Document:

Document

Exhibit 10.15

EMPLOYMENT AGREEMENT
This  Employment  Agreement  (this “Agreement”)   is  effective  as  of July  30,  2018  (the “Effective Date”) by and between S&A Holdings (2013), LLC, a limited liability company doing business under the laws of Florida (the “Company” or “Holdings”) and Marco Ferri, an individual residing in the State of Florida (“Executive”). Holdings and Executive are collectively referred to herein as the “Parties” and each individually as a “Party.”
RECITALS
WHEREAS,  the  Company   manages   and  operates   several   financial   research   and publishing  businesses  and other entities, including, but not limited to, Stansberry & Associates Investment   Research,  LLC,   TradeSmith,  LLC,   Legacy   Research   Group,   LLC  (and   its subsidiaries  and affiliates),  Empire Financial Research, LLC, InvestorPlace Media, LLC, KOC Publishing, LLC, VRSH, LLC and any other entities  created  by the Company  hereafter that publish  several  products  and services  (any and all publications and services  provided  by the businesses  and entities managed and operated by the Company are hereinafter referred to as the “Products”); and
WHEREAS, Company wishes to employ Executive  as its Director  of Business Development, and Executive has agreed to such employment, on the terms and conditions set forth in this Agreement.
NOW  THEREFORE, in consideration  of the mutual  covenants  and agreements  of the Parties herein contained and other good and valuable consideration as provided below, the Parties hereby agree as follows:
TERMS
1.    Executive’s Performance and Understanding.
(a)    During the term of the Executive’s employment under this Agreement, Company shall employ the Executive, and the Executive shall serve Company, as the Director of Business Development  of Company  reporting  directly  to the Chief Executive  Officer (“CEO”)  of the Company.
(b)    Executive may reside and be based in the Miami, Florida area.
(c)    The Executive shall perform services and duties (“Services”) at the direction of the CEO which Services shall be reasonably suited for the position and title held by the Executive and shall include, without limitation, the following:
i.    Identify  and  evaluate,   both  independently  and  in  collaboration   with  the executive team, potential opportunities for acquisition.
ii.    Build and maintain relationships with industry and professional networks.
iii.    Lead all non-legal aspects of the acquisition process, including coordination of internal working groups,  management  of external advisors,  develop relationships  with target company management teams, agreement negotiations and due diligence process.
iv.    Analyze and recommend strategic direction for company acquisitions with the Company’s senior management.
v.    Lead post-acquisition integration and oversee all post-closing activities.

vi.    Lead strategy of identifying and incorporating acquisition targets into overall strategy for a Holdings Strategic Transaction (as hereinafter defined).
vii.    Work closely with the executive team in connection with a Holdings Strategic Transaction  strategy,  including  improving processes  across the  organization,  and developing strategic objectives with the goal of maximizing the Company’s profile for a Holdings Strategic Transaction.
viii.    Working  with  external advisors  and audit team to prepare  for a Holdings Strategic Transaction; and
ix.    Use  legal  experience to  assist Company’s legal  department  on improving  corporate governance and overall legal support.
2.    Compensation.  In consideration of Executive’s performance of the Services, the Company shall compensate Executive as follows:
(a)    Salary.  Executive shall initially receive an annual salary of $500,000.00 (the “Base Salary”).  Base Salary payments shall be payable to Executive in accordance with the normal payroll practices and schedule of the Company, less applicable deductions and withholdings. Following the date when the Executive receives equity incentive compensation as referenced in Section 2(e), the Executive’s Base Salary shall be treated as guaranteed payments and without any deductions and withholdings.  Executive understands that upon said change in treatment,  he will be responsible for any self-employment taxes arising from payments of his guaranteed payment or any bonus amounts from the Company and that he shall no longer be treated as an employee of Company for purposes of federal or state income or employment tax withholding and reporting. This Base Salary shall be periodically reviewed by the Board of Managers of Company (the “Board”) and adjusted upward or downward by the Board as the Board deems appropriate in its sole discretion; provided  that any adjustment  downward  shall  only be permitted  if the same adjustment is being made to all other similarly situated executives of the Company.
(b)    Bonus Pool. Executive will be eligible to participate in the annual executive bonus pool (the “Bonus Pool”), which is usually based on the Company’s Net Income and from which such bonus payments are determined by the Company in its sole discretion.  Executive must be an employee of the Company on the date any Bonus Pool payments are made, if any, in order to earn such bonus.
(c)    Acquisition Transaction Performance Bonus.   Subject to Executive’s continued employment   and  unless  otherwise  agreed  to  in writing  between  Executive  and  Company  with respect  to  a certain  Acquisition   Transaction   (defined  below),  Executive  shall  receive  a bonus payable  in installments  (an “Acquisition Transaction  Performance  Bonus”)  for each occurrence  of the  Company’s (or a subsidiary  of Company’s) merger  or acquisition  of a target  company  (an “Acquisition Target Entity,”  and each such merger  or acquisition,  an “Acquisition Transaction”). Prior to entering  into an Acquisition  Transaction, Executive and Company  shall memorialize  the Acquisition  Transaction  Performance  Bonus in a form mutually  agreed to by the Parties in a form substantially  similar to the Acquisition  Schedule  document  attached  hereto  as Exhibit A.  Unless otherwise  agreed to in writing by the Parties, Executive  shall be paid the Acquisition  Transaction Performance  Bonus in an amount  of up to five percent  (5.0%) of the “Enterprise  Value”  (defined below) of the Acquisition  Target Entity that is the subject  of each Acquisition  Transaction  that is consummated as follows:
1.    Executive   shall  be  paid  two  percent   (2.0%)  of the  “Enterprise Value” (defined   below)   of  the  Acquisition   Target  Entity  upon  the  closing   date  of the  Acquisition Transaction;
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2.    Executive  shall be paid one percent  (1.0%)  of the Enterprise  Value  of the Acquisition  Target  Entity  if,  as of the expiration  of the indemnification period  contained  in the Acquisition  Transaction  documents,  which  shall be at least six months  to one year depending  on transaction  conditions,  or greater  if representation and warranty  insurance  is purchased  for the Acquisition   Transaction, the  aggregate  amount  of any  indemnity  claims  and  adverse  Purchase Price adjustments  totals no more than 5% of the Purchase  Price for the Acquisition Target Entity; and
3.    Executive  shall be paid two percent  (2.0%)  of the Enterprise  Value of the Acquisition  Target Entity if, on the earlier of the third or fourth anniversary  of the closing  date of the Acquisition  Transaction,  the product  of the Aggregate  Net Income  of the Acquisition  Target Entity as measured  from the closing  date of the Acquisition  Transaction  multiplied  by Holdings’ (or  any  of its  Affiliate’s)  ownership  percentage   of the  Acquisition   Target  Entity,  exceeds  the Purchase  Price of the Acquisition  Target Entity.
In those instances where the Acquisition  Transaction  Performance  Bonus could exceed $2 Million Dollars based on the Enterprise Value of the Acquisition  Target Entity (i.e. $40,000,000  or more), the above  calculation  shall not apply  and the Parties  shall, in good faith, negotiate  and agree  in writing  to a different  calculation  or structure,  but in no event shall Executive  receive  less than $2  Million  Dollars  for the Acquisition  Transaction  Performance  Bonus  in such instances  where  the calculations under Sections 2(c)(1) through (3) above would have resulted in an Acquisition Transaction  Performance  Bonus  equal to or greater than $2 Million  Dollars  (notwithstanding the fact  that  such  calculations   shall  not  be  used   in  calculating   or  structuring   the  Acquisition Transaction  Performance  Bonus).
Any such Acquisition  Transaction Performance Bonus payments  shall be made within 60 days of the determination (such date of determination,  the “Determination Date”)  that such payment  has been earned and is due to Executive;  provided, however, that Executive  must be an employee  on the Determination Date of any Acquisition  Transaction  Performance  Bonus in order to earn such  bonus.  For the avoidance of doubt, if Executive is not employed on the Determination  Date (except in the case of Executive’s  death or Disability  or if Executive  is terminated  without  Cause), then Executive  shall have no rights to any payments  under this Section. In the event Executive  is not employed  on the Determination Date because  of Executive’s death or Disability  or Executive  is terminated  without  Cause,  Executive  (or his  estate)  shall  receive  any  Acquisition  Transaction Performance  Bonus due as if Executive  had been employed  on such Determination  Date.
(d)    Joint Venture  Performance  Bonus.   Subject to Executive’s continued  employment and unless otherwise agreed to in writing between Executive and Holdings with respect to a certain Joint Venture Transaction  (defined below), Executive shall receive a bonus payable in installments (a  “Joint Venture Performance Bonus”) for  each  occurrence  of the  Company’s  or  Holding’s creation  of a joint  venture  entity  by Company  or an Affiliate  (each  such joint  venture,  a “Joint Venture Entity,”  and each such joint  venture  formation,  a “Joint Venture Transaction”).  Prior to entering  into a Joint  Venture  Transaction,  Executive  and  Company  shall memorialize  the Joint Venture  Performance  Bonus  in a form mutually  agreed to by the Parties  in a form  substantially similar to the Joint Venture  Schedule  document  attached  hereto  as Exhibit B.   Unless  otherwise agreed to in  writing by the Parties, Executive  shall be paid the Joint Venture Performance  Bonus based on the Aggregate Net Sales 
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(defined below) of the applicable Joint Venture that is the subject of each such Joint Venture Transaction  that is consummated  as follows:
															
	Total
Aggregate Net
Sales	Total Joint
Venture
Performance
Bonus	Payable at 1
year
anniversary
from Launch	Payable at 2
year
anniversary
from Launch	Payable at 3
year
anniversary
from Launch
	Less than $5 million	$0	N/A	N/A	N/A
	Between $5M and %9.99M	$300,000	$120,000	$60,000	$120,000
	Between $10M and $14.99M	$400,000	$160,000	$80,000	$160,000
	$15M or greater	$500,000	$200,000	$100,000	$200,000

Any  such  Joint  Venture  Performance   Bonus  payments   shall  be  made  within  60  days  of the applicable  anniversary  date set forth above  (each such date, the “Anniversary Date”);  provided, however,  that the Joint Venture  Entity must be active and the Executive  must be an employee  on the Anniversary  Date for any Joint Venture  Performance  Bonus in order to earn such bonus.   For the avoidance  of doubt,  if Executive  is not employed  on the Anniversary  Date (except in the case of Executive’s death  or Disability  or if Executive  is terminated  without  Cause),  then Executive shall have no rights to any payments  under this Section.  In the event Executive  is not employed on the applicable  Anniversary  Date  because  of Executive’s  death  or Disability  or Executive  is  terminated without Cause, Executive (or his estate) shall receive any Joint Venture Performance  Bonus due as if Executive had been employed on such Determination Date.
(e)    Equity Incentive Compensation.  The Executive  shall receive  equity  incentive compensation with respect to the Company pursuant to the equity incentive compensation plan documents to be adopted by the Company or such other agreements entered into between the Company and Executive.
(f)    Separation Bonus Right.  If Executive dies or the Company terminates Executive’s employment for any reason (including due to Executive’s Disability) other than for Cause, and subject to Executive’s execution, delivery and non-revocation of a general release of claims in the current form approved by the Company and attached as Exhibit C (subject to any amendments required  by law or regulation)  (the “Release”)  which  shall be provided  to Executive by the Company no later than five (5) business days after the last date of employment,  and executed by Executive  either twenty-one  (21)  days or forty-five  (45) days thereafter  (in accordance  with applicable law), before the sixtieth (60th) day following the last date of employment, the Company will pay Executive an amount (the “Separation Bonus”) equal to three (3) years of Base Salary, less any Base Salary amounts previously paid during the Term prior to such termination; provided, however, that in no event shall any such severance amount paid to Executive during the first three (3) years of the Initial Term be less than $500,000.  The Separation Bonus, if any, will be paid in three (3) equal annual installments, with the first instal1ment being paid within ten (10) days following the date on which the Release becomes effective and binding upon Executive and each subsequent installment being paid on each anniversary of the last day of Executive’s employment so long as Executive is in compliance with Executive’s obligations set forth in Sections 3,4 and 5.  If the sixty (60) day period in which to sign the Release begins in one calendar year and ends in a later calendar year,  the Separation Bonus will commence to be paid in the later calendar year.  In no event may Executive designate the year in which the Separation Bonus will be paid. If Executive properly 
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executes the Release by the deadline set forth above and does not effectively revoke the executed Release within the applicable revocation period set forth in the Release, then the Company  shall execute the Release within eight (8) days of its  delivery by Executive. If Executive does not properly execute the Release by the deadline set forth above, or effectively revokes the executed Release within the applicable revocation period set forth in the Release, Executive (or Executive’s estate) will not be entitled to any Separation Bonus.
(g)    Definitions.  As  used  in  this  Agreement,  the  following  terms  shall have  the following meanings:
i.    “Affiliate” or “Affiliated” of or with any specified entity or Person means any other entity or Person controlling, controlled by or under common control with such specified entity or Person.   For purposes of this definition,  “control”  (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of any specified entity or Person, whether through the ownership of voting securities, by contract or otherwise, and such “control” will be presumed if any other entity or Person owns a majority or more of the voting capital stock or other ownership interests, directly or indirectly, of such specified entity or Person.
ii.    “Aggregate Net Income” means the total net income of the Acquisition Target  Entity  realized  from the  closing  date  of the Acquisition  Transaction  up  through  the applicable measuring date.
iii.    “Aggregate Net Sales” means aggregate gross sales revenue earned by a Joint Venture Entity in the first 12  months following Launch minus the amount of any refunds paid by the Joint Venture Entity in such calendar year.
iv.    “Cause”  means any of the following:  (i) Executive’s repeated and gross failure to perform his material duties under this Agreement,  after written notice of such non- performance has been given by Company to Executive with thirty (30) days to cure such non- performance; (ii) use of illegal drugs by Executive; (iii) Executive’s commission of a felony, a crime of moral turpitude or a misdemeanor involving fraud or dishonesty (for avoidance of doubt, a single driving while intoxicated (or other similar charge) shall not be considered a felony or crime of moral turpitude); (iv) Executive’s perpetration of any act of fraud or material dishonesty against or affecting the Company, any of its Affiliates, or any customer, agent or employee thereof; (v) Executive’s material breach of fiduciary duty or material breach of this Agreement, after written notice of such breach has been given by Company to Executive with thirty (30) days to cure such breach; (vi) Executive’s repeated insolent or abusive conduct in the workplace, including but not limited to harassment of others of a racial or sexual nature after notice of such behavior; (vii) Executive knowingly taking any action which is intended to materially harm or disparage the Company, its Affiliates, or their reputations, or which would reasonably be expected to lead to unwanted or unfavorable publicity to the Company or any of its Affiliates; or (viii) Executive knowingly engaging in any act of material self-dealing without prior notice to and consent by the Board.   Any act,  or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company.
v.    “Disability” means Executive’s inability, due to physical or mental incapacity, to perform the essential functions of his job, for ninety (90) days, whether or not consecutive,  in any twelve (12) month period.  Any question as to the existence of Executive’s Disability as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company. If Executive and the Company cannot agree as to a qualified 
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independent physician, each shall appoint such a physician and those two physicians  shall select a third who shall make such determination  in writing.  The determination of Disability made in writing to the Company and Executive by an independent physician in accordance with this Section 2(g)(v) shall be final and conclusive for all purposes of this Agreement. The Company shall have the right to terminate the employment of Executive under this Agreement for Disability during the Term if, in the opinion of the independent physician, Executive meets the definition of Disability set forth in this Section 2(g)(v). In case of Executive’s termination by the Company pursuant to Executive’s Disability, Executive shall be entitled to receive such salary, bonuses, benefits, and reimbursable expenses owing to Executive through the date of termination as set forth in this Agreement. Upon payment to Executive of all accrued but unpaid  salary,  bonuses, benefits,  and reimbursable  expenses owing to Executive through the date of termination of Executive’s  employment as set forth in this Agreement,  the Company shall have no further obligation to Executive.
vi.    “Enterprise Value” shall be determined by Holdings or any of its Affiliates and the seller of the Acquisition Target Entity at the time of the Acquisition  Transaction and documented in the definitive documents for such Acquisition Transaction and in the Acquisition Schedule in the form attached as Exhibit A. In no event shall the Enterprise Value be less that an amount equal to the Purchase Price paid for an Acquisition Transaction divided by Holdings’  (or any Affiliate’s) ownership percentage of the Acquisition Target Entity.
vii.    “Good Reason” means, without Executive’s consent: (i) material breach of this Agreement by Company;  (ii) a requirement that Executive relocate his primary place of employment to a geographic location outside of a seventy (70) mile radius from either (i) the Company’s location in Baltimore, Maryland or (ii) an Affiliate’s office location in Delray Beach, Florida, as of the Effective Date; (iii) a requirement that Executive relocate his primary place of employment to a geographic location outside of Miami-Dade County,  Florida;   (iv) if both Porter Stansberry and Mark Arnold shall cease to be employed by the Company, or (v) a reduction in Executive’s title or authority (unless agreed to in advance by Executive in  writing); provided, however, that a resignation will be a resignation for Good Reason only if Executive shall have first provided written notice of the condition constituting Good Reason to the Board no later than sixty (60) days after Executive knew or should have reasonably known given his position with the Company of the existence of the condition and the Company shall have failed to cure such condition within thirty (30) days of the Board’s receipt of notice.
viii.    “Holdings Strategic Transaction” shall mean either (i) the sale of at least 35% of the outstanding ownership interests  of Holdings,  (ii) any other transaction or series of related transactions in which at least 35% of the outstanding ownership interests in Holdings shall be transferred, directly or indirectly, from the existing owners (or shall be issued by Holdings) to one or more persons  or organizations  not presently  direct  or indirect owners  (including  the admission of new members  to Holdings)  or (iii) an initial public offering  of the interests of Holdings.
ix.    “Net Income”  means net income of Holdings  after deducting operating expenses (including, but not limited to, salaries, royalties, Performance Bonuses, and any other contractual  and discretionary  bonuses),  but  before  deducting  income  taxes,  interest  and any distribution, dividend or dividend-like payments to equity holders of the Company or equity-like partners and employees (i.e., holders of a contractual right to a Profits Interest). The determination of Net Income shall be determined by the Company in its reasonable discretion and in good faith.
x.    “Launch” means the date the first product for a Joint Venture Entity is sold to the general public and generates revenue.
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xi.    “Person” means  any  individual,  sole  proprietorship,  partnership,  joint venture, trust, unincorporated association, corporation, limited liability company, entity or governmental entity (whether federal, state, county, city or otherwise and including any instrumentality,  division,  agency  or  department  thereof),  including  any  group  of Affiliated Persons.
xii.    “Purchase Price” shall mean an amount equal to: (i) any consideration paid or exchanged directly or indirectly by Holdings or any of its Affiliates  in connection with an Acquisition  Transaction; plus  (ii) any capital  contributions  directly or indirectly invested by Holdings or any of its Affiliates in the Acquisition Target Entity in connection with the Acquisition Transaction.  If the amount of consideration cannot be reasonably determined due to the structure of the Acquisition Transaction, the Parties shall use their best efforts to determine the applicable Purchase Price.  In any event, the Purchase Price shall be determined by the Parties at the time of the Acquisition Transaction and documented in the definitive documents for such Acquisition Transaction and in the Acquisition Schedule in the form attached as Exhibit A.
(h)    Expenses.  The Company shall reimburse Executive for any reasonable travel and other  out-of-pocket  expenses  incurred  by  Executive  in  the  performance  of his  obligations hereunder, including travel, cell phone, dining and entertainment, and similar expenses; provided that such expenses shall have been documented and submitted in accordance with the regular reimbursement procedures and practices of the Company in  effect from time to time.   Travel expenses will be reimbursed within thirty (30) days of delivery of an expense report and applicable receipts.
(i)    Benefits.  Executive  shall be eligible to participate  in all individual and group medical, dental, disability, life insurance, accidental death, savings, retirement and/or 401k plan and all other fringe benefits and executive perquisites generally provided to employees and/or other  executives  of the  Company  similar to Executive  on terms and based  on any required employee contributions no less favorable to Executive than as apply to other such employees and similar executives generally.  Executive is entitled to four (4) weeks’  paid vacation during each calendar year, with the scheduling of such vacation to be determined in accordance with the Company’s vacation policies as in effect from time to time.   If Executive does not take the full vacation available in any year, the unused vacation may not be carried over to the next calendar year, and Executive will not be compensated for it.
(j)    Office Expenses.  Company shall provide Executive with, or pay directly, for an office the location of which shall be located in Miami-Dade County, Florida and shall be mutually determined by the Parties, including reasonable ancillary expenses for such office.
3.    License Grant.
(a)    Executive  hereby  grants  to  Company  and  its  affiliates  the  right  to  trade  off Executive’s  name,  reputation,  likeness  and  background  in  promotional  material  aimed  at marketing the Products to potential and current subscribers,  as well as at seminars,  conferences and any related events, during the term of this Agreement  and for a period of five (5) years following the termination or expiration of this Agreement;  provided,  however,  that in no event does  this  Agreement  authorize  Company  or  any  of its  affiliates  to  use  Executive’s  name, reputation, likeness and background in any manner that is negative or detrimental to Executive.
(b)    Executive agrees that all intellectual property, including copyright and trademark, produced under this Agreement is considered work for hire and therefore is the sole property of Company and/or its affiliates.
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(c)    Executive agrees that all designs, trademarks, discoveries, formulas, processes, techniques,  strategies,  trade secrets,  inventions,  improvements,  copyrightable works,  and/or the like,  including  all rights  to obtain,  register, perfect  and  enforce  these  proprietary interests,  that Executive  may solely or jointly  develop,  conceive,  or reduce  to practice  or author, in whole or in part,  during  Executive’s  employment or association with  Company  or its affiliates  that relate  to his employment or association or are aided by the use of time, material,  or facilities  of Company or its Affiliates,  whether  or not  during  normal  working  hours,  (“Inventions”) are  the  sole  and exclusive  property  of Company  and/or  its affiliates  and are considered works  for hire under  the U.S.  Copyright  Act, including,  but not limited  to, as a contribution to a collective  work, as a part of a motion picture or other audiovisual  work, as editorial copy, as a translation,  as a supplementary work, as a compilation,  as an instructional text, as a test, as answer  material  for a test,  as an atlas or as any other applicable  category. Without  compensation, Executive  hereby assigns to Company his entire right, title, and interest in and to the Inventions,  and agrees to execute  all documents  and take all other actions  deemed  necessary  by Company  to protect  its rights in any such Inventions, including   to  vest  Company   or  its  designee  with  sole  ownership   of all  Inventions.  Executive represents   and  warrants   that  his  development  and  use  of the  Inventions   will  not  infringe, misappropriate or otherwise  violate  any intellectual  property  rights  of any third party  (including without  limitation  any of Company’s  former  employers) or any duty  owed by Company  to any third  party  (including  without  limitation  any  of Company’s  former  employers).   To the  extent allowed  by  applicable   law,  all  rights  to  Inventions   include   all  rights  of paternity,  integrity, disclosure  and withdrawal and any other rights that may be known as or referred to as moral rights, artist’s rights, droit moral or the like (collectively,  “Moral Rights”). To the extent Executive  retains any such Moral Rights under applicable  law, he hereby ratifies and consents to any action that may be taken with respect to such Moral Rights by or authorized  by Company  and agrees not to assert any Moral  Rights  with  respect  thereto. Executive  will  confirm  any such ratification, consent  or agreement  from time to time as requested  by Company. Executive  shall return all tangible  evidence of such  Inventions,   including, but  not  limited  to,  any papers,  lists,  books,  files,  and  computer diskettes or CDs, to Company prior to or at the termination of this Agreement or extensions  thereof, if any, with or without  Company’s request, or upon Company’s written request.
4.    Non-Compete and Confidential Information.
(a)    Unless  otherwise agreed to by the Board,  Executive hereby  agrees  and covenants that he will  not (i) write or contribute  to the publication of any financial  material,  or (ii) directly or indirectly,  engage  in any business  on behalf of himself or any other person,  and whether  as an owner, director, officer, employee,  or consultant, which  could  be deemed  competitive with  the Products  or other products  owned  by Company  or any of its Affiliates  (hereinafter,  “Compete”) while he is an employee  of Company  and for a period  of two (2) years following  the termination of such employment; (the “Non-Compete Term”); provided,  however, that if Executive  resigns for Good Reason  or is terminated  by the Company  without  Cause, then the Non-Compete Term shall expire upon such resignation or termination of employment.
Any financial writing for a financial newsletter and/or Internet-related financial product  is deemed per se competitive.
(b)    During the Non-Compete Term, Executive  also will not, directly  or indirectly:
1.    induce or encourage  any employee  or independent contractor  of Holdings  or its  Affiliates   to  leave  or  reduce  such  employment or  engagement,  whether   such  employment  or engagement is pursuant to a contract or at will, or, on his own behalf or on behalf of any person or entity, employ or engage in any capacity any former employee or independent  contractor  of Holdings or its 
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Affiliates, unless such former employee or independent contractor will have ceased to be so employed or engaged by Holdings or its Affiliates for a period of at least one (1) year immediately prior to such employment or engagement; or
2.    on his own behalf or on behalf of any person or entity,  solicit or call upon, or attempt to solicit or call upon, any customer of Holdings  or its Affiliates  (as of the date of termination of this Agreement),  for the purpose of selling or providing any product or service which is competitive with any of the products owned, sold, managed or distributed by Holdings or its Affiliates.
(c)    Confidential Information. Executive acknowledges and agrees that Company and any of its Affiliates,  in the course of performing their business activities,  acquire and develop Confidential Information (as defined below) that provides them with a business advantage and that Executive will be provided with such Confidential Information during his association with Company and any of its Affiliates. Executive agrees that he will not, directly or indirectly, at any time during or after the Term of this Agreement, use (whether on his own behalf or on behalf of any other person or entity) or disclose (to any person or entity) any Confidential Information, except as may be required by law or necessary in the performance of his duties for Holdings or any  of its  Affiliates  during  the  Term.  “Confidential Information”  means  all  confidential, proprietary, and non-public information (whether in written, electronic, or other form) of Holdings, or any of its Affiliates  or third parties with whom Holdings or any of its Affiliates do business (including without limitation investors,  sources of investment capital,  and suppliers of Holdings or any of its Affiliates), including without limitation the following information of Company or any of its Affiliates:  trade secrets; business information; track record information; books and records used to calculate and present track record information; information regarding the assets and affairs of Holdings  or any of its Affiliates;  financial  information;  operating  methods  or strategies; portfolio holdings and performance; marketing plans or strategies; competitive know-how; processes;  forecasts;  investor lists  or other investor-related  information  of any kind;  subscriber lists or other subscriber-related information of any kind, and any other information of a similar nature not already in the public domain. Confidential Information also includes any information that  becomes  publicly  available  as  a direct  or  indirect  result  of Executive’s  breach  of this Agreement or other obligation to Holdings or any of its Affiliates.   Notwithstanding anything to the contrary in this Section 4(c), the provisions in this Section shall not apply to information that: (1) is in the public domain at the time of disclosure by Executive or is subsequently made available to the general public through no violation of this Section 4(c) by Executive;  (2) is independently developed  by  Executive  without  use  of or reference  to the  Confidential  Information;  (3) is disclosed with the prior written consent of the Holdings or any of its Affiliates; or (4) is required to be disclosed by law or by regulatory, judicial  or arbitration process.   Executive will take all reasonable  and  necessary  precautions  to  prevent  disclosure  of Confidential  Information  to unauthorized persons or entities.  Executive further agrees to immediately notify the Holdings or any of its Affiliates if he becomes aware that Confidential Information has been improperly used or disclosed.  In the event Executive is requested or required (by oral questions, interrogatories, requests  for Confidential  Information  or documents  in a court or administrative  proceeding, subpoena, civil investigative demand or other similar process) to disclose any Confidential Information,  Executive will,  to the extent permitted under applicable law,  (i) immediately  (and prior to such disclosure) notify the Company by providing notice to the Company and cooperate with Company (at Company’s sole expense) in any efforts by them to oppose such disclosure, and (ii) will disclose only that portion of the Confidential Information that is legally required to be disclosed and exercise reasonable efforts to ensure that such Confidential  Information will be afforded confidential treatment.  Executive acknowledges and agrees that Executive has not, and will not, acquire any right, title or interest in or to any of the Confidential Information.
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Under the Defend Trade Secrets Act of 2016, the Company hereby provides notice and Executive hereby acknowledges that Executive may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (B) is solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
5.    Warrants, Covenants, Indemnity and Forfeiture.
(a)    Executive hereby warrants and covenants that any editorial or promotional work produced under this Agreement by him shall not knowingly violate or infringe any copyright(s) and shall not knowingly contain anything libelous or otherwise contrary to the law.  Executive also covenants and agrees to undertake reasonable efforts to comply with any and all internal securities trading, customer relations, information barrier, and similar policies of the Company.
(b)    Each of the Parties shall each have the right to take legal action against an unrelated third party in the event of any infringement or violation of the rights of the Party and each shall be solely responsible for its expenses in such suit.  However, the Company agrees to provide a legal defense (including the payment of legal fees and any court ordered damages that are assessed against  Executive)  for  legal  claims  asserted  against  Executive  arising  out  of Executive’s employment with Company,  unless such actions are in violation of this Agreement,  applicable policies of the Company, or applicable law.
(c)    Executive shall indemnify and hold harmless Holdings and its Affiliates for any losses resulting from a willful and intentional breach in bad faith of the warranties and covenants by Executive in Sections 3, 4 and 5, including reasonable attorney’s costs, suffered by Holdings and/or its Affiliates.  The Parties agree that the foregoing representations, covenants and indemnity by Executive  shall not extend to any editorial, marketing  or promotional materials  Holdings provides to Executive so long as Executive's presentation of such material is consistent with the warranties and covenant described in Section 5(a) above.
(d)    Executive represents and warrants to the Company that: (i) Executive has the full power and authority to enter into this Agreement and to incur and perform Executive’s obligations hereunder; and (ii) the execution, delivery and performance by Executive of this Agreement does not conflict with or result in a breach  or violation of or constitute  a default under  (whether immediately, upon the giving of notice or lapse of time or both) any agreement or instrument to which Executive is a party or by which Executive may be bound or affected.
(e)    The Company represents and warrants to Executive that: (i) it is duly organized, validly existing and in good standing under the laws of the State of Maryland, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted;  (ii) it is  duly qualified  to conduct  business  and is in good standing  as a foreign corporation or other entity in each jurisdiction  in which the nature of the business conducted or property owned by it makes such qualification necessary;  (iii) it has full power and authority to enter  into  this  Agreement  and  to  incur and perform  its obligations  hereunder;  and  (iv) the execution, delivery and performance by the Company of this Agreement does not conflict with or result in a breach or violation of or constitute a default under (whether immediately,  upon the giving  of notice  or lapse  of time  or both)  the  articles  of organization, bylaws,  or operating agreement of the Company, or any agreement or instrument to which the Company is a party or by which the Company or any of its properties may be bound or affected.
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(f)    Holdings represents and warrants to Executive that: (i) it is duly organized, validly existing and in good standing under the laws of the State of Florida, with the requisite power and authority  to own and use  its  properties  and assets  and to carry  on its business  as currently conducted;  (ii) it is  duly qualified  to conduct  business  and is in good  standing  as a foreign corporation or other entity in each jurisdiction  in which the nature of the business conducted or property owned by it makes such qualification necessary;  (iii) it has full power and authority to enter  into  this  Agreement  and  to  incur and perform  its  obligations  hereunder;  and  (iv) the execution, delivery and performance by Holdings of this Agreement does not conflict with or result in a breach or violation of or constitute a default under (whether immediately, upon the giving of notice or lapse  of time or both) the articles of organization,  bylaws,  or operating agreement of Holdings, or any agreement or instrument to which Holdings is a party or by which Holdings or any of its properties may be bound or affected.
6.    Term and Termination.
(a)    Term.  Unless terminated earlier pursuant to the terms of this Agreement, Executive’s employment hereunder shall be effective as of the Effective Date and shall continue until July 30, 2021 (the “Initial Term”), and shall automatically renew for additional one (1) year renewal  periods  (each,  a “Renewal Term,”  and together  with  the Initial Term,  the “Term”); provided, however, at any time within one hundred eighty (180) days prior to the expiration of the Initial Term or any subsequent Renewal Term, any Party may (1) request the other to negotiate the terms of a renewal of this Agreement or (2) elect not to renew the Agreement by providing written notice to the other Parties.   Notwithstanding the foregoing, none of the Parties shall be obligated to renew this Agreement beyond the Initial Term or any subsequent Renewal Term, as applicable.
(b)    Termination. Any Party may terminate  Executive’s employment  at any time in accordance with the applicable provisions  herein, provided that: (i) the Company shall provide Executive  sixty (60) days prior written notice in the event the Company  terminates  Executive without Cause;  or (ii) Executive  shall provide the Company with sixty (60) days prior written notice before terminating his employment, in which case, for the avoidance of doubt, the Company may relieve Executive of some or all of his duties (which shall not trigger Good Reason) during such 60-day notice period provided that the Company pays Executive his salary, bonuses, benefits and any compensation due to Executive for the portion of the notice period that is waived. Upon termination of Executive’s employment, for any reason, he shall receive unpaid salary, bonuses, benefits    and   any   compensation   due   to   Executive    through   the   date   of  termination    and reimbursement for any expenses  incurred through the date of termination  pursuant to Section 2(h) along with any benefits  through  such date.
1.    If during the applicable  Performance  Year, Executive  resigns without Good Reason  or Company  terminates  the Executive’s employment  for Cause,  then Executive  shall not receive  and Executive  shall not be entitled to the Performance  Bonus or any other bonus, nor any portion thereof.
2.    Executive  is eligible for a Separation  Bonus subject to the terms of Section 2(f) above.
3.    Any  Profits  Interests  rights  granted  to  Executive   by  Holdings   that  are unvested   as  of the  date  on  which  Executive’s  employment   terminates   shall  automatically  be forfeited  and Executive  shall have no further rights with respect to such award.
4.    Executive   acknowledges  and  agrees  to  the  following   in  the  event  that Executive   breaches   Section 4  of this  Agreement   and  such  breach   either  (1)  results   in  the termination    of  Executive’s   employment  with   the   Company   or   (2)   occurs   following   the 
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termination   of Executive’s  employment  with  the  Company:  all  compensation  and  benefits otherwise  payable pursuant  to this Agreement  and the vesting and/or exercisability of applicable bonuses,  Performance  Bonuses and Profits Interests, and other forms of compensation previously awarded  to Executive,  shall  immediately cease;  and  any  and  all Profits  Interests  in described herein shall be immediately forfeited by Executive.
7.    Assignment  of Agreement.   Executive’s services and functions are considered unique. This Agreement  or any rights  or obligations  herein  may  not be assigned  or otherwise  transferred  by Executive  to any other party  without  the prior written  consent  of Company,  which  consent  shall not be unreasonably withheld.
8.    Indemnification; Insurance.  During Executive’s employment and thereafter, the Company shall indemnify and hold Executive  harmless  against  any costs or expenses  (including  attorneys’ fees), judgments, fines, penalties,  losses, claims, damages or liabilities incurred in connection  with any  claim,  action,  suit,  proceeding   or  investigation,   whether  civil,  criminal,  administrative  or investigative, by reason  of the fact that Executive  is or was a Board member,  manager,  director, officer, employee  or agent of the Company  or any Affiliate, whether  asserted or claimed prior to, at or after the date of Executive’s termination of employment,  to the fullest extent permitted under applicable  law  and  on a basis  no less  favorable  than what  is provided  to any other  continuing officer or director of the Company; provided, however, that Executive  acted in good faith and in a manner Executive reasonably  believed to be in or not opposed to the best interests of the Company; or was  acting  in good  faith  reliance  upon  the  records  of the  Company,  including  its  financial statements,  or upon  information,  opinions,  reports  or statements  furnished  to Executive  by the Board,  officers  or employees  of Holdings,  or any of its Affiliates  in the course  of their duties,  or by committees  of the  Board,  or by any  other  person  (including  legal  counsel,  accountants  and financial  advisors) who has been selected with reasonable  care by or on behalf of the Company  or any of its Affiliates;  or in the case of a criminal  proceeding  or claim, had no reasonable  cause to believe   Executive’s  conduct  was  unlawful.    During   Executive’s  employment  and  thereafter, Company  shall provide Executive  with coverage under a policy of directors’ and officers’ liability insurance   that  provides   Executive   with  coverage   on  the  same  basis  as  is  provided   for  the Company’s continuing  officers  and directors  from time to time, in the event Company  decides to obtain such coverage.
9.    Integration, Amendments and Modifications.  This Agreement sets forth the entire agreement among  the Parties  hereto  with respect  to the subject  matter  herein  and supersedes  all prior  and  contemporaneous  understandings,  agreements   representations  and  warranties,  both written and oral, with respect to such subject matter. The Parties mutually agree that the Agreement can be specifically  enforced  in court  and can be cited  as evidence  in legal proceedings  alleging breach  of the Agreement.  This Agreement  may not be amended  or modified  except by a writing duly executed by the Parties hereto.
10.    Confidentiality.  The  Parties  agree  that  this  Agreement  is  confidential   and,  except  as otherwise  required  by  law  or  court  order,  no  party  shall  disclose  the  terms  herein  to  anyone, including  any employee  of Holdings.  Notwithstanding the foregoing,  Company  may disclose  the terms of this Agreement  to senior management of Holdings.  Executive  may disclose this contract to  his  immediate   family  member   and  his  legal  and  financial   representatives  provided   such disclosures  are protected  by professional codes of conduct  or signed confidentiality agreements.
11.    Severability; Provisions  Subject to Applicable Law.  All provisions  of this Agreement  shall be applicable  only to the extent that they do not violate  any applicable  law.   If any provision  of this Agreement  is found invalid or unenforceable pursuant  to judicial  decree,  such provision  will be 
12

enforced  to the maximum  extent permissible and the remainder  of the Agreement  will remain in full force and effect  according  to its terms.
12.    Arbitration.  The Parties agree that any dispute arising from or relating to this Agreement, or the breach  thereof, shall be submitted  to the American  Arbitration  Association  (“AAA”) for binding  arbitration  to take place in Baltimore,  Maryland  before  a single arbitrator  under the rules of the AAA  Employment Arbitration  Rules  and Mediation  Procedures,  and the  decision  of the arbitrator  shall be final and binding upon the Parties.  Notwithstanding the foregoing,  in the event of any Party’s breach  of any of the covenants  set forth in Sections 3, 4, 5 or 8, a Party shall have the right to obtain injunctive  relief from any federal or state court of competent jurisdiction located within Baltimore  County, Maryland  and will not be required  to arbitrate  any claim for the breach of such  Sections. Accordingly, except  as provided  in the prior  sentence,  the Parties  will not be permitted  to pursue court action regarding  claims that are subject to arbitration.
13.    Governing Law; Venue.  This  Agreement  and  the rights  and  obligations  of the  Parties hereto  shall be governed,  construed,  interpreted  and enforced  in  accordance  with the laws of the State of Maryland,  without  giving  effect  to the principles  of conflict  of laws.  The Parties  hereto hereby irrevocably  submit to the exclusive jurisdiction of the federal or state courts located within Baltimore  County, Maryland  in the event that (1) a Party seeks injunctive relief with respect to a breach  of any of the covenants  set forth in Sections 3, 4, 5 or 8 or (2) a Party seeks to enforce an arbitration  award.  In the event of a breach  of the covenants  set forth in Sections 3, 4, 5 or 8, the Parties  agree  that, in addition  to any other remedies  available  at law or equity,  a Party  may file litigation  against  another  Party  seeking  specific  performance and temporary  and/or  preliminary injunctive  relief,  enjoining  or restraining  such breach,  and the Parties  consent  to the issuance  of such injunctive relief without bond. The Parties agree that if a Party initiates litigation seeking to enforce an arbitration award, the Party initiating such litigation shall be entitled to recover from the other Party  reasonable  attorney’s fees and costs incurred  in such litigation,  including all reasonable and necessary attorney’s fees and costs arising from a successful appeal. The Parties consent  to  the  personal  jurisdiction  of such  courts  and  thereby  waive:  (a) any  objection  to jurisdiction  or venue;  or (b) any defense claiming lack of jurisdiction  or improper venue,  in any action brought in such courts.
14.    Section  409A.
(a)    The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986,  as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Section 409A”) and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Section 409A.  If for any reason, such as imprecision in drafting, any provision of this  Agreement  (or  of  any  award  of compensation,   including,  without  limitation,  equity compensation or benefits) does not accurately reflect its intended establishment of an exemption from (or compliance with) Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision  shall be considered ambiguous as to its exemption from (or compliance with) Section 409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company.
(b)    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered  non qualified   deferred  compensation  under  Section  409A  upon  or  following  a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A, and,  for purposes of any such provision of this Agreement, references to a “termination,” 
13

“termination of employment” or like terms shall mean “such a separation from service.”   The determination  of whether  and when a separation from service has occurred for proposes of this Agreement shall be made in accordance with the presumptions set forth in Section 1.409A-1(h) of the Treasury Regulations.
(c)    For  purposes  of Section  409A,  Executive’s  right  to  receive  any  installment payments  shall be treated  as a right  to receive  a series  of separate  and  distinct  payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (for example, “payment  shall be made within thirty (30) days following the date of termination”),  the actual  date of payment within the specified period shall be within the sole discretion of the Company.   In no event may the Executive,  directly or indirectly, designate the calendar year of any payment to be made under this Agreement,  to the extent such payment is subject to Section 409A.
(d)    If Executive is a “specified employee” (as that term is used in Section 409A) on the date the separation from service becomes effective  and the payment of the amounts under this Agreement   payable   upon   a   separation   from   service   constitute   non qualified   deferred compensation, the payment of which would result in additional taxes or penalties under Section 409A, then such payments shall be delayed until the first business day following the six (6)-month anniversary of the date the separation from service becomes effective, but only to the extent necessary to avoid such additional taxes or penalties under Section 409A.  On the first business day following the six (6) month anniversary of the date the separation from service becomes effective, the Company shall pay Executive in a lump sum the aggregate value of the nonqualified deferred compensation that the Company otherwise would have paid prior to that date under this Agreement.
(e)    The provisions of this Agreement are intended to be exempt from or otherwise comply with Section 409A and will be operated and administered in accordance with such intent.
15.    Waiver. No waiver by the Parties of any breach by a Party hereto of any condition or provision of this Agreement to be performed by such Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by a Party in exercising any right, power,  or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.
16.    Survival.  Notwithstanding anything to the contrary in this Agreement, Sections 2, 3, 4, 5, 6(b), 8 and 10 through 24 will  survive the termination  of Executive’s  employment  and the termination  or expiration  of the Term,  as shall all other  Sections herein that by their nature contemplate survival beyond the termination of Executive’s employment with the Company.
17.    Notice.  Any  notice, demand, request or other communication which Executive or Company may be required to give the other Party hereunder shall be in writing, shall be effective and deemed received the following business day when sent by overnight mail, upon transmission if sent by e-mail, or the third business day after deposited in first class United States mail, postage prepaid.  The current contact information for each Party is:
For Company:
Mark Arnold
Chief Executive Officer
1125 N. Charles Street
Baltimore, MD, 21201
E-mail: marnold@stansberryresearch.com
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For Executive: 
Marco Ferri
3335 Alton Road
Miami Beach, FL 33140
E-mail: ferrifamily5@gmail.com
18.    Headings.  The headings used in this Agreement are solely for convenience of reference and shall not affect its interpretation.
19.    Construction.  The Parties agree that any rule of construction  to the effect that ambiguities are to be resolved  against the drafting Party shall not apply in the interpretation of this Agreement.
20.    Counterparts. This Agreement  may be executed  in one or more counterparts,  each of which shall be deemed to be an original and all of which together  shall constitute  one instrument.
21.    Prevailing  Party.  In the  event  any  dispute  arises  out  of or relating  to  this  Agreement, whether  in law or equity, the prevailing  Party shall be entitled  to recover, in addition  to the relief awarded,  its reasonable  attorneys’ fees,  paralegals’  fees and costs, at all levels whether  pursuant to an arbitration  proceeding,  at trial, on appeal, or in bankruptcy.
22.    Specific  Performance.  The  Parties  agree  that  irreparable   damage  would  occur  if any provision  of this Agreement  were not performed  in accordance  with the terms hereof and that the Parties shall be entitled to specific performance  of the terms hereof, in addition to any other remedy to which they are entitled  at law or in equity.
23.    Further Assurances.  If any further action is necessary  or desirable to carry out the purposes of this  Agreement,  each  Party  agrees  to take  such  further  action  (including  the  execution  and delivery  of such further instruments  and documents)  as the other Party may request,  all at the sole cost and expense of the requesting  Party.
24.    Signature. A signed copy transmitted via e-mail or an electronic signature is presumed authentic and will be accepted as an original unless shown to be invalid by the other Party.  This Agreement may be executed in two or more counterparts, each of which counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.
[SIGNATURES  ON FOLLOWING PAGE]
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IN WITNESS WHEREOF,  the Parties have duly executed this Agreement as of the Effective Date.
												
	S&A Holdings (2013), LLC		
				
	By:	/s/ Mark Arnold
	
		Name: Mark Arnold		
		Its: Chief Executive Officer		
				
				
				
	/s/ Marco Ferri		
	Marco Ferri		

16

EXHIBIT A – Acquisition Schedule
Name of Acquisition Target Entity: 
Date of Acquisition Transaction:
Acquisition Target  Entity’s Enterprise Value on Date of Closing: 
Purchase  Pasdfasdfrice:
1.    Executive  shall  be paid  [two percent  (2%)  of the Enterprise Value  of the Acquisition Target  Entity] upon the closing  date of the Acquisition Transaction;
2.    Executive  shall be paid  [one percent  (1 %) of the Enterprise Value  of the Acquisition Target  Entity]  if,  as of [the expiration of the indemnification period  contained in the Acquisition Transaction documents, which  shall be at least six months  to one year depending on transaction conditions, or greater  if representation and warranty   insurance  is purchased for the Acquisition Transaction], the  aggregate  amount  of any indemnity  claims  and  adverse  Purchase Price  adjustments totals  no  more  than[  __% of the  Purchase   Price for  the  Acquisition Target Entity];  and
3.    Executive  shall  be paid  [two percent  (2%) of the Enterprise  Value  of the Acquisition Target  Entity]  if,  on the earlier  of [the third or fourth  anniversary of the closing  date of the Acquisition Transaction], the product of the Aggregate Net Income of the Acquisition Target Entity as measured from the closing  date of the Acquisition Transaction multiplied by [Holdings’(or any  of its Affiliate’)  ownership  percentage of the Acquisition Target  Entity],  exceeds  [the Purchase  Price of the Acquisition Target Entity].
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EXHIBIT B Joint Venture Schedule
Name of Joint Venture Entity:
Joint Venture Entity’s Launch Date:
Joint Venture Performance Bonus Structure:
[DETAILS TO BE PROVIDED IF DIFFERENT FROM SECTION 2(d)]
18

EXHIBIT C – Form of Release
19Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of May 27, 2021, between LGBTQ Loyalty Holdings, Inc.,
a Delaware corporation (the “Company”), and the purchaser identified on the signature page hereto (including its successors
and assigns, the “Purchaser”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser,
and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

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

 

ARTICLE
I.

DEFINITIONS

 

1.1 Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

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

 

“Closing
Date” means initially, subsequent to the effectiveness of the Registration Statement, the Trading Day on which all of the Transaction
Documents have been executed and delivered by the applicable parties thereto in connection with the Closing, and, to the extent applicable,
all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount as to each Closing and (ii) the Company’s
obligations to deliver the Securities as to the Closing, in each case, have been satisfied or waived.

 

    	 

     

    

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1(a), which shall occur on each Closing Date.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Commitment
Shares” means $100,000 worth of Common Stock, with each share valued at the VWAP on the Trading Day immediately preceding the
date of this Agreement. The Commitment Shares shall be deemed earned upon the date they are due to be issued.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such
securities may hereafter be reclassified or changed.

 

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

 

“Company
Counsel” means McCarter & English, LLP.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

“Event
of Default” means any of the following events: (i) the suspension, cessation from trading or delisting of the Company’s
Common Stock on the Principal Market for a period of two (2) consecutive trading days or more; (ii) the failure by the Company to timely
comply with the reporting requirements of the Exchange Act (including applicable extension periods); (iii) the failure for any reason
by the Company to issue Commitment Shares or Common Stock to the Purchaser within the required time periods; (iv) the Company breaches
any representation, warranty, covenant or other term of condition contained in the definitive agreements between the parties; (v) the
Company files or threatens to file for Bankruptcy or receivership or any money judgment writ, liquidation or a similar process is entered
by or filed against the Company for more than $50,000 and remains unvacated, unbonded or unstayed for a period of twenty (20) calendar
days; (vi) any cessation of operations by the Company or failure by the Company to maintain any assets, intellectual, personal or real
property or other assets which are necessary to conduct its business (vii) the Company shall lose the “bid” price for its
Common stock on the Principal Market; (viii) if at any time the Common Stock is no longer DWAC eligible; or (ix) the Registration Statement
registering the resale of the Registrable Securities ceases to be effective for any reason.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

    	2

     

    

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant
to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority
of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) securities
issued due to exercises or conversions of outstanding preferred stock, notes, or warrants, as the case may be and (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that
any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating
company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional
benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“GAAP”
means generally accepted accounting principles in the U.S.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

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

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Purchase
Price” shall mean a fixed price per share equal to 70% of the lowest VWAP during the twenty (20) Trading Day period immediately
preceding, but not including, the date the Registration Statement registering the Common Stock issuable pursuant to this Agreement is
filed, subject to the Trading Price Floor (as defined below).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.7.

 

    	3

     

    

 

“Registrable
Securities” means the Common Stock issuable pursuant hereto and the additional shares of Common Stock listed on Schedule 1
hereto.

 

“Registration
Statement” means any Registration Statement under which the shares of the Company’s common stock is registered.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(g).

 

“Securities”
means the Commitment Shares and the Common Stock.

 

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

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be
deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

“Subscription
Amount” shall mean the aggregate amount to be paid for the Securities purchased hereunder as specified on the signature page
under the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct or indirect
subsidiary of the Company formed or acquired after the date hereof.

 

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

 

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

 

    	4

     

    

 

“Trading
Price Floor” shall mean a fixed price, equaling the lowest VWAP for the Company’s Common Stock during the 20 Trading
Days preceding the filing of the Registration Statement.

 

“Transaction
Documents” means this Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements executed
in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means Action Stock Transfer, the current transfer agent of the Company, with a mailing address of 2469 E. Fort Union
Blvd., Suite 214, Salt Lake City, UT 84121 and any successor transfer agent of the Company.

 

“Valuation
Period” means the five (5) consecutive Trading Day period immediately preceding the applicable Closing.

 

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

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1 (a)
Closings. Upon the effective date of a Registration Statement registering the resale of all of the Registrable Securities, the
Company, upon satisfaction of the applicable deliveries set forth in Section 2.1(b) and the satisfaction of the closing conditions set
forth in Section 2.2, during the one (1) year period following the date hereof (or if sooner, until such time as an aggregate of $10,000,000
worth of Common Stock is issued by the Company to Purchaser pursuant to this Agreement), may require the Purchaser to purchase, and the
Purchaser irrevocably agrees to purchase, as long as no Event of Default currently exists, up to an $10,000,000 of Common Stock at the
Purchase Price (each such closing, a “Closing”). Each Closing shall be for at least $10,000 of Common Stock, and shall
not exceed the lesser of (1) $500,000 of Common Stock, (2) 100% of the average daily trading volume for the Common Stock during the five
(5) Trading Days preceding such Closing date and (3) 4.99% of the then total outstanding number of shares of Common Stock of the Company.
The value of Common Stock issued at a Closing shall be at the Purchase Price and subject to the Trading Price Floor. Notwithstanding
the preceding limitations, but still subject to the cap on amounts exceeding 4.99% of the total outstanding number of shares, the Company
and the Purchaser may mutually agree in writing to increase the size of a particular Purchase.

    	5

     

    

 

A minimum of five (5) Trading Days must elapse between Additional Closings.The Purchaser shall deliver to the Company, via wire transfer immediately available funds equal to the Purchaser’s Subscription
Amount as set forth on the signature page hereto executed by the Purchaser, and the Company shall deliver to the Purchaser such number
of shares of Common Stock purchased and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.
Upon satisfaction of the covenants and conditions set forth in Section 2.2, the Closing shall occur at the offices of Pryor Cashman LLP,
7 Times Square, New York, NY 10036, or such other location as the parties shall mutually agree.

 

(b) Deliveries.

 

(a) On
or prior to the Closing Date (or as otherwise indicated below), the Company shall deliver or cause to be delivered to the Purchaser the
following:

 

(i) This
Agreement duly executed by the Company;

 

(ii) A
certificate evidencing the Commitment Shares;

 

(iii) A
certificate evidencing the amount of Common Stock issuable pursuant to Section 2.1(a)(i);

 

(iv) An
irrevocable letter of instruction to the Company’s Transfer Agent, instructing the Transfer Agent to maintain for the benefit of
the Purchaser one hundred and twenty five million (125,000,000) shares of its common stock. Thereafter, the Company shall evaluate the
share reserve no less than every thirty (30) days to determine whether additional shares shall be added to the reserve. e. The Company
may be required to increase its number of authorized shares available as may be required by the Purchaser pursuant to the Transaction
Documents.

 

(b) On
or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, as applicable, the following:

 

(i) This
Agreement duly executed by the Purchaser; and

 

(ii) the
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company together with the subscription
form attached as an Exhibit below.

 

    	6

     

    

 

		2.2	Closing
                                            Conditions.

 

(a) The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects on the applicable Closing Date of the representations and warranties of the Purchaser contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Purchaser required to be performed at or prior to the applicable Closing Date shall have
been performed; and

 

(iii) the
delivery by the Purchaser of the items set forth in Section 2.1(b) of this Agreement.

 

(b) The
obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects when made and on the applicable Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

 

(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall have been
performed;

 

(iii) the
delivery by the Company of the items set forth in Section 2.1(a) of this Agreement;

 

(iv) the
Company shall have obtained waivers from any party having piggyback registration rights with respect to the Registration Statement to
be filed with respect to the Securities issuable pursuant to this Agreement, with the exception of EMA Financial;

 

(v) there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(vi) from
the date hereof to the applicable Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market and, at any time prior to the applicable Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York
State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable
judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

    	7

     

    

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part
hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section
of the Disclosure Schedules, the Company hereby makes the following representations and warranties to the Purchaser:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly or indirectly,
all of the capital stock or other equity interests of each Subsidiary, and all of the issued and outstanding shares of capital stock
of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents
shall be disregarded.

 

(b) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary
is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected
to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material
adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect
on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”)
and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail
such power and authority or qualification.

 

    	8

     

    

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further
action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other
than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it is a party has been (or
upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will
constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i)
as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.

 

(d) No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which
it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby
do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles
of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or
assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the
Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of
the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably
be expected to result in a Material Adverse Effect.

 

    	9

     

    

 

(e) Filings,
Consents and Approvals. The Company has timely filed all quarterly and annual reports required to be filed by it with the SEC pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed
prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits
to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”).
The Company has delivered to Purchaser true and complete copies of the SEC Documents, except for such exhibits and incorporated documents,
and except as such Documents are available EDGAR filings on the SEC’s sec.gov website. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC Documents is, or
has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent
filings prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company and
its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial
statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to September 30, 2020, and (ii) obligations under contracts and commitments incurred
in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial
statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company.
The Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt, filing of the documents required in
this Section 3(e) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) shall satisfy all
delivery requirements of this Section 3(e).

 

Except
as otherwise provided, herein, the Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person
in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required
pursuant to Section 4.4 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance and
sale of the Securities, and (iii) such filings as are required to be made under applicable state and federal securities laws (collectively,
the “Required Approvals”).

 

(f) Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than
restrictions on transfer provided for in the Transaction Documents.

 

    	10

     

    

 

(g) Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(g), which Schedule 3.1(g) shall also include the number
of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. Except as set forth
on Schedule 3.1(g), the Company has not issued any capital stock since its most recently filed periodic report under the Exchange
Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares
of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise
of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act (“SEC
Reports”). No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents. Except as set forth on Schedule 3.1(g) and except as a result of
the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.
The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person
and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under
any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid
and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was
issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization
of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders
agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a
party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h) Intentionally
omitted.

 

(i) Intentionally
omitted.

 

(j) Litigation.
Except as disclosed in Schedule 3.1(j), there is no action, suit, inquiry, notice of violation, proceeding or investigation pending
or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of
any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected
to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the
subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission
involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the
Securities Act.

 

    	11

     

    

 

(k) Labor
Relations. Except as disclosed in Schedule 3.1(k), no labor dispute exists or, to the knowledge of the Company, is imminent
with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect. None
of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement,
and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company,
no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject
the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries
are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l) Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in 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 it is in default under or that it 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) except as disclosed in Schedule 3.1(l), (ii) is in violation of any judgment, decree or order of
any court, arbitrator or other governmental authority, except as set forth on Schedule 3.1(l) or (iii) to the knowledge of the
Company, is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation
all foreign, federal, state and local laws relating to taxes, other than tax payments related to payroll that are late, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could
not have or reasonably be expected to result in a Material Adverse Effect.

 

(m) Regulatory
Permits. To the knowledge of the Company, the Company and the Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse
Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating
to the revocation or modification of any Material Permit.

 

(n) Title
to Assets. Except as disclosed in Schedule 3.1(n), the Company and the Subsidiaries have good and marketable title in fee simple
to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business
of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value
of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries
and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease
by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries
are in compliance.

 

    	12

     

    

 

(o) Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights
as described in the SEC Reports as necessary or required for use in connection with their respective businesses and which the failure
to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Except as disclosed
on Schedule 3.1(o), none of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any
of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned,
within two (2) years from the date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest
audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual
Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have a Material
Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p) Insurance.
Except as set forth on Schedule 3.1(p), the Company and the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount.
Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

(q) Transactions
with Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary
and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction
with the Company or any Subsidiary (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,
providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or
such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for: (i)
payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii)
other employee benefits, including stock option agreements under any stock option plan of the Company. Except as set forth on Schedule
3.1(q), all employee salaries and contractor fees have been paid to date and no such amounts are outstanding or past due.

 

    	13

     

    

 

(r) Sarbanes-Oxley;
Internal Accounting Controls. Except as may be disclosed in the SEC Reports, the Company and the Subsidiaries are in compliance with
any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable
rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of each Closing Date.
Except as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures
to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The Company’s
certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as
of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation
Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange
Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control
over financial reporting of the Company and its Subsidiaries.

 

(s) Certain
Fees. The Company has or shall engage a suitable Investment Banker in conjunction with the transaction contemplated herein. No brokerage
or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents,
other than as set forth on Schedule 3.1(s). The Purchaser shall have no obligation with respect to any fees or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by the Transaction Documents.

 

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(t) Private
Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as contemplated hereby.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(u) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be
or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The
Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(v) Registration
Rights. Other than as set forth on Schedule 3.1(v), no Person has any right to cause the Company to effect the registration
under the Securities Act of any securities of the Company or any Subsidiary.

 

(w) Listing
and Maintenance Requirements. The Company has not in the twelve (12) months preceding the date hereof, received notice from any Trading
Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing
or maintenance requirements of such Trading Market. The Company is and has no reason to believe that it will not in the foreseeable future
continue to be, in compliance with all such listing and maintenance requirements.

 

(x) [RESERVED]

 

(y) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms
that neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any information that
it believes constitutes or might constitute material, non-public information. The Company understands and confirms that the Purchaser
will rely on the foregoing representation in effecting transactions in securities of the Company. All of the disclosure furnished by
or on behalf of the Company to the Purchaser regarding the Company and its Subsidiaries, their respective businesses and the transactions
contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date
of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and
when made, not misleading. The Company acknowledges and agrees that the Purchaser does not make and has not made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

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(z) No
Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, neither
the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration of any
such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of
the securities of the Company are listed or designated.

 

(aa) Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material
Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all
foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) 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 and (iii) has set aside on its books provision reasonably adequate for the payment of all material 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 or of any Subsidiary know of no basis
for any such claim. Immediately after closing of this transaction, the Company covenants to pay to the Past Due Taxes.

 

(bb) No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchaser.

 

(cc) Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other
person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of
which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of FCPA.

 

(dd) Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(dd) of the Disclosure Schedules. To the knowledge and belief
of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express
its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending December
31, 2020.

 

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(ee) Acknowledgment
Regarding Purchaser’s Purchase of Securities. The Company acknowledges and agrees that the Purchaser is acting solely in the
capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The
Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by the Purchaser or any of its
representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental
to the Purchaser’s purchase of the Securities. The Company further represents to the Purchaser that the Company’s decision
to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions
contemplated hereby by the Company and its representatives.

 

(ff) Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding, it
is understood and acknowledged by the Company that: (i) the Purchaser has not been asked by the Company to agree, nor has the Purchaser
agreed, to desist from purchasing or selling, securities of the Company, or “derivative” securities based on securities issued
by the Company or to hold the Securities for any specified term, (ii) past or future open market or other transactions by the Purchaser,
specifically including, without limitation, “derivative” transactions, before or after a closing of this or future private
placement transactions, may negatively impact the market price of the Company’s publicly-traded securities (iii) Omit and (iv)
the Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. The Company further understands and acknowledges that (y) the Purchaser may engage in hedging activities at various times
during the period that the Securities are outstanding, and (z) such hedging activities (if any) could reduce the value of the existing
stockholders’ equity interests in the Company at and after the time that the hedging activities are being conducted. The Company
acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

 

(gg) Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action
designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale
or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities,
or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company,
other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection with the placement
of the Securities.

 

(hh) Reserved.

 

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(ii) Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan was granted (i) in accordance
with the terms of the Company’s stock option plan and (ii) with an exercise price at least equal to the fair market value of the
Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the
Company’s stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no Company
policy or practice to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the
release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or
prospects.

 

(jj) Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“OFAC”).

 

(kk) U.S.
Real Property Holding Corporation. The Company is not and has never been a U.S. real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

 

(ll) Bank
Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of
1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent
(5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank
or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or
Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and
to regulation by the Federal Reserve.

 

(mm) Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable
financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable
money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”),
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

 

    	18

     

    

 

3.2 Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Dates to
the Company as follows (unless as of a specific date therein):

 

(a) Organization;
Authority. The Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company
or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by the
Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership,
limited liability company or similar action, as applicable, on the part of the Purchaser. Each Transaction Document to which it is a
party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute
the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except: (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

(b) Own
Account. The Purchaser understands that the Securities are “restricted securities” and have not been registered under
the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with
a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state
securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable
state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty
not limiting the Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with
applicable federal and state securities laws).

 

(c) Purchaser
Status. At the time the Purchaser was offered the Securities, it was, and as of the date hereof it is, either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional
buyer” as defined in Rule 144A(a) under the Securities Act.

 

(d) Experience
of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) Information.
The Purchaser and its advisors, if any, have been, and for so long as the Securities remain outstanding will continue to be, furnished
with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the
Securities which have been requested by the Purchaser or its advisors. The Purchaser and its advisors, if any, have been, and for so
long as the Securities remains outstanding will continue to be, afforded the opportunity to ask questions of the Company regarding its
business and affairs.

 

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(f) Governmental
Review. The Purchaser understands that no United States federal or state agency or any other government or governmental agency has
passed upon or made any recommendation or endorsement of the Securities.

 

(g) Broker-Dealer.
The Purchaser is not registered as a broker or dealer under Section 15(a) of the Exchange Act, affiliated with any broker or dealer registered
under Section 15(a) of the Exchange Act, or a member of the Financial Industry Regulatory Authority.

 

(h) Procure
Holdings Letter of Intent. The Purchaser acknowledges and agrees that the Company has executed and delivered that certain Letter
of Intent with Procure Holdings, dated November 27, 2020, providing for, among other things, the proposed asset acquisition of all or
substantially all of the assets of Advanced Equality Preference Inc. (“AEP”), a wholly-owned subsidiary of the Company and
all or substantially all of the assets of all subsidiaries of AEP, including, without limitation, trademarks, copyrights, service marks
and any and all intellectual property rights and claims, preference index methodologies, polling data as more fully detailed in the Letter
of Intent, attached hereto as Exhibit A. The Purchaser agrees and consents to the any and all transactions proposed in the Letter of
Intent or related thereto.

 

(i) General
Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication
regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general advertisement.

 

The
Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect the Purchaser’s
right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties
contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transaction contemplated hereby.

 

ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws. Upon the effectiveness
of the Registration Statement, the Commitment Shares shall not contain any legend.

 

4.2 Acknowledgment
of Dilution of Voting Power. The Company acknowledges that the issuance of the Securities will result in dilution of the voting power
of the outstanding shares of Common Stock, which dilution will be substantial.

 

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4.3 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the
registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing
of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4 Securities
Laws Disclosure; Publicity. The Company and the Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby including for the initial press release pursuant to Section 4.8, and neither the Company
nor the Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company,
with respect to any press release of the Purchaser, or without the prior consent of the Purchaser, with respect to any press release
of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case
the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of the Purchaser, or include the name of the Purchaser in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written consent of the Purchaser, except: (a) as required
by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such
disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchaser with prior notice
of such disclosure permitted under this clause (b).

 

4.5 Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that the Purchaser
is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that the Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents
or under any other agreement between the Company and the Purchaser.

 

4.6 Non-Public Information. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf, will provide the Purchaser or its agents or counsel with any information that the Company believes constitutes material
non-public information, unless prior thereto the Purchaser shall have entered into a written agreement with the Company regarding the
confidentiality and use of such information. The Company understands and confirms that the Purchaser shall be relying on the foregoing
covenant in effecting transactions in securities of the Company.

 

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4.7 Indemnification
of Purchaser. Subject to the provisions of this Section 4.7, the Company will indemnify and hold the Purchaser and their respective
directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role
of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls the Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents,
members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any
and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in
settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or
incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company
in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or
any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect
to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser Party’s
representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may
have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser
Party which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that
(i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or such defense once started is subsequently delayed owing to lack of timely
payment by the Company of legal fees and expenses or (iii) in such action there is, in the reasonable opinion of counsel, a material
conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company
shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to
any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written
consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage
or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements
made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.7
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 are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser
Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

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4.8 Certain
Transactions and Confidentiality. The Purchaser, covenants that neither it, nor any Affiliate acting on its behalf or pursuant to
any understanding with it will (i) execute any Short Sales, of any of the Company’s securities during the period commencing with
the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release as described in Section 4.4 or (ii) from the date hereof until the 12 month anniversary of the
date hereof, execute any Short Sales of the Common Stock (a “Prohibited Short Sale”). The Purchaser covenants that
until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press
release as described in Section 4.4, the Purchaser will maintain the confidentiality of the existence and terms of this transaction and
the information included in the Transaction Documents and the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding
anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser does not make
any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after
the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.4, (ii) except for a Prohibited Short Sale, the Purchaser shall not be restricted or prohibited from effecting any transactions
in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated
by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) the Purchaser
shall have no duty of confidentiality to the Company or its Subsidiaries after the issuance of the initial press release as described
in Section 4.4.

 

4.9 Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and
to provide a copy thereof, promptly upon request of the Purchaser. The Company shall take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser under applicable
securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon
request of the Purchaser.

 

4.10 Use
of Proceeds. The Company will use the proceeds received from the Purchaser pursuant hereto to redeem 50% of the Company’s currently
outstanding convertible debt, with the balance of the proceeds to be used exclusively for working capital and general corporate purposes.

 

4.10 DTC
Program. The Company will employ as the Transfer Agent for the Common Stock a participant in the DTC Automated Securities Transfer
Program and cause the Common Stock to be transferable pursuant to such program.

 

4.11 Most
Favored Nations. From the date hereof until the date when the Purchaser no longer holds any Securities, upon any issuance by the
Company or any of its subsidiaries of Common Stock, Common Stock Equivalents for cash consideration, indebtedness or a combination of
units hereof (a “Subsequent Financing”), Purchaser may elect, in its sole discretion, to exchange (in lieu of conversion),
if applicable, all or some of the Securities then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00
basis. The Company shall provide the Purchaser with notice of any such Subsequent Financing in the manner set forth below. Additionally,
if in such Subsequent Financing there are any contractual provisions or side letters that provide terms more favorable to the investors
than the terms provided for hereunder, then the Company shall specifically notify the Purchaser of such additional or more favorable
terms and such terms, at Purchaser’s option, shall become a part of the transaction documents with the Purchaser. The types of
terms contained in another security that may be more favorable to the holder of such security include, but are not limited to, terms
addressing stock sale price, price per share, and warrant coverage. For purposes of illustration, if a Subsequent Financing were to occur
whereby the Company sells and issues a convertible note with a conversion price that includes a discount to the market price of its Common
Stock, the Purchaser will be entitled to receive the same convertible note on the exact same terms on a dollar for dollar basis via the
exchange of the Securities the Holder holds on the date of the sale and issuance of the convertible note.

 

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4.12 Participation
in Future Financing.

 

(a) From
the date hereof until the date that is the 12 month anniversary of the Closing Date, upon a Subsequent Financing, Purchaser shall have
the right to participate up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the “Participation
Maximum”) on the same terms, conditions and price provided for in the Subsequent Financing.

 

(b) At
least five (5) Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to Purchaser a written notice
of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser if it
wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”). Upon the
request of Purchaser, and only upon a request by Purchaser, for a Subsequent Financing Notice, the Company shall promptly, but no later
than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to Purchaser. The Subsequent Financing Notice shall
describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder
and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet or
similar document relating thereto as an attachment.

 

(c) Should
Purchaser desire to participate in such Subsequent Financing, it must provide written notice to the Company by not later than 5:30 p.m.
(New York City time) on the fifth (5th) Trading Day after receipt of the Pre-Notice that such Purchaser is willing to participate in
the Subsequent Financing, the amount of Purchaser’s participation, and representing and warranting that Purchaser has such funds
ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company receives no such
notice from Purchaser as of such fifth (5th) Trading Day, Purchaser shall be deemed to have notified the Company that it does not elect
to participate.

 

(d) If
by 5:30 p.m. (New York City time) on the fifth (5th) Trading Day after the Purchaser has received the Pre-Notice, notifications
by the Purchaser of its willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the
aggregate, less than the total amount of the Participation Maximum, then the Company may effect the remaining portion of such Subsequent
Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

 

    	24

     

    

 

(e) The
Company must provide Purchaser with a second Subsequent Financing Notice, and the Purchaser will again have the right of participation
set forth above in this Section 4.12, if the Subsequent Financing subject to the initial Subsequent Financing Notice is not consummated
for any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after the date of the initial
Subsequent Financing Notice.

 

(f) The
Company and Purchaser agree that if Purchaser elects to participate in the Subsequent Financing, the transaction documents related to
the Subsequent Financing shall not include any term or provision whereby Purchaser shall be required to agree to any restrictions on
trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or termination of, or grant any
waiver, release or the like under or in connection with, this Agreement, without the prior written consent of Purchaser.

 

(g) Notwithstanding
anything to the contrary in this Section 4.12 and unless otherwise agreed to by Purchaser, the Company shall either confirm in writing
to Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention
to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser will not be in possession
of any material, non-public information, by the tenth (10th) Business Day following delivery of the Subsequent Financing Notice. If by
such tenth (10th) Business Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made,
and no notice regarding the abandonment of such transaction has been received by Purchaser, such transaction shall be deemed to have
been abandoned and Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company
or any of its subsidiaries.

 

(h) Notwithstanding
the foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1 Fees
and Expenses. At the Closing, the Company has agreed to reimburse the Purchaser $10,000 for its legal fees in connection with the
transaction contemplated by the Transaction Documents, which such amount may be withheld from the Purchaser’s Subscription Amount
deliverable at Closing. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees (including,
without limitation, any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other
taxes and duties levied in connection with the delivery of any Securities to the Purchaser.

 

5.2 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

    	25

     

    

 

5.3 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day,
(b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time)
on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices
and communications shall be as set forth on the signature pages attached hereto.

 

5.4 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in
the case of an amendment, by the Company and the holders of at least 75% in interest of the Securities then outstanding or, in the case
of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right.

 

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

 

5.6 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser (other
than by merger). The Purchaser may assign any or all of its rights under this Agreement to any Person to whom the Purchaser assigns or
transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by
the provisions of the Transaction Documents that apply to the “Purchaser.”

 

5.7 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in
Section 4.7 and this Section 5.7.

 

    	26

     

    

 

5.8 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state or federal courts
sitting in the Borough of Manhattan, New York, New York Each party hereby irrevocably submits to the exclusive jurisdiction of the state
and federal courts sitting in the Borough of Manhattan, New York, New York for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law. If either party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents,
then, in addition to the obligations of the Company under Section 4.7, the prevailing party in such action, suit or proceeding shall
be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

5.9 Survival.
The representations and warranties contained herein shall survive each Closing and the delivery of the Securities.

 

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

 

5.11 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

5.12 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any
of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document
and the Company does not timely perform its related obligations within the periods therein provided, then the Purchaser may rescind or
withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole
or in part without prejudice to its future actions and rights.

 

    	27

     

    

 

5.13 Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of
and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company
of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.14 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and
hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law
would be adequate.

 

5.15 Payment
Set Aside. To the extent that the Company makes a payment or payments to the Purchaser pursuant to any Transaction Document or the
Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or
any part thereof are subsequently invalidated, declared to be fraudulent 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.

 

5.16 Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents
is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have
been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts
are due and payable shall have been canceled.

 

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

 

5.18 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to
share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits,
stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

5.19 WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND
EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature
Pages Follow)

 

    	28

     

    

 

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

 

	LGBTQ
LOYALTY HOLDINGS, INC.	 	Address
    for Notice:

     

    

    

	By:	/s/
    Robert Blair

    
	 	2435
Dixie Highway
	Name:	Robert
    Blair

    
	 	Wilton
    Manors, FL 33305
	Title:	Chief
    Executive Officer

     
	 	 
	With a copy to (which shall not constitute notice):

McCarter & English, LLP

825 Eight Avenue, 31st Floor

New York, NY 10019

Attn: Peter J. Gennuso, Esq.

Email: pgennuso@mccarter.com

	 	 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    	29

     

    

 

[PURCHASER
SIGNATURE PAGE TO LFAP SECURITIES PURCHASE AGREEMENT]

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

Name
of Purchaser:

 

Signature
of Authorized Signatory of Purchaser: /s/ Mark Grober                                 

 

Name
of Authorized Signatory:

 

Title
of Authorized Signatory:

 

Address
for Notice to Purchaser:

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Facsimile
Number:

 

Subscription
Amount: $

 

Subscription Date:

 

    	30

     

    

 

Exhibit A
 

    	31

     

    

 

(please
read each section for specific content, topic below listed for convenience only)

 

Schedule
3.1(a) - subsidiaries

 

Schedule
3.1(g) - capitalization

 

Schedule
3.1(j) - litigation

 

Schedule
3.1(k) - labor disputes

 

Schedule
3.1(l) - compliance

 

Schedule
3.1(n) - title to assets

 

Schedule
3.1(o) -intellectual property 

 

Schedule
3.1(p) - insurance

 

Schedule
3.1(s) – certain fees

 

Schedule
3.1(v) – registration rights

 

Schedule
3.1(aa) - tax status

 

Schedule
3.1(dd) - accountants

 

    	32

     

    

 

FORM
OF CLOSING NOTICE

TO:

DATE:__________________

 

We
refer to the Securities Purchase Agreement, dated May ___,2021 (the “Agreement”), entered into by and between LGBTQ
Loyalty Holdings, Inc., and you. Capitalized terms defined in the Agreement shall, unless otherwise defined herein, have the same meaning
when used herein.

 

We
hereby:

 

	1)	Give
    you notice that we require you to purchase _____ shares of Common Stock; and
	2)	The
    purchase price per share, pursuant to the terms of the Agreement, is $_____; and
	3)	Certify
    that, as of the date hereof, the conditions set forth in Section 2.3 of the Agreement, as related to the obligations of the
    Company, are satisfied.

 

Closing
will occur in accordance with the terms and conditions of Section 2 of the Agreement.

 

	 	LGBTQ
    LOYALTY HOLDINGS, INC.
	 	 	 
	 	By:
    	
	 	Name:
    	        
	 	Title:
    	 

 

    	33

     

    

 

Schedule
1

 

“Registrable
Securities” as defined in Section 1.1 herein shall include:

 

12,576,002
Shares of Common Stock owned by Robert Gayman, Debra Lynn Slater and Thomas Chester Gayman

 

3,330,000
Shares of Common Stock owned by Sterling Financial Consultants LLC

1,000,000
Shares of Common Stock owned by Dan Roemer

 

    	34

     

    

 

Schedule
3.1(a)

 

As
of the date hereof, LGBTQ Loyalty Holdings, Inc., a Delaware corporation, has the following wholly owned subsidiaries: As of the date
hereof, LGBTQ Loyalty Holdings, Inc., a Delaware corporation, has the following wholly owned subsidiaries:

 

LifeApps
Inc.

Sports
One Group Inc.

LGBT
Loyalty LLC

Advancing
Equality Financial Network Inc.

Crowdex
Equity Inc.

Loyalty
Preference Index, Inc.

 

    	35

     

    

 

Schedule
3.1(g)

 

As
of the date hereof, LGBTQ Loyalty Holdings, Inc., a Delaware corporation, has the following capitalization:

 

    	36

     

    

 

Schedule
3.1(j)

 

None.

 

    	37

     

    

 

Schedule
3.1(k)

 

None.

 

    	38

     

    

 

Schedule
3.1(l)

 

None.

 

    	39

     

    

 

Schedule 3.1(n)
 

None.

 

    	40

     

    

 

Schedule
3.1(o)

 

None.

 

    	41

     

    

 

Schedule
3.1(p)

 

    	42

     

    

 

Schedule 3.1(q)

 

	LGBTQ Loyalty Holdings Inc
	Vendor Balance Summary
	All Dates
	 	 	Total	 
	Accrued Directors Fees	 	 	94,584.00	 
	Accrued Salaries - Blair	 	 	166,666.00	 
	Accrued Salaries - Neal	 	 	62,236.00	 
	Accrued Salaries - Roan	 	 	70,832.98	 
	Action Stock Transfer Corp	 	 	1,329.85	 
	Barney Frank	 	 	14,000.00	 
	Beacon Media Interactive, Inc.	 	 	146,267.13	 
	Bobby Blair	 	 	10.47	 
	CSC	 	 	279.30	 
	Discoverorg, LLC	 	 	8,404.00	 
	E5A Integrated Marketing	 	 	20,000.00	 
	EMS Consulting Services, LLC	 	 	14,290.63	 
	EMS	 	 	8,700.00	 
	Gayman	 	 	66,850.00	 
	Faegre Drinker Biddle & Reath LLP	 	 	155,793.10	 
	Fuzzy Logix, Inc.	 	 	9,800.00	 
	Gregory FCA Communications Inc.	 	 	30,500.00	 
	Harris Insights and Analytics LLC	 	 	21,440.00	 
	Haynie & Company	 	 	9,062.50	 
	IPFS Corporation	 	 	17,383.56	 
	Issuer Direct	 	 	8,995.00	 
	Larry Roan	 	 	7,000.00	 
	Market Leverage	 	 	4,700.27	 
	Robert Gayman	 	 	1,171.76	 
	Sterling Accounting	 	 	1,000.00	 
	Sterling Financial Consultants, LLC	 	 	25,549.00	 
	Teddy O’Toole Answering Service	 	 	506.75	 
	WTP Service	 	 	2,760.00	 
	TOTAL	 	$	970,112.30	 

 

Wednesday,
Mar 31, 2021 01:28:16 PM GMT-7

 

    	43

     

    

 

Schedule 3.1(v)

 

Registration
Rights Agreement between the Company and Pride Partners, LLC, dated February 4, 2019, as amended from time to time.

 

    	44

     

    

 

Schedule
3.1(dd)

 

Haynie
& Company

 

    	45

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