Document:

Exhibit 4.1

 

DESCRIPTION OF REGISTERED SECURITIES

 

The following description summarizes
certain information regarding our registered securities. This information does not purport to be complete and is subject in all
respects to the applicable provisions of the Iowa Business Corporation Act (the “IBCA”), our articles of incorporation,
as amended (our “amended articles of incorporation”), our amended and restated bylaws (our “bylaws”), and
the Deposit Agreement (as defined below). As used in this exhibit, and except where the context otherwise requires, “we,”
 “our” and the “Company” refer to American Equity Investment Life Holding Company.

 

The total number of shares we may issue
is 202,000,000 shares, of which 200,000,000 shares are Common Stock, par value $1 per share (the “Common Stock”), and
2,000,000 shares are Series Preferred Stock, par value $1 per share (the “Preferred Stock”). We have two classes
of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: (i) the Common Stock and
(ii) our depositary shares (the “Depositary Shares”), each representing a 1/1,000th interest in a share of our
5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A, par value $1.00 and $25,000 liquidation preference per share
(the “Series A Preferred Stock”).

 

Common
Stock

 

Each outstanding share of Common Stock is
entitled to one vote per share on each matter submitted to the vote of shareholders. Except as otherwise provided in our amended
articles of incorporation, directors are elected by a plurality of the votes cast by the shares entitled to be voted in the election
at a meeting at which a quorum is present. Cumulative voting for the election of directors is not permitted. If a quorum exists,
action on a matter, other than the election of directors, by a voting group is approved if the votes cast within the voting group
favoring the action exceed the votes cast opposing the action, unless our amended articles of incorporation or the IBCA require
a greater number of affirmative votes.

 

Subject to the rights of holders of Preferred
Stock, holders of Common Stock (i) have equal ratable rights to dividends from funds legally available therefor, when, as
and if declared by our board of directors and (ii) are entitled to share ratably in all of our assets available for distribution
upon our liquidation, dissolution or winding up. Holders of Common Stock have no preemptive, conversion, redemption or subscription
rights.

 

Since we are a holding company, our ability
to pay cash dividends depends in large measure on our subsidiaries’ ability to make distributions of cash or property to
us. Financial covenants under our existing or future loan agreements and reinsurance agreements, or provisions of the laws of the
states where we or our subsidiaries are organized, may limit our subsidiaries’ ability to make sufficient distributions to
us to permit us to pay cash dividends on the Common Stock.

 

We are authorized to issue up to 2,000,000
shares of Preferred Stock. Our amended articles of incorporation authorize our board, without any further shareholder action or
approval, to issue these shares from time to time in one or more series with such rights and preferences as may be determined by
our board of directors. Our board may authorize the issuance of Preferred Stock with voting or conversion rights that could adversely
affect the voting power or other rights of the holders of Common Stock. The Preferred Stock could be deemed to have an anti-takeover
effect in that, if a hostile takeover situation should arise, shares of Preferred Stock could be issued to purchasers sympathetic
with our management or others in such a way as to render more difficult or to discourage a merger, tender offer, proxy contest,
the assumption of control by a holder of a large block of our securities or the removal of incumbent management.

 

Under the terms of the Series A Preferred
Stock, our ability to declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of Common Stock or any other
shares of the Company that rank junior to, or on parity with, the Series A Preferred Stock is subject to certain restrictions
in the event that the Company does not declare and pay (or set aside) dividends on the Series A Preferred Stock for the last
preceding dividend period. The terms of the Series A Preferred Stock are described more fully below under the heading “Depositary
Shares, Each Representing a 1/1,000th Interest in a Share of Series A Preferred Stock—Series A Preferred Stock.”

 

    	 

     

    

 

Depositary
Shares, Each Representing a 1/1,000th Interest in a Share of Series A Preferred Stock

 

On November 21, 2019, we issued 16,000,000
Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock. All of the shares of Series A
Preferred Stock are held by Computershare Inc. and Computershare Trust Company, N.A., acting jointly, as depositary (collectively,
the “Depositary”). Holders of the Depositary Shares are entitled through the Depositary to exercise the rights and
preferences of the Series A Preferred Stock, as described under the heading “Depositary Shares, Each Representing a
1/1,000th Interest in a Share of Series A Preferred Stock—Depositary Shares” below.

 

Series A Preferred Stock

 

General

 

The Series A Preferred Stock represents
a single series of our authorized Preferred Stock. The “stated amount” per share of Series A Preferred Stock is
$25,000. Holders of the Series A Preferred Stock do not have preemptive or subscription rights to acquire more stock of the
Company.

 

The Series A Preferred Stock is not
convertible into, or exchangeable for, shares of Common Stock or any other class or series of stock or other securities of us.
The Series A Preferred Stock is perpetual and has no stated maturity date, and is not subject to any sinking fund, retirement
fund or purchase fund or other obligation of us to redeem, repurchase or retire the Series A Preferred Stock.

 

We may at any time and from time to time,
without notice to or the consent of holders of the Series A Preferred Stock or related Depositary Shares, issue additional
shares of Series A Preferred Stock and the related Depositary Shares either through public or private sales that would be
deemed to form a single series with the Series A Preferred Stock and the related Depositary Shares, respectively, provided
that such additional shares of Series A Preferred Stock and the related Depositary Shares are fungible for U.S. federal income
tax purposes with the previously issued Series A Preferred Stock and the related Depositary Shares. We may also issue additional
shares of other series of Preferred Stock at any time and from time to time, without notice to or the consent of holders of the
Series A Preferred Stock or the related Depositary Shares. Any additional Preferred Stock may be issued from time to time
in one or more series, each with preferences, limitations, designations, conversion or exchange rights, voting rights, dividend
rights, redemption provisions, voluntary and involuntary liquidation rights and other rights as our board may determine at the
time of issuance.

 

Ranking

 

With respect to the distribution of assets
upon our liquidation, dissolution or winding-up, the Series A Preferred Stock ranks:

 

		·	senior to our junior stock as to the distribution of assets upon our liquidation, dissolution or winding-up (junior stock includes
Common Stock and any other class of our stock that ranks junior to the Series A Preferred Stock as to the distribution of
assets upon our liquidation, dissolution or winding-up); and

 

		·	equally with each other series of parity stock that we may issue as to the distribution of assets upon our liquidation, dissolution
or winding-up.

 

As used herein, “parity stock” means any class or
series of our stock that ranks equally with the Series A Preferred Stock in the distribution of assets upon our liquidation,
dissolution or winding-up.

 

In addition, we will generally be able to
pay dividends, any redemption price and distributions upon liquidation, dissolution or winding-up only out of lawfully available
funds for such payment (i.e., after taking account of all existing and future indebtedness and other non-equity claims).

 

    	 

     

    

 

Dividends

 

Dividends on the Series A Preferred
Stock are not mandatory. Holders of Series A Preferred Stock are entitled to receive, when, as and if declared by our board
of directors (or a duly authorized committee of the board), out of funds legally available for the payment of dividends, under
Iowa law, quarterly in arrears on the first day of March, June, September and December of each year, non-cumulative cash
dividends that accrue for the relevant dividend period as follows:

 

		·	from the date of original issue, to, but excluding, December 1, 2024 (the “First Call Date”), at a fixed rate
per annum of 5.95% on the stated amount of $25,000 per share (equivalent to $25.00 per Depositary Share); and

 

		·	from the First Call Date, during each reset period (as defined below), at a rate per annum equal to the Five-year U.S. Treasury
Rate (as defined below) as of the most recent reset dividend determination date plus 4.322% on the stated amount of $25,000 per
share (equivalent to $25.00 per Depositary Share).

 

If we issue additional shares of Series A
Preferred Stock after the original issue date, dividends on such shares accrue from the original issue date if such shares are
issued prior to the first dividend payment date. Dividends on Series A Preferred Stock issued after the first dividend payment
date accrue from either the date on which such shares are issued (if such shares are issued on a dividend payment date) or the
dividend payment date next preceding the date such shares are issued (if such shares are not issued on a dividend payment date).

 

Dividends are payable to holders of record
of the Series A Preferred Stock as they appear on our books on the applicable record date, which is the 15th calendar day
before that dividend payment date or such other record date fixed by our board of directors (or a duly authorized committee of
the board) that is not more than 60 nor less than 10 days prior to such dividend payment date (each, a “dividend record date”).
Dividend record dates apply regardless of whether a particular dividend record date is a business day.

 

Dividends payable on the Series A Preferred
Stock are calculated on the basis of a 360-day year consisting of twelve 30-day months. If any dividend payment date is a day that
is not a business day, then the dividend with respect to that dividend payment date is instead paid on the immediately succeeding
business day, without interest or other payment in respect of such delayed payment. “Business day” means any day other
than (i) a Saturday or Sunday or a legal holiday or (ii) a day on which banking institutions in the Borough of Manhattan,
The City of New York, are authorized or obligated by law, executive order or regulation to close.

 

A “dividend period” (in the
case of dividend periods following the initial dividend period) is the period from, and including, a dividend payment date to,
but excluding, the next dividend payment date.

 

A “reset date” means the First
Call Date and each date falling on the fifth anniversary of the preceding reset date. A “reset period” means the period
from and including the First Call Date to, but excluding, the next following reset date and thereafter each period from and including
each reset date to, but excluding, the next following reset date. A “reset dividend determination date” means, in respect
of any reset period, the day falling two business days prior to the beginning of such reset period.

 

The “Five-year U.S. Treasury Rate”
means, as of any reset dividend determination date, as applicable, (i) an interest rate (expressed as a decimal) determined
to be the per annum rate equal to the average of the yields to maturity for the five business days immediately prior to such reset
dividend determination date for U.S. Treasury securities with a maturity of five years from the next reset date and trading in
the public securities markets or (ii) if there is no such published U.S. Treasury security with a maturity of five years from
the next reset date and trading in the public securities markets, then the rate will be determined by interpolation between the
average of the yields to maturity for the five business days immediately prior to such reset dividend determination date for two
series of U.S. Treasury securities trading in the public securities market, (A) one maturing as close as possible to, but
earlier than, the reset date following the next succeeding reset dividend determination date, and (B) the other maturity as
close as possible to, but later than, the reset date following the next succeeding reset dividend determination date, in each case
as published in the most recent H.15 (519) under the caption “Treasury constant maturities.” If the Five-year U.S.
Treasury Rate cannot be determined pursuant to the methods described in clauses (i) or (ii) above, then the Five-year
U.S. Treasury Rate will be the same interest rate determined for the prior reset dividend determination date.

 

    	 

     

    

 

“H.15 (519)” means the statistical
release designated as “H.15 Daily Update,” or any successor publication, published by the Board of Governors of the
U.S. Federal Reserve System, and “most recent H.15 (519)” means the H.15 (519) published closest in time but at or
prior to the close of business on the reset dividend determination date.

 

Unless we have validly called all shares
of Series A Preferred Stock for redemption on the First Call Date, we will appoint a calculation agent with respect to the
Series A Preferred Stock prior to the reset dividend determination date preceding the First Call Date. The applicable dividend
rate for each reset period will be determined by the calculation agent, as of the applicable reset dividend determination date.
Promptly upon such determination, the calculation agent will notify us of the dividend rate for the reset period. The calculation
agent’s determination of any dividend rate, and its calculation of the amount of dividends for any dividend period beginning
on or after the First Call Date will be on file at our principal offices, will be made available to any holder of Series A
Preferred Stock upon request and will be final and binding in the absence of manifest error.

 

Dividends on the Series A Preferred
Stock are not cumulative. Accordingly, if our board of directors (or a duly authorized committee of the board), does not declare
a dividend on the Series A Preferred Stock payable in respect of any dividend period before the related dividend payment date,
such dividend does not accrue, we have no obligation to pay a dividend for that dividend period on the dividend payment date or
at any future time, whether or not dividends on the Series A Preferred Stock are declared for any future dividend period,
and no interest, or sum of money in lieu of interest, is payable in respect of any dividend not so declared. References to the
 “accrual” of dividends herein refer only to the determination of the amount of such dividend and do not imply that
any right to a dividend arises prior to the date on which a dividend is declared.

 

So long as any Series A Preferred Stock
remains outstanding for any dividend period, unless the full dividends for the latest completed dividend period on all outstanding
Series A Preferred Stock have been declared and paid (or declared and a sum sufficient for the payment thereof has been set
aside), during a dividend period:

 

		·	no dividend may be paid or declared on the Common Stock or any other shares of our junior stock or parity stock (except, in
the case of parity stock, on a pro rata basis with the Series A Preferred Stock as described below), other than:

 

		·	any dividend paid on junior stock or parity stock in the form of stock, warrants, options or other rights where the dividend
stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend
is being paid or is other junior stock or (solely in the case of parity stock) other parity stock, or

 

		·	any dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of rights, stock or
other property under such plan, or the redemption or repurchase of any rights under such plan, and

 

		·	no Common Stock or other junior stock or parity stock (except, in the case of parity stock, on a pro rata basis with the Series A
Preferred Stock as described below), may be purchased, redeemed or otherwise acquired for consideration by us, directly or indirectly,
other than:

 

		·	as a result of a reclassification of junior stock for or into other junior stock or a reclassification of parity stock for
or into other parity stock, as applicable,

 

		·	the exchange, redemption or conversion of one share of junior stock for or into another share of junior stock or the exchange,
redemption or conversion of one share of parity stock for or into another share of parity stock, as applicable,

 

		·	purchases, redemptions or other acquisitions of shares of junior stock or parity stock in connection with (x) any employment
contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors, consultants
or independent contractors, (y) a dividend reinvestment or shareholder stock purchase plan, or (z) the satisfaction of
our obligations pursuant to any contract relating to the foregoing clauses (x) or (y) outstanding at the beginning of
the applicable dividend period requiring such purchase, redemption or other acquisition,

 

    	 

     

    

 

		·	the purchase of fractional interests in shares of junior stock or parity stock, as the case may be, pursuant to the conversion
or exchange provisions of such securities or the security being converted or exchanged,

 

		·	through the use of the proceeds of a substantially contemporaneous sale of junior stock or parity stock, as applicable, or

 

		·	in the case of parity stock, pro rata purchases, offers or other acquisitions for consideration by us to purchase all, or a
pro rata portion of, the Series A Preferred Stock and such parity stock.

 

When dividends are not paid (or declared
and a sum sufficient for payment thereof set aside) in full on any dividend payment date (or, in the case of parity stock having
dividend payment dates different from the dividend payment dates pertaining to the Series A Preferred Stock, on a dividend
payment date falling within the related dividend period for the Series A Preferred Stock) upon the Series A Preferred
Stock and any shares of parity stock, all dividends declared on the Series A Preferred Stock and all such parity stock and
payable on such dividend payment date (or, in the case of parity stock having dividend payment dates different from the dividend
payment dates pertaining to the Series A Preferred Stock, on a dividend payment date falling within the related dividend period
for the Series A Preferred Stock) are declared pro rata so that the respective amounts of such dividends bear the same ratio
to each other as all accrued but unpaid dividends per share of Series A Preferred Stock and all parity stock payable on such
dividend payment date (or, in the case of parity stock having dividend payment dates different from the dividend payment dates
pertaining to the Series A Preferred Stock, on a dividend payment date falling within the related dividend period for the
Series A Preferred Stock) bear to each other. As used in this paragraph, payment of dividends “in full” means,
as to any parity stock that bears dividends on a cumulative basis, the amount of dividends that would need to be declared and paid
to bring such parity stock current in dividends, including undeclared dividends for past dividend periods. To the extent a dividend
period with respect to the Series A Preferred Stock or any shares of parity stock (in either case, the “first series”)
coincides with more than one dividend period with respect to another series, as applicable (in either case, a “second series”),
then, for purposes of this paragraph, our board of directors (or a duly authorized committee of the board) may, to the extent permitted
by the terms of each affected series, treat such dividend period for the first series as two or more consecutive dividend periods,
none of which coincides with more than one dividend period with respect to the second series, or may treat such dividend period(s) with
respect to any parity stock and dividend period(s) with respect to the Series A Preferred Stock for purposes of this
paragraph in any other manner that it deems to be fair and equitable in order to achieve ratable payments of dividends on such
parity stock and the Series A Preferred Stock.

 

Subject to the foregoing, dividends (payable
in cash, stock or otherwise, as may be determined by our board of directors or a duly authorized committee of the board) may be
declared and paid on the Common Stock and any other junior stock from time to time out of any funds legally available for such
payment, and the Series A Preferred Stock is not entitled to participate in any such dividend.

 

Dividends on the Series A Preferred
Stock cannot be declared, paid or set aside for payment if we fail to comply, or if such act would cause us to fail to comply,
with applicable laws, rules and regulations.

 

Liquidation Rights

 

Upon our voluntary or involuntary liquidation,
dissolution or winding-up, holders of the Series A Preferred Stock and any parity stock are entitled to receive out of our
assets available for distribution to shareholders, after satisfaction of liabilities to creditors and any required distributions
to holders of stock, if any, that ranks senior to the Series A Preferred Stock in the distribution of assets upon liquidation,
dissolution or winding-up but before any distribution of assets is made to holders of Common Stock and any other junior stock,
a liquidating distribution equal to the stated amount of $25,000 per share (equivalent to $25.00 per Depositary Share) plus declared
but unpaid dividends, without accumulation of any undeclared dividends. Holders of the Series A Preferred Stock will not be
entitled to any other amounts from us after they have received their full liquidation preference.

 

    	 

     

    

 

In any such distribution, if our assets
are not sufficient to pay the liquidation preferences in full to all holders of the Series A Preferred Stock and all holders
of any parity stock, the amounts paid to the holders of Series A Preferred Stock and to the holders of any parity stock must
be paid pro rata in accordance with the respective aggregate liquidation preferences of those holders. In any such distribution,
the “liquidation preference” of any holder of Preferred Stock or parity stock means the amount payable to such holder
in such distribution (assuming no limitation on our assets available for such distribution), including any declared but unpaid
dividends (and any unpaid, accrued cumulative dividends in the case of any holder of stock (other than Series A Preferred
Stock) on which dividends accrue on a cumulative basis). If the liquidation preference has been paid in full to all holders of
the Series A Preferred Stock and any holders of parity stock, the holders of our junior stock become entitled to receive all
of our remaining assets according to their respective rights and preferences.

 

For purposes of this section, the merger
or consolidation of us with any other entity, including a merger or consolidation in which the holders of the Series A Preferred
Stock receive cash, securities or other property for their shares, or the sale, lease or exchange of all or substantially all of
our assets, for cash, securities or other property does not constitute a liquidation, dissolution or winding-up of us.

 

Optional Redemption

 

We may redeem the Series A Preferred
Stock at our option:

 

		·	in whole or in part, from time to time, on or after December 1, 2024, at a redemption price equal to the stated amount
of $25,000 per share of Series A Preferred Stock (equivalent to $25.00 per Depositary Share), plus (except as provided below)
an amount equal to any declared but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current
dividend period that has not been declared and paid to, but excluding, the redemption date,

 

		·	in whole, but not in part, at any time prior to December 1, 2024, within 90 days after the occurrence of a “rating
agency event,” at a redemption price equal to $25,500 per share of Series A Preferred Stock (102% of the stated amount
of $25,000 per share) (equivalent to $25.50 per Depositary Share), plus (except as provided below) an amount equal to any declared
but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current dividend period that
has not been declared and paid to, but excluding, the redemption date, or

 

		·	in whole, but not in part, at any time prior to December 1, 2024, within 90 days after the occurrence of a “regulatory
capital event,” at a redemption price equal to the stated amount of $25,000 per share of Series A Preferred Stock (equivalent
to $25.00 per Depositary Share), plus (except as provided below) an amount equal to any declared but unpaid dividends and the portion
of the quarterly dividend per share attributable to the then-current dividend period that has not been declared and paid to, but
excluding, the redemption date.

 

Any declared but unpaid dividends payable
on a redemption date that occurs subsequent to the dividend record date for a dividend period does not constitute a part of and
is not paid to the holder entitled to receive the redemption price on the redemption date, but rather is paid to the holder of
record of the redeemed shares on the dividend record date relating to the dividend payment date.

 

“Rating agency event” means
that any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act,
that then publishes a rating for us (a “rating agency”) amends, clarifies or changes the criteria it uses to assign
equity credit to securities such as the Series A Preferred Stock, which amendment, clarification or change results in:

 

		·	the shortening of the length of time the Series A Preferred Stock are assigned a particular level of equity credit by
that rating agency as compared to the length of time they would have been assigned that level of equity credit by that rating agency
or its predecessor on the initial issuance of the Series A Preferred Stock; or

 

		·	the lowering of the equity credit (including up to a lesser amount) assigned to the Series A Preferred Stock by that rating
agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series A
Preferred Stock.

 

    	 

     

    

 

“Regulatory capital event” means
that we become subject to capital adequacy supervision by a capital regulator and the capital adequacy guidelines that apply to
us as a result of being so subject set forth criteria pursuant to which the liquidation preference amount of the Series A
Preferred Stock would not qualify as capital under such capital adequacy guidelines, as we may determine at any time, in our sole
discretion.

 

If the Series A Preferred Stock is
to be redeemed, the notice of redemption must be given by first class mail to the holders of record of the Series A Preferred
Stock to be redeemed, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption thereof. Any notice
mailed as provided in this paragraph is conclusively presumed to have been duly given, whether or not the holder receives such
notice, but failure duly to give such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of
shares of Series A Preferred Stock designated for redemption does not affect the validity of the proceedings for the redemption
of any other shares of Series A Preferred Stock. Notwithstanding the foregoing, if the Series A Preferred Stock is held
in book-entry form through The Depository Trust Company (“DTC”) or any other similar facility, such notice of redemption
may be given to the holders of Series A Preferred Stock at such time and in any manner permitted by such facility.

 

Each notice of redemption must include a
statement setting forth:

 

		·	the redemption date;

 

		·	the number of shares of Series A Preferred Stock to be redeemed and, if less than all the shares of Series A Preferred
Stock held by such holder are to be redeemed, the number of shares of such Series A Preferred Stock to be redeemed (if determinable
at the time of such notice) from such holder;

 

		·	the redemption price;

 

		·	if shares of Series A Preferred Stock are evidenced by definitive certificates, the place or places where holders may
surrender certificates evidencing those shares of Series A Preferred Stock for payment of the redemption price; and

 

		·	that dividends will not accrue for any period beginning on or after the redemption date.

 

If notice of redemption of any Series A
Preferred Stock has been given and if the funds necessary for such redemption have been set aside by us for the benefit of the
holders of any Series A Preferred Stock so called for redemption, then, from and after the redemption date, dividends will
not accrue on such Series A Preferred Stock for any period beginning on or after the redemption date, such Series A Preferred
Stock will no longer be deemed outstanding and all rights of the holders of such Series A Preferred Stock will terminate,
except the right to receive the redemption price, without interest. Any funds unclaimed at the end of two years from the redemption
date, to the extent permitted by law, must be released from the trust so established and may be commingled with our other funds,
and after that time the holders of the shares so called for redemption may look only to us for payment of the redemption price
of such shares.

 

In case of any redemption of only part of
the Series A Preferred Stock at the time outstanding, the Series A Preferred Stock to be redeemed must be selected either
pro rata, by lot or by such other method in accordance with the procedures of DTC.

 

Voting Rights

 

Right to Elect Two Directors on Nonpayment
of Dividends. Whenever dividends on any shares of Series A Preferred Stock have not been declared and paid for six or
more dividend periods, whether or not for consecutive dividend periods (a “Nonpayment”), the holders of such shares
of Series A Preferred Stock, voting together as a single class with holders of any and all other series of voting Preferred
Stock (as defined below) then outstanding, are entitled to vote for the election of a total of two additional members of our board
of directors (the “Preferred Stock Directors”), provided that the election of any such directors cannot cause us to
violate the corporate governance requirement of the NYSE (or any other exchange on which our securities may be listed) that listed
companies must have a majority of independent directors and provided, further, that our board of directors must at no time include
more than two Preferred Stock directors. In that event, the number of directors on our board of directors will automatically increase
by two, and the new directors will be elected at a special meeting called at the request of the holders of record of at least 20%
of the Series A Preferred Stock or of any other series of voting Preferred Stock (unless such request is received less than
90 days before the date fixed for the next annual or special meeting of the shareholders, in which event such election will be
held at such next annual or special meeting of shareholders), and at each subsequent annual meeting. These voting rights will continue
until dividends on the shares of Series A Preferred Stock and any such series of voting Preferred Stock for at least four
consecutive dividend periods (or the equivalent thereof, in the case of any other series of voting Preferred Stock) following the
Nonpayment have been fully paid.

 

    	 

     

    

 

As used herein, “voting Preferred
Stock” means any other class or series of our Preferred Stock ranking equally with the Series A Preferred Stock as to
the distribution of assets upon our liquidation, dissolution or winding-up and upon which like voting rights have been conferred
and are exercisable. Whether a plurality, majority or other portion of the Series A Preferred Stock and any other voting Preferred
Stock have been voted in favor of any matter is determined by reference to the respective stated amounts of the Series A Preferred
Stock and voting Preferred Stock voted.

 

If and when dividends for at least four
consecutive dividend periods (or the equivalent thereof, in the case of any other series of voting Preferred Stock) following a
Nonpayment have been paid in full, the holders of the Series A Preferred Stock will be divested of the foregoing voting rights
(subject to revesting in the event of each subsequent Nonpayment) and, if such voting rights for all other holders of voting Preferred
Stock have terminated, the term of office of each Preferred Stock Director so elected will immediately terminate and the number
of directors on our board of directors will automatically decrease by two. In determining whether dividends have been paid for
at least four consecutive dividend periods (or the equivalent thereof, in the case of any other series of voting Preferred Stock)
following a Nonpayment, we may take account of any dividend we elect to pay for such a dividend period after the regular dividend
date for that period has passed. Any Preferred Stock Director may be removed at any time without cause by the holders of record
of a majority of the outstanding shares of Series A Preferred Stock and any other shares of voting Preferred Stock then outstanding
(voting together as a class) when they have the voting rights described above. So long as a Nonpayment continues, any vacancy in
the office of a Preferred Stock Director (other than prior to the initial election after a Nonpayment) may be filled by the written
consent of the Preferred Stock Director remaining in office, or if none remains in office, by a vote of the holders of record of
a majority of the outstanding Series A Preferred Stock and any other shares of voting Preferred Stock then outstanding (voting
together as a class) when they have the voting rights described above, provided that the filling of any such vacancy cannot cause
us to violate the corporate governance requirement of the NYSE (or any other exchange on which our securities may be listed) that
listed companies must have a majority of independent directors. Any such vote to remove, or to fill a vacancy in the office of,
a Preferred Stock Director may be taken only at a special meeting called at the request of the holders of record of at least 20%
of the Series A Preferred Stock or of any other series of voting Preferred Stock (unless such request is received less than
90 days before the date fixed for the next annual or special meeting of the shareholders, in which event such election will be
held at such next annual or special meeting of shareholders). The Preferred Stock Directors are each entitled to one vote per director
on any matter.

 

Other Voting Rights. So long as any
shares of Series A Preferred Stock remain outstanding, the affirmative vote or consent of the holders of at least two-thirds
of all outstanding shares of the Series A Preferred Stock, voting separately as a class, is required to:

 

		·	authorize or increase the authorized amount of, or issue shares of any class or series of senior stock, or issue any obligation
or security convertible into or evidencing the right to purchase any such shares;

 

		·	amend the provisions of our amended articles of incorporation or bylaws so as to adversely affect the powers, preferences,
privileges or rights of the Series A Preferred Stock, taken as a whole, provided, however, that any increase in the amount
of the authorized or issued Series A Preferred Stock or authorized Common Stock or Preferred Stock or the creation and issuance,
or an increase in the authorized or issued amount, of other series of Preferred Stock ranking equally with or junior to the Series A
Preferred Stock with respect to the distribution of assets upon our liquidation, dissolution or winding-up, whether or not dividends
payable thereon are cumulative or noncumulative, will not be deemed to adversely affect the powers, preferences, privileges or
rights of the Series A Preferred Stock; or

 

    	 

     

    

 

		·	consolidate with or merge into any other corporation, enter into a binding share exchange or reclassification involving the
Series A Preferred Stock or convert, transfer, domesticate or continue our company into another entity or an entity organized
under the laws of another jurisdiction unless, in each case, the shares of Series A Preferred Stock remain outstanding or
the shares of Series A Preferred Stock outstanding at the time of such consolidation or merger or sale, or such exchange,
reclassification, conversion, transfer, domestication or continuance, are converted into or exchanged for preference securities,
and such shares remain outstanding or such preference securities, as the case may be, have such rights, preferences, privileges
and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences,
privileges and voting powers of the Series A Preferred Stock, taken as a whole.

 

If an amendment, alteration, repeal, share
exchange, reclassification, merger or consolidation, or any conversion, transfer, domestication or continuance described above
would materially and adversely affect one or more but not all series of voting Preferred Stock (including the Series A Preferred
Stock for this purpose), then only the series materially and adversely affected and entitled to vote will vote to the exclusion
of all other series of Preferred Stock. If all series of Preferred Stock are not equally affected by the proposed amendment, alteration,
repeal, share exchange, reclassification, merger or consolidation, or conversion, transfer, domestication or continuance, described
above, there will be required a two-thirds approval of each series that will have a diminished status.

 

To the fullest extent permitted by law,
without the consent of the holders of the Series A Preferred Stock, so long as such action does not adversely affect the rights,
preferences, privileges and voting powers of the Series A Preferred Stock, we may supplement any terms of the Series A
Preferred Stock:

 

		·	to cure any ambiguity, or to cure, correct or supplement any provision contained in the Certificate of Designations that may
be defective or inconsistent; or

 

		·	to make any provision with respect to matters or questions arising with respect to the Series A Preferred Stock that is
not inconsistent with the provisions of the Certificate of Designations.

 

The foregoing voting provisions do not apply
if, at or prior to the time when the act with respect to which the vote would otherwise be required will be effected, all outstanding
shares of the Series A Preferred Stock have been redeemed or called for redemption on proper notice and sufficient funds have
been set aside by us for the benefit of the holders of the Series A Preferred Stock to effect the redemption unless in the
case of a vote or consent required to authorize senior stock if all outstanding shares of Series A Preferred Stock are being
redeemed with the proceeds from the sale of the stock to be authorized.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for the
Series A Preferred Stock is Computershare Inc. We may terminate such appointment and may appoint a successor transfer agent
and registrar at any time and from time to time. The transfer agent and/or registrar may be a person or entity affiliated with
us.

 

Calculation Agent

 

The “calculation agent” means,
at any time, the person or entity appointed by us and serving as such agent with respect to the Series A Preferred Stock at
such time. Unless we have validly called all shares of Series A Preferred Stock for redemption on the First Call Date, we
will appoint a calculation agent with respect to the Series A Preferred Stock prior to the reset dividend determination date
preceding the First Call Date. We may terminate any such appointment and may appoint a successor agent at any time and from time
to time. We may appoint ourselves or an affiliate of ours as calculation agent.

 

    	 

     

    

 

Depositary Shares

 

All references in the below summary to “holders”
of the Depositary Shares mean those who own the Depositary Shares registered in their own names, on the books that we or the Depositary
maintain for this purpose, and not indirect holders who own beneficial interests in the Depositary Shares registered in street
name or issued in book-entry form through DTC.

 

Each Depositary Share represents a 1/1,000th
interest in a share of the Series A Preferred Stock and is evidenced by a depositary receipt. The shares of the Series A
Preferred Stock represented by the Depositary Shares were deposited under a deposit agreement (the “Deposit Agreement”),
dated as of November 21, 2019, among us and the Depositary, and the holders from time to time of the depositary receipts evidencing
the Depositary Shares. Subject to the terms of the Deposit Agreement, each holder of Depositary Shares is entitled, through the
Depositary, in proportion to the applicable fraction of a share of the Series A Preferred Stock represented by such Depositary
Shares, to all the rights and preferences of the Series A Preferred Stock represented thereby (including dividend, voting,
redemption and liquidation rights).

 

Dividends and Other Distributions

 

Each dividend on a Depositary Share is in
an amount equal to 1/1,000th of the dividend declared on each share of Series A Preferred Stock.

 

The Depositary distributes any cash dividends
or other cash distributions received in respect of the deposited Series A Preferred Stock to the record holders of the Depositary
Shares relating to the underlying Series A Preferred Stock in proportion to the number of the Depositary Shares held by the
holders. The Depositary distributes any property received by it other than cash to the record holders of the Depositary Shares
entitled to those distributions, unless it determines that the distribution cannot be made proportionally among those holders or
that it is not feasible to make a distribution. In that event, the Depositary may, with our approval, sell the property and distribute
the net proceeds from the sale to the holders of the Depositary Shares in proportion to the number of the Depositary Shares they
hold.

 

Record dates for the payment of dividends
and other matters relating to the Depositary Shares are the same as the corresponding record dates for the Series A Preferred
Stock.

 

The amounts distributed to holders of the
Depositary Shares are reduced by any amounts required to be withheld by the Depositary or by us on account of taxes or other governmental
charges.

 

Withdrawal of Preferred Stock

 

Unless the Depositary Shares have been previously
called for redemption, a holder of Depositary Shares may surrender his or her depositary receipts at the principal office of the
Depositary, pay any taxes, charges and fees provided for in the Deposit Agreement and comply with any other requirements of the
Deposit Agreement for the number of whole shares of Series A Preferred Stock and any money or other property represented by
such holder’s depositary receipts. A holder of Depositary Shares who exchanges such depositary receipts for shares of Series A
Preferred Stock is entitled to receive whole shares of Series A Preferred Stock on the basis set forth herein; partial shares
of Series A Preferred Stock will not be issued.

 

However, holders of whole shares of Series A
Preferred Stock are not entitled to deposit those shares under the Deposit Agreement or to receive Depositary Shares for those
shares after the withdrawal. If the Depositary Shares surrendered by the holder in connection with the withdrawal exceed the number
of Depositary Shares that represent the number of whole shares of Series A Preferred Stock to be withdrawn, the Depositary
will deliver to the holder at the same time a new depositary receipt evidencing the excess number of Depositary Shares.

 

    	 

     

    

 

Redemption of the Depositary Shares

 

If we redeem the Series A Preferred
Stock represented by the Depositary Shares, the Depositary Shares will be redeemed from the proceeds received by the Depositary
resulting from the redemption of the Series A Preferred Stock held by the Depositary. The redemption price per Depositary
Share will be equal to 1/1,000th of the redemption price per share payable with respect to the Series A Preferred Stock (equivalent
to $25.00 per Depositary Share or, in the case of a redemption following a rating agency event occurring prior to December 1,
2024, $25.50 per Depositary Share), plus any dividends payable thereon upon redemption as described under “Depositary Shares,
Each Representing a 1/1,000th Interest in a Share of Series A Preferred Stock—Series A Preferred Stock—Optional
Redemption.” Whenever we redeem shares of the Series A Preferred Stock held by the Depositary, the Depositary redeems,
as of the same redemption date, the number of the Depositary Shares representing shares of the Series A Preferred Stock so
redeemed.

 

In case of any redemption of less than all
of the outstanding Depositary Shares, the Depositary Shares to be redeemed will be selected by us pro rata, by lot or by such other
method in accordance with DTC’s procedures. In any such case, we will redeem the Depositary Shares only in increments of
1,000 shares and any integral multiple thereof.

 

The Depositary is obligated to mail (or
otherwise transmit by an authorized method) notice of redemption to holders of the Depositary Shares not less than 30 and not more
than 60 days prior to the date fixed for redemption of the Series A Preferred Stock and the Depositary Shares.

 

Voting of the Depositary Shares

 

When the Depositary receives notice of any
meeting at which the holders of the Series A Preferred Stock are entitled to vote as described above in “Depositary
Shares, Each Representing a 1/1,000th Interest in a Share of Series A Preferred Stock—Series A Preferred Stock—Voting
Rights,” the Depositary will mail (or otherwise transmit by an authorized method) the information contained in the notice
to the record holders of the Depositary Shares relating to the Series A Preferred Stock. Each record holder of Depositary
Shares on the record date, which is the same date as the record date for the Series A Preferred Stock, may instruct the Depositary
to vote the amount of the Series A Preferred Stock represented by the holder’s Depositary Shares. Although each Depositary
Share is entitled to 1/1,000th of a vote, the Depositary can only vote whole shares of Series A Preferred Stock. To the extent
possible, the Depositary will vote the amount of the Series A Preferred Stock represented by the Depositary Shares in accordance
with the instructions it receives. We will take all reasonable actions that the Depositary determines are necessary to enable the
Depositary to vote as instructed. If the Depositary does not receive specific instructions from the holders of any Depositary Shares,
it will not vote the amount of the Series A Preferred Stock represented by such Depositary Shares.

 

Amendment and Termination of the Deposit Agreement

 

The form of depositary receipt evidencing
the Depositary Shares and any provision of the Deposit Agreement may be amended by agreement between us and the Depositary. However,
any amendment that materially and adversely alters the rights of the holders of depositary receipts evidencing the Depositary Shares
will not be effective unless such amendment has been approved by the record holders of depositary receipts representing in the
aggregate at least a two-thirds majority of the Depositary Shares then outstanding. The Deposit Agreement may be terminated if
all outstanding Depositary Shares have been redeemed or if there has been made a final distribution in respect of the Series A
Preferred Stock in connection with our liquidation, dissolution or winding-up and such distribution has been made to the holders
of depositary receipts evidencing the Depositary Shares.

 

Fees, Charges and Expenses of Depositary

 

We pay all transfer and other taxes, assessments,
and governmental charges arising solely from the existence of the depositary arrangements. We also pay all charges of the Depositary
in connection with the initial deposit of the Series A Preferred Stock. Holders of depositary receipts pay transfer and other
taxes, assessments, and governmental charges and any other charges as are expressly provided in the Deposit Agreement to be for
their accounts. The Depositary may refuse to effect any transfer of a depositary receipt or any withdrawals of shares of Series A
Preferred Stock represented by the Depositary Shares evidenced by a depositary receipt until all taxes, assessments, and governmental
charges with respect to such depositary receipt are paid by the holder.

 

    	 

     

    

 

Resignation and Removal of Depositary

 

The Depositary may resign at any time by
delivering to us 30 days’ written notice of its election to do so, and we may at any time remove the Depositary by delivering
the Depositary 30 days’ written notice, any resignation or removal to take effect upon the appointment of a successor depositary
and its acceptance of such appointment, but in no event later than 30 days after delivery of such notice. The successor depositary
must be appointed within 30 days after delivery of the notice of resignation or removal and must be a bank or trust company having
its principal office in the United States and having a combined capital and surplus of at least $50 million; provided that we will
use commercially reasonable efforts to ensure that there is, at all relevant times when the Series A Preferred Stock is outstanding,
a person or entity appointed and serving as the Depositary. If a successor is not appointed within 30 days, any record holders
of depositary receipts or the outgoing depositary may petition a court to appoint a successor.

 

Miscellaneous

 

The Depositary will forward to the holders
of Depositary Shares all of our reports and communications which are delivered to the Depositary and which we are required to furnish
to the holders of depositary receipts evidencing the Depositary Shares.

 

Neither we nor the Depositary will be liable
if we are prevented or delayed by law or any circumstance beyond our control in performing our obligations under the Deposit Agreement.
All the Depositary’s obligations under the Deposit Agreement are limited to performance in good faith of its duties set forth
in the Deposit Agreement, and the Depositary does not have any duty in the case of the receipt of a written demand from any holder
of depositary receipts with respect to any action or default by us, including any duty to initiate any proceedings or to make any
demand upon us. The Depositary may rely upon written advice of counsel or accountants, or information provided by persons presenting
Series A Preferred Stock for deposit, holders of depositary receipts evidencing Depositary Shares or other persons believed
in the absence of bad faith to be competent and on documents believed to be genuine.

 

Form of the Depositary Shares

 

The Depositary Shares are issued in book-entry
only form through DTC in the form of one or more global depositary receipts. The Series A Preferred Stock is issued in registered
form to the Depositary.

 

DTC has advised us that it is a member of
the U.S. Federal Reserve System, a limited-purpose trust company under the New York banking law and a registered clearing agency
with the U.S. Securities and Exchange Commission (the “Commission”). DTC holds securities that its participants deposit
with DTC and facilitates the settlement among participants of securities transactions in deposited securities through electronic
computerized book-entry changes in participants’ accounts, thereby eliminating the need for physical movement of securities
certificates. Participants include securities brokers and dealers (including the underwriters), banks, trust companies, clearing
corporations and certain other organizations. DTC is a wholly-owned subsidiary of the Depository Trust & Clearing Corporation,
which is owned by a number of its participants and by The New York Stock Exchange, Inc., the American Stock Exchange LLC and
the Financial Industry Regulatory Authority. Access to DTC’s book-entry system is also available to others, such as securities
brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a participant, either
directly or indirectly. The rules applicable to DTC and its participants are on file with the Commission.

 

Further Issuances

 

We may from time to time elect to issue
additional Depositary Shares, and all the additional Depositary Shares would be deemed to form a single series with the Depositary
Shares previously issued.

 

Indemnification
of Directors and Executive Officers and Limitation of Liability

 

Section 490.202 of the IBCA permits
a corporation to include a provision in its articles of incorporation permitting or making obligatory the indemnification of a
director for liability to any person for any action taken, or any failure to take any action, as a director, except liability for
(i) the receipt of a financial benefit to which the person is not entitled, (ii) an intentional infliction of harm on
the corporation or its shareholders, (iii) a violation of Section 490.833 of the IBCA, which relates to liability for
unlawful distributions, or (iv) an intentional violation of criminal law.

 

    	 

     

    

 

Our amended articles of incorporation provide
that our directors will not be liable to us or our shareholders for money damages for any action taken, or any failure to take
any action, as a director, except liability for (i) the amount of a financial benefit received by a director to which the
director is not entitled, (ii) intentional infliction of harm on us or our shareholders, (iii) a violation of Section 490.833
of the IBCA, which relates to liability for unlawful distributions, and (iv) an intentional violation of criminal law. Our
amended articles of incorporation also provide that each individual who was or is a director of the Company who was or is made
a party to, or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, by reason of the fact that such person is or was a director of the Company, or is or was serving at the request
of the Company as a director, officer, partner, trustee, employee or agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise, must be indemnified and held harmless by the Company to the fullest extent permitted
by applicable law, except liability for:

 

		·	the amount of a financial benefit received by a director to which the director is not entitled;

 

		·	an intentional infliction of harm on the Company or its shareholders;

 

		·	a violation of Section 490.833 of the IBCA, which relates to liability for unlawful distributions; and

 

		·	an intentional violation of criminal law.

 

Our bylaws also provide indemnification
to our directors on the same terms as the indemnification provided in our amended articles of incorporation. Our bylaws also provide
for the direct payment by the Company of expenses to our directors and officers on the same terms as provided in our amended articles
of incorporation. The indemnification provisions of our bylaws are not exclusive of any other right which any person seeking indemnification
may have or acquire under any statute, our amended articles of incorporation or any agreement, vote of shareholders or disinterested
directors or otherwise.

 

Selected
Amended Articles of Incorporation and Bylaws Provisions

 

Our amended articles of incorporation and
bylaws include provisions that may have the effect of delaying, deferring or preventing (a) a change in control of the Company
or (b) an unsolicited acquisition proposal that a shareholder might consider favorable, including a proposal that might result
in the payment of a premium over the market price for the shares held by shareholders. These provisions are summarized in the following
paragraphs.

 

Classified Board of Directors. Our
amended articles of incorporation provide for our board of directors to be divided into three classes of directors serving staggered,
three-year terms. The classification of our board of directors has the effect of requiring at least two annual shareholder meetings
to replace a majority of the members of our board of directors.

 

Notice Procedures. Our bylaws establish
advance notice procedures with regard to all shareholder proposals to be brought before meetings of our shareholders, including
proposals relating to the nomination of candidates for election as directors, the removal of directors and amendments to our amended
articles of incorporation and bylaws.

 

Shareholder Meetings. Our bylaws
provide that special meetings may be called only by our board of directors or shareholders owning at least 50% of all the votes
entitled to be cast on any issue proposed at the special meeting.

 

Authorized but Unissued or Undesignated
Shares. Our amended articles of incorporation grant our board of directors broad power to establish the rights and preferences
of authorized and unissued Preferred Stock. The issuance of shares of Preferred Stock of a series pursuant to our board of directors’
authority could (a) decrease the amount of earnings and assets available for distribution to holders of Common Stock or holders
of other series of Preferred Stock (including the Series A Preferred Stock), (b) adversely affect the rights and powers,
including voting rights, of such holders and (c) have the effect of delaying, deferring or preventing a change in control
of the Company. Our board of directors does not currently intend to seek shareholder approval prior to any issuance of Preferred
Stock, unless otherwise required by law or the rules of any exchange on which the securities are then traded.

 

    	 

     

    

 

Iowa
Takeover Statute

 

We are subject to Section 490.1110
of the IBCA, which prohibits any “business combination” transaction between an Iowa corporation and any “interested
shareholder” for a period of three years after the time that such shareholder became an interested shareholder, unless:

 

		·	the board of directors approves, prior to such time, either the business combination or the transaction which resulted in the
shareholder becoming an interested shareholder;

 

		·	upon consummation of the transaction which resulted in the shareholder becoming an interested shareholder, the interested shareholder
owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned
by the directors, officers or certain employee stock plans; or

 

		·	at or subsequent to the time the shareholder became an interested shareholder, the business combination is approved by the
board of directors and authorized at a shareholders’ meeting by the affirmative vote of at least sixty-six and two-thirds
percent of the outstanding shares of the corporation’s voting stock other than shares owned by the interested shareholder.

 

Section 490.1110 defines “business combination”
to include:

 

		·	any merger or consolidation involving the corporation and any interested shareholder;

 

		·	any sale, lease, exchange, mortgage, pledge, transfer, or other disposition of 10% or more of the assets of the corporation
involving the interested shareholder;

 

		·	any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested
shareholder (subject to certain exceptions);

 

		·	any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class
or series of the corporation beneficially owned by the interested shareholder; or

 

		·	any other transaction resulting in a financial benefit to the interested shareholder under Iowa law.

 

In general, an “interested shareholder” is any person
beneficially owning 10% or more of the outstanding voting stock of the corporation or any person affiliated or associated with
such person. “Person” means any individual, corporation, partnership, unincorporated association or other entity.

 

Other
Iowa Statutory Provisions

 

Section 490.1108A of the IBCA provides
that, in considering acquisition proposals, our directors may consider, in addition to the consideration of the effects of any
action on shareholders, the effects on our employees, suppliers, creditors, customers and the communities in which we operate,
as well as our long-term and short-term interests. Consideration of any or all of the community interest factors is not a violation
of the business judgment rule, even if our directors reasonably determine that a community interest factor or factors outweigh
the financial or other benefits to us or a shareholder or group of shareholders.

 

Section 490.624A of the IBCA includes
authorization of “poison pills,” which include, without limitation, terms and conditions of stock rights or options
issued by a corporation that preclude or limit the exercise, transfer or receipt of such rights or options by persons owning or
offering to acquire a specified number or percentage of a corporation’s outstanding shares or that invalidate or void such
stock rights or options held by an offeror or a transferee of the offeror.

 

The provisions of state law that we describe
above could have the effect of delaying, deferring or preventing a change in control of the Company if our board of directors determines
that a change of control is not in our best interests or those of our shareholders or other constituencies. In addition, the regulatory
restrictions on the acquisition of our securities may also deter attempts to effect, or prevent the consummation of, a change in
control of the Company.Exhibit 10.1

 

FORM OF SERIES A PREFERRED STOCK PURCHASE
AGREEMENT

This SERIES A PREFERRED
STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of June 2, 2020, by and between C-BOND SYSTEMS, INC.,
a Colorado corporation, with its address at 6035 South Loop East, Houston, Texas 77033 (the “Company”), and [ ], a
[ ] corporation, with its address at [ ] (the “Buyer”).

 

WHEREAS:

 

A. The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”); and

 

B. Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, 51,600
shares of Series A Preferred Stock of the Company (“Series A Shares”) with the rights and preferences as set forth
on the Certificate of Designation of the Series A Preferred Stock attached hereto as Exhibit A (“Certificate
of Designation”).

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1. Purchase
and Sale of Series A Shares.

 

a. Purchase
of Series A Shares. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company 51,600 Series A Shares with the rights and preferences as set forth in the Certificate of Designation.

 

b. Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay $43,000.00 for the Series A Shares to be issued
and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Series A Shares, and
(ii) the Company shall deliver such duly executed and authorized Series A Shares on behalf of the Company, to the Buyer, against
delivery of such Purchase Price.

 

c. Closing
Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 6 and Section 7 below, the date
and time of the issuance and sale of the Series A Shares pursuant to this Agreement (the “Closing Date”) shall be 12:00
noon, Eastern Standard Time on or about June 3, 2020, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to
by the parties.

 

     

     

    

 

2. Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a. The
Buyer has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized and
this Agreement constitutes a valid and legally binding obligation of the Buyer, except as may be limited by bankruptcy, reorganization,
insolvency, moratorium and similar laws of general application relating to or affecting the enforcement of rights of creditors,
and except as enforceability of the obligations hereunder are subject to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or law).

 

b. The
Buyer acknowledges its understanding that the offering and sale of the Series A Shares and the shares of common stock issuable
upon conversion of the Series A Shares (such shares of common stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Series A Shares, the “Securities”) is intended to be exempt from registration
under the 1933 Act, by virtue of Rule 506(b) promulgated under the Securities Act of 1933, as amended, and the provisions of Regulation
D promulgated thereunder. In furtherance thereof, the Buyer represents and warrants to the Company and its affiliates as follows:

 

i.The Buyer realizes
that the basis for the exemption from registration may not be available if, notwithstanding the Buyer’s representations contained
herein, the Buyer is merely acquiring the Securities for a fixed or determinable period in the future, or for a market rise, or
for sale if the market does not rise. The Buyer does not have any such intention.

 

ii.The Buyer
realizes that the basis for exemption would not be available if the offering is part of a plan or scheme to evade registration
provisions of the 1933 Act or any applicable state or federal securities laws, except sales pursuant to a registration statement
or sales that are exempted under the 1933 Act.

 

iii.The Buyer
is acquiring the Securities solely for the Buyer’s own beneficial account, for investment purposes, and not with a view towards,
or resale in connection with, any distribution of the Securities.

 

iv.The Buyer
has the financial ability to bear the economic risk of the Buyer’s investment, has adequate means for providing for its current
needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

v.The
Buyer and the Buyer’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, the “Advisors”)
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of a prospective
investment in the Securities. The Buyer also represents it has not been organized solely for the purpose of acquiring the Securities.

 

    2

     

    

 

vii.The
Buyer (together with its Advisors, if any) has received all documents requested by the Buyer, if any, and has carefully reviewed
them and understands the information contained therein, prior to the execution of this Agreement.

 

c. The
Buyer is not relying on the Company or any of its employees, agents, sub-agents or advisors with respect to the legal, tax, economic
and related considerations involved in this investment. The Buyer has relied on the advice of, or has consulted with, only its
Advisors.

 

d. The
Buyer has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully understands
that the Securities are a speculative investment that involves a high degree of risk of loss of the Buyer’s entire investment.
Among other things, the Buyer has carefully considered each of the risks described under the heading “Risk Factors”
in the Company’s SEC filings.

 

e.The Buyer will
not sell or otherwise transfer any Securities without registration under the 1933 Act or an exemption therefrom, and fully understands
and agrees that the Buyer must bear the economic risk of its purchase because, among other reasons, the Securities have not been
registered under the 1933 Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or
otherwise disposed of unless they are subsequently registered under the 1933 Act and under the applicable securities laws of such
states, or an exemption from such registration is available. In particular, the Buyer is aware that the Securities are “restricted
securities,” as such term is defined in Rule 144, and they may not be sold pursuant to Rule 144 unless all of the conditions
of Rule 144 are met. The Buyer also understands that the Company is under no obligation to register the Securities on behalf of
the Buyer. The Buyer understands that any sales or transfers of the Securities are further restricted by state securities laws
and the provisions of this Agreement.

 

f.The Buyer and
its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting
on behalf of the Company concerning the offering and the business, financial condition, results of operations and prospects of
the Company, and all such questions have been answered to the full satisfaction of the Buyer and its Advisors, if any.

 

g.The Buyer represents
and warrants that: (i) the Buyer was contacted regarding the sale of the Securities by the Company (or an authorized agent or representative
thereof) with whom the Buyer had a prior substantial pre-existing relationship; and (ii) no Securities were offered or sold to
it by means of any form of general solicitation or general advertising, and in connection therewith, the Buyer did not: (A) receive
or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast
over television or radio, whether closed circuit, or generally available; or (B) attend any seminar meeting or industry investor
conference whose attendees were invited by any general solicitation or general advertising; or (C) observe any website or filing
of the Company with the SEC in which any offering of securities by the Company was described and as a result learned of any offering
of securities by the Company.

 

    3

     

    

 

h. The
Buyer has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees or the
like relating to this Agreement or the transactions contemplated hereby.

 

i. The
Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

j. Legends.
The Buyer understands that until such time as the Securities have been registered under the 1933 Act or may be sold pursuant to
an applicable exemption from registration, the Securities shall bear a restrictive legend in substantially the following form:

 

“THE SECURITIES REPRESENTED
BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER
ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) THE ISSUER
OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY ACCEPTABLE
TO THE ISSUER’S TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.”

 

The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an
effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those
represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements,
if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144, at the Deadline (as defined in the Certificate of Designation),
it will be considered an Event of Default (as defined in the Certificate of Designation).

 

    4

     

    

 

3. Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a. Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated,
in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b. Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement and to
consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and
thereof, (ii) the execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated
hereby and thereby (including without limitation, the issuance of the Series A Shares and the issuance and reservation for issuance
of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of
Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii)
this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative
is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith
and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Series
A Shares, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms except as may be limited by bankruptcy, reorganization, insolvency, moratorium and similar
laws of general application relating to or affecting the enforcement of rights of creditors, and except as enforceability of the
obligations hereunder are subject to general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or law).

 

c. Capitalization.
As of the date hereof, the authorized common stock of the Company consists of 500,000,000 authorized shares of common stock, $0.001
par value per share, of which 136,451,830 shares are issued and outstanding, and 1,000,000 shares of preferred stock, $0.10 par
value, of which: (i) 800,000 are designated as Series A preferred stock, and 139,800 shares of Series A preferred shares are outstanding;
and (ii) 100,000 are designated as Series B preferred stock, and 108 class B preferred shares are outstanding. All of such outstanding
shares of capital stock are duly authorized, validly issued, fully paid and non-assessable.

 

d. Issuance
of Securities. The Securities upon issuance will be validly issued, fully paid and non-assessable, and free from all taxes,
liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar
rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

    5

     

    

 

e. No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities and
reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of
the Articles of Incorporation, as amended or
By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the
Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations
to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any
property or asset of the Company or any of its Subsidiaries 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 (as defined herein)). The businesses of the Company and its Subsidiaries, if any, are not being
conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or
regulation of any governmental entity. “Material Adverse Effect” means any material adverse effect on the
business, operations, assets or financial condition of the Company or its Subsidiaries, if any, taken as a whole, or on the
transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith. 

 

f. SEC
Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and
schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred
to herein as the “SEC Documents”). Upon written request the Company will deliver to the Buyer true and complete copies
of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates or if amended, as of the
dates of the amendments, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except
for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates
or if amended, as of the dates of the amendments, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial
position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
The Company is subject to the reporting requirements of the 1934 Act.

 

    6

     

    

 

g. Absence
of Certain Changes. Since March 31, 2020, except as set forth in the SEC Documents, there has been no material adverse change
and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results
of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

h. Absence
of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the
Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or
directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of
any facts or circumstances which might give rise to any of the foregoing.

 

i. No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer
will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any
shareholder approval provisions applicable to the Company or its securities.

 

j. No
Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

4. COVENANTS.

 

a. Best
Efforts. The Company shall use its commercially reasonable efforts to satisfy timely each of the conditions described in Section
7 of this Agreement.

 

b. Form
D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of the closing
of the transactions contemplated by this Agreement.

 

c. Use
of Proceeds. The Company shall use the proceeds for general working capital purposes.

 

d. Expenses.
At the Closing, the Company’s obligation with respect to the transactions contemplated by this Agreement is to reimburse
Buyer’s expenses for Buyer’s legal fees and due diligence fee in an amount not to exceed $3,000.

 

    7

     

    

 

e. Corporate
Existence. So long as the Buyer beneficially owns any Series A Shares, the Company shall maintain its corporate existence and
shall not sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer.

 

f. Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Certificate of Designation.

 

g. Failure
to Comply with the 1934 Act. So long as the Buyer beneficially owns any Series A Shares, the Company shall comply with the
reporting requirements of the 1934 Act and the Company shall continue to be subject to the reporting requirements of the 1934 Act;
any breach of the foregoing shall be considered an event of default under the Certificate of Designation.

 

h. Trading
Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and the Buyer
agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with
respect to the common stock of the Company.

 

5. Transfer
Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates,
registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time
by the Buyer to the Company upon conversion of the Series A Shares in accordance with the terms of the Certificate of
Designation (the “Irrevocable Transfer Agent Instructions”).  In the event that the Company proposes to
replace its transfer agent, the Company shall provide, prior to the effective date of such replacement, a fully executed
Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to this Agreement (including but not
limited to the provision to irrevocably reserve shares of common stock in the Reserved Amount (as defined in the Certificate
of Designation) signed by the successor transfer agent to Company and the Company. Prior to registration of the Conversion
Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to an exemption from registration,
all such certificates shall bear the restrictive legend specified in Section 2(j) of this Agreement.  The Company
warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, will
be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and
records of the Company as and to the extent provided in this Agreement and the Certificate of Designation; (ii) it will not
direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or
issuing)(electronically or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon
conversion of or otherwise pursuant to the Certificate of Designation or this Agreement as and when required by thereby; and
(iii) it will not fail to remove (or direct its transfer agent not to remove or impair, delay, and/or hinder its transfer
agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any
certificate for any Conversion Shares issued to the Buyer upon conversion of the Series A Shares of or otherwise pursuant to
the Certificate of Designation or this Agreement as and when required thereby.   If the Buyer provides the Company and
the Company’s transfer, at the cost of the Buyer, with an opinion of counsel in form, substance and scope customary for
opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without
registration under the 1933 Act, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly
instruct its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such
denominations as specified by the Buyer.  The Company acknowledges that a breach by it of its obligations hereunder will
cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. 
Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 may be
inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5, that
the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and
requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being
required.

 

    8

     

    

 

6. Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Series A Shares to
the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto,
provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole
discretion:

 

a. The
Buyer shall have executed this Agreement and delivered the same to the Company.

 

b. The
Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c. The
representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and
the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required
by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d. No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

7. Conditions
to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Series A Shares at the Closing
is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions
are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a. The
Company shall have executed this Agreement and delivered the same to the Buyer.

 

b. The
Company shall have delivered to the Buyer the Series A Shares by way of book entry as confirmed by the Company’s transfer
agent in accordance with Section 1(b) above.

 

    9

     

    

 

c. The
Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and acknowledged
in writing by the Company’s Transfer Agent.

 

d. The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and
the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer
shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing
Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited
to certificates with respect to the Board of Directors’ resolutions relating to the transactions contemplated hereby.

 

e. No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

f. No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including, but not
limited, to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act
reporting obligations.

 

g. The
Company’s transfer agent shall be engaged to act as the transfer agent for the Series A Preferred Shares.

 

h. The
Certificate of Designation shall be properly authorized and filed with the Secretary of State of the State of Colorado and declared
effective.

 

i. The
Company shall file a Form 8A with the SEC prior to the consummation of the transactions contemplated by this Agreement.

 

    10

     

    

 

8. Governing
Law; Miscellaneous.

 

a. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the
Eastern District of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue
of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum
non conveniens. The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the
other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other
agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service
of process and consents to process being served in any suit, action or proceeding in connection with this Agreement,
the Series A Shares, the Certificate of Designation or any related document or agreement by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law.

 

b. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.

c. Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of,
this Agreement.

 

d. Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e. Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the parties hereto.

 

    11

     

    

 

f. Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, email, or facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice. Any notice or other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day
during normal business hours where such notice is to be received), or the first (1st) business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b)
on the second (2nd) business day following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be as set forth in the heading
of this Agreement with a copy by fax only to (which copy shall not constitute notice) to Naidich Wurman LLP, 111 Great Neck
Road, Suite 214, Great Neck, NY 11021, Attn: Allison Naidich, facsimile: 516-466-3555, e-mail: allison@nwlaw.com. Each party
shall provide notice to the other party of any change in address.

 

g. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other.

 

h. Survival
and Indemnification. The representations and warranties and the agreements and covenants set forth in this Agreement shall
survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the either party. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred. The Buyer agrees to indemnify and hold harmless the Company and all their officers, directors, employees
and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Buyer of any of its representations,
warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

 

i. Further
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.

 

j. No
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.

 

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

 

    12

     

    

 

IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	C-BOND SYSTEMS, INC.	 

 

	By:	 	 
	Name: 	Scott Silverman	 
	Title: 	Chief Executive Officer	 

 

	[	          ]	 
	 	 	 
	By:	 	 
	Name:  	 	 
	Title:	 	 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	 	 	 
	 	 	 	 
	Number of Series A Preferred Shares purchased	 	 	51,600	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	$	43,000.00	 

  

    13

     

    

 

EXHIBIT A

Certificate of Designation

 

See attached.

 

 

14

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