Document:

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

 

THIS ASSET PURCHASE AGREEMENT
(this “Agreement”) is effective as of the _____ day of April, 2017, by and between Valencia Web Technology S.L.,
B-97183354, a Spanish limited liability company or Sociedad de Responsabilidad Limitada having an address of Calle Benimar 21 bj
Derecha, 46980 Paterna, Valencia, Spain (the “Seller”), and Cannabis Business Solutions Inc., a Nevada corporation
having an address of 3571 E. Sunset Road, Suite 420, Las Vegas, Nevada, 89120 (the “Buyer”).

 

R E C I T A L S

 

A.       Seller
owns and operates an internet business related to the assets more specifically described on Schedule 1 hereto (the “Business”).

 

B.       Subject
to the terms and conditions of this Agreement, Seller is willing to sell to Buyer, and Buyer is willing to purchase from Seller,
certain assets relating to the Business as set forth herein.

 

NOW, THEREFORE, in consideration
of the foregoing, the benefits to be derived hereunder and the mutual promises contained herein, the parties hereby agree as follows:

 

A G R E E M E N T

 

ARTICLE I

PURCHASE AND SALE OF ASSETS AND CERTAIN RELATED
TRANSACTIONS

 

1.1       Purchase
and Sale. At the Closing (as defined in Section 3.1 below), Seller will sell to Buyer, and Buyer will purchase from
Seller, upon the terms and subject to the conditions set forth in this Agreement, all of the assets (except those described in
Schedule 1.2) associated with and/or required to operate the Business, including, without limitation, the following assets:

 

(a)       All
of Seller’s cash, money market accounts, prepaid expenses, and other cash equivalents of Seller as of the Closing (the “Cash
and Cash Equivalents”);

 

(b)       All
of Seller’s equipment, inventory, and office supplies as of the Closing (the “Equipment, Inventory and Supplies”);

 

(c)       All
of Seller’s accounts and account receivables and commission income as of and after the Closing (the “Receivables”);

 

(d)       All
of Seller’s rights in and to the trade name “LaMarihuana.com” (the “Trade Name”); and

 

 

 

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(e)       All
other intangible assets associated with the Business, including the assets described on Schedule 1, and the proprietary rights,
phone numbers, trade secrets, domain names, business records, customer relationships, contracts and goodwill relating to the Business
(the “Intangible Assets”);

 

(f)       All
mention of cash or value are in United States Dollars;(the Cash and Cash Equivalents, Equipment, Inventory and Supplies,
Receivables, Trade Name and Intangible Assets are also referred to herein collectively as the “Assets”).

 

1.2       Excluded
Assets. Notwithstanding the foregoing, the items set forth on Schedule 1.2 hereto are specifically excluded from
the definition of Assets.

 

1.3       Seller's
Debts, Liabilities and Obligations. Except as specifically set forth on Schedule 1.3 hereto, the parties hereby
acknowledge and agree that all debts, claims, obligations and liabilities whatsoever of Seller shall be the sole responsibility
of Seller, and that Buyer is not assuming, and shall not be obligated or deemed to assume, any debt, claim or liability of Seller
or any debt, claim or liability associated with the Business or the Assets.

 

ARTICLE II

PURCHASE PRICE

 

2.1       Purchase
Price. Buyer shall pay to Seller as the purchase price (the “Purchase Price”) for the Assets the following:

 

(a)       100
shares of common stock of Buyer, which shall constitute 10% of the issued and outstanding common stock of Buyer immediately after
the Closing (the “Buyer Shares”);

 

(b)       3,000,000
shares (the “Initial FRLF Shares”) of common stock of Buyer’s parent corporation, Freedom Leaf Inc., a
Nevada corporation (“FRLF”), which shall be valued at $0.10/share at Closing for tax and accounting purposes;
and

 

(c)       Six
months following the Closing (the “True-Up Date”), such additional number of shares of FRLF common stock calculated
as follows:

 

		i.	$300,000 minus the product of (a) the Initial FRLF Shares multiplied by (b) the average closing
price of FRLF’s common stock during the five trading days immediately preceding the True-Up Date (the “True- Up
Price”), with such difference divided by the True-Up Price.

 

		ii.	As an example for clarity, if the True-Up Price is $0.06/share on the True-Up Date, Buyer shall
cause an additional 2,000,000 shares of FRLF common stock to be issued to Seller calculated as follows: ($300,000 – (3,000,000
x $0.06)) / $0.06.

 

 

 

 

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2.2       Closing
Costs. Each party shall bear its own closing costs, including without limitation attorneys' and accountants' fees
and costs, where applicable. Without limiting the generality of the foregoing, Seller shall be solely responsible for any brokerage
fees or sales commissions incurred by Seller in connection with the transactions contemplated by this Agreement.

 

2.3       Allocation
of Purchase Price. The Purchase Price shall be allocated among the Assets as follows for tax and accounting purposes:

 

	Cash and Cash Equivalents	$0------
	Equipment, Inventory and Supplies	$0------
	Receivables	$0------
	Trade Name	$200.000 – La marihuana.com + 50.000 La marihuana medicinal + 50.000 redes sociales
	Intangible Assets	$0------

 

ARTICLE III

CLOSING

 

3.1       Closing
Date. The closing of the transactions contemplated herein shall occur on April __, 2017 (the “Closing”).
Such date may change by to mutual agreement of the Parties.

 

3.2       Closing
Deliveries by Buyer to Seller. At the Closing, Buyer shall deliver, or cause to be delivered to Seller, the following,
each in form and substance reasonably satisfactory to Seller:

 

(a)       A
certificate, executed by Buyer, dated as of the Closing, certifying that the conditions specified in Section 7.3 have been fulfilled;

 

(b)       Instructions
to the Buyer’s transfer agent to issue the Buyer Shares and the Initial FRLF Shares to Seller as instructed by Seller.

 

3.3       Closing
Deliveries by Seller to Buyer. At the Closing, Seller shall deliver, or cause to be delivered, to Buyer the following,
each in form and substance reasonably satisfactory to Buyer:

 

(a)       An
Assignment and Bill of Sale in the form attached hereto as Exhibit A;

 

(b)       An
Assignment of Intangible Assets in the form attached hereto as Exhibit B;

 

(c)       Any
other documentation reasonably required to fully vest title to the Assets in Buyer; and

 

(d)       A
certificate, executed by Seller, dated as of the Closing, certifying that the conditions specified in Section 7.2 have been fulfilled.

 

 

 

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

Seller hereby represents
and warrants to Buyer that the following statements are correct and complete in all material respects as of the date hereof and
as of Closing, which representations and warranties shall survive Closing:

 

4.1       Organization.
Seller is duly organized, validly existing and in good standing under the laws of the country of Spain.

 

4.2       Authorization.
Seller has all necessary power and authority to execute and deliver this Agreement and the documents and agreements contemplated
hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and thereunder.
This Agreement has been duly and validly approved by all necessary action on the part of Seller, has been duly executed and delivered
by Seller and constitutes a valid and binding obligation of Seller, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditor's rights generally
or by equitable principles (whether considered in an action at law or in equity) and other customary limitations on enforceability.

 

4.3       Title
to Assets. Seller has and will convey to Buyer good and marketable title to all the Assets, free and clear of any
security interest, claim, lien or encumbrance.

 

4.4       Consents
and Approvals. No consent, approval or authorization of, or declaration, filing or registration with any governmental
or regulatory authority, or any other person or entity, is required to be made or obtained by Seller in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

4.5       Financial
Records. Any and all financial records that Seller has shown to Buyer regarding the Business present fairly in all material
respects the financial condition and results of operations of the Business at and for the periods therein specified.

 

4.6       Legal
Proceedings. There are no claims, actions, suits or proceedings or arbitrations, either administrative or judicial, pending,
or, to the knowledge of Seller, overtly threatened against or affecting the Business, Seller, or the Assets, or Seller’s
ability to consummate the transactions contemplated herein, at law or in equity or otherwise, before or by any court or governmental
agency or body, domestic or foreign, or before an arbitrator of any kind.

 

4.7       Taxes.
Seller has, in respect of the Business, filed all tax returns that are required to be filed and has paid all taxes that have
become due pursuant to such tax returns or pursuant to any assessment that has become payable or for which Buyer may otherwise
have any transferee liability. All monies required to be withheld by Seller from employees of the Business for income taxes and
social security and other payroll taxes have been collected or withheld, and either paid to the respective governmental bodies
or set aside in accounts for such purpose.

 

 

 

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4.8       Trademarks.
Seller does not own any registered trademarks or “DBA” name in connection with the Business. No royalty is payable
to any person as a result of, or with respect to, the use of any trademarks, trade names or other intellectual property to the
best of Seller’s knowledge. The operation of the Business as currently conducted does not infringe, misappropriate or conflict
with any intellectual property right or other legally protectable right of another person. Seller has not received any notice of
any claim by another person contesting the validity, enforceability, use or ownership of any of its trademarks or trade names.

 

4.9       Disclosure.
There are no material facts relating to the Business or the Assets that have not been disclosed to Buyer, and Buyer has undertaken
all reasonable due diligence.

 

4.10       No
Untrue Statement. To the knowledge of Seller, none of the representations and warranties in this Article IV or made by
Seller elsewhere in this Agreement contains any untrue statement of material fact or omits to state a material fact necessary,
in light of the circumstances under which it was made, in order to make any such representation not misleading in any material
respect.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents
and warrants to Seller that the following statements are correct and complete in all material respects as of the date hereof and
as of Closing, which representations and warranties shall survive Closing:

 

5.1       Organization.
Buyer is a corporation, duly organized, validly existing and in good standing under the laws of the State of Nevada.

 

5.2       Authorization.
Buyer has all necessary company power and authority to execute and deliver this Agreement and the documents and agreements
contemplated hereby, to consummate the transactions contemplated hereby and thereby, and to perform its obligations hereunder and
thereunder. This Agreement has been duly and validly approved by all necessary company action on the part of Buyer, has been duly
executed and delivered by Buyer and constitutes a valid and binding obligation of Buyer, enforceable against it in accordance with
its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditor's
rights generally or by equitable principles (whether considered in an action at law or in equity) and other customary limitations
on enforceability.

 

5.3       Consents
and Approvals. No consent, approval or authorization of, or declaration, filing or registration with any governmental
or regulatory authority, or any other person or entity, is required to be made or obtained by Buyer in connection with the execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.

 

5.4       No
Untrue Statement. To the knowledge of Buyer, none of the representations and warranties in this Article V or made by Buyer
elsewhere in this Agreement contains any untrue statement of material fact or omits to state a material fact necessary, in light
of the circumstances under which it was made, in order to make any such representation not misleading in any material respect.

 

 

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ARTICLE VI

COVENANTS

 

6.1       Conduct
of Business. Prior to the Closing, except as otherwise required by applicable law or as consented to in writing by the
parties, Seller shall conduct the Business in the ordinary course of business. Prior to the Closing, Seller shall use all reasonable
efforts to (1) preserve the possession and control of all of the Assets and the Business; (2) to preserve the good will of suppliers,
customers, staff and employees of the Business and others having business relations with Seller; and (3) keep and preserve the
Business as existing on the date of this Agreement.

 

6.2       Commercially
Reasonable Efforts. Subject to the terms and conditions set forth in this Agreement, Seller and Buyer shall use commercially
reasonable efforts (subject to, and in accordance with, applicable law) to take, or cause to be taken, all actions, and to do,
or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper or advisable
under applicable laws to consummate, and make effective, in the most expeditious manner practicable, the transactions contemplated
by this Agreement, and no party hereto shall take or cause to be taken any action which would reasonably be expected to prevent,
impede or delay the consummation of the transactions contemplated by this Agreement.

 

6.3       Discussions
with Other Buyers. Between the date hereof and the Closing, Seller shall not enter into any discussions with third parties
concerning or otherwise soliciting offers from third parties for the sale of any individual Assets or any combination of Assets
constituting less than all of the Assets.

 

6.4       Further
Assurances. Each party shall cooperate in good faith with the other and shall take all appropriate action and execute
any documents, instruments, assignments, assumptions or conveyances of any kind which may reasonably be necessary or advisable
to carry out any of the transactions contemplated hereunder, including without limitation any vehicle registrations. The parties
shall cooperate in providing such information as may be necessary to be in compliance with relevant sections of the Internal Revenue
Code.

 

6.5       Risk
of Loss. Until Closing, all risk of loss or damage to the Assets shall be borne by Seller, and thereafter shall be borne
by Buyer.

 

6.6       Delivery
& Bank Accounts. Seller shall deliver possession of all Assets to Buyer at Closing. Seller shall add a person designated
by Buyer as a signer on each of Seller’s bank accounts (as listed by name and address of banking institution, account name
and account and routing numbers on Schedule 6.6 attached hereto), which person is hereby authorized by Seller to immediately transfer
all cash Receivables deposited into such accounts to Buyer.

 

 

 

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6.7       Indemnification.
Seller will not have any obligation to indemnify Buyer with respect to any loss until Buyer shall have suffered aggregate losses
relating thereto in excess of $1,000 (One Thousand dollars), at which point Seller will be obligated to indemnify Buyer
for the amount of such losses in excess of $1,000 (One Thousand dollars).

 

(a)       Indemnification
by Seller. Seller shall defend, indemnify and hold harmless Buyer and each of Buyer’s officers, directors, members,
shareholders, employees, counsel, agents, and their respective successors and assigns (collectively, the “Buyer Indemnitees”)
from and against, and shall reimburse the Buyer Indemnitees for, each and every any loss, damage, injury, harm, detriment, decline
in value, liability, claim, demand, cost of any legal proceeding, settlement, judgment, award, fine, penalty, tax, fee, charge,
cost or expense (including, without limitation, costs associated with avoiding any of the foregoing, and the fees, disbursements
and expenses of attorneys, accountants and other professional advisors) (“Loss”) incurred by any Buyer Indemnitee,
directly or indirectly, arising out of or in connection with: (i) any material inaccuracy in any representation or warranty of
Seller hereunder; (ii) any material breach or nonfulfillment of any covenant, agreement or other obligation of Seller under this
Agreement or any related documents; (iii) any liability or similar claim caused by the actions of the Seller arising from the business
operations of the Business prior to Closing; or (iv) any debt, liability, or other obligation of Seller owing to the actions or
responsibility of Seller arising (or relating to the period) prior to Closing.

 

(b)       Indemnification
by Buyer. Buyer shall defend, indemnify and hold harmless Seller and each of Seller’s officers, directors, shareholders,
employees, counsel, agents, and their respective successors and assigns (collectively, the “Seller Indemnitees”)
from and against, and shall reimburse the Seller Indemnitees for, each and every Loss incurred by any Seller Indemnitee, directly
or indirectly, arising out of or in connection with: (i) any material inaccuracy in any representation or warranty of Buyer hereunder;
(ii) any material breach or nonfulfillment of any covenant, agreement or other obligation of Buyer under this Agreement or any
related documents; (iii) any liability or similar claim arising from the business operations of the Business after Closing.

 

(c)       Indemnification
Procedure. If any Proceeding shall be brought or asserted against a party entitled to indemnification (or any
successor thereto) pursuant to Sections 6.7(a) or (b) (each, an “Indemnitee”) in respect of which
indemnity may be sought under this Section 6.7 from an indemnifying party or any successor thereto (each, an
“Indemnitor”), the Indemnitee shall give prompt written notice of such Proceeding to the Indemnitor. The
Indemnitee shall, reasonably and in good faith, assist and cooperate in the defense thereof. Notwithstanding anything herein
to the contrary, the Indemnitor shall not, without the Indemnitee’s prior written consent, settle or compromise any
Proceeding or consent to the entry of judgment with respect thereto, but such consent shall not be unreasonably withheld.

 

 

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ARTICLE VII

CONDITIONS

 

7.1       Conditions
to Each Party’s Obligations under this Agreement. The respective obligations of each party to effect the transactions
contemplated by this Agreement shall be subject to the fulfilment or waiver in writing by mutual agreement of the parties at or
prior to Closing of the following conditions:

 

(a)       None
of the parties shall be subject to any decree, order or injunction of a United States federal or state court or foreign court of
competent jurisdiction, which prohibits the consummation of the transactions contemplated by this Agreement, and no statute, rule
or regulation shall have been enacted by any governmental authority which prohibits or makes unlawful the consummation of the transactions
contemplated by this Agreement.

 

(b)       No
action, suit, investigation or proceeding before any governmental authority seeking to prevent or prohibit the consummation of
the transactions contemplated by this Agreement shall be pending.

 

7.2       Conditions
to Obligations of Seller under this Agreement. The obligation of Seller to effect the transactions contemplated by this
Agreement shall be subject to the fulfilment or waiver in writing by Seller at or prior to the Closing of the following conditions:

 

(a)       Buyer
shall have performed in all material respects Buyer’s covenants and agreements contained in this Agreement required to be
performed on or prior to the Closing.

 

(b)       The
representations and warranties of Buyer contained in this Agreement and in any document delivered in connection herewith shall
be true and correct in all respects as of the Closing.

 

(c)       Buyer
shall have made or caused to be made all deliveries required by Section 3.2 of this Agreement.

 

(d)       Buyer
shall attest to its due diligence and confirm that it has had an adequate opportunity to review all documents material to
this transaction.

 

7.3       Conditions
to Obligations of Buyer under this Agreement. The obligation of Buyer to effect the transactions contemplated by this Agreement
shall be subject to the fulfilment or waiver in writing by Buyer at or prior to the Closing of the following conditions:

 

(a)       Seller
shall have performed in all material respects its covenants and agreements contained in this Agreement required to be performed
on or prior to the Closing.

 

(b)       The
representations and warranties of Seller contained in this Agreement and in any document delivered in connection herewith shall
be true and correct in all respects as of the Closing.

 

(c)       Since
the date of this Agreement, there shall not have occurred and be continuing material adverse effect to the Assets or the Business
within the Seller’s control.

 

 

 

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(d)       Seller
shall have made all deliveries required by Section 3.3 of this Agreement.

 

(e)       There
must not have been made or threatened by any person any claim asserting that such person (a) is the holder or the beneficial owner
of, or has the right to acquire or to obtain beneficial ownership of the Assets or (b) is entitled to all or any portion of the
Purchase Price payable for the Assets.

 

(f)       Buyer
shall have obtained all necessary third-party and governmental consents, authorizations, licenses and/or permits to the sale of
the Assets, including, without limitation, all appropriate licenses or permits as determined by Buyer in its sole discretion.

 

ARTICLE VIII

RESTRICTIVE COVENANTS

 

8.1       Non-Solicitation
Covenants. Seller, Casto Lopez Izquierdo and all of the current stockholders each agree and promise that, except with the
express written consent of Buyer, none of them or their spouses or other children will directly or indirectly, alone or in concert
with others, for any or no reason, do or undertake any of the following activities at any time after the Closing for the maximum
time as permitted by law:

 

(a)       solicit,
divert, accept business from or otherwise take away or interfere with any customers of the Business; or solicit, divert or induce
any of Buyer’s employees to leave Buyer’s employment; or

 

(b)       solicit,
divert or induce any of Buyer’s contractors or outside consultants to terminate their contractual relationship with Buyer.

 

8.2       Non-Competition
Covenants. Seller, Casto Lopez Izquierdo and all of the current stockholders each agree and promise that, except with the
express written consent of Buyer, none of them or their spouses or other children will directly or indirectly, alone or in concert
with others for any or no reason, do or undertake any of the following activities for five

(5) years (or such lesser time as permitted
by law) beginning effective as of Closing: operate or conduct a Competitive Business, whether as an owner, part-owner, affiliate,
partner, agent, joint venture, investor or in any other capacity.

 

8.3       Reasonableness
of Restrictions. Seller, Casto Lopez Izquierdo and all of the current stockholders each hereby represent and warrant to
Buyer that they have carefully considered the provisions of this Article VIII and agree that the restrictions set forth, including
without limitation the time period and definition of Competitive Business, are reasonable and restrict Seller’s and its affiliates’
rights to compete only to the extent necessary to protect the valid and legitimate business interests of Buyer. Seller, Casto Lopez
Izquierdo and all of the current stockholders each further represent and warrant to Buyer that they understand the legal and other
consequences of entering into the promises and agreements contained in this Article VIII. If any restriction, including
without limitation, any time restriction, contained in this Article VIII is deemed to be unenforceable by a court of competent
jurisdiction, the parties hereto agree that such court may modify and enforce such restrictions to the extent it determines to
be reasonable under the circumstances existing at that time.

 

 

 

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8.4       Injunction.
In the event of a breach or threatened breach by Seller, Casto Lopez Izquierdo and all of the current stockholders of the provisions
of this Article VIII, Buyer shall be entitled to an injunction restraining Seller and/or Casto Lopez Izquierdo and/or all of the
current stockholders as the case may be, from engaging in the competitive activities proscribed by this article. The parties further
agree that a violation of such provisions will cause immediate and irreparable damage to Buyer. Nothing contained in this Article
VIII shall prohibit Buyer from also pursuing any other remedies available at law, and no action by Buyer in pursuing any other
remedies shall constitute an election to forego other remedies.

 

8.5       Survival
of Protections. The covenants and agreements contained in this Article VIII shall survive the termination or expiration
of this Agreement.

 

ARTICLE IX

TERMINATION

 

9.1       Termination
by Consent. This Agreement may be terminated at any time prior to the Closing by the written agreement of Seller and Buyer.

 

9.2       Termination
by Seller or Buyer. At any time prior to Closing, this Agreement may be terminated by Seller or Buyer, if a United States
federal or state court of competent jurisdiction or United States governmental authority shall have issued an order, decree or
ruling or taken any other action (including the enactment of any statute, rule, regulation, decree or executive order) permanently
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement (the “Restraining Order”)
and such Restraining Order shall have become final and non-appealable; provided, however, that (i) the factual basis
for the Restraining Order shall not be or relate to the breach of any representation, warranty, covenant or agreement set forth
in this Agreement by the party seeking to terminate the Agreement under this Section and (ii) the party seeking to terminate this
Agreement pursuant to this Section shall have complied in all material respects with Section 6.2 and shall have used its commercially
reasonable efforts to remove such injunction, order or decree.

 

9.3       Termination
by Seller. At any time prior to Closing, this Agreement may be terminated by Seller if (i) there has been a material breach
by Buyer of any representation, warranty, covenant or agreement set forth in this Agreement or if any representation or warranty
of Buyer shall have become untrue in any material respect, in either case such that the conditions set forth in Section 7.2 would
not be satisfied and (ii) such breach is not curable, or, if curable, is not cured within thirty (30) days after written notice
of such breach is given to Buyer by Seller; provided, however, that the right to terminate this Agreement pursuant
to this Section shall not be available to Seller if Seller, at such time, is in material breach of any representation, warranty,
covenant or agreement set forth in this Agreement such that the conditions set forth in Section

7.3 shall not be satisfied.

 

 

 

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9.4 Termination by
Buyer. At any time prior to Closing, this Agreement may be terminated by Buyer if (i) there has been a material breach
by Seller of any representation, warranty, covenant or agreement set forth in this Agreement or if any representation or warranty
of Seller shall have become untrue in any material respect, in either case such that the conditions set forth in Section 7.3 would
not be satisfied and (ii) such breach is not curable, or, if curable, is not cured within thirty (30) days after written notice
of such breach is given to Seller by Buyer; provided, however, that the right to terminate this Agreement pursuant
to this Section shall not be available to Buyer if Buyer, at such time, is in material breach of any representation, warranty,
covenant or agreement set forth in this Agreement such that the conditions set forth in Section 7.2 shall not be satisfied. Upon
any termination by Buyer pursuant to this Section, Seller shall promptly refund the Deposit to Buyer.

 

ARTICLE X

MISCELLANEOUS

 

10.1       Tax
and Information Returns. The parties shall reflect the allocations of the Purchase Price set forth in Subsection
2.3 in any and all applicable tax and information returns.

 

10.2       Confidentiality.
Each Party shall use all information that it obtains from the others pursuant to this Agreement solely for the effectuation
of the transactions contemplated by this Agreement or for other purposes consistent with the intent of this Agreement and
shall not use any of such information for any other purpose, including, without limitation, the competitive detriment of the other
Parties. Each Party may disclose such information to its/their respective affiliates, counsel, accountants, tax advisors and consultants
as necessary to consummate this transaction. This provision shall not prohibit the use or disclosure of confidential information
pursuant to court order or which has otherwise become publicly available through no fault of the recipient Party.

 

10.3       Notices.
All notices, requests, consents and demands shall be given to or made upon the parties at their respective addresses set
forth below, or at such other address as a party may designate in writing delivered to the other parties. Unless otherwise agreed
in this Agreement, all notices, requests, consents and demands shall be given or made by personal delivery with signature required,
by confirmed air courier, or by certified first class mail, return receipt requested, postage prepaid, to the party addressed as
aforesaid. If sent by confirmed air courier, such notice shall be deemed to be given upon the earlier to occur of the date upon
which it is actually received by the addressee as confirmed by the air courier (or if the date of such confirmed delivery is not
a business day, the next succeeding business day). If mailed, such notice shall be deemed to be given upon the earlier to occur
of the date upon which it is actually received by the addressee or the third business day following the date upon which it is deposited
in a first-class postage-prepaid envelope in the United States mail addressed to such address.

 

	If to Seller:	Casto Lopez Izquierdo
	 	Valencia Web Technology, S.L.
	 	C/ Benimar no 21 Bajo
	 	46980 - Paterna (Valencia)

 

	If to Buyer:	Clifford J Perry
	 	Cannabis Business Solutions Inc 
	 	3571 East Sunset Road, Suite 420
	 	Las Vegas, NV 89120

 

 

 

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10.4       Assignment.
Without the prior written consent of the other party, the benefits of this Agreement may not be assigned or in any other
manner transferred and the obligations may not be delegated. Subject to the foregoing limitation on assignment and delegation,
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective personal representatives,
successors and assigns, and no other person shall have any right, benefit or obligation hereunder.

 

10.5       Choice
of Law; Venue. This Agreement shall be construed in accordance with, and governed by, the substantive laws of, the
State of Nevada, without reference to principles governing choice or conflicts of laws. Venue for any action hereunder shall lie
exclusively in the courts of the State of Nevada and/or the United States District Court for the District of Nevada.

 

10.6       Severability.
In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the validity of
any other provision hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision were not
contained herein; provided that the Agreement as so modified preserves the basic intent of the parties.

 

10.7       Captions.
The captions used herein are for ease of reference only and shall not define or limit the provisions hereof.

 

10.8       Sale
of Assets Only. This Agreement constitutes a sale of the Assets only and is not a sale of any interest in Seller.
Buyer is not assuming and shall not be responsible for the payment of any liabilities or obligations of Seller whatsoever, except
as expressly set forth herein.

 

10.9       Enforcement.
In the event of a dispute between the parties arising under this Agreement, the party prevailing in such dispute shall
be entitled to collect such party's costs from the other party, including without limitation court costs and reasonable attorneys'
fees, whether such sums are expended with or without suit, at trial or on appeal.

 

10.10       Entire
Agreement; Amendments. This Agreement and the exhibits attached hereto constitute the entire agreement between the
parties hereto with respect to the subject matter contained herein, and there are no covenants, terms or conditions, express or
implied, other than as set forth or referred to herein. This Agreement supersedes all prior agreements between the parties hereto
relating to all or part of the subject matter herein. No representations, oral or written, modifying or contradicting the terms
of this Agreement have been made by any party except as contained herein. This Agreement may not be amended, modified or canceled
except as provided herein or by written agreement of the parties signed by the party against whom enforcement is sought.

 

10.11       Counterparts.
Any number of counterparts of this Agreement may be signed and delivered and each shall be considered an original and together
they shall constitute one agreement.

 

10.12       Survival.
All of the covenants, representations and warranties contained in this Agreement shall survive the Closing and shall not be
merged therein.

 

[signatures on following pages]

 

 

    	 	12	 

     

    

 

 

 

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

 

	 	SELLER:
	 	 
	 	Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/
    Casto Lopez Izquierdo
	 	Name: Casto Lopez Izquierdo 
	 	Title: Administrator
	 	 
	 	 
	 	BUYER:
	 	 
	 	Cannabis Business Solutions Inc.
	 	 
	 	 
	 	  /s/
    Clifford Perry 5/30/2017
	 	Name: Clifford Perry 
	 	Title: President

 

 

 

 

[additional signatures on next page]

 

 

    	 	13	 

     

    

 

CONSENT AND AGREEMENT

 

The undersigned, constituting
all of the shareholders, directors, and officers of Valencia Web Technology S.L., a Spanish limited liability company, hereby execute
this Agreement for the sole purpose of acknowledging their consent to and agreement to be bound by the provisions of Article VIII
of this Agreement, and to otherwise memorialize their consent to Valencia Web Technology S.L. entering into this Agreement.

 

 

	 	  /s/
    Casto Lopez Izquierdo
	 	Casto Lopez Izquierdo
	 	Title: Administrator and Shareholder of Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/ Amparo Sisternas
    Bernabe
	 	Print Name:  Amparo Sisternas Bernabe 25% Shareholder of
    Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/ Antonio Marmol
    Albert
	 	Print Name:  Antonio Marmol Albert 25% Shareholder of
    Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/ Antonio Gamon
    Piqueras
	 	Print Name:  Antonio Gamon Piqueras 25% Shareholder of Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/ Casto Lopez
    Izquierdo
	 	Print Name:  Casto Lopez Izquierdo20% Shareholder of Valencia Web Technology S.L.
	 	 
	 	 
	 	  /s/ Alejandro
    Hernandiz Garcia
	 	Print Name:  Alejandro Hernandiz Garcia5% Shareholder of Valencia Web Technology S.L.

 

 

 

    	 	14	 

     

    

 

SCHEDULE 1.1

 

Internet Business Domains and Accounts

 

DOMAINS

www.lamarihuana.com

www.marihuana-medicinal.com

 

SOCIAL MEDIA

 

	Facebook	https://www.facebook.com/LaMarihuana
	Instagram	https://www.instagram.com/lamarihuanacom/
	Twitter	https://twitter.com/lamarihuana
	Youtube	https://www.youtube.com/user/lamarihuanaweb
	Facebook	https://www.facebook.com/marihuanamedicinal/

 

Viewer lists, emails and other information
about website visitors Advertiser lists including all the contact info, history of ads.

All financial records for the website as to
revenue and expenses

 

 

 

    	 	15	 

     

    

 

SCHEDULE 1.2

 

Excluded Assets

 

Cannabislandia.com

 

 

 

 

 

 

SCHEDULE 1.3

 

Assumed Debts, Liabilities and Obligations

 

 

None.

 

 

 

 

 

 

SCHEDULE 6.6

 

Seller’s Transferred Bank Accounts

 

 

 

 

    	 	16	 

     

    

 

EXHIBIT A

 

ASSIGNMENT AND BILL OF SALE

 

For good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, Valencia Web Technology S.L., a Spanish limited liability company, (“Assignor”),
does hereby grant, bargain, transfer, sell, assign, convey and deliver to Cannabis Business Solutions Inc, a Nevada corporation,
or its assigns (“Assignee”), free and clear of any and all liens, encumbrances, charges or claims, all right,
title and interest in and to the Cash and Cash Equivalents, Equipment, Inventory and Supplies, and Receivables as such terms are
defined in the Asset Purchase Agreement between the parties of even date herewith. Assignor, for itself, its successors and assigns,
hereby covenants and agrees that, at any time and from time to time forthwith upon the written request of Assignee, at no additional
cost to Assignor, Assignor will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered,
each and all of such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably
be required by Assignee in order to assign, transfer, set over, convey, assure and confirm unto and vest in Assignee, its successors
and assigns, title to the assets sold, conveyed, transferred and delivered by this Assignment and Bill of Sale.

 

This Assignment and Bill
of Sale is being executed and delivered by Assignor pursuant to the terms of the Asset Purchase Agreement executed between the
parties simultaneously herewith.

 

Executed effective as of the 8th
day of April, 2017.

 

	 	ASSIGNOR:
	 	 
	 	VALENCIA WEB TECHNOLOGY S.L.
	 	 
	 	 
	 	  /s/ Casto Lopez
    Izquierdo
	 	Name: Casto Lopez Izquierdo 
	 	Title: Administrator

 

 

 

 

 

    	 	17	 

     

    

 

EXHIBIT B -- ASSIGNMENT OF INTANGIBLE
ASSETS

 

ASSIGNMENT OF INTANGIBLE ASSETS

 

This ASSIGNMENT OF INTANGIBLE
ASSETS (the “Assignment”) is made effective as of the day of April, 2017, by and between Valencia Web Technology S.L.,
a Spanish limited liability company, (“Assignor”), and Cannabis Business Solutions Inc., a Washington corporation
(“Assignee”).

 

R E C I T A L S

 

A.       Pursuant
to the Asset Purchase Agreement (the “Purchase Agreement”) of even date herewith, by and among Assignor and
Assignee, Assignor is assigning the Assets (as defined in the Purchase Agreement) to Assignee.

 

B.       Included
within the Assets being assigned to Assignee, and subject to the terms of the Purchase Agreement, Assignor is also assigning to
Assignee all of its rights, title and interest in and to the intangible assets associated with the Business of Assignor as further
described in the Purchase Agreement, including the assets described on Schedule 1 to the Purchase Agreement, and the proprietary
rights, phone numbers, trade secrets, domain names, business records, customer relationships, contracts and goodwill relating to
the Business and all of Assignor’s rights in and to the trade name “LaMarihuana.com” (collectively the “Intangible
Assets”).

 

C.       Pursuant
to the terms of the Purchase Agreement, Assignor has agreed to transfer to Assignee all of the Intangible Assets, and Assignor
now desires to enter into this Assignment in order to transfer such right, title and interest to Assignee.

 

NOW, THEREFORE, for and
in consideration of the foregoing premises and the undertakings set forth below, Assignor hereby agrees as follows:

 

A G R E E M E N T

 

1.       Assignor
hereby grants, transfers, assigns and conveys to Assignee, absolutely and unconditionally, free and clear of all liens, encumbrances,
mortgages or any other type of security interest, all of its right, title and interest in and to all of the Intangible Assets.

 

2.       Assignor
transfers such Intangible Assets to Assignee, its successors and assigns, to have and to hold to and for its and their own use
and benefit forever. Assignor, for itself and its successors and assigns, hereby covenants that, from time to time after delivery
of this instrument, at Assignee’s request and without further consideration, at no additional cost to Assignor, Assignor
will execute and deliver, or will cause to be executed and delivered, such other instruments of conveyance and transfer and take
such other actions as Assignee reasonably may require (such as, but not limited to, assisting with the transfer of any business
accounts, such as a telephone account) to more effectively vest in the Assignee the Intangible Assets and to put Assignee in possession
of the Intangible Assets, and to do all other things and execute and deliver all other instruments and documents as may be required
to effect the same.

 

 

 

    	 	18	 

     

    

 

3.       This
Assignment shall be construed in accordance with, and governed by, the laws of the State of Nevada, without regard to its conflict
of laws doctrine. Assignor consents and submits to the exclusive jurisdiction of the state courts located in Clark County,
State of Nevada, for any disputes or controversies arising out of this Assignment.

 

IN WITNESS WHEREOF, Assignor
has executed this Assignment effective as of the date first written above.

 

	 	ASSIGNOR:
	 	 
	 	VALENCIA WEB TECHNOLOGY S.L.
	 	 
	 	 
	 	  /s/ Casto Lopez
    Izquierdo
	 	Name: Casto Lopez Izquierdo 
	 	Title: Administrator

 

 

 

 

 

    	 	19Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (the "Agreement"), dated as of May 23, 2017, by and between Stealth Technologies, Inc., a Nevada corporation, with headquarters located at 801 West Bay Drive, Suite 470, Largo, FL 33770 (the "Company"), and CROSSOVER CAPITAL FUND II, LLC, with its address at 365 Eriksen Ave. NE #315, Bainbridge Island, WA 98110 (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");

B.          Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement two 8% convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of $126,000.00 (with the first note being in the amount of $63,000.00 and the second note being in the amount of $63,000.00) (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the "Note"), convertible into shares of common stock, of the Company (the "Common Stock"), upon the terms and subject to the limitations and conditions set forth in such Note. The first of the two notes (the "First Note") shall be paid for by the Buyer as set forth herein. The second note (the "Second Note") shall initially be paid for by the issuance of an offsetting $63,000.00 secured note issued to the Company by the Buyer ("Buyer Note"), provided that prior to conversion of the Second Note, the Buyer must have paid off the Buyer Note in cash such that the Second Note may not be converted until it has been paid for in cash.

C.          The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

1.          Purchase and Sale of Note.

a.          Purchase of Note. On each of the Closing Dates (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer's name on the signature pages hereto.

_BM  

Company Initials

b.          Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note 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 Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer's name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

c.          Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the "Closing Date") shall be on or about May 23, 2017, 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. Subsequent Closings shall occur when the Buyer Note is repaid. The Closing of the Second Note shall be on or before the dates specified in the Buyer Note.

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

a.          Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the "Conversion Shares" and, collectively with the Note, the "Securities") for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

b.          Accredited Investor Status. The Buyer is an "accredited investor" as that term is defined in Rule 501(a) of Regulation D (an "Accredited Investor").

c.          Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

d.          Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose

	 

2

such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer's right to rely on the Company's representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

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

f.          Transfer or Re-sale. The Buyer understands that (i) the sale or re- sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an "affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) ("Rule 144") of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) ("Regulation S"), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

g.          Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

	 

3

"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."

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 Rule 144 or Regulation S 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 or Regulation S, within 2 business days, it will be considered an Event of Default under the Note.

h.          Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

i.          Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer's name on the signature pages hereto.

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

	 

4

a.          Organization and Qualification. The Company and each of its subsidiaries, 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.

b.          Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note 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, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note 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 Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

c.          Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, 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.

d.          Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

e.          No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation 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,

	 

5

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). All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the OTC Markets Exchange (the "OTC MARKETS") and does not reasonably anticipate that the Common Stock will be delisted by the OTC MARKETS in the foreseeable future, nor are the Company's securities "chilled" by FINRA. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

f.          Absence of Litigation. Except as disclosed in the Company's public filings, 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. Schedule 3(f) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its subsidiaries, without regard to whether it would 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.

g.          Acknowledgment Regarding Buyer' Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm's length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer' purchase of the Securities. The Company further represents to the Buyer that the Company's decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

h.          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.

i.          Title to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal

	 

6

property owned by them which is material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

j.          Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities and Exchange Commission.

k.          Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth in this Section 3, 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 Note.

4.          COVENANTS.

a.          Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith ("Documents"), including, without limitation, reasonable attorneys' and consultants' fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents.  When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer.

b.          Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC MARKETS or any equivalent replacement exchange, the Nasdaq National Market ("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq SmallCap"), the New York Stock Exchange ("NYSE"), or the American Stock Exchange ("AMEX") and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority ("FINRA") and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTC MARKETS and any other exchanges or quotation

	 

7

systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.

c.          Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company's assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company's assets, where the surviving or successor entity in such transaction (i) assumes the Company's obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC MARKETS, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

d.          No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

e.          Exclusivity.  For a period of 4 months following the issuance of the Notes, the Company shall not consummate any convertible or debt financing or a registered offering of securities without the prior written consent of the Investor (excluding any financings with LG Capital Funding, LLC). If the Company violates this provision then: (i) the prepay premium set forth in Section 4(c) of the Notes shall be increased by 20% and (ii) the conversion discount set forth in Section 4(c) of the Notes shall be increased by 20% to reflect a net conversion discount of 65%.

f.          Right of First Refusal. While the Notes are outstanding, following the expiration of section 4 (e) of this Agreement, excluding financing with LG Capital Funding, LLC, the Company shall grant the Buyer a 3 (three) business day right of first refusal for the issuance of any convertible debt transactions (or other convertible security) or other registered public offering.

g.    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 Note.

5.          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 state and county of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and

	 

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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 or any other Transaction Document 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; Signatures by Facsimile. 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. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

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 majority in interest of the Buyer.

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, (iv) via electronic mail or (v) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most

	 

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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 delivery via electronic mail, or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second 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:

If to the Company, to:

Stealth Technologies, Inc.

801 West Bay Drive, Suite 470

Largo, FL 33770

Attn: Brian McFadden, CEO

If to the Buyer:

CROSSOVER CAPITAL FUND II, LLC

2365 Eriksen Ave. NE #315, Bainbridge Island, WA 98110

Attn: Ken Lustig, Manager

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. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its "affiliates," as that term is defined under the 1934 Act, without the consent of the Company.

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

i.          Survival. The representations and warranties of the Company 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 Buyer. 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.

	 

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j.          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.

k.          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.

l.          Remedies. 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 transaction contemplated hereby. Accordingly, the Company 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 Company of the provisions of this Agreement, that the Buyer 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.

	 

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

Stealth Technologies, Inc.

By:  BRIAN McFADDEN                                        

Brian McFadden, CEO

CROSSOVER CAPITAL FUND II, LLC.

By:  KEN LUSTIG                                                  

Name: Ken Lustig

Title: Manager

AGGREGATE SUBSCRIPTION AMOUNT:

Aggregate Principal Amount of the Notes:          $126,000.00

Aggregate Purchase Price:

Note 1: $63,000.00 less $3,000.00 in legal fees

Back End Note: $63,000.00 less $3,000.00 in legal fees

	 

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EXHIBIT A NOTE 1- $63,000.00

	 

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EXHIBIT B

BACK END NOTE- $63,000.00

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