Document:

imle_ex102.htm

EXHIBIT 10.2
 
DEBT CONVERSION AND COMMON STOCK 
PURCHASE AGREEMENT
 
This Debt Conversion Common Stock Purchase Agreement (this “Agreement”) is made and entered into effective as of the 23rd day of August, 2019 (the “Effective Date”) by and between TransBiotec, Inc., a Delaware corporation (the “Company”), and Michael A. Lanphere, an individual (the “Purchaser”). The Company and Purchaser shall each be referred to as a “Party” and collectively as the “Parties.”
 
RECITALS
 
WHEREAS, beginning on December 12, 2012, the Purchaser began loaning the Company money for a variety of purposes pursuant to the terms of Loan Agreement with Promissory Note and Stock Fees (the “Notes”), which entitled the Purchaser to both the repayment of the principal amount loaned to the Company, with interest, and what was termed in the Notes as a “Stock Fee”;
 
WHEREAS, the Stock Fee allows the Purchaser to acquire a certain number of shares of the Company’s common stock, with the number of shares and the purchase price determined by the loan amount for each Note and the Company’s stock price on the date of the Note;
 
WHEREAS, the Purchaser has previously exercised his right to acquire shares of the Company’s common stock under the Stock Fee provisions of some of the Notes, but still has the right to acquire an additional Twenty One Million Four Hundred Thousand Seven Hundred Forty Five (21,400,745) shares of the Company’s common stock (the “Shares”) for Ninety Six Thousand Three Hundred Three Dollars and Thirty Five Cents ($96,303.35) (the “Purchase Price”);
 
WHEREAS, the Purchaser desires to acquire the Shares in exchange for the Purchase Price, with the Purchase Price to be paid through a reduction in the amounts the Company owes to the Purchaser under certain of the Notes, pursuant to the terms of this Agreement.
 
NOW, THEREFORE, the Parties hereby agree as follows:
 
AGREEMENT
 
1. PURCHASE OF SECURITIES: 
 
On the Closing Date (as hereinafter defined), subject to the terms and conditions set forth in this Agreement, the Purchaser hereby agrees to purchase, and the Company hereby agrees to sell, Twenty One Million Four Hundred Thousand Seven Hundred Forty Five (21,400,745) shares of the Company’s common stock (the “Shares”) in exchange for Ninety Six Thousand Three Hundred Three Dollars and Thirty Five Cents ($96,303.35) (the “Purchase Price”), with the Purchase Price being paid through a reduction in the amounts the Company owes to the Purchaser under certain of the Notes. A list of the Stock Fees being exercised for the Shares and the Notes that are being extinguished to pay the Purchase Price are outlined on Exhibit A hereto. 
 
	 
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2. CLOSING AND DELIVERY: 
 
a) Upon the terms and subject to the conditions set forth herein, the consummation of the purchase and sale of the Shares (the “Closing”) shall be held simultaneous with the execution of this Agreement, or at such other time mutually agreed upon between the constituent Parties (the “Closing Date”). The Closing shall take place at the offices of counsel for the Company set forth in Section 6 hereof, or by the exchange of documents and instruments by mail, courier, facsimile and wire transfer to the extent mutually acceptable to the Parties hereto.
 
b) At the Closing:
 
(i) The Company and the Purchaser shall execute this Agreement, which shall serve as evidence of ownership of the Shares, free from restrictions on transfer except as set forth in this Agreement. Subsequent to the Closing, at a time chosen by the Company in its sole discretion, the Company will issue a stock certificate to the Purchaser to evidence the Shares. 
 
(ii) The Purchaser shall deliver to the Company the Purchase Price through the delivery of the signed Notice of Debt Satisfaction in form attached hereto as Exhibit B.
 
3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY PURCHASER: The Purchaser hereby represents, warrants and agrees as follows:
 
a) Purchase for Own Account. Purchaser represents that he is acquiring the Shares solely for his own account and beneficial interest for investment and not for sale or with a view to distribution of the Shares or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.
 
b) Ability to Bear Economic Risk. Purchaser acknowledges that an investment in the Shares involves a high degree of risk, and represents that he is able, without materially impairing his financial condition, to hold the Shares for an indefinite period of time and to suffer a complete loss of his investment.
 
c) Access to Information. The Purchaser acknowledges that the Purchaser has been furnished with such financial and other information concerning the Company, the directors and officers of the Company, and the business and proposed business of the Company as the Purchaser considers necessary in connection with the Purchaser’s investment in the Shares. As a result, the Purchaser is thoroughly familiar with the proposed business, operations, properties and financial condition of the Company and has discussed with officers of the Company any questions the Purchaser may have had with respect thereto. The Purchaser understands:
 
(i) The risks involved in this investment, including the speculative nature of the investment;
 
	 
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(ii) The financial hazards involved in this investment, including the risk of losing the Purchaser’s entire investment;
 
(iii) The lack of liquidity and restrictions on transfers of the Shares; and
 
(iv) The tax consequences of this investment.
 
The Purchaser has consulted with the Purchaser’s own legal, accounting, tax, investment and other advisers with respect to the tax treatment of an investment by the Purchaser in the Shares and the merits and risks of an investment in the Shares.
 
d) Shares Part of Private Placement. The Purchaser has been advised that the Shares have not been registered under the Securities Act of 1933, as amended (the “Act”), or qualified under the securities law of any state, on the ground, among others, that no distribution or public offering of the Shares is to be effected and the Shares will be issued by the Company in connection with a transaction that does not involve any public offering within the meaning of section 4(a)(2) of the Act and/or Regulation D as promulgated by the Securities and Exchange Commission under the Act, and under any applicable state blue sky authority. The Purchaser understands that the Company is relying in part on the Purchaser’s representations as set forth herein for purposes of claiming such exemptions and that the basis for such exemptions may not be present if, notwithstanding the Purchaser’s representations, the Purchaser has in mind merely acquiring the Shares for resale on the occurrence or nonoccurrence of some predetermined event. The Purchaser has no such intention.
 
e) Further Limitations on Disposition. Purchaser further acknowledges that the Shares are restricted securities under Rule 144 of the Act, and, therefore, if the Company, in its sole discretion, chooses to issue any certificates reflecting the ownership interest in the Shares, those certificates will contain a restrictive legend substantially similar to the following:
 
	 
	THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
	 

 
	 
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Without in any way limiting the representations set forth above, Purchaser further agrees not to make any disposition of all or any portion of the Shares unless and until:
 
(i) There is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance with such Registration Statement; or
 
(ii) Purchaser shall have obtained the consent of the Company and notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, Purchaser shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Act or any applicable state securities laws.
 
Notwithstanding the provisions of subparagraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for a transfer by such Purchaser to a partner (or retired partner) of Purchaser, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were Purchasers hereunder as long as the consent of the Company is obtained.
 
f) Sophisticated Investor Status. The Purchaser is a sophisticated investor. 
 
g) No Backup Withholding. The Social Security Number or taxpayer identification shown in this Agreement is correct, and the Purchaser is not subject to backup withholding because (i) the Purchaser has not been notified that he or she is subject to backup withholding as a result of a failure to report all interest and dividends or (ii) the Internal Revenue Service has notified the Purchaser that he or she is no longer subject to backup withholding.
 
4. REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY COMPANY: The Company hereby represents, warrants and agrees as follows:
 
a) Authority of Company. The Company has all requisite authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement.
 
b) Authorization. All actions on the part of the Company necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company’s obligations hereunder has been taken or will be taken prior to the issuance of the Shares. This Agreement, when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws. The issuance of the Shares will be validly issued, fully paid and nonassessable, will not violate any preemptive rights, rights of first refusal, or any other rights granted by the Company, and will be issued in compliance with all applicable federal and state securities laws, and will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Purchaser through no action of the Company; provided, however, that the Shares may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time the transfer is proposed.
 
	 
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c) Governmental Consents. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of the Shares, or the consummation of any other transaction contemplated hereby shall have been obtained, except for notices required or permitted to be filed with certain state and federal securities commissions, which notices will be filed on a timely basis.
 
5. INDEMNIFICATION: The Purchaser hereby agrees to indemnify and defend the Company and its officers and directors and hold them harmless from and against any and all liability, damage, cost or expense incurred on account of or arising out of:
 
(a) Any breach of or inaccuracy in the Purchaser’s representations, warranties or agreements herein;
 
(b) Any disposition of any Shares contrary to any of the Purchaser’s representations, warranties or agreements herein;
 
(c) Any action, suit or proceeding based on (i) a claim that any of said representations, warranties or agreements were inaccurate or misleading or otherwise cause for obtaining damages or redress from the Company or any director or officer of the Company under the Act, or (ii) any disposition of any Shares.
 
6. MISCELLANEOUS:
 
a) Binding Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
 
b) Governing Law; Venue. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California. The Parties agree that any action brought to enforce the terms of this Agreement will be brought in the appropriate federal or state court having jurisdiction over Orange County, California, United States of America.
 
c) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 
d) Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
 
	 
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e) Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:
 
	 
	If to the Company: 
	TransBiotec, Inc.
400 N. Tustin Ave., Suite 225
Santa Ana, CA 92705 
Attn. Chief Executive Officer
Facsimile (___) 

	 
	 
	 

	 
	with a copy to: 
	Law Offices of Craig V. Butler
300 Spectrum Center Drive, Suite 300
Irvine, CA 92618
Attn: Craig V. Butler, Esq.
Facsimile (949) 209-2545

	 
	 
	 

	 
	If to Purchaser: 
	Michael A. Lanphere
400 N. Tustin Ave., Suite 225
Santa Ana, CA 92705 Facsimile (___) 

 
or at such other address as the Company or Purchaser may designate by ten (10) days advance written notice to the other Party hereto.
 
f) Modification; Waiver. No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Purchaser.
 
g) Entire Agreement; Successors. This Agreement and the Exhibits hereto constitute the full and entire understanding and agreement between the Parties with regard to the subjects hereof and no Party shall be liable or bound to the other Party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein. The representations, warranties and agreements contained in this Agreement shall be binding on the Purchaser’s successors, assigns, heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of the Company and its directors and officers.
 
h) Expenses. Each Party shall pay their own expenses in connection with this Agreement. In addition, should either Party commence any action, suit or proceeding to enforce this Agreement or any term or provision hereof, then in addition to any other damages or awards that may be granted to the prevailing Party, the prevailing Party shall be entitled to have and recover from the other Party such prevailing Party’s reasonable attorneys’ fees and costs incurred in connection therewith.
 
i) Currency. All currency is expressed in U.S. dollars.
 
	 
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IN WITNESS WHEREOF, the Parties have executed this Debt Conversion and Common Stock Purchase Agreement as of the date first written above.
 
	“Company”
	 
	“Purchaser”
	 

	 
		 
	 
	
	TransBiotec, Inc.
	 
	Michael A. Lanphere,
	 

	a Delaware corporation
	 
	an individual
	 

	 
		 
	 
	
	By: 
	Charles Bennington
	 
	Michael A. Lanphere
	
	Its: 
	Chief Executive Officer
	 
		

 
	 
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Exhibit A
 
List of Notes and Stock Fees
 
	Date of 
Note
	Principal 
of Note
	Interest 
Rate of Note
	Stock Fee 
(Shares)
	Amount of Note 
Used as Purchase Price
	Amount Due Under Note 
After Purchase Price(1)

	2/8/16
	$14,550
	5%
	None
	$20,431.79
	$0

	5/2/16
	$3,750
	7%
	565,000
	$4,879.62
	$0

	5/9/16
	$15,000
	7%
	2,250,000
	$19,711.64
	$0

	7/27/16
	$3,900
	7%
	390,000
	$4,982.92
	$0

	8/4/16
	$40,000
	7%
	3,692,307
	$25,509.59
	$0

	9/29/16
	$20,000
	7%
	1,714,285
	$20,787.79
	$4,414.95

	10/6/16
	$20,000
	7%
	1,714,285
	$0
	$25,164.38

	2/7/17
	$10,000
	7%
	923,076
	$0
	$12,242.47

	3/13/17
	$5,000
	7%
	187,500
	$0
	$6,074.66

	5/4/17
	$10,000
	7%
	606,061
	$0
	$12,001.37

	7/12/17
	$15,700
	7%
	1,427,273
	$0
	$18,553.96

	8/31/17
	$3,750
	7%
	387,931
	$0
	$4,380.31

	9/14/17
	$3,750
	7%
	387,931
	$0
	$4,074.86

	10/24/17
	$6,760
	7%
	845,000
	$0
	$7,796.22

	11/6/17
	$10,700
	7%
	1,088,136
	$0
	$12,302.07

	12/15/17
	$1,783.75
	7%
	243,283
	$0
	$2,031.76

	1/11/19
	$6,000
	7%
	1,636,364
	$0
	$6,257.75

	3/5/19
	$10,000
	7%
	1,000,000
	$0
	$10,400.27

	3/12/19
	$15,000
	7%
	6,429,265
	$0
	$15,580.27

	3/19/19
	$10,000
	7%
	967,742
	$0
	$10,364.11

						 

	Total:
		 
	21,400,745
	$96,303.35
	

 
(1) As of August 23, 2019.
 
Exhibit A
 
	 
	
	
 
	 

 
Exhibit B
 
Notice of Debt Satisfaction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit B
 
	 
	
	
 
	 

 
Notice of Debt Satisfaction
 
Pursuant to the terms of that certain Debt Conversion and Stock Purchase Agreement (the “Agreement”) by and between Michael A. Lanphere, an individual (the “Purchaser”), and TransBiotec, Inc., a Delaware corporation (the “Company”) dated August 23, 2019, the Purchaser is irrevocably electing to convert the amounts due under certain Loan Agreement with Promissory Note and Stock Fees listed on Exhibit A hereto (the “Notes”) entered into between the Company and the Purchaser totaling $96,303.35 into 21,400,745 shares of common stock of the Company (the “Shares”) according to the conditions set forth in the Agreement.
 
If shares are to be issued in the name of a person other than the Purchaser, the Purchaser will pay all transfer and other taxes and charges payable with respect thereto.
 
The Purchaser acknowledges and agrees that upon receipt of the Shares only the amount indicated on Exhibit A will be due and owing to the undersigned under the Notes.
 
Date of Conversion: August 23, 2019 
 
Effective Conversion Price: $0.0044 /share 
 
Michael A. Lanphere
 
Signature: ____________________________________________
[Print Name of Holder and Title of Signer]
 
Address: _____________________________________________
 
SSN or EIN: ___________________________________________
 
Shares are to be registered in the following name:
 
Name: ________________________________________________
 
Address: ______________________________________________
 
Tel: __________________________________________________
 
Fax: __________________________________________________
 
SSN or EIN: ____________________________________________
 
Exhibit B
 
	 
	
	
 
	 

 
Exhibit A
 
List of Notes and Stock Fees
 
	Date 
of Note
	Principal 
of Note
	Interest Rate 
of Note
	Amount of Note 
Used as Purchase Price
	Amount Due Under 
Note After Purchase Price(1)

	2/8/16
	$14,550
	5%
	 
	$0

	5/2/16
	$3,750
	7%
	 
	$0

	5/9/16
	$15,000
	7%
	 
	$0

	7/27/16
	$3,900
	7%
	 
	$0

	8/4/16
	$40,000
	7%
	 
	$0

	9/29/16
	$20,000
	7%
	 
	$896.65

					 

	Total:
		 
	$96,303.35
	$896.65

 
Exhibit BExhibit 10.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY PURCHASE AGREEMENT

 

 

BY AND BETWEEN

 

 

INNERSCOPE HEARING TECHNOLOGIES, INC. 

 

 

AND

 

 

OSCALETA PARTNERS LLC 

 

 

Dated

 

 

September 12, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

THIS EQUITY PURCHASE AGREEMENT entered into
as of the 12th day of September 2019 (this "AGREEMENT"), by and between OSCALETA PARTNERS LLC, a Connecticut limited
partnership ("INVESTOR"), and INNERSCOPE HEARING TECHNOLGIES, INC., a Nevada corporation (the "COMPANY").

 

WHEREAS, the parties desire
that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Investor, from time to
time as provided herein, and Investor shall purchase up to Ten Million Dollars ($10,000,000) of the Company’s Common Stock
(as defined below); and

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

ARTICLE I

CERTAIN DEFINITIONS

 

Section 1.1 DEFINED TERMS as used in
this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be equally applicable
to both the singular and plural forms of the terms defined)

 

"AGREEMENT" shall
have the meaning specified in the preamble hereof.

 

"BY-LAWS" shall
have the meaning specified in Section 4.7.

 

"CLAIM NOTICE"
shall have the meaning specified in Section 9.3(a).

 

“CLEARING DATE”
shall be the date in which the Estimated Put Shares (as defined in Section 2.2(a)) have been deposited into the Investor’s
brokerage account and cleared to trade.

 

"CLOSING" shall
mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.

 

"CLOSING CERTIFICATE"
shall mean the closing certificate of the Company in the form of Exhibit B hereto.

 

"CLOSING PRICE"
shall mean the volume weighted average price for the Company’s common stock on the Principal Market on a Trading Day as reported
by Bloomberg Finance L.P.

 

"COMMITMENT PERIOD"
shall mean the period commencing on the Effective Date, and ending on the earlier of (i) the date on which Investor shall have
purchased Put Shares pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or (ii) the date
occurring twenty four (24) months from the date of commencement of the Commitment Period.

 

"COMMON STOCK"
shall mean the Company's common stock, $0.0001 par value per share, and any shares of any other class of common stock whether now
or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared) and assets (upon
liquidation of the Company).

 

"COMMON STOCK EQUIVALENTS"
shall mean any securities that are convertible into or exchangeable for Common Stock or any options or other rights to subscribe
for or purchase Common Stock or any such convertible or exchangeable securities.

 

"COMPANY" shall
have the meaning specified in the preamble to this Agreement.

 

"DAMAGES" shall
mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys' fees and disbursements
and costs and expenses of expert witnesses and investigation).

 

"DISPUTE PERIOD"
shall have the meaning specified in Section 9.3(a).

 

"DOLLAR VOLUME"
shall mean the product of (a) the Closing Price multiplied by (b) the trading volume on the Principal Market on a Trading Day.

 

"DTC" shall have
the meaning specified in Section 2.3.

 

"DWAC" shall have
the meaning specified in Section 2.3.

 

"EFFECTIVE DATE"
shall mean the date that the Registration Statement is declared effective by the SEC.

 

“ESTIMATED PUT SHARES”
shall have the meaning specified in Section 2.2(a)

 

"EXCHANGE ACT"
shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

 

“EXCHANGE
CAP” shall have the meaning specified in Section 7.1 (c)

 

"FAST" shall have
the meaning specified in Section 2.3.

 

"FINRA" shall mean
the Financial Industry Regulatory Authority, Inc.

 

“FLOOR PRICE”
shall have the meaning specified in Section 2.2(c).

 

"INDEMNIFIED PARTY"
shall have the meaning specified in Section 9.3(a).

 

"INDEMNIFYING PARTY"
shall have the meaning specified in Section 9.3(a).

 

"INDEMNITY NOTICE"
shall have the meaning specified in Section 9.3(b).

 

"INVESTMENT AMOUNT"
shall mean the dollar amount to be invested by Investor to purchase Put Shares with respect to any Put as notified by the Company
to Investor in accordance with Section 2.2.

 

"INVESTOR" shall
have the meaning specified in the preamble to this Agreement.

 

"LEGEND" shall
have the meaning specified in Section 8.1.

 

"MARKET PRICE"
shall mean the lowest Closing Price on the Principal Market for any Trading Day during the Valuation Period, as reported by Bloomberg
Finance L.P.

 

"MATERIAL ADVERSE EFFECT"
shall mean any effect on the business, operations, properties, or financial condition of the Company that is material and adverse
to the Company and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the
ability of the Company to enter into and perform its obligations under any of this Agreement.

 

"MAXIMUM COMMITMENT
AMOUNT" shall mean Ten Million Dollars ($10,000,000).

 

“PAR VALUE PAYMENT”
shall have the meaning specified in Section 2.2(a).

 

"PERSON" shall
mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

 

"PRINCIPAL MARKET"
shall mean any of the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), OTCQX, the OTC Bulletin Board, or other principal exchange
which is at the time the principal trading exchange or market for the Common Stock.

 

"PURCHASE PRICE"
shall mean 85% of the Market Price on such date on which the Purchase Price is calculated in accordance with the terms and conditions
of this Agreement.

 

"PUT" shall mean
the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions of this
Agreement.

 

"PUT DATE" shall
mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section 2.2(b).

 

"PUT NOTICE" shall
mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Investment Amount with respect
to which the Company intends to require Investor to purchase shares of Common Stock pursuant to the terms of this Agreement.

 

"PUT SHARES" shall
mean all shares of Common Stock issued or issuable pursuant to a Put that has been exercised or may be exercised in accordance
with the terms and conditions of this Agreement.

 

"REGISTERED SECURITIES"
shall mean the (a) Put Shares, and (b) any securities issued or issuable with respect to any of the foregoing by way of exchange,
stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization
or otherwise. As to any particular Registered Securities, once issued such securities shall cease to be Registrable Securities
when (i) a Registration Statement has been declared effective by the SEC and such Registrable Securities have been disposed of
pursuant to a Registration Statement, (ii) such Registrable Securities have been sold under circumstances under which all of the
applicable conditions of Rule 144 are met, (iii) such time as such Registrable Securities have been otherwise transferred to holders
who may trade such shares without restriction under the Securities Act or (iv) in the opinion of counsel to the Company, which
counsel shall be reasonably acceptable to Investor, such Registrable Securities may be sold without registration under the Securities
Act or the need for an exemption from any such registration requirements and without any time, volume or manner limitations pursuant
to Rule 144(b)(i) (or any similar provision then in effect) under the Securities Act.

 

"REGISTRATION STATEMENT" shall
mean the Company’s effective registration statement on file with the SEC, and any follow up registration statement or amendment
thereto.

 

"REGULATION D"
shall mean Regulation D promulgated under the Securities Act.

 

"RULE 144" shall
mean Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.

 

"SEC" shall mean
the Securities and Exchange Commission.

 

"SECURITIES ACT"
shall have the meaning specified in the recitals of this Agreement.

 

"SEC DOCUMENTS"
shall mean, as of a particular date, all reports and other documents filed by the Company pursuant to Section 13(a) or 15(d) of
the Exchange Act since the end of the Company's then most recently completed and reported fiscal year as of the time in question
(provided that if the date in question is within ninety days of the beginning of the Company's fiscal year, the term shall include
all documents filed since the beginning of the preceding fiscal year).

 

“SHORT SALES”
shall mean 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 DATE"
shall mean the date on which this Agreement is executed and delivered by the Company and Investor.

 

"THIRD PARTY CLAIM"
shall have the meaning specified in Section 9.3(a).

 

“TRADING DAY” shall mean a day on
which the Principal Market shall be open for business.

 

“TRANSACTION DOCUMENTS”
shall mean this Agreement and the Registration Rights Agreement.

 

"TRANSFER AGENT"
shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common Stock upon
the Company's appointment of any such substitute or replacement transfer agent).

 

"UNDERWRITER" shall
mean any underwriter participating in any disposition of the Registered Securities on behalf of Investor pursuant to the Registration
Statement.

 

"VALUATION EVENT"
shall mean an event in which the Company at any time during a Valuation Period takes any of the following actions:

 

(a)        subdivides
or combines the Common Stock;

 

(b)       pays
a dividend in shares of Common Stock or makes any other distribution of shares of Common Stock, except for dividends paid with
respect to any series of preferred stock authorized by the Company, whether existing now or in the future;

 

(c)        issues
any options or other rights to subscribe for or purchase shares of Common Stock other than pursuant to this Agreement, and other
than options or stock grants issued or issuable to directors, officers and employees pursuant to a stock option program, whereby
the price per share for which shares of Common Stock may at any time thereafter be issuable pursuant to such options or other rights
shall be less than the Closing Price in effect immediately prior to such issuance;

 

(d)       issues
any securities convertible into or exchangeable for shares of Common Stock and the consideration per share for which shares of
Common Stock may at any time thereafter be issuable pursuant to the terms of such convertible or exchangeable securities shall
be less than the Closing Price in effect immediately prior to such issuance;

 

(e)        issues
shares of Common Stock otherwise than as provided in the foregoing subsections (a) through (d), at a price per share less, or for
other consideration lower, than the Closing Price in effect immediately prior to such issuance, or without consideration; or

 

(f)       makes
a distribution of its assets or evidences of indebtedness to the holders of Common Stock as a dividend in liquidation or by way
of return of capital or other than as a dividend payable out of earnings or surplus legally available for dividends under applicable
law or any distribution to such holders made in respect of the sale of all or substantially all of the Company's assets (other
than under the circumstances provided for in the foregoing subsections (a) through (e).

 

"VALUATION PERIOD"
shall mean the period of five (5) Trading Days immediately following the Clearing Date associated with the applicable Put Notice
during which the Purchase Price of the Common Stock is valued; provided, however, that if a Valuation Event occurs during any Valuation
Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of such Valuation Event and end
on the fifth (5th) Trading Day thereafter. Investor shall notify the Company in writing of the occurrence of the Clearing
Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day following such written notice from Investor.

 

 

ARTICLE II

PURCHASE AND SALE OF COMMON STOCK

 

Section 2.1 INVESTMENTS.

 

(a)       PUTS.
Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), on any Put Date
the Company may exercise a Put by the delivery of a Put Notice. The number of Put Shares that Investor shall purchase pursuant
to such Put shall be determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with respect
to such Put Notice.

 

(b)        PROMISSORY
NOTE. As a condition for the execution of this Agreement by the Investor, the Company shall issue to the Investor, or designated
affiliate, a promissory note in the principal amount equal to $25,000.00 (the “Note”) on the Subscription Date. The
Note shall have no registration rights.

 

 

 

Section 2.2 MECHANICS.

 

(a)       PUT
NOTICE. At any time and from time to time during the Commitment Period, the Company may deliver a Put Notice to Investor, subject
to the conditions set forth in Section 7.2; provided, however, that the Investment Amount identified in the applicable Put Notice,
when taken together with all prior Put Notices, shall not exceed the Maximum Commitment Amount. On the Put Date the Company shall
deliver to Investor’s brokerage account estimated put shares equal to the Investment Amount indicated in the Put Notice divided
by the Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred twenty five percent (125%)
(the “Estimated Put Shares”). On the Trading Date immediately following delivery of the Estimated Put Shares, Investor
shall deliver payment by check or wire transfer to the Company an amount equal to the par value of the Estimated Put Shares (“Par
Value Payment”).

 

(b)       DATE
OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by Investor if such notice is received on or prior to 12:00 noon New York time, or (ii) the immediately succeeding Trading Day
if it is received by facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day which is not
a Trading Day.

 

(c)        FLOOR
PRICE. In the event that, during a Valuation Period, the Closing Price on any Trading Day is less than eighty percent (80%) of
the average of the Closing Prices for the five (5) trading days immediately preceding the date of the Company’s Put Notice
(a “Low Bid Price”), for each such Trading Day, the parties shall have no right to sell and shall be under no obligation
to purchase one fifth (1/5th) of the Investment Amount specified in the Put Notice, and the Investment Amount shall accordingly
be deemed reduced by such amount. In the event that during a Valuation Period there exists a Low Bid Price for any three (3) Trading
Days—not necessarily consecutive—then the balance of each party’s right and obligation to sell and purchase the
Investment Amount under such Put Notice shall terminate on such third Trading Day (“Termination Day”), and the Investment
Amount shall be adjusted to include only one-fifth (1/5th) of the initial Investment Amount for each Trading Day during
the Valuation Period prior to the Termination Day that the Closing Price equals or exceeds the Low Bid Price.

 

Section 2.3CLOSINGS. At the end of
the Valuation Period the Purchase Price shall be established and the number of Put Shares shall be determined for a particular
Put. If the number of Estimated Put Shares initially delivered to Investor is greater than the Put Shares purchased by Investor
pursuant to such Put, then immediately after the Valuation Period the Investor shall deliver to Company any excess Estimated Put
Shares associated with such Put. If the number of Estimated Put Shares delivered to Investor is less than the Put Shares purchased
by Investor pursuant to a Put, then immediately after the Valuation Period the Company shall deliver to Investor the difference
between the Estimated Put Shares and the Put Shares issuable pursuant to such Put. The Closing of a Put shall occur upon the first
Trading Day following the completion of the Valuation Period, whereby Investor shall deliver the Investment Amount specified in
the Put Notice, less the Par Value Payment, by wire transfer of immediately available funds to an account designated by the Company.
In lieu of delivering physical certificates representing the Common Stock issuable in accordance with clause (a) of this Section
2.3, and provided that the Transfer Agent then is participating in the Depository Trust Company ("DTC") Fast Automated
Securities Transfer ("FAST") program, upon request of Investor, but subject to the applicable provisions of Article VIII
hereof, the Company shall use its commercially reasonable efforts to cause the Transfer Agent to electronically transmit, prior
to the applicable Closing Date, the applicable Put Shares by crediting the account of the Investor's prime broker with DTC through
its Deposit Withdrawal Agent Commission ("DWAC") system, and provide proof satisfactory to the Investor of such delivery.
In addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each other all documents, instruments
and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement in order to implement
and effect the transactions contemplated herein.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

 

Investor represents and
warrants to the Company that:

 

Section 3.1INTENT. Investor is entering
into this Agreement for its own account and Investor has no present arrangement (whether or not legally binding) at any time to
sell the Registered Securities to or through any person or entity; provided, however, that Investor reserves the right to dispose
of the Registered Securities at any time in accordance with federal and state securities laws applicable to such disposition.

 

Section 3.2NO LEGAL ADVICE FROM THE
COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and the transactions contemplated by
this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and advisors
and not on any statements or representations of the Company or any of its representatives or agents for legal, tax or investment
advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.

 

Section 3.3SOPHISTICATED INVESTOR.
Investor is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor (as defined
in Rule 501 of Regulation D), and Investor has such experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in the Registered Securities. Investor acknowledges that an investment in the Registered
Securities is speculative and involves a high degree of risk.

 

Section 3.4AUTHORITY. (a) Investor
has the requisite power and authority to enter into and perform its obligations under this Agreement and the transactions contemplated
hereby in accordance with its terms; (b) the execution and delivery of this Agreement and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary action and no further consent or authorization of Investor
or its partners is required; and (c) this Agreement has been duly authorized and validly executed and delivered by Investor and
constitutes a valid and binding obligation of Investor enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies
or by other equitable principles of general application.

 

Section 3.5NOT AN AFFILIATE. Investor
is not an officer, director or "affiliate" (as that term is defined in Rule 405 of the Securities Act) of the Company.

 

Section 3.6 ORGANIZATION AND STANDING.
Investor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Connecticut
and has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted.
Investor is duly qualified and in good standing in every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, other than those in which the failure so to qualify would not have a material adverse
effect on Investor.

 

Section 3.7ABSENCE OF CONFLICTS. The
execution and delivery of this Agreement and any other document or instrument contemplated hereby, and the consummation of the
transactions contemplated hereby and thereby, and compliance with the requirements hereof and thereof, will not (a) violate any
law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Investor, (b) violate any provision of any
indenture, instrument or agreement to which Investor is a party or is subject, or by which Investor or any of its assets is bound,
or conflict with or constitute a material default thereunder, (c) result in the creation or imposition of any lien pursuant to
the terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty owed by Investor to any
third party, or (d) require the approval of any third-party (that has not been obtained) pursuant to any material contract, instrument,
agreement, relationship or legal obligation to which Investor is subject or to which any of its assets, operations or management
may be subject.

 

Section 3.8DISCLOSURE; ACCESS TO INFORMATION.
Investor had an opportunity to review copies of the SEC Documents filed on behalf of the Company and has had access to all publicly
available information with respect to the Company.

 

Section 3.9MANNER OF SALE. At no time
was Investor presented with or solicited by or through any leaflet, public promotional meeting, television advertisement or any
other form of general solicitation or advertising.

 

 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents
and warrants to Investor that, except as disclosed in the SEC Documents:

 

Section 4.1ORGANIZATION OF THE COMPANY.
The Company is a corporation duly organized and validly existing and in good standing under the laws of the State of Nevada and
has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted.
The Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which the
nature of the business conducted or property owned by it makes such qualification necessary, other than those in which the failure
so to qualify would not have a Material Adverse Effect.

 

Section 4.2AUTHORITY. (a) The Company
has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and to issue the
Put Shares; (b) the execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate action and no further consent or authorization of the Company
or its Board of Directors or stockholders is required; and (c) each of this Agreement and has been duly executed and delivered
by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws relating to, or affecting
generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

 

Section 4.3CAPITALIZATION.
As of September 9, 2019, the authorized capital stock of the Company consists of (i) 975,000,000 shares of Common Stock, $0.0001
par value per share, of which 197,577,017 shares are issued and outstanding; (ii) 25,000,000 shares of preferred stock, of which
990,000 shares of Series B Preferred Stock, 0.0001 par value per share, are issued and outstanding.

 

Except as otherwise disclosed
in the SEC Documents or on Schedule 4.3, there are no outstanding securities which are convertible into shares of Common
Stock, whether such conversion is currently exercisable or exercisable only upon some future date or the occurrence of some event
in the future.

 

All of the outstanding
shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable.

 

Section 4.4COMMON STOCK. The Company
is in full compliance with all reporting requirements of the Exchange Act, and the Company has maintained all requirements for
the continued listing or quotation of the Common Stock, and such Common Stock is currently listed or quoted on the Principal Market
which is presently the OTCPK.

 

Section 4.5SEC DOCUMENTS. The Company
may make available to Investor true and complete copies of the SEC Documents (including, without limitation, proxy information
and solicitation materials). To the Company’s knowledge, the Company has not provided to Investor any information that, according
to applicable law, rule or regulation, should have been disclosed publicly prior to the date hereof by the Company, but which has
not been so disclosed. As of their respective dates, the SEC Documents complied in all material respects with the requirements
of the Exchange Act, and other federal laws, rules and regulations applicable to such SEC Documents, and none of the SEC Documents
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. The financial
statements of the Company included in the SEC Documents comply as to form and substance in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations with respect
thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles applied on a
consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes
thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and
the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments).

 

Section 4.6VALID ISSUANCES. When issued
and paid for as herein provided, the Put Shares shall be duly and validly issued, fully paid, and non-assessable. The sales of
the Put Shares pursuant to this Agreement, and the Company's performance of its obligations hereunder, shall not (a) result in
the creation or imposition of any liens, charges, claims or other encumbrances upon the Put Shares, or any of the assets of the
Company, or (b) entitle the holders of outstanding shares of Common Stock to preemptive or other rights to subscribe to or acquire
the Common Stock or other securities of the Company. The Put Shares shall not subject Investor to personal liability, in excess
of the subscription price by reason of the ownership thereof.

 

Section 4.7NO CONFLICTS. The execution,
delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated
hereby, including without limitation the issuance of the Put Shares, do not and will not (a) result in a violation of the Company’s
Articles of Incorporation or By-Laws or (b) conflict with, or constitute a material default (or an event that with notice or lapse
of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any "lock-up" or similar provision of any underwriting
or similar agreement to which the Company is a party, or (c) result in a violation of any federal, state or local law, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations) applicable to the Company or by which any
property or asset of the Company is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect) nor is the Company
otherwise in violation of, conflict with or in default under any of the foregoing. The business of the Company is not being conducted
in violation of any law, ordinance or regulation of any governmental entity, except for possible violations that either singly
or in the aggregate do not and will not have a Material Adverse Effect. The Company is not required under federal, state or local
law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or
governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell
the Common Stock in accordance with the terms hereof (other than any SEC, FINRA or state securities filings that may be required
to be made by the Company subsequent to any Closing, any registration statement that may be filed pursuant hereto); provided that,
for purposes of the representation made in this sentence, the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of Investor herein.

 

Section 4.8NO MATERIAL ADVERSE CHANGE.
Since June 30, 2019 no event has occurred that would have a Material Adverse Effect on the Company.

 

Section 4.9LITIGATION AND OTHER PROCEEDINGS.
Except as disclosed in the Company’s SEC filings, there are no lawsuits or proceedings pending or to the knowledge of the
Company threatened, against the Company, nor has the Company received any written or oral notice of any such action, suit, proceeding
or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction or decree or award has been
issued by or, so far as is known by the Company, requested of any court, arbitrator or governmental agency which would have a Material
Adverse Effect.

 

Section 4.10DILUTION. The number of
shares of Common Stock issuable as Put Shares may increase substantially in certain circumstances, including, but not necessarily
limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the Effective Date
and the end of the Commitment Period. The Company’s executive officers and directors have studied and fully understand the
nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect. The board of
directors of the Company has concluded in its good faith business judgment that such issuance is in the best interests of the Company.
The Company specifically acknowledges that, subject to Section 2.2(c), its obligation to issue the Put Shares is binding upon the
Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other shareholders of the
Company.

 

ARTICLE V

COVENANTS OF INVESTOR

 

Section 5.1COMPLIANCE WITH LAW; TRADING
IN SECURITIES. Investor's trading activities with respect to shares of the Common Stock will be in compliance with all applicable
state and federal securities laws, rules and regulations and the rules and regulations of FINRA and the Principal Market on which
the Common Stock is listed or quoted.

 

Section 5.2 SHORT SALES AND CONFIDENTIALITY.
Neither Investor nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it will execute any
Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance
with Regulation SHO, the sale after delivery of a Put Notice of such number of shares of Common Stock reasonably expected to be
purchased under a Put Notice shall not be deemed a Short Sale.

 

Other than to other
Persons party to this Agreement, Investor has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction).

 

ARTICLE VI

COVENANTS OF THE COMPANY

 

 

 

Section 6.1RESERVATION OF COMMON STOCK.
The Company will, from time to time as needed in advance of a Closing Date, reserve and keep available until the consummation of
such Closing, free of preemptive rights sufficient shares of Common Stock for the purpose of enabling the Company to satisfy its
obligation to issue the Put Shares to be issued in connection therewith. The number of shares so reserved from time to time, as
theretofore increased or reduced as hereinafter provided, may be reduced by the number of shares actually delivered hereunder.

 

Section 6.2LISTING OF COMMON STOCK.
If the Company applies to have the Common Stock traded on any other Principal Market, it shall include in such application the
Put Shares, and shall take such other action as is necessary or desirable in the reasonable opinion of Investor to cause the Common
Stock to be listed on such other Principal Market as promptly as possible. The Company shall use its commercially reasonable efforts
to continue the listing and trading of the Common Stock on the Principal Market (including, without limitation, maintaining sufficient
net tangible assets) and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws
or rules of the FINRA and the Principal Market.

 

Section 6.3CERTAIN AGREEMENTS. So long
as this Agreement remains in effect, the Company covenants and agrees that it will not, without the prior written consent of the
Investor, enter into any other equity line of credit agreement with a third party during the Commitment Period having terms and
conditions substantially comparable to this Agreement. For the avoidance of doubt, nothing contained in the Transaction Documents
shall restrict, or require the Investor's consent for, any agreement providing for the issuance or distribution of (or the issuance
or distribution of) any equity securities pursuant to any agreement or arrangement that is not commonly understood to be an "equity
line of credit."

 

ARTICLE VII

CONDITIONS TO DELIVERY OF

PUT NOTICES AND CONDITIONS TO CLOSING

 

Section 7.1CONDITIONS PRECEDENT TO
THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON STOCK. The obligation hereunder of the Company to issue and sell the Put
Shares to Investor is subject to the satisfaction of each of the conditions set forth below.

 

(a)       ACCURACY
OF INVESTOR'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of Investor shall be true and correct in all material
respects as of the date of this Agreement and as of the date of each such Closing as though made at each such time.

 

(b)       PERFORMANCE
BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by Investor at or prior to such Closing.

 

(c)       Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any
Put Shares, if the issuance of such shares would exceed the aggregate number of shares of Common Stock which the Company may issue
without breaching the Company’s obligations under the rules or regulations of the Principal Market (the “Exchange
Cap”).

 

Section 7.2CONDITIONS PRECEDENT TO
THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE OBLIGATION OF INVESTOR TO PURCHASE PUT SHARES. The right of the Company
to deliver a Put Notice and the obligation of Investor hereunder to acquire and pay for the Put Shares is subject to the satisfaction
of each of the following conditions:

 

(a)       EFFECTIVE
REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the sale
by Investor of the Registered Securities subject to such Put Notice, and (i) neither the Company nor Investor shall have received
notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise
has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has
threatened to do so and (ii) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or
related prospectus shall exist.

 

(b)       ACCURACY
OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct in
all material respects (except for representations and warranties specifically made as of a particular date), except for any conditions
which have temporarily caused any representations or warranties herein to be incorrect and which have been corrected with no continuing
impairment to the Company or Investor.

 

(c)       PERFORMANCE
BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company.

 

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

 

(e)       ADVERSE
CHANGES. Since the date of filing of the Company's most recent SEC Document, no event that had or is reasonably likely to have
a Material Adverse Effect has occurred.

 

(f)       NO
SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC,
the Principal Market or the FINRA and the Common Stock shall have been approved for listing or quotation on and shall not have
been delisted from the Principal Market.

 

(g)       [INTENTIONALLY
OMITTED]

 

(h)       TEN
PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be purchased by Investor shall not exceed the number
of such shares that, when aggregated with all other shares of Common Stock then owned by Investor beneficially or deemed beneficially
owned by Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be outstanding on such
Closing Date, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For purposes
of this Section, in the event that the amount of Common Stock outstanding as determined in accordance with Section 16 of the Exchange
Act and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which the Put Notice associated
with such Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for purposes of determining
whether Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would own more than 9.99% of
the Common Stock following such Closing Date.

 

(i)       Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any Put
Shares, if the issuance of such shares would exceed the EXCHANGECAP.

 

(j)       NO
KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to have the effect of causing such Registration
Statement to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading
Days following the Trading Day on which such Put Notice is deemed delivered).

 

(k)       NO
VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock with respect to the applicable Closing, if
any, shall not violate the shareholder approval requirements of the Principal Market. 

 

(l)NO VALUATION EVENT. No Valuation
Event shall have occurred since the Put Date. 

(m)       OTHER.
On the date of delivery of each Put Notice, Investor shall have received a certificate in substantially the form and substance
of Exhibit B hereto, executed by an executive officer of the Company and to the effect that all the conditions to such Closing
shall have been satisfied as at the date of each such certificate.

 

ARTICLE VIII

RESERVED

 

 

 

ARTICLE IX

NOTICES; INDEMNIFICATION

 

Section 9.1 NOTICES. All notices, demands,
requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram,
facsimile, or email as a PDF, addressed as set forth below or to such other address as such party shall have specified most recently
by written notice given in accordance herewith. Any notice or other communication required or permitted to be given hereunder shall
be deemed effective (i) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, or email as a PDF, at the address or number designated below (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day following such delivery (if delivered other than on a business
day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of
mailing by express courier service or on the fifth business day after deposited in the mail, in each case, fully prepaid, addressed
to such address, or upon actual receipt of such mailing, whichever shall first occur.

 

The addresses for such communications shall
be:

 

If to the Company: 

 

Innerscope Hearing Technologies, Inc.

 

Chief Executive Officer

 

Copy to (which shall not constitute
notice):

 

 

 

 

 

 

 

 

If to Investor:

 

Oscaleta Partners LLC

90 Grove Street

Ridgefield, CT 06877

Tel: 203-431-8300

Fax: 203-431-8301

 

 

Either party hereto may from time to time change
its address or facsimile number for notices under this Section 9.1 by giving at least ten (10) days' prior written notice of such
changed address or facsimile number to the other party hereto.

 

Section 9.2INDEMNIFICATION. Each party
(an “Indemnifying Party”) agrees to indemnify and hold harmless the other party along with its officers, directors,
employees, and authorized agents, and each Person or entity, if any, who controls such party within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”) from and against any Damages, joint or
several, and any action in respect thereof to which the Indemnified Party becomes subject to, resulting from, arising out of or
relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement
on the part of Indemnifying Party contained in this Agreement, (ii) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or any post-effective amendment thereof or supplement thereto, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading,
(iii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or contained
in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the
SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the
light of the circumstances under which the statements therein were made, not misleading, or (iv) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation under the Securities
Act, the Exchange Act or any state securities law, as such Damages are incurred, except to the extent such Damages result primarily
from Indemnified Party's failure to perform any covenant or agreement contained in this Agreement or Indemnified Party's negligence,
recklessness or bad faith in performing its obligations under this Agreement; provided, however, that the foregoing indemnity agreement
shall not apply to any Damages of an Indemnified Party to the extent, but only to the extent, arising out of or based upon any
untrue statement or alleged untrue statement or omission or alleged omission made by an Indemnifying Party in reliance upon and
in conformity with written information furnished to the Indemnifying Party by the Indemnified Party expressly for use in the Registration
Statement, any post-effective amendment thereof or supplement thereto, or any preliminary prospectus or final prospectus (as amended
or supplemented).

 

Section 9.3METHOD OF ASSERTING INDEMNIFICATION
CLAIMS. All claims for indemnification by any Indemnified Party (as defined below) under Section 9.2 shall be asserted and resolved
as follows:

 

(a)       In
the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against
or sought to be collected from such Indemnified Party by a person other than a party hereto or an affiliate thereof (a "THIRD
PARTY CLAIM"), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any,
and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party's claim for indemnification that
is being asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then reasonably
ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a "CLAIM NOTICE") with reasonable
promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable promptness after
the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party's ability to defend has been
prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party as soon as practicable
within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either a Claim Notice or an Indemnity
Notice (as defined below) (the "DISPUTE PERIOD") whether the Indemnifying Party disputes its liability or the amount
of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires, at its sole cost and expense,
to defend the Indemnified Party against such Third Party Claim.

 

(i)If
the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend the
Indemnified Party with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall have
the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying
Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted by
the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with the
consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary
damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full
pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party,
at any time prior to the Indemnifying Party's delivery of the notice referred to in the first sentence of this clause (i), file
any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary or
appropriate to protect its interests; and provided further, that if requested by the Indemnifying Party, the Indemnified Party
will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control,
any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except
as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.
Notwithstanding the foregoing, the Indemnified Party may take over the control of the defense or settlement of a Third Party Claim
at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.

 

(ii)If
the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
the Third Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute vigorously
and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within the Dispute
Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in a reasonable
manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying Party,
which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying
Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and
its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions
of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying
Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying
Party will not be required to bear the costs and expenses of the Indemnified Party's defense pursuant to this clause (ii) or of
the Indemnifying Party's participation therein at the Indemnified Party's request, and the Indemnified Party shall reimburse the
Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection with such litigation.
The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant
to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 

(iii)If
the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to
the Indemnified Party with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within the
Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party with
respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability
of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall
be entitled to institute such legal action as it deems appropriate.

 

(b)       In
the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third
Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying the
nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount, determined
in good faith, of such claim (an "INDEMNITY NOTICE") with reasonable promptness to the Indemnifying Party. The failure
by any Indemnified Party to give the Indemnity Notice shall not impair such party's rights hereunder except to the extent that
the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party notifies the Indemnified
Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice or fails to notify the Indemnified
Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount of the claim described in such
Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively deemed a liability of the Indemnifying
Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified Party on demand. If
the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such claim, the Indemnifying
Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute; provided, however, that
if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party shall be entitled to institute
such legal action as it deems appropriate.

 

(c)       The
Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

 

(d)       The
indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party
against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1GOVERNING LAW; JURISDICTION.
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Connecticut without regard to the
principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the United States
Federal and state courts located in Fairfield County, Connecticut with respect to any dispute arising under this Agreement, the
agreements entered into in connection herewith or the transactions contemplated hereby or thereby.

 

Section 10.2JURY TRIAL WAIVER. The
Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties
hereto against the other in respect of any matter arising out of or in connection with the Transaction Documents.

 

Section 10.3ASSIGNMENT. This Agreement
shall be binding upon and inure to the benefit of the Company and Investor and their respective successors. Neither this Agreement
nor any rights of Investor or the Company hereunder may be assigned by either party to any other person.

 

Section 10.4THIRD PARTY BENEFICIARIES.
This Agreement is intended for the benefit of the Company and Investor and their respective successors, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

 

Section 10.5TERMINATION. The Company
may terminate this Agreement at any time by written notice to the Investor. Additionally, this Agreement shall terminate at the
end of Commitment Period or as otherwise provided herein; provided, however, that the provisions of Articles IX, and Sections 10.1
and 10.2 shall survive the termination of this Agreement for a period of twenty four (24) months.

 

Section 10.6ENTIRE AGREEMENT, AMENDMENT;
NO WAIVER. This Agreement and the instruments referenced herein contain the entire understanding of the Company and Investor with
respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. This Agreement may not be
amended.

 

Section 10.7FEES AND EXPENSES. The
Company agrees to pay its own expenses in connection with the preparation of this Agreement and performance of its obligations
hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection with issuance of the Put Shares
pursuant hereto.

 

Section 10.8COUNTERPARTS. This Agreement
may be executed in multiple counterparts, each of which may be executed by less than all of the parties and shall be deemed to
be an original instrument which shall be enforceable against the parties actually executing such counterparts and all of which
together shall constitute one and the same instrument. This Agreement may be delivered to the other parties hereto by facsimile
transmission or email of a copy of this Agreement bearing the signature of the parties so delivering this Agreement.

 

Section 10.9SEVERABILITY. In the event
that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said provision; provided that such severability shall be ineffective
if it materially changes the economic benefit of this Agreement to any party.

 

Section 10.10FURTHER ASSURANCES. Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

Section 10.11NO STRICT CONSTRUCTION.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party.

 

Section 10.12EQUITABLE RELIEF. The
Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under this Agreement,
any remedy at law may prove to be inadequate relief to Investor. The Company therefore agrees that Investor shall be entitled to
temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

 

Section 10.13TITLE AND SUBTITLES. The
titles and subtitles used in this Agreement are used for the convenience of reference and are not to be considered in construing
or interpreting this Agreement.

 

Section 10.14REPORTING ENTITY FOR THE
COMMON STOCK. The reporting entity relied upon for the determination of the Closing Price for the Common Stock on any given Trading
Day for the purposes of this Agreement shall be Bloomberg Finance L.P. or any successor thereto. The written mutual consent of
Investor and the Company shall be required to employ any other reporting entity.

 

Section 10.15PUBLICITY. The Company
and Investor shall consult with each other in issuing any press releases or otherwise making public statements with respect to
the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement
without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed, except that
no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall provide
the other parties with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly disclose
the name of Investor without the prior written consent of such Investor, except to the extent required by law. Investor acknowledges
that this Agreement and all or part of the Transaction Documents may be deemed to be "material contracts" as that term
is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits
to reports or registration statements filed under the Securities Act or the Exchange Act. Investor further agrees that the status
of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel.

    	 

    	 

    

[SIGNATURE PAGE]

 

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

 

 

 

OSCALETA PARTNERS LLC

 

 

 

 

By:       ______________________

Name: Stephen Hicks

Title: Manager

 

 

 

INNERSCOPE HEARING TECHNOLOGIES,
INC.

 

 

 

By:       ______________________

Name: _____________

Title: Chief Executive Officer

 

 

 

 

    	 

    	 

    

Schedule 4.3 – Outstanding Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

 

EXHIBITS

 

 

 

 

EXHIBIT A                      Put Notice

 

EXHIBIT B                      Closing Certificate

    	 

    	 

    

EXHIBIT A

 

 

 

FORM OF PUT NOTICE

 

 

TO: OSCALETA PARTNERS LLC

 

 

We refer to the Equity Purchase Agreement dated September 12, 2019
(the “Agreement”) entered into by INNERSCOPE HEARING TECHNOLOGIES, INC. (the “Company”) and you.
Capitalized terms defined in the Agreement shall, unless otherwise defined, have the same meaning when used herein.

 

We hereby:

 

		1.	Give you notice that we require you to purchase $_________ (the “Investment Amount”)
in Put Shares; 

 

		2.	Determine the Floor Price for this Put, as defined in Section 2.2(c) of the Agreement, to be
$___________; and

 

		3.	Certify that, as of the date hereof, to the best of our knowledge, the conditions set forth in
Section 7.2 of the Agreement are satisfied.

 

 

Date: _____________, 20__

 

 

INNERSCOPE HEARING TECHNOLOGIES,
INC. 

 

 

 

 

By: ______________________

Name:

Title: Chief Executive Officer

    	 

    	 

    

EXHIBIT B

 

 

FORM OF

 

CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER

 

OF

 

INNERSCOPE HEARING TECHNOLOGIES, INC. 

 

Pursuant to Section 7.2(m) of that certain
Equity Purchase Agreement dated September 12, 2019 (the “Agreement”) by and between the Company and Oscaleta Partners
LLC (the “Investor”), the undersigned, in his capacity as the Chief Executive Officer of INNERSCOPE HEARING TECHNOLOGIES,
INC.  (the “Company”), and not in his individual capacity, _______________ hereby certifies, as of the date hereof
(such date, the “Condition Satisfaction Date”), the

following:

 

1.       The
representations and warranties of the Company are true and correct in all material respects as of the Condition Satisfaction Date
as though made on the Condition Satisfaction Date (except for representations and warranties specifically made as of a particular
date) with respect to all periods, and as to all events and circumstances occurring or existing to and including the Condition
Satisfaction Date, except for any conditions which have temporarily caused any representations or warranties of the Company set
forth in the Agreement to be incorrect and which have been corrected with no continuing impairment to the Company or Investor;
and

 

2.       All
of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have been satisfied as of the Condition
Satisfaction Date.

 

Capitalized terms used
herein shall have the meanings set forth in the Agreement unless otherwise defined herein.

IN WITNESS WHEREOF,
the undersigned has hereunto affixed his hand as of the ___ day of ____________, 20__.

 

 

By: ____________________________________

_______________Chief Executive Officer

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