Document:

LC STRATEGIC REALTY
/ LORISSA NAUGLE

NON-COMPETITION
AGREEMENT

THIS NON-COMPETITION
AGREEMENT (this “Agreement”) is made and entered into as of July 24, 2015 (the “Effective Date”),
by and among LC Strategic Realty, LLC, a New York limited liability company (“Company”), Lorissa Naugle
(“Naugle”), and Capstone Financial Group, Inc., a Nevada corporation (“Capstone”).

W I T N E S S
E T H :

WHEREAS, Naugle is
a principal of Company;

WHEREAS, Company
and Capstone are parties to that certain Securities Purchase Agreement, dated as of the Effective Date (the “Purchase
Agreement”);

WHEREAS, pursuant
to the transactions contemplated in the Purchase Agreement, Capstone is acquiring a 20% ownership interest in Company and providing
substantial financing to Company, thereby benefiting Company and the prospects of Naugle’s ownership interest in Company;

WHEREAS, Naugle will
obtain a substantial indirect financial benefit from the consummation of the transactions under the Purchase Agreement; and

WHEREAS, the execution
and delivery of this Agreement by Naugle is a condition to Company’s consummation of the transactions under the Purchase
Agreement and is necessary to preserve the value of Company and of the ownership interests being acquired by Capstone pursuant
to the Purchase Agreement;

NOW, THEREFORE, in
consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are mutually acknowledged, Company and Naugle and Capstone hereby agree as follows:

Section 1.               
DEFINITIONS. In addition to terms defined elsewhere in this Agreement, the following
terms have the following meanings:

“Affiliate”
means, with respect to any Person, (a) a Person directly or indirectly controlling, controlled by or under common control
with such Person; (b) a Person owning or controlling 10% or more of the outstanding voting securities of such Person; (c) an
officer, director, member, or partner, or member of the immediate family of an officer, director, member, or partner, of such Person;
or (d) a member or ex-member of a Person’s immediate family. When the Affiliate is an officer, director, member, or partner
or member of the immediate family of an officer, director, member, or partner, of such Person, any other Person for which the Affiliate
acts in that capacity shall also be considered an Affiliate. For purposes of this Agreement, “control” means, as to
any Person, the power to direct or cause the direction of the management and policies of the other Person, whether through the
ownership of voting securities, by contract, or otherwise (and the terms “controlled by” and “under common control
with” shall have correlative meanings).

“Business”
means any business or division of any business with a primary focus on (a) real

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estate, (b) media/entertainment/show
business, or (c) endorsements/advertisements/personal appearances/use of likeness/monetization of celebrity. However, it is specially
agreed that the term “Business” shall not include the real estate activities for a property at 37 Bridgman Street,
Buffalo, New York, the Fillmore Creek Townhouses project in Ellicottville, New York and/or a property at 22 Somerton Avenue, Kenmore,
New York.

“Person”
means any entity, corporation, company, limited liability company, association, joint venture, joint stock company, partnership,
trust, organization, individual (including personal representatives, executors, administrators, legatees and heirs of a deceased
individual), nation, state, government (including agencies, departments, bureaus, boards, divisions and instrumentalities thereof),
trustee, receiver or liquidator, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended.

“Restricted
Period” means the period commencing on the Effective Date of this Agreement and ending on the earlier to occur of (a)
six years after the Effective Date, and (b) two years following the last date on which Naugle is associated with Company.

“Restrictive
Covenants” means the covenants contained in Section 2.

Section 2.               
COVENANT NOT TO COMPETE.

2.1.Covenant
Not to Compete. Naugle shall not at any time during the Restricted Period have any ownership interest (of record or beneficial)
in or have any interest as an employee, salesman, consultant, advisor, manager, officer or director in, or otherwise aid or assist
in any manner, any firm, corporation, limited liability company, partnership, proprietorship or other business that engages in
any market or geographic area within the United States in the Business, so long as Company, or any successor in interest to the
business and goodwill of Company, remains engaged in such Business (or would have remained engaged in such Business but for the
nonparticipation of Naugle and/or Naugle’s Affiliates) in such market or geographic area or continues to solicit customers
or Future Customers (as defined below) therein, in each case other than on behalf of (x) Company, (y) a wholly-owned subsidiary
of Company, or (z) a Person in which Capstone holds an equity interest of 20% or more; provided, however, that Naugle may own,
directly or indirectly, solely as an investment, securities of any person which are traded on any national securities exchange
if Naugle does not, directly or indirectly own one percent or more of any class of securities of such person.

2.2.Solicitation
of Business/Other Injurious Activities. During the Restricted Period, Naugle shall not solicit or assist any other person to
directly or indirectly solicit any business (other than for Company) from any present or Past Customer of Company or any of its
Affiliates; or request or advise any present or Future Customer of Company or any of its Affiliates to withdraw, curtail or cancel
its business dealings with Company or any of its Affiliates; or commit any other act or assist others to commit any other act which
could reasonably be expected to injure the business of Company or any of its Affiliates. For purposes of this Agreement, “Past
Customer” shall mean a Person who was a customer of Company during the two years preceding the purported solicitation; and
“Future Customer” shall mean a prospective customer with whom Company conducted discussions about becoming a customer
during the six months preceding the purported solicitation.

2.3.Solicitation
of Employees, Etc. During the Restricted Period, Naugle shall not

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directly or indirectly solicit or encourage
any manager, employee, consultant or agent of Company or any of its Affiliates to leave or reduce his/her level of services to
any such entity; provided that the foregoing shall not apply with respect to any manager, employee, consultant or agent who (without
having previously been contacted) responds to a general solicitation not targeted at such individual.

2.4Rights
and Remedies Upon Breach. If Naugle breaches (or, for the purposes of Sections 2.4(a) and 2.4(c) only, threatens)
to commit a breach of, any of the Restrictive Covenants, Company shall have the following rights and remedies, each of which rights
and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition
to, and not in lieu of, any other rights and remedies available to Company under law or in equity:

(a)Specific
Performance. The right and remedy to have the Restrictive Covenants specifically enforced by any court having equity jurisdiction,
all without the need to post a bond or any other security or to prove any amount of actual damage or that money damages would not
provide an adequate remedy, it being acknowledged and agreed that any such breach or threatened breach may cause irreparable injury
to Company and that monetary damages may not provide adequate remedy to Company; and

(b)Accounting.
The right and remedy to require Naugle to account for and pay over to Company all compensation, profits, monies, accruals, increments
or other benefits derived or received by Naugle, or any Affiliated party deriving such benefits, as the result of any such breach
of the Restrictive Covenants; and

(c) Indemnification.
The right and remedy to require Naugle to indemnify Company against any other losses, damages (including special and consequential
damages), costs and expenses, including actual attorneys’ fees and court costs, which may be incurred by them and which result
from or arise out of any breach of or need to enforce the Restrictive Covenants.

2.5Severability
of Covenants/Blue Penciling. If any court determines that any of the Restrictive Covenants, or any part thereof, is invalid
or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without
regard to the invalid portions, and the affected portion shall be construed as if it were written so as to both be valid and to
effectuate the parties’ expressed intent to the maximum extent consistent with validity. If any court determines that any
of the Restrictive Covenants, or any part thereof, is unenforceable because of the breadth or duration of such provision or the
area covered thereby, such court shall have the power to and is requested to reduce the breadth or duration or area of such provision
and, in its reduced form, such provision shall then be enforceable and shall be enforced. Naugle hereby waives any and all right
to attach the validity of the Restrictive Covenants on the grounds of the breadth of their scope or the length of their term.

2.6Enforceability
in Jurisdictions. Company and Naugle intend to and do hereby confer jurisdiction to enforce the Restrictive Covenants upon
the courts of any jurisdiction within the geographical scope of such covenants. If the courts of any one or more of such jurisdictions
hold the Restrictive Covenants unenforceable by reason of the breadth of such scope or otherwise, it is the intention of Company
and Naugle that such determination not bar or in any way affect the right of Company to the relief provided above in the courts
of any other jurisdiction within the scope of such covenants, as to breaches of such covenants in such other respective jurisdictions,
such covenants as

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they relate to each jurisdiction being,
for this purpose, severable into diverse and independent covenants.

2.7Acknowledgments.

(a)               
Naugle acknowledges that the covenants of Naugle herein are intended to preserve and protect
the value of the goodwill of Company for the benefit of Company and Capstone.

(b)              
Naugle further acknowledges that Company and Capstone have given and Naugle has received
valuable consideration pursuant to the Purchase Agreement, and that the covenants of Naugle therein are intended to preserve and
protect the value of the goodwill of Company for the benefit of Company and Capstone. Naugle further acknowledges that Company
and its employees and Naugle have over a long period devoted substantial time, effort and resources to developing Company’s
trade secrets and its other confidential and proprietary information as well as Company’s relationships with customers, suppliers,
employees and others doing business with Company; that such relationships, trade secrets and other information are vital to the
successful conduct of Company’s business in the future; that Company, in the furtherance of its business, has in the past
provided Naugle with the opportunity and support necessary to allow her to establish personal and professional relationships with
customers, employees and others having business relationships with Company; that because of the opportunities and support so provided
to Naugle and because of Naugle’s access to Company’s confidential information and trade secrets, Naugle would be in
a unique position to divert business from Company and to commit irreparable damage to Company were Naugle to be allowed to commit
any of the other acts prohibited herein; that the enforcement of said restrictive covenants against Naugle would not impose any
undue burden upon Naugle; that none of said restrictive covenants is unreasonable as to period or geographic area; and that the
ability to enforce said restrictive covenants against Naugle is a material inducement to the decision of Company and Capstone to
consummate the transactions contemplated in the Purchase Agreement.

Section 3.               
CAPSTONE AS BENEFICIARY. Capstone is hereby declared to be an express beneficiary
of Naugle’s obligations and covenants under this Agreement, and shall be entitled to enforce such obligations and covenants
against Naugle in Capstone’s own name and/or in the name of Company (it being understood that due to Naugle’s control
of Company, Company would not be likely to seek to enforce this Agreement other than in a collusive manner which would in fact
tend to the defeat of Company’s and Capstone’s interests); and accordingly Company further agrees not to, without Capstone’s
express written consent, seek to enforce this Agreement against Naugle or to settle, release or waive any claims or rights against
Naugle hereunder.

Section 4.               
CONSTRUCTION. Each party hereto has had an adequate opportunity to have this Agreement
reviewed by counsel. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties hereto. This Agreement shall be construed without regard to any presumption, rule or burden of proof regarding
the favoring or disfavoring of any party hereto by virtue of the authorship of any of the provisions of this Agreement.

Section 5.               
MISCELLANEOUS.

(a)               
Entire Agreement. This Agreement (together with the other Transaction Agreements)
constitutes the entire agreement among the parties with respect to the subject matter

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hereof and thereof and supersedes all
prior and contemporaneous agreements and undertakings, both written and oral, between the parties, with respect to the subject
matter hereof; provided, that any prior confidentiality agreement is not superseded and shall remain in full force and effect.

(b)              
Successors and Assigns; Transfers. Except as otherwise provided herein, 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, express or implied, is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except
as expressly provided in this Agreement. 

(c)               
Governing Law. This Agreement shall be governed by and construed under the laws of
the State of New York as applied to agreements among New York residents entered into and to be performed entirely within New York.
The parties hereto agree to submit to the exclusive jurisdiction of and venue in the federal and state courts seated in Erie County,
New York with respect to the interpretation of this Agreement or for the purposes of any action arising out of or relating to this
Agreement.

(d)              
Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. Such counterparts may also be delivered
by email.

(e)               
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.

(f)               
Notices. Unless otherwise provided, all notices and other communications required
or permitted under this Agreement shall be in writing and shall be mailed by United States first-class mail, postage prepaid, sent
by email or delivered personally by hand or by a nationally recognized courier addressed to the party to be notified at the address
or email address indicated for such person on Company’s records, or at such other address or email address as such party
may designate with 10 days’ advance written notice to the other parties hereto pursuant to this Section All such notices
and other written communications shall be effective on the date of mailing or emailing or delivery.

(g)              
Amendments and Waivers. No amendment or modification hereto or waiver of any of the
terms or provisions hereof shall be valid unless set forth in a writing that is executed by each of the parties hereto. No such
waiver of any term, provision or condition of this Agreement, in any one or more instances, shall be deemed to be or construed
as a further waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement.

(h)              
Facilitation. Each party hereto agrees to execute and perform such other documents
and acts as are reasonably required in order to facilitate, effectuate and evidence the terms of this Agreement and the intent
thereof, and to cooperate in good faith in order to effectuate the provisions and intent of this Agreement.

(i)                
Severability. If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted
as if such provision were so excluded and shall be enforceable in accordance with its terms.

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IN WITNESS WHEREOF,
the undersigned have executed this Agreement as of the date first above written.

LC STRATEGIC
REALTY, LLC

Signature: _/s/ Lorissa Naugle               

Name: Lorissa Naugle

Title: CEO

CAPSTONE FINANCIAL GROUP, INC.

/s/ Darin Pastor

By:___________________________

Name: Darin Pastor

Title: CEO

 

 

 

/s/ Lorissa Naugle

______________________________

LORISSA NAUGLE

 

 

    -6-LC STRATEGIC HOLDINGS, LLC 

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is entered into on July 24, 2015, by and between LC Strategic Holdings,
LLC, a New York limited liability company (the “Company”), Capstone Financial Group, Inc., a Nevada corporation
(“Capstone”), Christopher Naugle and Lorissa Naugle, who hereby agree as follows:

1.                 
PURCHASE AND SALE OF STOCK.

1.1             
Sale and Issuance of Membership Interest Units. Subject
to the terms and conditions of this Agreement, Capstone shall purchase from the Company at the Closing, and the Company shall sell
and issue to Capstone at the Closing, membership interests of the Company representing a 20% equity ownership interest in the Company,
for a purchase price of $138,750 cash.  The membership interests issued to Capstone pursuant to this Agreement shall be referred
to in this Agreement as the “Membership Interest Units.”

1.2             
Mechanics.

(a)               
Closing. Subject to the terms and conditions of this Agreement, the initial purchase
and sale of the Membership Interest Units shall take place remotely via the exchange of documents and signatures immediately after
the execution and delivery of this Agreement (the “Closing”), whereby the Company shall sell and issue to Capstone,
and Capstone shall purchase from the Company, the Membership Interest Units. In addition, at the Closing, the parties shall enter
into the mutually agreed upon Members Agreement and the two mutually agreed upon Non-Competition Agreements (together with this
Agreement, the “Transaction Agreements”).

(b)               
At the Closing, the Company shall issue to Capstone a certificate representing the Membership
Interest Units that Capstone is purchasing, against payment of the purchase price therefor by check, wire transfer, or any combination
thereof, or such other form of payment as shall be mutually agreed upon by Capstone and the Company.

(c)               
All references herein to “Membership Interest Units” shall be deemed to be references
to such Membership Interest Units as constituted on the date of this Agreement, and in the event of any split, reverse split or
recapitalization the indicated number of Membership Interest Units shall automatically be deemed adjusted prospectively to reflect
such event.

2.                 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby
represents and warrants to Capstone that (except for any matters expressly set forth on a Disclosure Schedule previously delivered
by the Company to Capstone and countersigned by Capstone, if any such Disclosure Schedule has been so delivered and countersigned)
the following representations are true and correct:

2.1             
Organization; Good Standing, Qualification. The Company
is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of New York,
has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as now
conducted and as presently proposed to be conducted, to execute and deliver this Agreement, to issue and sell the Membership Interest
Units, and to carry out the provisions of this Agreement. The Company is duly qualified and is authorized to transact business
and is in good standing

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as a foreign limited liability company
in each jurisdiction in which the failure to so qualify would have a material adverse effect on the Company or its business.

2.2             
Authorization. All limited liability company action
on the part of the Company, its managers, officers, directors and members necessary for the authorization, execution and delivery
of this Agreement, the performance of all obligations of the Company hereunder and the authorization, issuance, sale and delivery
of the Membership Interest Units being sold hereunder, has been taken. This Agreement and the other Transaction Agreements to which
the Company is a party constitute valid and legally binding obligations of the Company, enforceable in accordance with their respective
terms except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other
laws of general application affecting enforcement of creditors’ rights generally, and (b) as limited by laws relating
to the availability of specific performance, injunctive relief, or other equitable remedies.

2.3             
Valid Issuance of Membership Interest Units. The
Membership Interest Units that are being issued to or purchased by Capstone hereunder, when issued, sold, and delivered in accordance
with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid, and nonassessable.
Assuming the accuracy of the representations of Capstone in Section 3 of this Agreement, the Membership Interest Units will
be issued in compliance with all applicable federal and state securities laws. Capstone will not, by virtue of owning such Membership
Interest Units, be subject to any mandatory capital calls or be subject to any potential liability beyond the possible loss of
its Membership Interest Units investment.

2.4             
Capitalization. 

(a)               
Immediately before the Closing, Christopher Naugle and/or Lorissa Naugle own all of the issued
and outstanding membership interests of the Company. All of the outstanding membership interests have been duly authorized,
are fully paid and nonassessable and were issued in compliance with all applicable federal and state securities laws.

(b)               
The Company has not reserved any membership interests for issuance to managers, members,
officers, directors, employees and consultants of the Company pursuant to any stock option, profits interests or other equity incentive
plan. There are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first offer or
first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any membership interests,
or any securities convertible into or exchangeable for membership interests, or any other equity-linked rights or securities.

(c)               
The Company has no obligation (contingent or otherwise) to purchase or redeem any of its equity
interests.

2.5             
Litigation. There is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or
to the Company’s knowledge, currently threatened in writing against the Company or any officer or director of the Company.
Neither the Company nor any of its managers, members, officers or directors is a party or
is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality
(in the case of managers, members, officers or directors, such as would affect the Company). There is no action, suit, proceeding
or investigation by the Company pending or which the Company intends to initiate.

2.6             
Compliance with Other Instruments. The Company is
not in violation or default (a) of any provisions of its articles of organization or operating agreement, (b) of any instrument,
judgment, order,

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writ or decree, (c) under any note,
indenture or mortgage, (d) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound,
or (e) to its knowledge, of any provision of federal or state statute, rule or regulation applicable to the Company, the violation
of which would have a material adverse effect on the Company. The execution, delivery and performance of the Transaction Agreements
and the consummation of the transactions contemplated by the Transaction Agreements will not result in any such violation or be
in conflict with or constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision,
instrument, judgment, order, writ, decree, contract or agreement; or (ii) an event which results in the creation of any lien, charge
or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or
license applicable to the Company.

2.7             
Financial Statements. 

(a)               
The Company has delivered to Capstone its audited financial statements as of and for the fiscal
year ended December 31, 2014, and its unaudited financial statements (including balance sheet, income statement and statement
of cash flows) as of and for the period ended May 31, 2015 (collectively, the “Financial Statements”). The Financial
Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) applied on
a consistent basis throughout the periods indicated , except that the unaudited Financial Statements may not contain all footnotes
required by GAAP and are subject to customary and non-material year-end adjustments. The Financial Statements fairly present in
all material respects the financial condition and operating results of the Company as of the dates, and for the periods, indicated
therein, subject in the case of the unaudited Financial Statements to normal year-end audit adjustments. Except as set forth in
the Financial Statements, the Company has no material liabilities or obligations, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business after May 31, 2015; (ii) obligations under contracts and commitments incurred
in the ordinary course of business; and (iii) liabilities and obligations of a type or nature not required under GAAP to be reflected
in the Financial Statements, which, in all such cases, individually and in the aggregate would not have a material adverse effect
on the Company. The Company maintains and will continue to maintain a standard system of accounting established and administered
in accordance with GAAP. 

2.8             
Agreements; Actions. 

(a)               
Except for the Transaction Agreements, there are no agreements, understandings, instruments,
contracts or proposed transactions to which the Company is a party or by which it is bound that involve (i) fixed or (if reasonably
likely to be realized for an amount above such threshold) contingent obligations of, or payments to, the Company in excess of $50,000;
(ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company; (iii) the
grant of rights to license, market, or sell its products or services to any other individual, corporation, partnership, trust,
limited liability company, association or other entity (“Person”) that limit the Company’s exclusive right
to license, market, or sell its products or services, or (iv) indemnification by the Company with respect to infringements of proprietary
rights.

(b)               
No Company manager, employee or consultant is subject to any agreement (with a Person who
previously employed or engaged him or her) which to any extent restricts him or her from competing, from engaging in any business,
or from soliciting personnel. 

(c)               
The Company is not a guarantor or indemnitor of any indebtedness of any other Person.

2.9             
Intellectual Property. All Company employees and consultants have entered into customary nondisclosure/ nonuse/ proprietary-information-protection/
intellectual-property-

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assignment agreements with the Company,
and all such agreements remain in full force and effect. To the Company’s knowledge, no product or service marketed or sold
(or proposed to be marketed or sold) by the Company violates or will violate any license or infringes or will infringe any intellectual
property rights of any other party. Other than with respect to commercially available software products under standard end-user
object code license agreements, there are no outstanding options, licenses, agreements, claims, encumbrances or shared ownership
interests of any kind relating to the Company Intellectual Property, nor is the Company bound by or a party to any options, licenses
or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, proprietary rights and processes of any other Person. The Company has not received any communications alleging that
the Company has violated, or by conducting its business, would violate any of the patents, trademarks, service marks, tradenames,
copyrights, trade secrets or other proprietary rights or processes of any other Person. The Company has obtained and possesses
valid licenses to use all of the software programs present on the computers and other software-enabled electronic devices that
it owns or leases or that it has otherwise provided to its personnel for their use in connection with the Company’s business.
To the Company’s knowledge, it will not be necessary to use any inventions or works of authorship of any of its managers,
employees or consultants (or Persons it currently intends to hire) made before their employment or engagement by the Company.
Each manager, employee and consultant has assigned to the Company all intellectual property rights he or she owns that are related
to the Company’s business as now conducted and as presently proposed to be conducted. “Company Intellectual Property”
shall mean all patents, patent applications, trademarks, trademark applications, service marks, service mark applications, tradenames,
copyrights, trade secrets, domain names, mask works, information and proprietary rights and processes, similar or other intellectual
property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, licenses in, to and under
any of the foregoing, and any and all such cases as are necessary to the Company in the conduct of the Company’s business
as now conducted and as presently proposed to be conducted.

2.10         
Disclosure. No representation or statement made by
or on behalf of the Company to Capstone contains or contained any untrue statement of a material fact or, to the Company’s
best knowledge, omits to state a material fact necessary in order to make such representation or statement not misleading in light
of the circumstances under which they were made.

3.                 
REPRESENTATIONS AND WARRANTIES OF CAPSTONE.

Capstone hereby
represents and warrants to the Company that:

3.1             
Organization; Good Standing. Capstone is a corporation
duly organized, validly existing, and in good standing under the laws of the State of Nevada, has all requisite corporate power
and authority to own and operate its properties and assets and to carry on its business as now conducted and as presently proposed
to be conducted, to execute and deliver this Agreement, to purchase the Membership Interest Units, and to carry out the provisions
of this Agreement. 

3.2             
Authorization. All and any corporate action on the
part of Capstone, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement,
the performance of all obligations of the Company hereunder and the purchase of the Membership Interest Units being sold hereunder,
has been taken. This Agreement and the other Transaction Agreements constitute valid and legally binding obligations of Capstone,
enforceable in accordance with their respective terms except (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and other laws of general application affecting enforcement of creditors’ rights generally,
and (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable

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remedies.

3.3             
Purchase Entirely for Own Account. This Agreement
is made with Capstone in reliance upon Capstone’s representation to the Company, which by its execution of this Agreement
it hereby confirms, that the Membership Interest Units to be issued to or purchased by Capstone will be acquired for investment
for its own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that
it has no present intention of selling, granting any participation in, or otherwise distributing the same. 

3.4             
Reliance Upon Capstone’s Representations. Capstone
understands that the Membership Interest Units are not registered under the Securities Act of 1933, as amended (the “Securities
Act”) on the ground that the sale provided for in this Agreement and the issuance of securities hereunder is exempt from
registration under the Securities Act pursuant to an exemption from the registration provisions thereof, and that the Company’s
reliance on such exemption is predicated on the bona fide nature of the investment intent and the accuracy of the representations
of Capstone set forth herein. 

3.5             
Accredited Investor. Capstone further represents
to the Company that it is an “accredited investor” as defined in Rule 501(a) promulgated under the Securities
Act.

3.6             
Restricted Securities. Capstone understands that
the Membership Interest Units may not be sold, transferred, or otherwise disposed of without registration under the Securities
Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Membership Interest
Units or an available exemption from registration under the Securities Act, the Membership Interest Units must be held indefinitely.
In particular, Capstone is aware that the Membership Interest Units may not be sold pursuant to Rule 144 promulgated under
the Securities Act unless all of the conditions of that Rule are met. Among the conditions for use of Rule 144 may be the
availability of current information to the public about the Company. Such information is not now available and the Company has
no present plans to make such information available.

3.7             
Legends. Capstone understands that, to the extent
applicable, each certificate or other document evidencing any of the Membership Interest Units shall be endorsed with the legends
substantially in the form set forth below: 

(a)               
The following legend under the Securities Act:

“THE MEMBERSHIP INTEREST UNITS
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR
OTHER EVIDENCE, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

(b)               
Any legend imposed or required by the Company’s operating agreement or applicable state
securities laws or by any agreement entered into in connection with this Agreement. 

4.                 
MISCELLANEOUS.

4.1             
Entire Agreement. This Agreement (together with the
other Transaction Agreements) constitutes the entire agreement among the parties with respect to the subject matter hereof and
thereof and

    -5-

    

    

supersedes all prior and contemporaneous
agreements and undertakings, both written and oral, between the parties, with respect to the subject matter hereof; provided, that
any prior confidentiality agreement is not superseded and shall remain in full force and effect.

4.2             
Survival of Warranties. The warranties and representations
of the Company and Capstone contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement
and the Closing. 

4.3             
Successors and Assigns; Transfers. Except as otherwise
provided herein, 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 (including permitted transferees of any Membership Interest Units sold hereunder). Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

4.4             
Governing Law. This Agreement shall be governed by
and construed under the laws of the State of New York as applied to agreements among New York residents entered into and to be
performed entirely within New York. The parties hereto agree to submit to the exclusive jurisdiction of and venue in the federal
and state courts seated in Erie County, New York with respect to the interpretation of this Agreement or for the purposes of any
action arising out of or relating to this Agreement.

4.5             
Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Such counterparts
may also be delivered by email.

4.6             
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.

4.7             
Notices. Unless otherwise provided, all notices and
other communications required or permitted under this Agreement shall be in writing and shall be mailed by United States first-class
mail, postage prepaid, sent by email or delivered personally by hand or by a nationally recognized courier addressed to the party
to be notified at the address or email address indicated for such person on the Company’s records, or at such other address
or email address as such party may designate with 10 days’ advance written notice to the other parties hereto pursuant to
this Section 4.7. All such notices and other written communications shall be effective on the date of mailing or delivery.

4.8             
Amendments and Waivers. No amendment or modification
hereto or waiver of any of the terms or provisions hereof shall be valid unless set forth in a writing that is executed by each
of the parties hereto. No such waiver of any term, provision or condition of this Agreement, in any one or more instances, shall
be deemed to be or construed as a further waiver of any such term, provision or condition or as a waiver of any other term, provision
or condition of this Agreement. 

4.9             
Facilitation. Each party hereto agrees to execute
and perform such other documents (including without limitation an appropriate amendment of the Company’s operating agreement)
and acts as are reasonably required in order to facilitate, effectuate and evidence the terms of this Agreement and the intent
thereof, and to cooperate in good faith in order to effectuate the provisions and intent of this Agreement.

4.10         
Severability. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the
Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance

    -6-

    

    

with its terms.

5.                 
AFFILIATED ENTITIES. Christopher Naugle and Lorissa Naugle agree that they shall cause any other entities or proprietorships
through which the Company and/or either of them directly or indirectly carry on any business with
a primary focus on (a) real estate, (b) media/entertainment/show business, or (c) endorsements/advertisements/personal appearances/use
of likeness/monetization of celebrity (other than LC Strategic Realty, LLC) to issue to Capstone, for no additional consideration,
a number of its equity interests sufficient to give Capstone a 20% equity interest therein (Provided, that without Capstone’s
express prior written consent Capstone shall not be given any equity interest which results in it having unlimited liability, e.g.,
a general partnership interest, or being subject to mandatory capital calls). It is understood that this Section 5 shall not apply
to Syndicated Properties, LLC so long as its business is limited to a property at 37 Bridgman Street, Buffalo, New York and shall
not apply to Syndicated Holdings, LLC so long as its business is limited to the Fillmore Creek Townhouses project in Ellicottville,
New York and/or a property at 22 Somerton Avenue, Kenmore, New York.

IN WITNESS WHEREOF, the parties have
executed this Securities Purchase Agreement as of the date first written above.

 

	COMPANY:	 	 	LC STRATEGIC HOLDINGS, LLC
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	By: 	/s/
    Lorissa Naugle
	 	 	 	 	Name: Lorissa Naugle
	 	 	 	 	Title: Chief Executive Officer
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	CAPSTONE:	 	 	CAPSTONE FINANCIAL GROUP, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	By:	/s/
    Darin Pastor
	 	 	 	 	Name: Darin Pastor
	 	 	 	 	Title: Chief Executive Officer
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	/s/
    Christopher Naugle
	 	 	 	 	CHRISTOPHER NAUGLE
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	/s/
    Lorissa Naugle
	 	 	 	 	LORISSA NAUGLE

 

 

 

    -7-

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