruments
and writings required to be delivered by either of them pursuant to Section 2.3(b) below in order to implement and effect
the transactions contemplated herein.

 

(b) Obligations
Upon Closing. The Investor agrees to advance the amount corresponding to the Advance Notice to the Company upon completion
of each of the following conditions:

 

    	 

    	 

    

 

(i) The
Company shall have delivered via electronic delivery to the Investor the Advance Shares applicable to the Advance in accordance
with Section 2.3(a).

 

(ii) A
Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all
applicable Advance Shares to be issued in connection with the Advance and any certificates evidencing such shares shall be free
of restrictive legends.

 

(iii) the
Company shall have obtained all material permits and qualifications required by any applicable state for the offer and sale of
the Registrable Securities, or shall have the availability of exemptions therefrom. The sale and issuance of the Registrable Securities
shall be legally permitted by all laws and regulations to which the Company is subject;

 

(iv) the
Company shall have filed with the SEC in a timely manner all reports, notices and other documents required of a “reporting
company” under the Exchange Act and applicable SEC regulations; and

 

(v) the
Company’s transfer agent shall be DWAC eligible.

 

Section 2.4.
[Intentionally Omitted]

 

Section 2.5.
Hardship. In the event the Investor sells shares of the Advance Shares after receipt of an Advance Notice and the Company
fails to perform the obligations mandated in Section 2.3, which are within the sole control of the Company, the Company agrees
that in addition to and in no way limiting the rights and obligations set forth in Article V hereto and in addition to any other
remedy to which the Investor is entitled at law or in equity, including, without limitation, specific performance, it will hold
the Investor harmless against any loss, claim, damage, or expense (including reasonable legal fees and expenses), as incurred,
arising out of or in connection with such default by the Company and acknowledges that irreparable damage would occur in the event
of any such default.  It is accordingly agreed that the Investor shall be entitled to an injunction or injunctions to prevent
such breaches of this Agreement and to specifically enforce, without the posting of a bond or other security, the terms and provisions
of this Agreement.

 

Section
2.6. [Intentionally Omitted]

 

Section
2.7     [Intentionally Omitted]

 

Section
2.8     [Intentionally Omitted]

 

Section
2.9 Overall Limit on Issuable Common Stock. Notwithstanding anything contained herein to the contrary, if during the
Commitment Period the Company becomes listed on an exchange that limits the number of shares of Common Stock that may be issued
without shareholder approval, then the total number of Advance Shares issuable by the Company and purchasable by the Investor pursuant
to this Agreement shall not exceed that number of shares of Common Stock that may be issuable without shareholder approval (the
“Maximum Common Stock Issuance”).  If such issuance of Advance Shares could cause a delisting on the Principal
Market, then the Maximum Common Stock Issuance shall first be approved by the Company's shareholders in accordance with applicable
law and the By-laws and Amended and Restated Articles of Incorporation of the Company. The parties understand and agree that the
Company's failure to seek or obtain such shareholder approval shall in no way adversely affect the validity and due authorization
of the issuance and sale of Advance Shares in accordance with the terms and conditions hereof to the Investor or the Investor's
obligation in accordance with the terms and conditions hereof to purchase a number of Advance Shares in the aggregate up to the
Maximum Common Stock Issuance limitation, and that such approval pertains only to the applicability of the Maximum Common Stock
Issuance limitation provided in this Section 2.9.

 

Section
2.10. Valuation Event. The Company agrees that it shall not take any action that would result in a Valuation Event occurring
during a Pricing Period. Valuation Event shall mean an event in which the Company at any time during a Pricing Period takes any
of the following actions: (i) subdivides or combines its Common Stock or (ii) pays a dividend in Ordinary Shares or makes any other
purchase of its Ordinary Shares.

 

ARTICLE III.

Representations of Investor

 

Investor
hereby represents and warrants to, and agrees with, the Company that the following are true and correct as of the date hereof and
as of each Advance Date:

 

Section 3.1.
Organization and Authorization. The Investor is duly incorporated or organized and validly existing in the jurisdiction
of its incorporation or organization and has all requisite power and authority to purchase and hold the securities issuable hereunder.
The decision to invest and the execution and delivery of this Agreement by such Investor, the performance by such Investor of its
obligations hereunder and the consummation by such Investor of the transactions contemplated hereby have been duly authorized and
requires no other proceedings on the part of the Investor. The undersigned has the right, power and authority to execute and deliver
this Agreement and all other instruments (including, without limitations, the Registration Rights Agreement), on behalf of the
Investor. This Agreement has been duly executed and delivered by the Investor and, assuming the execution and delivery hereof and
acceptance thereof by the Company, will constitute the legal, valid and binding obligations of the Investor, enforceable against
the Investor in accordance with its terms.

 

Section 3.2.
Evaluation of Risks. The Investor has such knowledge and experience in financial, tax and business matters as to be capable
of evaluating the merits and risks of, and bearing the economic risks entailed by, an investment in the Company and of protecting
its interests in connection with this transaction. It recognizes that its investment in the Company involves a high degree of risk.

 

    	 

    	 

    

 

Section 3.3.
No Legal Advice from the Company. The Investor acknowledges that it had the opportunity to review this Agreement and the
transactions contemplated by this Agreement with his or its own legal counsel and investment and tax advisors. The Investor is
relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

Section 3.4.
Information. The Investor and its advisors (and its counsel), if any, have been furnished with all materials relating to
the business, finances and operations of the Company and information it deemed material to making an informed investment decision.
The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management and
has either done so or has waived its opportunity to do so. Neither such inquiries nor any other due diligence investigations conducted
by such Investor or its advisors, if any, or its representatives shall modify, amend or affect the Investor’s right to rely
on the Company’s representations and warranties contained in this Agreement. The Investor understands that its investment
involves a high degree of risk. The Investor is in a position regarding the Company, which, based upon employment, family relationship
or economic bargaining power, enabled and enables such Investor to obtain information from the Company in order to evaluate the
merits and risks of this investment.

 

Section 3.5.
Receipt of Documents. The Investor and its counsel have received and read in their entirety: (i) this Agreement and
the Exhibits annexed hereto; (ii) all due diligence and other information necessary to verify the accuracy and completeness
of such representations, warranties and covenants; and (iii) answers to all questions the Investor submitted to the Company
regarding an investment in the Company; and the Investor has relied on the information contained therein and has not been furnished
any other documents, literature, memorandum or prospectus.

 

Section 3.6.
Not an Affiliate. The Investor is not an officer, director or a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with the Company or any “Affiliate”
of the Company (as that term is defined in Rule 405 of the Securities Act).

 

Section 3.7.
Trading Activities. The Investor’s trading activities with respect to the Common Stock shall be in compliance with
all applicable securities laws, rules and regulations and the rules and regulations of the Principal Market on which the Common
Stock is listed or traded. Investor makes no representations or covenants that it will not engage in trading in the securities
of the Company, other than the Investor will not engage in any short sales of the Common Stock, or other similar activity that
profits on the decline in the price of Common Stock, at any time during the Agreement. Nothing contained in this Agreement shall
be deemed a representation or warranty by the Investor to hold any Stock for any period of time. The Company acknowledges and agrees
that transactions in its securities by the Investor may impact the market price of the Stock, including during periods when the
prices at which the Company may be required to issue Investor’s stock are determined.

 

Section
3.8. Accredited Investor. The Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of
Regulation D of the Securities Act.

 

Section
3.9. No Conflicts. The execution, delivery and performance of this Agreement and all other instruments by the Investor and
the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of organizational
documents or any other agreements of the Investor, or result in a violation of any law, rule, regulation, order, judgment or decree
applicable to the Investor.

 

Section
3.10. Investment Purposes. The Investor is purchasing the Advanced Shares for its own account for investment purposes and
not with a view towards distribution and agrees to resell or otherwise dispose of the Advanced Shares solely in accordance with
the registration provisions of the Securities Act (or pursuant to an exemption from such registration provisions).

 

ARTICLE
IV.

Representations
and Warranties of the Company

 

Except
as stated below, on the disclosure schedules attached hereto the Company hereby represents and warrants to, and covenants with,
the Investor that the following are true and correct as of the date hereof:

 

Section 4.1.
Organization and Qualification. The Company is duly incorporated or organized and validly existing in the jurisdiction of
its incorporation or organization and has all requisite corporate power to own its properties and to carry on its business as now
being conducted. Each of the Company and its subsidiaries is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to
the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect on the Company and
its subsidiaries taken as a whole.

 

Section 4.2.
Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and
authority to enter into and perform this Agreement, the Registration Rights Agreement and any related agreements, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Registration Rights Agreement and
any related agreements by the Company and the consummation by it of the transactions contemplated hereby and thereby, have been
duly authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its
Board of Directors or its stockholders, (iii) this Agreement, the Registration Rights Agreement and any related agreements
have been duly executed and delivered by the Company, (iv) this Agreement, the Registration Rights Agreement and assuming
the execution and delivery thereof and acceptance by the Investor and any related agreements constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

    	 

    	 

    

 

Section 4.3.
Capitalization. The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock, of which ____________
shares of Common Stock are issued and outstanding, and 20,000,000 shares of authorized Preferred Stock, of which 20,000,000 shares
are issued and outstanding All of such outstanding shares have been validly issued and are fully paid and nonassessable. No shares
of Common Stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted
by the Company. Except as disclosed on Schedule 4.3, as of the date hereof, (i) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries, (ii) there
are no outstanding debt securities (iii) there are no outstanding registration statements; and (iv) there are no agreements
or arrangements under which the Company or any of its subsidiaries is obligated to register the sale of any of their securities
under the Securities Act (except pursuant to the Registration Rights Agreement), except pursuant to the terms of an agreement between
the Company and the Investor. There are no securities or instruments containing anti-dilution or similar provisions that will be
triggered by this Agreement or any related agreement or the consummation of the transactions described herein or therein. The Company
has furnished to the Investor true and correct copies of the Company’s Articles of Incorporation, as amended and as in effect
on the date hereof (the “Articles of Incorporation”), and the Company’s By-laws, as in effect on the date
hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock and
the material rights of the holders thereof in respect thereto.

 

Section 4.4.
No Conflict. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby will not (i) result in a violation of the Articles of Incorporation, any certificate
of designations of any outstanding series of preferred stock of the Company or By-laws or (ii) conflict with or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of
its subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state securities laws and regulations and the rules and regulations of the Principal Market on which the Common Stock is quoted)
applicable to the Company or any of its subsidiaries or by which any material property or asset of the Company or any of its subsidiaries
is bound or affected and which would cause a Material Adverse Effect. Neither the Company nor its subsidiaries is in violation
of any term of or in default under its Articles of Incorporation or By-laws or their organizational charter or by-laws, respectively,
or any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule
or regulation applicable to the Company or its subsidiaries. The business of the Company and its subsidiaries is not being conducted
in violation of any material law, ordinance, and regulation of any governmental entity. Except as specifically contemplated by
this Agreement and as required under the Securities Act and any applicable state securities laws, the Company is not required to
obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order
for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement or the Registration Rights
Agreement in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.
The Company and its subsidiaries are unaware of any fact or circumstance which might give rise to any of the foregoing.

 

Section 4.5.
[Intentionally Omitted]

 

Section 4.6.
No Misstatement or Omission.  Each part of the Registration Statement, when such part became or becomes effective,
and the related prospectus (“Prospectus”), on the date of filing thereof with the SEC and at each Advance Date and
Closing Date, conformed or will conform in all material respects with the requirements of the Securities Act and the rules and
regulations promulgated thereunder; each part of the Registration Statement, when such part became or becomes effective, did not
or will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading; and the Prospectus, on the date of filing thereof with the SEC and at each Advance
Date, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; except that the foregoing shall not
apply to statements or omissions in any such document made in reliance on information furnished in writing to the Company by the
Investor expressly stating that such information is intended for use in the Registration Statement, the Prospectus, or any amendment
or supplement thereto.

 

Section 4.7.
No Default. The Company is not in default in the performance or observance of any material obligation, agreement, covenant
or condition contained in any indenture, mortgage, deed of trust or other material instrument or agreement to which it is a party
or by which it is or its property is bound and neither the execution, nor the delivery by the Company, nor the performance by the
Company of its obligations under this Agreement or any of the exhibits or attachments hereto will conflict with or result in the
breach or violation of any of the terms or provisions of, or constitute a default or result in the creation or imposition of any
lien or charge on any assets or properties of the Company under its Articles of Incorporation, By-Laws, any material indenture,
mortgage, deed of trust or other material agreement applicable to the Company or instrument to which the Company is a party or
by which it is bound, or any statute, or any decree, judgment, order, rules or regulation of any court or governmental agency or
body having jurisdiction over the Company or its properties, in each case which default, lien or charge is likely to cause a Material
Adverse Effect on the Company’s business or financial condition.

 

Section 4.8.
Absence of Events of Default. No Event of Default, as defined in the respective agreement to which the Company is a party,
and no event which, with the giving of notice or the passage of time or both, would become an Event of Default (as so defined),
has occurred and is continuing, which would have a Material Adverse Effect on the Company’s business, properties, prospects,
financial condition or results of operations. The Company shall notify the Investor immediately upon any Event of Default, or anything
that is likely to detrimentally affect the ability of the Company to perform its obligations under this Agreement, occurring, or
becoming, to the Company’s knowledge, likely to occur, and include the specifics of such Event of Default or other event
in its notice. At the Investor’s request, the Company shall provide the Investor with a certificate signed by its Chief Executive
Officer, which shall state whether an Event of Default has occurred or is continuing.

 

    	 

    	 

    

 

Section 4.9.
Intellectual Property Rights. The Company and its subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as
now conducted. The Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries
of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service
mark registrations, trade secret or other similar rights of others, and, to the knowledge of the Company, there is no claim, action
or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its
subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks,
service mark registrations, trade secret or other infringement; and the Company and its subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing.

 

Section 4.10.
Employee Relations. Neither the Company nor any of its subsidiaries is involved in any labor dispute nor, to the knowledge
of the Company or any of its subsidiaries, is any such dispute threatened. None of the Company’s or its subsidiaries’
employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

 

Section 4.11.
Environmental Laws. The Company and its subsidiaries are (i) in compliance with any and all applicable material foreign,
federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all
permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses
and (iii) are in compliance with all terms and conditions of any such permit, license or approval.

 

Section 4.12.
Title. The Company has good and marketable title to its properties and material assets owned by it, free and clear of any
pledge, lien, security interest, encumbrance, claim or equitable interest other than such as are not material to the business of
the Company. Any real property and facilities held under lease by the Company and its subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its subsidiaries.

 

Section 4.13.
Insurance. Upon the Company generating revenue, the Company and each of its subsidiaries will become insured by insurers
of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes
to be prudent and customary in the businesses in which the Company and its subsidiaries are engaged. Neither the Company nor any
such subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such subsidiary has
any reason to believe that it will not be able to renew its existing liability insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not materially
and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the Company and its subsidiaries,
taken as a whole.

 

Section 4.14.
Regulatory Permits. The Company and its subsidiaries possess all material certificates, authorizations and permits issued
by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses and neither
the Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such
certificate, authorization or permit.

 

Section 4.15.
[Intentionally Omitted]

 

Section 4.16.
No Material Adverse Breaches, etc. Neither the Company nor any of its subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect on the business, properties, operations, financial condition,
results of operations or prospects of the Company or its subsidiaries. Except as set forth in the SEC Documents, neither the Company
nor any of its subsidiaries is in breach of any contract or agreement which breach, in the judgment of the Company’s officers,
has or is expected to have a Material Adverse Effect on the business, properties, operations, financial condition, results of operations
or prospects of the Company or its subsidiaries.

 

Section 4.17.
Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending against or affecting the Company, the Common Stock or any of the
Company’s subsidiaries, wherein an unfavorable decision, ruling or finding would (i) have a Material Adverse Effect
on the transactions contemplated hereby (ii) adversely affect the validity or enforceability of, or the authority or ability of
the Company to perform its obligations under, this Agreement or any of the documents contemplated herein, or (iii) have a Material
Adverse Effect on the business, operations, properties, financial condition or results of operation of the Company and its subsidiaries
taken as a whole.

 

Section 4.18.
[Intentionally Omitted]

 

Section 4.19.
Tax Status. The Company and each of its subsidiaries has made or filed all federal and state income and all other tax returns,
reports and declarations required by any jurisdiction to which it is subject and (unless and only to the extent that the Company
and each of its subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported
taxes) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be
due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company know of no basis for any such claim.

 

Section 4.20.
Certain Transactions. None of the officers, directors, or employees of the Company is presently a party to any transaction
with the Company (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust
or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee
or partner.

 

Section 4.21.
Rights of First Refusal. The Company is not obligated to offer the securities offered hereunder on a right of first refusal
basis or otherwise to any third parties including, but not limited to, current or former shareholders of the Company, underwriters,
brokers, agents or other third parties.

 

    	 

    	 

    

 

Section 4.22.
Use of Proceeds. The Company shall use the net proceeds from this offering for working capital and other general corporate
purposes including paying relevant fees and commissions incurred from this transaction. The Company will not provide any funding
to or purchase an interest in any person listed by the United States Department of the Treasury’s Office of Foreign Assets
Control as a Specially Designated National and Blocked Person.

 

Section 4.23.
[Intentionally Omitted]

 

Section 4.24.
[Intentionally Omitted]

 

Section 4.25.
[Intentionally Omitted]

 

Section 4.26.
Dilutive Effect. The Company understands and acknowledges that the number of Advance Shares issuable upon purchases pursuant
to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the
trading price of the Common Stock declines during the Pricing Period. The Company's executive officers and directors fully understand
the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect on the shareholders
of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Agreement,
its obligation to issue Advance Shares upon purchases pursuant to this Agreement is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

Section 4.27.
Acknowledgment Regarding Investor’s Purchase of Shares. The Company acknowledges and agrees that the Investor is acting
solely in the capacity of an arm’s length investor with respect to this Agreement and the transactions contemplated hereunder.
The Company further acknowledges that the Investor is not acting as a financial advisor, partner or fiduciary of the Company or
any of its affiliates or subsidiaries (or in any similar capacity) with respect to this Agreement and the transactions contemplated
hereunder and any advice given by the Investor or any of its representatives or agents in connection with this Agreement and the
transactions contemplated hereunder is merely incidental to the Investor’s purchase of the Common Stock hereunder. The Company
is aware and acknowledges that it may not be able to request Advances under this Agreement if it cannot obtain an effective Registration
Statement or if any issuances of Common Stock pursuant to any Advances would violate any rules of the Principal Market.

 

Section 4.28.
No Advice from the Investor. The Company acknowledges that it has reviewed this Agreement and the transactions contemplated
by this Agreement with his or its own legal counsel and investment and tax advisors. The Company is relying solely on such counsel
and advisors and not on any statements or representations of the Investor or any of its representatives or agents for legal, tax
or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of
any jurisdiction. The Company is not relying on any representation except for the representations of the Investor contained in
this Agreement.

 

Section
4.29. No Similar Transactions. The Company has not entered into any transaction similar in nature to the one described in
this Agreement.

 

Section
4.30. [Intentionally Omitted]

 

Section
4.31 Other Transactions. During the Term of the Investment Agreement, the Company will be prohibited from effecting or entering
into an Equity Line of Credit, whereby the Issuer may sell securities at a future determined price.

 

Section
4.32 The Advance Shares.  The Advance Shares have been duly authorized and, when issued, delivered and paid for pursuant
to this Agreement, will be validly issued and fully paid and non-assessable, free and clear of all encumbrances and will be issued
in compliance with all applicable United States federal and state securities laws; the capital stock of the Company, including
the Common Stock, conforms in all material respects to the description thereof contained in the Registration Statement and the
Common Stock, including the Advance Shares, will conform to the description thereof contained in the Prospectus as amended or supplemented. 
Neither the stockholders of the Company, nor any other Person have any preemptive rights or rights of first refusal with respect
to the Advance Shares or other rights to purchase or receive any of the Advance Shares or any other securities or assets of the
Company, and no Person has the right, contractual or otherwise, to cause the Company to issue to it, or register pursuant to the
Securities Act, any shares of capital stock or other securities or assets of the Company upon the issuance or sale of the Advance
Shares.  The Company is not obligated to offer the Advance Shares on a right of first refusal basis or otherwise to any third
parties including, but not limited to, current or former shareholders of the Company, underwriters, brokers, agents or other third
parties.

 

Section
4.33 [Intentionally Omitted]

 

Section
4.34 Blue Sky. The Company shall, at its sole cost and expense, on or before each of the Closing Dates, take such action
as the Company shall reasonably determine is necessary to qualify the Securities for, or obtain exemption for the Securities for,
sale to the Investor at each of the Closings pursuant to this Agreement under applicable securities or "Blue Sky" laws
of such states of the United States, as reasonably specified by the Investor, and shall provide evidence of any such action so
taken to the Investor on or prior to the Closing Date.

 

Section
4.35 Reservation of Shares. The Company shall reserve thirty million (30,000,000) shares
of Common Stock for the issuance of the Advanced Shares to the Investor as required hereunder. In the event that the Company determines
that it does not have a sufficient number of authorized shares of Common Stock to reserve and keep available for issuance, the
Company shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder
approval for the authorization of such additional shares. 

 

    	 

    	 

    

 

Section
4.36 Payment Set Aside. To the extent that the Company makes a payment or payments to the Investor hereunder or under the
Registration Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments
or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be invalid or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee,
receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law
or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to
be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or
setoff had not occurred.

 

Section
4.37 Share Capital. There are no securities or instruments containing anti-dilution of similar provision that will be triggered
by the issuance of shares of Common Stock pursuant to this Agreement. The Company does not have any stock appreciation rights or
“phantom stock” plans or agreements or any similar plan or agreement and there is no dispute as to the class of any
shares of the Company.

 

ARTICLE V.

Indemnification

 

The Investor
and the Company represent to the other the following with respect to itself:

 

Section 5.1.
Indemnification.

 

(a) In
consideration of the Investor’s execution and delivery of this Agreement, and in addition to all of the Company’s other
obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless the Investor, and all of its officers,
directors, partners, employees and agents (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Investor Indemnitees”) from and against any and all actions, causes of
action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Investor
Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in this Agreement or the Registration Rights Agreement or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained
in this Agreement or the Registration Rights Agreement or any other certificate, instrument or document contemplated hereby or
thereby, or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee not arising out of any
action or inaction of an Investor Indemnitee, and arising out of or resulting from the execution, delivery, performance or enforcement
of this Agreement or any other instrument, document or agreement executed pursuant hereto by any of the Investor Indemnitees. To
the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

 

(b) Contribution. 
In the event that the indemnity provided in Section 5.1 is unavailable to or insufficient to hold harmless an indemnified party
for any reason, the Company severally agrees to contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or defending the same) (collectively “Losses”)
to which the Company may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company
on the one hand from transactions contemplated by this Agreement. If the allocation provided by the immediately preceding sentence
is unavailable for any reason, the Company and the Investor severally shall contribute in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Investor on the other
in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. 
Benefits received by the Company shall be deemed to be equal to the total proceeds from the offering (net of underwriting discounts
and commissions but before deducting expenses) received by it, and benefits received by the Investor shall be deemed to be equal
to the total discounts received by the Investor.  Relative fault shall be determined by reference to, among other things,
whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information provided by the Company on the one hand or the Investor on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The Company
and the Investor agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other
method of allocation which does not take account of the equitable considerations referred to above.  The aggregate amount
of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this section shall
be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.  Notwithstanding
the provisions of this section the Investor shall not be required to contribute any amount in excess of the amount by which the
Purchase Price for Shares actually purchased pursuant to this Agreement exceeds the amount of any damages which the Investor has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  For
purposes of this Article V, each person who controls the Investor within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act and each director, officer, employee and agent of the Investor shall have the same rights to
contribution as the Investor, and each person who controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each
director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms
and conditions of this section.

 

             (c) 
The remedies provided for in this Article V are not exclusive and shall not limit any rights or remedies which may otherwise be
available to any indemnified person at law or in equity.  The obligations of the parties to indemnify or make contribution
under this Article V shall survive termination.

 

             (d) 
Notwithstanding anything in this Agreement to the contrary, neither party to this Agreement shall be responsible or liable for
any indirect, special, punitive, or consequential damages actually or allegedly suffered or incurred by the other party to this
Agreement arising under, out of, or relating to this Agreement even if the other party has been advised or knew, or should have
known, of the possibility thereof.

 

    	 

    	 

    

 

Section
5.2 Notification of Claims for Indemnification. Each party entitled to indemnification under this Article V (an “Indemnified
Party”) shall, promptly after the receipt of notice of the commencement of any claim against such Indemnified Party in
respect of which indemnity may be sought from the party obligated to indemnify such Indemnified Party under this Article V (the
“Indemnifying Party”), notify the Indemnifying Party in writing of the commencement thereof. Any such notice
shall describe the claim in reasonable detail. The failure of any Indemnified Party to so notify the Indemnifying Party of any
such action shall not relieve the Indemnifying Party from any liability which it may have to such Indemnified Party (a) other
than pursuant to this Article V or (b) under this Article V unless, and only to the extent that, such failure results in the
Indemnifying Party’s forfeiture of substantive rights or defenses or the Indemnifying Party is prejudiced by such delay.
The procedures listed below shall govern the procedures for the handling of indemnification claims.

 

(a) Any
claim for indemnification for Indemnified Liabilities that do not result from a Third Party Claim as defined in the following paragraph,
shall be asserted by written notice given by the Indemnified Party to the Indemnifying Party. Such Indemnifying Party shall have
a period of thirty (30) days after the receipt of such notice within which to respond thereto. If such Indemnifying Party
does not respond within such thirty (30) day period, such Indemnifying Party shall be deemed to have refused to accept responsibility
to make payment as set forth in Section 5.1. If such Indemnifying Party does not respond within such thirty (30) day
period or rejects such claim in whole or in part, the Indemnified Party shall be free to pursue such remedies as specified in this
Agreement.

 

(b) If an
Indemnified Party shall receive notice or otherwise learn of the assertion by a person or entity not a party to this Agreement
of any threatened legal action or claim (collectively a “Third Party Claim”), with respect to which an Indemnifying
Party may be obligated to provide indemnification, the Indemnified Party shall give such Indemnifying Party written notice thereof
within twenty (20) days after becoming aware of such Third Party Claim.

 

(c) An Indemnifying
Party may elect to defend (and, unless the Indemnifying Party has specified any reservations or exceptions, to seek to settle or
compromise) at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any Third Party
Claim. Within thirty (30) days after the receipt of notice from an Indemnified Party (or sooner if the nature of such Third
Party Claim so requires), the Indemnifying Party shall notify the Indemnified Party whether the Indemnifying Party will assume
responsibility for defending such Third Party Claim, which election shall specify any reservations or exceptions. If such Indemnifying
Party does not respond within such thirty (30) day period or rejects such claim in whole or in part, the Indemnified Party
shall be free to pursue such remedies as specified in this Agreement. In case any such Third Party Claim shall be brought against
any Indemnified Party, and it shall notify the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be
entitled to assume the defense thereof at its own expense, with counsel satisfactory to such Indemnified Party in its reasonable
judgment; provided, however, that any Indemnified Party may, at its own expense, retain separate counsel to participate in such
defense at its own expense. Notwithstanding the foregoing, in any Third Party Claim in which both the Indemnifying Party, on the
one hand, and an Indemnified Party, on the other hand, are, or are reasonably likely to become, a party, such Indemnified Party
shall have the right to employ separate counsel and to control its own defense of such claim if, in the reasonable opinion of counsel
to such Indemnified Party, either (x) one or more significant defenses are available to the Indemnified Party that are not
available to the Indemnifying Party or (y) a conflict or potential conflict exists between the Indemnifying Party, on the
one hand, and such Indemnified Party, on the other hand, that would make such separate representation advisable; provided, however,
that in such circumstances the Indemnifying Party (i) shall not be liable for the fees and expenses of more than one counsel
to all Indemnified Parties and (ii) shall reimburse the Indemnified Parties for such reasonable fees and expenses of such
counsel incurred in any such Third Party Claim, as such expenses are incurred, provided that the Indemnified Parties agree to repay
such amounts if it is ultimately determined that the Indemnifying Party was not obligated to provide indemnification under this
Article IX. The Indemnifying Party agrees that it shall not, without the prior written consent of the Indemnified Party, settle,
compromise or consent to the entry of any judgment in any pending or threatened claim relating to the matters contemplated hereby
(if any Indemnified Party is a party thereto or has been actually threatened to be made a party thereto) unless such settlement,
compromise or consent includes an unconditional release of such Indemnified Party from all liability arising or that may arise
out of such claim. The Indemnifying Party shall not be liable for any settlement of any claim effected against an Indemnified Party
without the Indemnifying Party’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed.
The rights accorded to an Indemnified Party hereunder shall be in addition to any rights that any Indemnified Party may have at
common law, by separate agreement or otherwise; provided, however, that notwithstanding the foregoing or anything to the contrary
contained in this Agreement, nothing in this Article V shall restrict or limit any rights that any Indemnified Party may have to
seek equitable relief.

 

ARTICLE VI.

Covenants

 

Section 6.1.
Registration Rights. The Company shall cause the Registration Rights Agreement to remain in full force and effect and the
Company shall comply in all material respects with the terms thereof. During the Commitment Period, the Company shall notify the
Investor promptly if (i) the Registration Statement shall cease to be effective under the Securities Act, (ii) the Common Stock
shall cease to be authorized for listing on the Principal Market, (iii) the Common Stock ceases to be registered under Section
12(g) of the Exchange Act or (iv) the Company fails to file in a timely manner all reports and other documents required of it as
a reporting company under the Exchange Act.

 

Section 6.2.
Quotation of Common Stock. The Company shall maintain the Common Stock’s authorization for quotation on the Principal
Market and use its best efforts to file within any mandatory timeframe all reports required to be filed by the Company.

 

Section 6.3.
Exchange Act Registration. The Company will cause its Common Stock to continue to be registered under Section 12(g) of the
Exchange Act, will file in a timely manner all reports and other documents required of it as a reporting company under the Exchange
Act and will not take any action or file any document (whether or not permitted by Exchange Act or the rules thereunder) to terminate
or suspend such registration or to terminate or suspend its reporting and filing obligations under said Exchange Act.

 

Section 6.4.
Transfer Agent Instructions. On the Advance Date, the Company shall deliver instructions to its transfer agent to issue
shares of Common Stock to the Investor free of restrictive legends.

 

Section 6.5.
Corporate Existence. The Company will take all steps necessary to preserve and continue the corporate existence of the Company.

 

    	 

    	 

    

 

Section 6.6.
Notice of Certain Events Affecting Registration; Suspension of Right to Make an Advance. The Company shall not deliver to
the Investor any Advance Notice during the continuation of any of the following events: (i) receipt of any request for additional
information by the SEC or any other Federal or state governmental authority during the period of effectiveness of the Registration
Statement for amendments or supplements to the registration statement or related prospectus; (ii) the issuance by the SEC
or any other Federal or state governmental authority of any stop order suspending the effectiveness of the Registration Statement
or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of
the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in the Registration
Statement or related prospectus of any document incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the
case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the
Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate; and
the Company will promptly make available to the Investor any such supplement or amendment to the related prospectus..

 

Section 6.7.
Prohibited Transactions. Except as related to the transactions described herein, during the term of this Agreement, the
Company shall not enter into any Prohibited Transaction without the prior written consent of the Investor, which consent may be
withheld at the sole discretion of the Investor. For the purposes of this Agreement, the term “Prohibited Transaction”
shall refer to the issuance by the Company of any “future priced securities,” which shall mean the issuance of shares
of Common Stock or securities of any type whatsoever that are, or may become, convertible or exchangeable into shares of Common
Stock pursuant to any equity line financing to anyone other than the Investor. For clarification purposes, the transactions contemplated
herein are not considered Prohibited Transaction.

 

Section 6.8.
Consolidation; Merger; Subdivision of Stock. The Company shall not, at any time after the delivery of an Advance Notice
and before the Advance Date applicable to such Advance Notice, effect any merger or consolidation of the Company with or into,
or a transfer of all or substantially all the assets of the Company to another entity (a “Consolidation Event”)
unless the resulting successor or acquiring entity (if not the Company) assumes by written instrument the obligation to deliver
to the Investor such shares of stock and/or securities as the Investor is entitled to receive pursuant to this Agreement.

 

Section 6.9.
Transfer Agent Instructions. The Company shall direct the Company’s transfer agent to remove the restricted legend
from the Investor’s stock certificate it receives as a break fee, pursuant to Section 12.4, if any, at all times following
one (1) year from issuance to the Investor thereof. Each such direction shall be made to the transfer agent within five trading
days after the Investor’s request to remove such restricted legend. If the Company fails to provide such direction within
the required five day period, then the Company shall pay the Investor $500.00 for each day beyond the five trading days the Company
fails to direct the transfer agent to remove such restricted legend. Notwithstanding the foregoing, the Company shall not be liable
to pay the Investor either of the above fees if the Investor is not in full compliance with the applicable rules and regulations
used to remove any restricted legend or fails reasonably comply with requests by the Company or its transfer agent related to the
removal of the restricted legend. Section 6.10. [Intentionally Omitted].

 

Section
6.11. Listing of Shares.  The Company will use commercially reasonable efforts to cause the Shares to be listed
on the Principal Market and to qualify the Shares for sale under the securities laws of such jurisdictions as the Investor designates;
provided that the Company shall not be required in connection therewith to qualify as a foreign corporation or to file a general
consent to service of process in any jurisdiction.

 

Section
6.12.  [Intentionally Omitted]

 

Section
6.13.  [Intentionally Omitted]

 

Section 6.14. [Intentionally
Omitted]

 

Section
6.15. [Intentionally Omitted]

Section
6.16. [Intentionally Omitted]

 

Section
6.17. Acknowledgement of Terms. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering
into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this
Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review
this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement.

 

Section
6.18. [Intentionally Omitted]

 

Section
6.19. Conduct of Business. The Company shall, and shall cause all of its subsidiaries to carry on and conduct its business
and the business of each subsidiary in a proper and efficient manner in accordance with good commercial practice, and ensure that
while the Investor holds any of the Stock, that the voting any other rights attached to the Stock are not altered in a manner which,
in the opinion of the Investor, is materially prejudicial to the Investor.

 

Section
6.20. Miscellaneous Covenants. The Company shall not, and shall cause all of its subsidiaries not to, directly or indirectly,
without the Investor’s written approval: (a) dispose, in a single transaction, or in a series of transactions, of all or
any part of its assets unless such disposal is (i) in the ordinary course of business; (ii) for fair market value; and (iii) approved
by the board of directors of the Company; (b) reduce its used share capital or any uncalled liability in respect of its issued
capital, except by means of a purchase or redemption of the share capital that is permitted under law; (c) undertake any consolidation
of its share capital; (d) change the nature of its business or the nature of the business of any subsidiary; (e) transfer the jurisdiction
of incorporation of the Company or any of its Subsidiaries; (f) enter into any agreement with respect to any of the matters referred
to in this section.

 

Section
6.21. [Intentionally Omitted].

 

Section
6.22. [Intentionally Omitted].

 

    	 

    	 

    

 

Section
6.23. Illegality and Impossibility. Without limiting the generality of the Investor’s rights set out elsewhere in
this Agreement, if in the reasonable opinion of the Investor, at any time there exists a law which , or an official or reasonable
interpretation of which, makes it , or may make it illegal or impossible in practice of the Investor to undertake any of the Advances,
or render any of the contemplated Advances unenforceable, void or voidable, the Investor may, by giving a notice to the Company
suspend or cancel some or all of its obligations under this Agreement, or terminate this Agreement.

 

ARTICLE
VII.

Conditions
for Advance and Conditions to Closing

 

Section 7.1.
Conditions Precedent to the Obligations of the Company. The obligation hereunder of the Company to issue and sell Advance
Shares to the Investor incident to each Closing is subject to the satisfaction, or waiver by the Investor in writing, at or before
each such Closing, of each of the conditions set forth below.

 

(a) 
Accuracy of the Investor’s Representations and Warranties. The representations and warranties of the Investor shall
be true and correct in all material respects.

 

(b) 
Performance by the Investor. The Investor shall have performed, satisfied and complied in all respects with all covenants,
agreements and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied
with by the Investor at or prior to such Closing.

 

Section 7.2.
Conditions Precedent to the Right of the Company to Deliver an Advance Notice. The right of the Company to deliver an Advance
Notice is subject to the fulfillment by the Company, on such Advance Date (a “Condition Satisfaction Date”),
of each of the following conditions, any of which may be waived in writing by the Investor:

 

(a) 
Free Trading. Advance Shares to be issued with respect to the applicable Advance Notice will be freely trading.

 

(b) 
Authority. The Company shall have obtained all permits and qualifications required by any applicable state in accordance
with the Registration Rights Agreement for the offer and sale of Advance Shares, or shall have the availability of exemptions there-from.
The sale and issuance of Advance Shares shall be legally permitted by all laws and regulations to which the Company is subject.

 

(c) 
Fundamental Changes. There shall not exist any fundamental changes to the information set forth in a Registration Statement
which would require the Company to file a post-effective amendment to a Registration Statement.

 

(d) 
Performance by the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement and the Registration Rights Agreement to be performed, satisfied or complied
with by the Company at or prior to each Condition Satisfaction Date.

 

(e) 
No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits or directly and adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the effect
of prohibiting or adversely affecting any of the transactions contemplated by this Agreement.

 

(f) 
No Suspension of Trading in or Delisting of Common Stock. The Common Stock is trading on the Principal Market. The trading
of Common Stock is not suspended by any government or the Principal Market. The issuance of Advance Shares with respect to the
applicable Advance Notice will not violate the shareholder approval requirements of the Principal Market. The Company shall not
have received any notice threatening the continued quotation of the Common Stock on the Principal Market and the Company shall
have no knowledge of any event which would be more likely than not to have the effect of causing the Common Stock to not be trading
or quoted on the Principal Market.

 

(g) 
Maximum Advance Amount In no event shall the Company issue such additional shares (i) in excess of the Maximum Advance Amount
or (ii) if such issuance would result in non-compliance with any securities laws. If any of the Company’s representations
in this Agreement are false, then no Advances shall be permitted. Any portion of an Advance that would cause the Investor to exceed
the Ownership Limitation shall automatically be withdrawn.

 

(h) 
No Knowledge. The Company has no knowledge of any event which would be more likely than not to have the effect of causing
the Advance Shares with respect to the applicable Advance Notice not to be freely tradable.

 

(i) 
Executed Advance Notice. The Investor shall have received the Advance Notice executed by an officer of the Company and the
representations contained in such Advance Notice shall be true and correct as of each Condition Satisfaction Date.

 

(j) Failure
to Deliver Shares. Company understands that a delay in the issuance of Common Stock could result in economic damage to the
Investor. If the Company fails to cause the delivery of the Shares when due, the Company shall pay to the Investor on demand in
cash by wire transfer of immediately available funds to an account designated by the Investor as liquidated damages for such failure
and not as a penalty, an amount equal to one percent (1%) of the payment required to be paid by the Investor on such Settlement
Date (i.e., the Advance Amount).

 

(k) Fees
Paid. The Company shall not be obligated to pay to Investor any fees and expenses related to this Agreement.

 

    	 

    	 

    

 

(l) No
Material Notices. None of the following events shall have occurred and be continuing:  (i) receipt by the Company of any
request for additional information from any federal or state governmental, administrative or self-regulatory authority during the
Commitment Period, the response to which would require any amendments or supplements to any filings; (ii) receipt by the Company
of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

 

(m) No
Right of First Refusal. No person is entitled or purports to be entitled, to any right of first refusal, pre-emptive right,
right of participation, or any similar right, to participate in the transaction or otherwise with respect to any securities of
the Company.

 

(n) No
Security. The Company has not granted security with respected to any indebtedness or other equity of the Company.

 

(o) No
Adjustment. The issuance and sale of any of the Investor’s stock will not obligate the Company to issue Stock or other
securities to any other persona and will not result in the adjustment of the exercise, conversion, exchange, or reset price of
any outstanding security.

 

(p) No
Other Rights. There are no voting, buy-sell, outstanding or authorized stock appreciation, right of first purchase, phantom
stock, profit participation or equity based compensation agreements, options or arrangement, or like rights relating to the securities
of the Company or agreements of any kind among the Company and any person,

 

(q) Valid
Issuance. When issued pursuant to this Agreement, all Investor’s stock will be validly issued and fully paid, and will
be free and clear of any and all liens and restrictions, except for restrictions on transfer imposed by applicable laws.

 

(r) Regulatory
Issues. No stop order, trading halt, suspension of trading, cessation of quotation, or removal of the company of the Stock
from any exchange has been requested by the Company or imposed by any governmental authority or regulatory body. There is no fact
or circumstance that may cause the Company to request, or any governmental authority or regulatory body to impose any stop order,
trading halt, suspension of trading, cessation of quotation or removal of the Company or the Stock from any exchange.

 

(s) No
Additional Material Adverse Effect. There has been no event or condition that has had or may have a Material Adverse Effect
since the date of the Company’s latest audited financial statements:

 

(t) No
Liabilities. The Company has not incurred any liabilities (contingent or otherwise) other than: (a) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice; and (b) liabilities not required to be reflected
in the Company’s financial statements pursuant to the financial standards pursuant to which such financial statements are
prepared, or required to be disclosed in the Company’s public filings;

 

(u) No
Change in Accounting. The Company has not altered its method of accounting; and

 

(v) No
Dividends. The Company has not declared or made any dividend or distribution of cash or other property to its shareholders,
or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock.

 

(w) No
Conflict, Breach, Violation or Default. The execution and delivery of, and the performance of the terms of, the Agreement or
any Advance Notice or Advance will not: (i) result in the creation of any lien in respect of any property of the Company or any
of its subsidiaries; or (ii) violate, conflict with, result in a breach of an provision of, require any notice or consent under,
constitutes a default under, resulting in the termination of, or in a right of termination or cancellation of, accelerate the performance
required by, result in the triggering of any payment or other material obligations pursuant to, ay of the terms, conditions or
provisions of: (a) the Company’s constitution as in effect on the date of this Agreement; or (b) any law , governmental authorization,
or order of any court, domestic or foreign, having jurisdiction over the Company, any subsidiary, or any of their respective assets
or properties; or (c) any material agreement or instrument to which the Company or any subsidiary is a party or by which the Company
or a subsidiary is bound or to which any their respective assets or properties is subject (or render any such agreement or instrument
voidable or without further effect).

 

(x) Litigation.
(i) There are no pending actions, suits or proceedings against or affecting the Company, its subsidiaries or any of its or their
properties, and to the Company’s knowledge, no such actions, suits or proceedings are threatened or contemplated; (ii) Neither
the Company nor any subsidiary, nor any director or officer is or has been the subject of any action, suit, proceeding, or investigation
involving a claim of violation of or liability under securities laws or a claim of breach of fiduciary duty; (iii) There has not
been, and to the knowledge of the Company there is no, pending or contemplated investigation by a governmental authority involving
the Company or any current or former director or officer of the Company; and (iv) No regulatory body has issued any stop order
or other order suspending the effectiveness of a Registration Statement or any related prospectus filed or lodged by the Company.

 

(y) Compliance.
Neither the Company nor any subsidiary: (i) is in material default under, or in material violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any subsidiary
under), nor has the Company or any subsidiary received notice of a claim that is in default under or that is in violation of, any
indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties
is bound (whether or not such default or violation has been waived); (ii) is in violation of nay order of any court, arbitrator
or governmental authority or regulatory body; (iii) is or has been in violation of any law.

 

(z) [Intentionally
Omitted]

 

(aa) [Intentionally
Omitted]

 

    	 

    	 

    

 

(bb) Solvency.
The Company confirms each of the following:

 

(i) The
Company and each of its subsidiaries is able, and is not aware of anything which would render the Company or any of its subsidiaries
unable, to pay all its debts as and when they become due and payable.

 

(ii) No
judicial order has been made or obtained against the Company or any of its subsidiaries which is unpaid or unsatisfied.

 

(iii) No
attachment in in the process of being levied or enforced against any asset of the Company or its subsidiaries.

 

(iv) No
administrator, liquidator, provisional liquidator, controller or receiver of, or in connection with, the Company or any of its
subsidiaries has been appointed, and the Company is not aware of such appointment pending, threatened, or being likely.

 

(v) No
person has entered into, proposed, sanctioned, approved, or commenced, legal action relating to a scheme of arrangement of the
affairs of the Company or any of its subsidiaries, or between any of those people and any of its shareholders or creditors.

 

(vi) Neither
the Company nor any of its subsidiaries is in default under any security interest over, or in relation to, any asset.

 

(vii) The
Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving
effect to the contemplated transactions and Advances, does not anticipate or know of any basis upon which its auditors might issue
a qualified opinion in respect of its current fiscal year.

 

(cc) [Intentionally
Omitted.]

 

(dd) Non-public
information. Neither the Company nor any person acting on its behalf has provided the Investor or its agents, representative
or counsel with any information that constitutes inside information or material non-public information, and to the Company’s
knowledge, the Investor does not possess any inside information or material non-public information.

 

(ee) Prohibited
Transactions. The Company has not entered or agreed to enter into a Prohibited Transaction.

 

(ff) Default.
Neither the Company or any subsidiary is in default under a document or agreement binding on it or its assets which relates to
financial indebtedness or it otherwise material.

 

(gg) Absence
of Events of Default. No Event of Default and no event which, with notice, lapse of time or both, would constitute an Event
of Default, has occurred and is continuing.

 

(hh) Brokers
and finders. No person will have, as a result of the contemplated transactions and Advances, any valid right, interest or claim
against or upon the Company, any subsidiary or an Investor for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the Company.

 

(ii) No
Event of Default. The Investor is of the opinion that (i) no Event of Default has occurred, (ii) no Remediable Event of Default
has occurred and is continuing and no Event of Default would result from an Advance being effected. Any of the following shall
constitute an Event of Default:

 

(a)             Any
of the representations, warranties, or covenants made by the Company or any of its agents, officers, directors, employees or representatives
in an document, materials or public filing are inaccurate, false or misleading in any material respect, as of the date as of which
it is made or deemed to be made, or any certificate or financial or other written statements furnished by or on behalf of the Company
to the Investor, any of its representatives, or the company’s shareholders, is inaccurate, false or misleading, in any material
respect, as of the date as of which it is made or deemed to be made, or on any Advance Date.

 

(b)             The
Company or any subsidiary of the Company is or becomes insolvent.

 

(c)             An
administrator is appointed over all or any of the assets or undertaking of the Company or any subsidiary or any step preliminary
to the appointment to an administrator has been taken.

 

(d)             A
controller or similar officer is appointed to all or any of the assets or undertaking of the Company or any subsidiary.

 

(e)             An
application or order is made, a proceeding is commenced, a resolution is passed or proposed, or an application to a court or other
steps are taken for the winding up or dissolution of the Company or any subsidiary , or for the Company or any subsidiary to enter
an arrangement, compromise or composition with, or assignment for the benefit of, its creditors, a class of them, or any of them.

 

(f)             The
Company or any of its subsidiaries ceases, suspends or threatens to cease or suspend, the conduct of all or a substantial part
of its business, or dispose of, or threaten to dispose of, a substantial part of its assets or to reduce its capital.

 

(g)             The
Company requests, or the Principal Market or any other governmental authority or regulatory body imposes a stop order, trading
halt, suspension of trading, cessation of quotation, or removal of the Company or the Common Stock for the Principal Market.

 

    	 

    	 

    

 

(h)             Any
of the following has occurred: (i) trading in securities have been suspended or limited, (ii) minimum prices have been established
on the securities, (iii) a banking moratorium has been declared by the authorities in New York or the jurisdiction where the Company
is incorporated or where the Common Stock is trading, (iv) a material outbreak or escalation of hostilities or another national
or international calamity of such magnitude in its effect on, or adverse change in the markets in the United States or the market
where the Common Stock trades, makes it impracticable or inadvisable for the Investor to close on an Advance or accept an Advance
Notice.

 

(i)              [Intentionally
Omitted.]

 

(j)              [Intentionally
Omitted.]

 

(k)             The
Company dishonors or rejects any action taken, or document delivered, in furtherance of the Investor’s rights to receive
any Common Stock.

 

(l)             
A stop order, trading halt, suspension of trading, cessation of quotation, or removal of the Company or the Stock from an exchange
has been requested by the Company or imposed on the Company.

 

(m)            [Intentionally
Omitted.].

 

(n)             There
exists a law which, or an official or reasonable interpretation of which, in the Investor’s reasonable opinion, makes it,
or is more likely than not to make it, illegal or impossible for the Investor or the Company to undertake any of the Advances in
accordance with this Agreement, or renders, or is more likely than not to render, consummation of any of the Advances in accordance
with this Agreement unenforceable, void, voidable or unlawful, or contrary to or inconsistent with any law.

 

(o)            
If: (i) a change in an interpretation or administration of a law or a proposed law introduced or proposed to be introduced to any
governing body of law; (ii) compliance by the Investor or any of its Affiliates with a law or an interpretation or administration
of a law, has, or is more likely than not to have, in the reasonable opinion of the Investor, directly or indirectly, the effect
of (iv) varying the duties, obligation or liabilities of the Company or the Investor in connection with this Agreement or any Advance
so that the Investor’s rights, powers, benefits, remedies or economic burden (including any tax treatment in the hands of
the Investor) are adversely affected (including by way of delay or postponement); (v) otherwise adversely affecting rights, powers,
benefits, remedies or the economic burden of the Investor (including by way of delay or postponement); (vi) otherwise making it
impracticable for the Investor to undertake any of the Advances or contemplated Advances.

 

(p)             A
securities registrar or similar entity refuses to comply with a direction to issue, or record an issuance of securities to the
Investor.

 

(q)             Any
consent, permit, approval, registration or waiver necessary or appropriate for the consummation of an Advance that remains to be
consummated at the applicable time, has not been issued or received, or does not remain in full force or effect.

 

(r)             The
Investor has not received all those items required to be delivered to it in connection with an Advance in accordance with this
Agreement.

 

(s)             The
Company fails to perform, comply with, or observe any other term, covenant, undertaking, obligation or agreement under this Agreement.

 

(t)             A
default judgment of an amount of $500,000 or greater is entered against the Company or any of its subsidiaries.

 

(u)             Any
present or future liabilities, including contingent liabilities, of the Company or any of its subsidiaries for an amount or amounts
totaling more than $500,000 have not been satisfied on time, or have become prematurely payable.

 

7.3 [Intentionally
Omitted.]

 

7. 4 Rights
of the Investor upon Default.

 

(a)
Upon the occurrence of existence of any Default at any time during the continuance of such Event of Default, the Investor may terminate
this Agreement by notice to the Company, effective as of the date set out in the Investor’s notice.  (b) Where an Event
of Default has occurred, the Investor shall have: (i) no obligation to accept an Advance Notice or to consummate a closing under
this Agreement; and (ii) the right to postpone the Advance accordingly.

 

(c)
In addition to the remedies set out elsewhere, upon the occurrence or existence of any Event of Default, the Investor may exercise
any other right, power or remedy granted to it by the Agreement or otherwise permitted by law, including any suit in equity and/or
by action at law.

 

ARTICLE VIII.

Non-Disclosure of Non-Public
Information

 

Section 8.1.
Non-Disclosure of Non-Public Information.

 

 (a) 
Subject to Section 6.6 and except as otherwise provided in this Agreement or the Registration Rights Agreement, the Company covenants
and agrees that it has not in the past and will refrain in the future from disclosing, and shall cause its officers, directors,
employees and agents to refrain from disclosing, any material non-public information to the Investor without also disseminating
such information to the public at the same time.

 

    	 

    	 

    

 

(b) Nothing
herein shall require the Company to disclose material, non-public information to the Investor or its advisors or representatives,
and the Company represents that it does not disseminate material, non-public information to any Investors who purchase stock in
the Company in a public offering, to money managers or to securities analysts in violation of Regulation FD of the Exchange Act,
provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided and subject
to compliance with Regulation FD, immediately notify the advisors and representatives of the Investor and, if any, underwriters,
of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which
it becomes aware, constituting material, non-public information (whether or not requested of the Company specifically or generally
during the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein
in order to make the statements, therein, in light of the circumstances in which they were made, not misleading. Nothing contained
in this Section 8.1 shall be construed to mean that such persons or entities other than the Investor (without the written
consent of the Investor prior to disclosure of such information) may not obtain material, non-public information in the course
of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or
entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration
Statement contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement
or necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

ARTICLE IX.

Choice of Law/Jurisdiction

 

Section 9.
Governing Law. This Agreement shall be governed by and interpreted solely in accordance with the laws of the State of New
York without regard to the principles of conflict of laws. Any dispute arising out of or in connection with this Agreement or otherwise
relating to the parties relationship shall be settled only by litigation and exclusively in the State of New York, City of New
York. The Company and the Investor further agree that no demand for punitive or exemplary damages shall be made. The parties hereby
waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in respect
of any matter arising out of or in connection with this Agreement. The parties agree that in the event of any action, litigation
or proceeding between the parties arising out of or in relation to this Agreement, the prevailing party in a final judgment after
the appeal period has passed shall be awarded, in addition to any damages, injunctions or other relief, such party’s costs
and expenses, including but not limited to all related costs and reasonable attorneys’, accountants’ and experts’
fees incurred in bringing such action, litigation or proceeding and/or enforcing any judgment or order granted therein. No party
to this Agreement will challenge the jurisdiction or venue provisions as provided in this section.  The section shall
survive termination of the Agreement.

 

ARTICLE X.

Assignment; Termination

 

Section 10.1.
Assignment. Neither this Agreement nor any rights or obligations of the Company or the Investor hereunder may be assigned
to any other Person.

 

Section 10.2.
Termination.

 

(a) Unless
earlier terminated as provided hereunder, this Agreement shall terminate automatically on the earliest of (i) the first day
of the month following the 36-month anniversary of the Effective Date, (ii) the date on which the Investor shall have made
payment of Advances pursuant to this Agreement in the aggregate amount of the Commitment Amount or (iii) the Registration Statement
is no longer effective.

 

(b) The
obligation of the Investor to make an Advance to the Company pursuant to this Agreement shall terminate permanently (including
with respect to an Advance Date that has not yet occurred) in the event that (i) there shall occur any stop order or suspension
of the effectiveness of the Registration Statement for an aggregate of fifty (50) Trading Days, during the Commitment Period,
or (ii) the Company shall at any time fail materially to comply with the requirements of Article VI and such failure
is not cured within thirty (30) days after receipt of written notice from the Investor, provided, however, that
this paragraph (c) shall not apply to any period commencing upon the filing of a post-effective amendment to such Registration
Statement and ending upon the date on which such post effective amendment is declared effective by the SEC. The Investor may terminate
this Agreement by sending email notice to the Company declaring a Material Adverse Effect.

 

(c) Nothing
in this Section 10.2 shall be deemed to release the Company or the Investor from any liability for any breach under this Agreement,
or to impair the rights of the Company and the Investor to compel specific performance by the other party of its obligations under
this Agreement. The indemnification provisions contained in Sections 5.1 and 5.2 shall survive termination hereunder.

 

ARTICLE
XI.

Notices

 

Section 11.1.
Notices. Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered upon being sent to the following email addresses:

 

If to the
Company: danielb@axxesspharmainc.com

 

If to the
Investor: lschaeffer@beaufortcp.com

 

Each party
shall provide five (5) days’ prior written notice to the other party of any change in email address.

 

ARTICLE
XII.

Miscellaneous

 

Section 12.1.
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.

 

    	 

    	 

    

 

Section 12.2
Entire Agreement; Amendments. This Agreement supersedes all other prior agreements, negotiations or discussions both oral
or written between the Investor, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed
herein, and this Agreement and the instruments referenced herein and therein contain the entire understanding of the parties with
respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this
Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged with enforcement. The
provisions of this Agreement shall be construed in favor of the Investor. Except as specifically set out in this Agreement, neither
the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to any subject matter regarding
this Agreement or otherwise.

 

Section 12.3.
Reporting Entity for the Common Stock. The reporting entity relied upon for the determination of the trading price or trading
volume of the Common Stock on any given Trading Day for the purposes of this Agreement shall be Bloomberg, L.P. or any successor
thereto. The written mutual consent of the Investor and the Company shall be required to employ any other reporting entity.

 

Section 12.4.
Break Fee and Expenses. Each of the parties shall pay its own fees and expenses (including the fees of any attorneys, accountants,
appraisers or others engaged by such party) in connection with this Agreement. The Investor shall pay the legal fees associated
with the Registration Statement. In consideration for entering into this Agreement, the Company is required to issue an initial
1,500,000 shares of common stock to an escrow agent mutually agreed upon by the parties hereto. Upon effectiveness of the Registration
Statement, such shares shall immediately be returned to the Company by the applicable escrow agent. In the event the Registration
Statement is not declared effective within eighteen (18) months of the initial filing thereof, such shares shall be issued to the
Investor by such escrow agent.

 

Section 12.5.
[Intentionally Omitted].

 

Section
12.6 Publicity. Prior to issuing any public statements, the Company shall send to the Investor for approval any press releases
or public statement with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise
make any such public statement without the prior written consent of the other party. Notwithstanding the foregoing, the Company
shall not publicly disclose the name of the Investor unless the Investor provides written approval to do so.

 

Section
12.7 Placement Agent. If so required by the SEC, the Company agrees to pay a registered broker dealer, to act as placement
agent, a percentage of the Put Amount on each draw toward the fee.  The Investor shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other persons or entities for fees of a type contemplated in
this Section that may be due in connection with the transactions contemplated by this Agreement. The Company shall indemnify and
hold harmless the Investor, their employees, officers, directors, agents, and partners, and their respective affiliates, from and
against all claims, losses, damages, costs (including the costs of preparation and attorney's fees) and expenses incurred in respect
of any such claimed or existing fees, as such fees and expenses are incurred.

 

Section
12.8 No Third Party Beneficiaries.  Notwithstanding anything contained in this
Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the
parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement, and no Person that is not
a party to this Agreement (including without limitation any partner, member, shareholder, director, officer, employee or other
beneficial owner of any party hereto, in its own capacity as such or in bringing a derivative action on behalf of a party hereto)
shall have any standing as third party beneficiary with respect to this Agreement or the transactions contemplated hereby.

 

Section
12.9 No Personal Liability of Directors, Officers, Owners, Etc.  No director,
officer, employee, incorporator, shareholder, managing member, member, general partner, limited partner, principal or other agent
of any of the Investor or the Company shall have any liability for any obligations of the Investor or the Company under this Agreement
or for any claim based on, in respect of, or by reason of, the respective obligations of the Investor or the Company hereunder.
Each party hereto hereby waives and releases all such liability. This waiver and release is a material inducement to each party’s
entry into this Agreement.

 

Section
12.10. Delay. The Investor shall not be obligated to perform and shall not be deemed to be in default hereunder, if the
performance of an obligation required hereunder is prevented by the occurrence of any of the following, acts of God, strikes, lock-outs,
other industrial disturbances, acts of a public enemy, war or war-like action (whether actual, impending or expected and whether
de jure or de facto), acts of terrorists, arrest or other restraint of government (civil or military), blockades, insurrections,
riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, sink holes, civil disturbances,
explosions, breakage or accident to equipment or machinery, confiscation or seizure by any government or public authority, nuclear
reaction or radiation, radioactive contamination or other causes, whether of the kind herein enumerated or otherwise, that are
not reasonably within the control of the party claiming the right to delay performance on account of such occurrence.

 

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LEFT BLANK]

 

    	 

    	 

    

  

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

 

	 	 	COMPANY:
	 	 	Axxess Pharma, Inc.
	 	 	 	 	 
	 	 	By:	 	/s/ Peter Daniel Bagi

	 	 	 	 	 
	 	 	Name: Daniel Bagi, M.D.
	 	 	Title: Chief Executive Officer
	 	 	 	 	 
	 	 	INVESTOR:
	 	 	Beaufort Capital Partners LLC
	 	 	 	 	 
	 	 	By:	 	/s/ Leib Schaeffer

	 	 	 	 	 
	 	 	Name: Leib Schaeffer
	 	 	Title: Managing Member

 

    	 

    	 

    

 

EXHIBIT A

 

ADVANCE NOTICE

 

Axxess
Pharma, Inc.. (the “Company”)

 

The undersigned,
__________________________hereby certifies, with respect to the sale of shares of Common Stock of the Company issuable in connection
with this Advance Notice, delivered pursuant to the Investment Agreement (the “Agreement”), as follows:

 

1. The undersigned
is the duly elected Officer of the Company, its Chief Executive Officer, President or Chief Financial Officer.

 

2. There
are no fundamental changes to (a) the covenants in Article IV of the Agreement and (b) the information set forth in the Registration
Statement which would require the Company to file a post effective amendment to the Registration Statement.

 

3. The
Company has performed in all material respects all covenants and agreements to be performed by the Company and has complied in
all material respects with all obligations and conditions contained in the Agreement on or prior to the Advance Date, and shall
continue to perform in all material respects all covenants and agreements to be performed by the Company through the applicable
Advance Date. All conditions to the delivery of this Advance Notice are satisfied as of the date hereof.

 

4. The
undersigned hereby represents, warrants and covenants that it has made all filings (“SEC Filings”) required
to be made by it pursuant to applicable securities laws (including, without limitation, all filings required under the Securities
Exchange Act of 1934, which include Forms 10-Q or, 10-K or, 8-K, etc.). All SEC Filings and other public disclosures made by the
Company, including, without limitation, all press releases, analysts meetings and calls, etc. (collectively, the “Public
Disclosures”), have been reviewed and approved for release by the Company’s attorneys and, if containing financial
information, the Company’s independent certified public accountants. None of the Company’s Public Disclosures contain,
as of their respective dates, any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

5. The Advance requested is
 ________________shares.

 

6. There are currently _______________________
amount of shares outstanding on a fully diluted basis.

 

The undersigned has executed
this Certificate this  _____  day of  _____.

 

	 	 	 	 	 
	 	 	 	 	 
	 	By: 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

Please email this Advance Notice to: rmarino@beaufortcp.comExhibit 10.12

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of the 24th day of December, 2014 (the “Agreement”)
between Beaufort Capital Partners LLC (the “Investor”), and Axxess Pharma, Inc. (the “Company”).

 

WHEREAS:

 

A. In connection
with the Investment Agreement by and between the parties hereto of even date herewith (the “Investment Agreement”),
the Company has agreed, upon the terms and subject to the conditions of the Investment Agreement, to issue and sell to the Investor
shares of the Company’s common stock (the “Common Stock”), which can be purchased pursuant to the terms
of the Investment Agreement. Capitalized terms not defined herein shall have the meaning ascribed to them in the Investment Agreement.

 

B. To induce
the Investor to execute and deliver the Investment Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “ Securities Act ”), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1. DEFINITIONS.

 

As used in this Agreement, the following
terms shall have the following meanings:

 

a. “Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

 

b. “Register,”
“registered ,” and “registration ” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the Securities Act and pursuant to Rule 415 under
the Securities Act or any successor rule providing for offering securities on a continuous or delayed basis (“Rule 415”),
and the declaration or ordering of effectiveness of such Registration Statement(s) by the United States Securities and Exchange
Commission (the “SEC”).

 

c. “Registrable
Securities” means the Investor’s Shares, as defined in the Investment Agreement, the Commitment Shares and shares
of Common Stock issuable to Investors pursuant to the Investment Agreement.

 

d. “Registration
Statement” means a registration statement under the Securities Act which covers the Registrable Securities.

 

2. REGISTRATION.

 

a. Filing
of a Registration Statement. The Company shall prepare and file with the SEC a Registration Statement on Form S-1 or on such
other form as is available within thirty (30) days of signing this Agreement. Failure to file such Registration Statement within
thirty (30) days of signing this Agreement shall be considered a breach of a material term of this Agreement. The Company shall
cause such Registration Statement to be declared effective by the SEC prior to the first sale to the Investor of the Company’s
Common Stock pursuant to the Investment Agreement. After a Registration Statement is declared effective, the Company shall insure
that the Registration Statement and any subsequent Registration Statements remain in effect until all of the Registrable Securities
have been sold, or may be sold without restriction pursuant to Rule 144.

 

b. Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to Section
2(a) is insufficient to cover all of the Registrable Securities the Company shall amend the Registration Statement, or file a new
Registration Statement, or both, so as to cover all of such Registrable Securities as soon as practicable, but in any event not
later than fifteen (15) days after the necessity therefore arises. The Company shall use it best efforts to cause such amendment
and/or new Registration Statement to become effective as soon as practicable following the filing thereof. For purposes of the
foregoing provision, the number of shares available under a Registration Statement shall be deemed “insufficient to cover
all of the Registrable Securities” if at any time the number of Registrable Securities issuable on an Advance Notice Date
is greater than the number of shares available for resale under such Registration Statement.

 

3. RELATED OBLIGATIONS.

 

a. The Company
shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration Statement
and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof
as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required
to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company’s filing a
report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the Company shall have incorporated such report by reference into the Registration Statement, if applicable, or
shall file such amendments or supplements with the SEC on the same day on which the Exchange Act report is filed which created
the requirement for the Company to amend or supplement the Registration Statement.

 

    	 

    	 

    

 

b. The Company
shall furnish to the Investor without charge, (i) at least one copy of such Registration Statement as declared effective by
the SEC and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference,
all exhibits and each preliminary prospectus, (ii) at least one copy of the final prospectus included in such Registration
Statement and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request) and
(iii) such other documents as such Investor may reasonably request from time to time in order to facilitate the disposition
of the Registrable Securities owned by such Investor.  

 

c. The Company
shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement under
such other securities or “blue sky” laws of such jurisdictions in the United States as the Investor reasonably requests,
(ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (w) make
any change to its certificate of incorporation or by-laws, (x) qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify the Investor
of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of
the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States
or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

d. As promptly
as practicable after becoming aware of such event or development, the Company shall notify the Investor in writing of the happening
of any event as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement
of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any
material, nonpublic information), and promptly prepare a supplement or amendment to such Registration Statement to correct such
untrue statement or omission, and email copies of such supplement or amendment to each Investor. The Company shall also promptly
notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and
when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be
delivered to the Investor by facsimile on the same day of such effectiveness), (ii) of any request by the SEC for amendments
or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s
reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 

e. The Company
shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement,
or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction within the United States
of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice
of the initiation or threat of any proceeding for such purpose. 

 

f. [Intentionally
Omitted.]

 

g. The Company
shall make available to the Investor (i) copies of any draft Registration Statement at least 3 business days prior to filing
thereof, and (ii) subject to restrictions imposed by the United States federal government or any agency or instrumentality thereof,
copies of all public correspondence between the Commission and the Company concerning the Registration Statement. The Company will
make available for inspection by the Investor and any attorney, accountant or other professional retained by the Investor (collectively,
the “Inspector ”) all pertinent financial and other records, and pertinent corporate documents and properties
of the Company (collectively, the “Records”), as shall be reasonably necessary to enable them to exercise their
due diligence responsibility, and cause the Company’s officers, directors and employees to supply all information which any
Inspector may reasonably request in connection with the Registration Statement. The Investor agrees that Records obtained by it
as a result of such inspections which is conspicuously marked by the Company as “Confidential” (subject to the Company’s
obligations with respect to material non-public information set forth in Section 8.1(a) herein) shall be deemed confidential
and held in strict confidence by the Investor, unless (a) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the Securities Act, (b) the release
of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction,
or (c) the information in such Records has been made generally available to the public other than by disclosure in violation
of this or any other agreement of which the Inspector and the Investor has knowledge. The Investor agrees that it shall, upon learning
that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means,
give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the Records deemed confidential.

 

h. The Company
shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of,
or to obtain a protective order for, such information.

 

i. The Company
shall use its best efforts either to cause all the Registrable Securities covered by a Registration Statement (i) to be listed
on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the rules of such exchange or to secure the inclusion for quotation
on a Primary Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(i).

 

j. The Company
shall cooperate with the Investor to the extent applicable, to facilitate the timely preparation and delivery of certificates (not
bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and
enable such certificates to be in such denominations or amounts, as the case may be, as the Investor may reasonably request and
registered in such names as the Investor may request.

 

    	 

    	 

    

 

k. The Company
shall use its best efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

l. [Intentionally
Omitted].

 

m. The Company
shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with any registration
hereunder.

 

n. Within ten
(10) business days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the form
attached hereto as Exhibit A.

 

o. The Company
shall take all other reasonable actions necessary to facilitate disposition by the Investor of Registrable Securities pursuant
to a Registration Statement.

 

4. OBLIGATIONS OF THE INVESTOR.

 

The Investor agrees
that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(d), the
Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering
such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(d) or receipt of notice that no supplement or amendment is required.

 

5. EXPENSES OF REGISTRATION.

 

All expenses incurred
in connection with registrations pursuant to Section 2, including, without limitation, all registration and listing fees, legal
and accounting fees shall be paid by the Investor. All expenses incurred in connection with qualifications pursuant to Sections 3,
including, without limitation, all registration, listing and qualifications fees, printers, legal and accounting fees shall be
paid by the Company.

 

6. INDEMNIFICATION .

 

With respect to Registrable
Securities which are included in a Registration Statement under this Agreement:

 

a. To the fullest
extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the directors, officers,
partners, employees, agents, representatives of, and each Person, if any, who controls the Investor within the meaning of the Securities
Act or the Exchange Act (each, an “Indemnified Person”), against any and all losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint or
several (collectively, “Claims”) incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or
other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction
in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) any untrue
statement or alleged untrue statement of a material fact contained in any final prospectus (as amended or supplemented, if the
Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were
made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation there under relating to the offer
or sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through
(iii) being, collectively, “Violations”). The Company shall reimburse the Investor and each such controlling
person promptly as such expenses are incurred and are due and payable, for any legal fees or disbursements or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary
contained   herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply to a Claim
by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto; (y) shall not be available to the extent such Claim is based
on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus
was timely made available by the Company pursuant to Section 3(e); and (z) shall not apply to amounts paid in settlement
of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
Person.

 

b. In connection
with a Registration Statement, the Investor agrees to indemnify, hold harmless and defend, to the same extent and in the same manner
as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement
and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (each an “Indemnified
Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act,
the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or is based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information
furnished to the Company by the Investor expressly for use in connection with such Registration Statement; and, subject to Section 6(d),
the Investor will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to
contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Investor, which consent shall not be unreasonably withheld; provided, further, however,
that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed
the net proceeds to the Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect
to any prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact
contained in the prospectus was corrected and such new prospectus was delivered to the Investor prior to the Investor’s use
of the prospectus to which the Claim relates.

 

    	 

    	 

    

 

c. Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action
or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid
by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such
counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such
proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying party
shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding
effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay
or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action.

 

d. The indemnification
required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

e. The indemnity
agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified
Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant
to the law.

 

7. CONTRIBUTION.

 

To the extent any
indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in
amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.  

 

8. REPORTS UNDER THE EXCHANGE ACT.

 

With a view to making
available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation
of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule 144”)
the Company agrees to, during the terms of the Investment Agreement:

 

a. make and
keep public information available, as those terms are understood and defined in Rule 144;

 

b. file with
the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act
so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s
obligations under Section 6.3 of the Investment Agreement) and the filing of such reports and other documents is required
for the applicable provisions of Rule 144; and

 

c. furnish to
the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy
of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144
without registration.

 

9. AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only by a written agreement between the Company and the Investor. Any amendment or waiver effected in accordance
with this Section 9 shall be binding upon the Investor and the Company. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is
offered to all of the parties to this Agreement.

 

10. MISCELLANEOUS.

 

a. A Person
is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities.
If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such
Registrable Securities.  

 

    	 

    	 

    

 

b. Any notices,
consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:
danielb@axxesspharmainc.com

 

If to the Investor:
lschaeffer@beaufortcp.com

 

Any party may change its address by providing
written notice to the other parties hereto at least five days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

 

c. Failure of
any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

 

d. All questions
concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State
of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
New York. Any dispute arising out of or in connection with this Agreement or otherwise relating to the parties relationship that
cannot be settled by the Company and the Investor after discussion shall be settled solely by arbitration. Any such arbitration
shall be fully and finally resolved in binding arbitration in a proceeding in the State of New York, City of New York, in accordance
with the rules of the American Arbitration Association before a single arbitrator.  The arbitrator shall not have the authority
to modify or change any of the terms of this Agreement.  The arbitrator may award interim relief and grant specific performance
in addition to monetary damages. The Company and the Investor further agree that no demand for punitive or exemplary damages shall
be made in any arbitration proceeding. Any monetary award shall be in U.S. dollars.  The arbitrator's award shall be final
and binding upon the parties, and judgment upon the award may be entered in any court of competent jurisdiction in any state of
the United States or country or application may be made to such court for a judicial acceptance of the award and an enforcement
as the law of such jurisdiction may require or allow. 

 

e. This Agreement
shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

f. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g. This Agreement
may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and
the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

h. Each party
shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such
other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.   

 

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

 

j. This Agreement
is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

 

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BLANK]

 

    	 

    	 

    

 

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

 

	 	COMPANY:
	 	Axxess Pharma, Inc.
	 	 
	 	By:	/s/ Peter Daniel Bagi

	 
	 	 	 	 
	 	Name: Daniel Bagi, M.D.
	 	Title: Chief Executive Officer
	 	 
	 	INVESTOR:
	 	Beaufort Capital Partners LLC
	 	 
	 	By:	/s/ Leib Schaeffer

	 
	 	 	 	 
	 	Name: Leib Schaeffer
	 	Title: Managing Member
	 	 
	 	 
	 	 

 

    	 

    	 

    

 

EXHIBIT A

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Attention:

 

Re: Axxess Pharma, Inc.

 

Ladies and Gentlemen:

 

We are counsel to
Axxess Pharma, Inc. (the “Company”), and have represented the Company in connection with that certain
Investment Agreement (the “Investment Agreement”) entered into by and between the Company and Beaufort Capital
Partners LLC (the “Investor”) pursuant to which the Company may require the Investor to purchase shares of its
Common Stock, par value $.0001 per share (the “Common Stock”). Pursuant to the Investment Agreement, the Company
also has entered into a Registration Rights Agreement with the Investor (the “Registration Rights Agreement”)
pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration
Rights Agreement) under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the
Company’s obligations under the Registration Rights Agreement, on __, 2014 the Company filed a Registration Statement on
Form _____ (File No. 333-  _____  ) (the “Registration Statement”) with the Securities and
Exchange Commission (the “SEC”) relating to the Registrable Securities which names the Investor as a selling
stockholder thereunder.

 

In connection with
the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE
OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the
SEC and the Registrable Securities are available for resale under the Securities Act pursuant to the Registration Statement.

 

	 	Very truly yours,
	 	 
	 	By:	 

 

cc: Beaufort Capital Partners LLC

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