Document:

Exhibit 10.1

 

 

DROPCAR, INC.

 

FORM OF LETTER
AGREEMENT

 

August 31, 2018

 

Dear Warrant Holders,

 

The Warrant ledger
of DropCar, Inc. (“DropCar”) indicates that you own the Series H-4 Warrant to purchase shares of DropCar common
stock, par value $0.0001 per share (the “Common Stock”) identified on Schedule A hereto (the “Warrants”)
and shares of Series H-4 Convertible Preferred Stock identified on Schedule A hereto (the “H-4 Shares”).
The Warrants were issued pursuant to Section 2 of that certain Securities Purchase Agreement dated as of March 8, 2018. Capitalized
terms used herein and not otherwise defined shall have the definitions ascribed to such terms in the Securities Purchase Agreement
and the Warrants.

 

Nasdaq Listing Rule
5635(d) requires DropCar to obtain stockholder approval prior to the issuance of securities in connection with a transaction other
than a public offering involving (i) the sale, issuance or potential issuance by DropCar of Common Stock (or securities convertible
into or exercisable for Common Stock) at a price less than the greater of book or market value which equals 20% or more of the
outstanding Common Stock or 20% or more of the voting power outstanding before the issuance; or (ii) the sale, issuance or potential
issuance by DropCar of Common Stock (or securities convertible into or exercisable for Common Stock) equal to 20% or more of the
outstanding Common Stock or 20% or more of the voting power outstanding before the issuance for less than the greater of book or
market value of the stock. For purposes of this Letter Agreement, DropCar cannot issue in excess of 1,561,596 shares of Common
Stock without stockholder approval (the “Exercise Cap”).

 

DropCar desires that
you exercise your permissible pro rata amount of Warrants pursuant to Nasdaq Listing Rule 5635(d) in order to generate cash funds
for DropCar. To accomplish this goal, DropCar is willing to reduce the Exercise Price of the Warrants and issue you an additional
warrant to purchase Common Stock on terms nearly identical to the terms of the Warrants, as an inducement to you to presently
exercise for cash your pro rata portion of the Warrants. Notwithstanding anything herein to the contrary, in the event your exercise
of the Warrants would otherwise cause you to exceed the Maximum Percentage, DropCar shall only issue to you such number of Warrant
Shares that would not cause you to exceed the maximum number of Warrant Shares permitted thereunder with the balance to be held
in abeyance until notice from you that the balance (or portion thereof) may be issued in compliance with such limitations. In
lieu of presently issuing all of the Warrant Shares, DropCar shall be obligated to issue to you, and you shall have the right
to the issuance of, the number of Warrant Shares equal to the difference between your pro rata portion of the Exercise Cap less
the number of Warrant Shares issuable to you without violating the Maximum Percentage, subject to adjustment hereunder (the “Reserved
Shares” and such right, the “Right”).

 

DropCar hereby temporarily
allows the Warrants to be exercised for an Exercise Price equal to $0.60. The reduction of the Exercise Price shall be effective
only from the date hereof through 5:00 P.M. Eastern Standard Time on September 4, 2018 (“End Date”). During
that time the Warrants will be able to be exercised to buy some or all of the Warrant Shares on the preferential terms described
in this Letter Agreement on a cash only basis as described in Section 1(a) of your Warrant. If any holder of Warrants has not accepted
the offer set forth in this Letter Agreement by the End Date, such holders’ pro rata amount of Warrant Shares eligible to
be exercised pursuant to the terms of this Letter Agreement will be allocated to the respective pro rata allocations of the other
Warrant holders on a pro rata basis in proportion to the Warrant Shares underlying the Warrants then held by each other Warrant
holder. Your initial allocation will be your pro rata amount of the Exercise Cap, provided, however, that if other Warrant holders
do not accept the offer set forth in this Letter Agreement, you will be permitted to exercise an additional amount of Warrants.
Please indicate on the signature page hereto the maximum number of Warrant Shares you desire to exercise. Except as otherwise set
forth in this Letter Agreement, upon the occurrence of the End Date, the offer set forth in this Letter Agreement shall be terminated
and this Letter Agreement shall be null and void.

 

     

     

    

 

If you exercise your
Warrants prior to the End Date, you (regardless if the Warrants are assigned or transferred by you after the date hereof and exercised
by such assignee or transferee) will receive a warrant to purchase Common Stock substantially identical to the Warrant, representing
the right to acquire one share of Common Stock for each Warrant Share acquired upon cash exercise of the Warrants after the date
hereof and through the End Date (“Reload Warrant”). The Reload Warrant will be identical to the Warrants and
grant you the same rights, benefits and obligations as the Warrants except (i) the Exercise Price will be equal to $1.00, (ii)
the Reload Warrant may be exercised at all times beginning on the 6-month anniversary of the issuance date on a cash basis and
also on a cashless basis as described in Section 2(d) of the Reload Warrant and only in the event a Registration Statement for
the public resale of the Warrant Shares issuable upon exercise thereof is not effective (unless the Warrant holder has waived its
right to have the resale of the Warrant Shares registered), (iii) the Reload Warrant does not contain any provisions for anti-dilution
adjustment and (iv) DropCar will have the right to require you to exercise all or any portion of the Reload Warrant still unexercised
for a cash exercise if the volume weighted average price (“VWAP”) for the Common Stock equals or exceeds $1.50
(subject to appropriate adjustments for stock splits, stock dividends, recapitalizations, reorganizations, reclassifications, combinations,
reverse stock splits or other similar transactions after the Issuance Date) for not less than ten (10) consecutive Trading Days.
A form of Reload Warrant is annexed hereto as Exhibit A.

 

Additionally, in lieu
of registration rights granted pursuant to the Securities Purchase Agreement and the Registration Rights Agreement referred to
therein, until the Expiration Date of the Reload Warrants and at a time when Rule 144b(1)(i) under the Securities Act is unavailable
for the resale of the Warrant Shares, if DropCar determines to prepare and file with the SEC a registration statement relating
to an offering for its own account or the account of others under the Securities Act of any of its equity securities (but excluding
Forms S-4 or S-8 and similar forms which do not permit such registration), then DropCar shall send to each holder of any of the
Reload Warrants or Warrant Shares issued upon exercise of the Reload Warrants (collectively, the “Securities”)
written notice of such determination and, if within fifteen calendar days after receipt of such notice, any such holder shall so
request in writing, DropCar shall include in such registration statement all or any part of the Warrant Shares issuable upon exercise
of the Reload Warrants, that such holder requests to be registered. Inclusion of such Warrant Shares issuable upon exercise of
the Reload Warrants will be subject to customary underwriter cutbacks applicable to all holders of registration rights and minimum
cutbacks in accordance with guidance provided by the SEC (including, but not limited to Rule 415). The obligations of DropCar under
this paragraph may be waived by any holder of any of the Securities entitled to registration rights under this paragraph, in which
case the Warrant Holder shall also be deemed to have waived its right to exercise the Reload Warrant on a cashless basis with respect
to the Warrant Shares for which registration was waived. The holders whose Warrant Shares are included or required to be included
in such registration statement are granted the same rights, benefits, liquidated or other damages and indemnification granted to
other holders of securities included in such registration statement. In no event shall the liability of any holder of Securities
or permitted successor be greater in amount than the dollar amount of the net proceeds actually received by such holder upon the
sale of the Warrant Shares pursuant to such registration or such lesser amount in proportion to all other holders of securities
included in such registration statement. All expenses incurred by DropCar in complying with this paragraph, including, without
limitation, all registration and filing fees, printing expenses (if required), fees and disbursements of counsel and independent
public accountants for DropCar, fees and expenses (including reasonable counsel fees) incurred in connection with complying with
state securities or “blue sky” laws, fees of the FINRA, transfer taxes, and fees of transfer agents and registrars,
are called “Registration Expenses.” All underwriting discounts and selling commissions applicable to the sale
of the Securities are called “Selling Expenses.” DropCar will pay all Registration Expenses in connection with
such registration statement. Selling Expenses in connection with such registration statement shall be borne by the holders of the
Securities and will be apportioned among all such holders in proportion to the number of Warrant Shares included in a registration
statement for a holder relative to all the securities included therein for all selling holders, or as all holders may otherwise
agree. It shall be a condition precedent to the obligations of DropCar to complete the registration pursuant to this paragraph
with respect to the Warrant Shares of a particular holder that such holder shall furnish to DropCar in writing such information
and representation letters, including a completed form of a securityholder questionnaire, with respect to itself and the proposed
distribution by it as DropCar may reasonably request to assure compliance with federal and applicable state securities laws.

 

The Reload Warrant
will be delivered within the same period after exercise of a Warrant as the Warrant Shares are deliverable upon exercise of the
Warrant. The Reload Warrant will be deemed issued pursuant to the Securities Purchase Agreement, including with respect to the
representations, warranties and undertakings therein contained, mutatis mutandis, which representations and warranties are
accurate as of the dates made.

  

The Warrant Shares
issuable upon exercise of the Warrants are presently registered for resale pursuant to an effective Registration Statement as described
in the Registration Rights Agreement referred to in the Securities Purchase Agreement.

 

     

     

    

 

DropCar further undertakes
to use best efforts to as promptly as practicable after the date of this Letter Agreement file a proxy statement with the Commission
seeking stockholder approval to: (i) reduce the conversion price of the H-4 Shares and the exercise price of the remaining Warrant
to $0.60; and (ii) issue all the shares of DropCar’s common stock issuable upon the full conversion of the H-4 Shares and
exercise of the Warrants at $0.60. Upon receipt of such stockholder approval, the conversion price of the H-4 Shares and the exercise
price of the remaining Warrant shall be immediately reduced to $0.60 (subject to adjustment as set forth in the certificate of
designation of the H-4 Shares and the Warrants).

 

Subject to the terms
hereof, the exercise of the Right may be made by you, in whole or in part, at any time or times on or after the date hereof by
delivery to DropCar (or such other office or agency of DropCar as it may designate by notice in writing to you at the your address
appearing on the books of DropCar) of a duly executed facsimile copy of the Notice of Issuance Form annexed hereto as Exhibit
A. Partial exercises of the Right resulting in issuances of a portion of the total number of Reserved Shares available hereunder
shall have the effect of lowering the outstanding number of Reserved Shares issuable hereunder in an amount equal to the applicable
number of Reserved Shares issued. You and DropCar shall maintain records showing the number of Reserved Shares issued and the date
of such issuances. DropCar shall deliver any objection to any Notice of Issuance Form within one (1) Business Day of receipt of
such notice.

 

Certificates for the
Reserved Shares issued hereunder shall be transmitted by the Transfer Agent to you by crediting the account of your prime broker
with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if DropCar
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Reserved Shares to or resale of the Reserved Shares by you or (B) the Reserved Shares are eligible for resale by the Holder without
volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery to the address specified by the Holder
in the Notice of Issuance by the date that is three (3) Trading Days after the delivery to DropCar of the Notice of Issuance (such
date, the “Share Delivery Date”). The Reserved Shares shall be deemed to have been issued, and Holder or any
other person so designated to be named therein shall be deemed to have become a holder of record of such Reserved Shares for all
purposes, as of the date the Right has been exercised. Issuance of certificates for Reserved Shares shall be made without charge
to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by DropCar, and such certificates shall be issued in the name of the Holder. DropCar shall
pay all Transfer Agent fees required for same-day processing of any Notice of Issuance. The Holder shall not have the right to
exercise any portion of the Right, to the extent that after giving effect to such issuance after exercise as set forth on the applicable
Notice of Issuance, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with
the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation. The
 “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon exercise of the Right. The Holder may decrease the
Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to DropCar, may increase
the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event
exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon exercise of the Right held by the Holder and the provisions of this Section 2(e) shall continue to apply.
Any such increase will not be effective until the 61st day after such notice is delivered to DropCar. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of the Right. With respect to the Reserved Shares, this Agreement
does not entitle the Holder to any voting rights, or other rights as a holder of Common Stock of DropCar prior to the exercise
of the right to the extent possessing such rights would cause the Holder to exceed the Beneficial Ownership Limitation. It is the
purpose of this Agreement that Holder not be deemed the beneficial owner of Common Stock in excess of the Beneficial Ownership
Limitation. To the extent not available prior to the exercise of the Right, the Holder shall have all of the rights of a shareholder
DropCar that acquired shares of DropCar under the Merger Agreement and the Reserved Shares will be deemed Shares with respect to
the amount of Reserved Shares demanded in a Notice of Issuance. Until issuance as Shares, Reserved Shares will not be deemed outstanding
as to those matters that require or can be effectuated by or with the consent of DropCar or DropCar shareholders under the Merger
Agreement or any other document.

 

If DropCar, at any
time while the Right exists: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common
Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (ii) subdivides outstanding shares
of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital
stock of DropCar, then in each case the number of Reserved Shares issuable upon exercise of the Right shall be proportionately
adjusted. Any adjustment made pursuant to this paragraph shall become effective immediately upon the record date for the determination
of stockholders entitled to receive such dividend or distribution (provided that if the declaration of such dividend or distribution
is rescinded or otherwise cancelled, then such adjustment shall be reversed upon notice to the Holder of the termination of such
proposed declaration or distribution as to any unexercised portion of the Right at the time of such rescission or cancellation)
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
If DropCar, at any time while the Right exists pays a cash dividend or otherwise makes a distribution or distributions on shares
of its Common Stock, DropCar shall hold such amount that would be payable on the Reserved Shares if they had been issued, and pay
such amount of each Reserved Share as it is issued in accordance with this Letter Agreement.

 

     

     

    

 

In addition to any
other rights available to the Holder, if DropCar fails to cause the Transfer Agent to transmit to the Holder a certificate or
the certificates representing the Reserved Shares pursuant to an exercise on or before the Share Delivery Date, and if after such
date and prior to the delivery of such certificate or certificates the Holder is required to purchase (in an open market transaction
or otherwise) or the Holder’s broker otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by
the Holder of the Reserved Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then
DropCar shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1)
the number of Reserved Shares that DropCar was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Right and equivalent number of Reserved Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded, and the Holder shall promptly return to DropCar the certificates issued to
such Holder pursuant to the rescinded Notice of Issuance) or deliver to the Holder the number of shares of Common Stock that would
have been issued had DropCar timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence DropCar shall be required to pay the Holder $1,000. The Holder shall provide DropCar written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of DropCar, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to DropCar’s failure
to timely deliver certificates representing shares of Common Stock upon exercise of the Right as required pursuant to the terms
hereof.

 

If at any time DropCar
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of the Right (without
regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the
Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent
(or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right
to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the
Holder exceeding the Maximum Percentage). If, at any time while the Right remains outstanding, (i) DropCar, directly or indirectly,
in one or more related transactions engages in a Fundamental Transaction as defined in the Warrants, then, with respect to such
Fundamental Transaction, the Holder will be deemed to be the record owner of the Reserved Shares entitled to all the benefits
and rights of a holder of Common Stock and Warrants to the same extent as a holder of Warrants has such rights with respect to
Warrants and Warrant Shares issuable upon exercise of Warrants. If (A) DropCar shall declare a dividend (or any other distribution
in whatever form) on the Common Stock, (B) DropCar shall declare a special nonrecurring cash dividend on or a redemption of Common
Stock, (C) DropCar shall authorize the granting to all holders of Common Stock rights or Warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of DropCar shall be required in
connection with any reclassification of the Common Stock, any consolidation or merger to which DropCar is a party, any sale or
transfer of all or substantially all of the assets of DropCar, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) DropCar shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of DropCar, then, in each case, DropCar shall cause to be mailed to the Holder at least 10 calendar
days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights
or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
DropCar or any of its subsidiaries, DropCar shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Holder shall remain entitled to exercise the Right during the period commencing on the date of such notice to
the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

[Signature Page to Follow]

 

     

     

    

 

If this proposal is
acceptable to you, please indicate your consent below and return this Letter Agreement to DropCar electronically.

 

	 	Very truly yours,
	 	 
	 	DropCar, Inc.
	 	 
	 	By:	 

 

Accepted and Agreed to:

 

Name of Holder: ________________________________________________________

 

Signature of Authorized Signatory of
Holder: _________________________________

 

Name of Authorized Signatory: _______________________________________________

 

Title of Authorized Signatory: ________________________________________________

 

Maximum Number of Warrant Shares Desired
to be Exercised:

 

Aggregate Exercise Price:

 

DTC Instructions:

 

     

     

    

 

SCHEDULE A

 

	HOLDER	 	WARRANT NO.	 	SHARES OF SERIES H-4 SHARES CURRENTLY HELD	 	NUMBER OF WARRANT SHARES UNDERLYING SERIES H-4 WARRANTS	 	 	NUMBER OF SERIES H-4 WARRANT SHARES INITIALLY ELIGIBLE TO BE EXERCISED PURSUANT TO OFFER	 	 	NUMBER OF WARRANT
 SHARES INITIALLY ISSUABLE
 UPON CASH EXERCISE
 OF WARRANT
	 
	Alpha Capital Anstalt	 	2018H4-1	 	11,093	 	 	1,109,300	 	 	 	645,337	 	 	 	645,337	 
	Iroquois Capital Investment Group LLC	 	2018H4-2	 	3,184	 	 	318,400	 	 	 	185,230	 	 	 	185,230	 
	Iroquois Master Fund LTD.	 	2018H4-3	 	3,184	 	 	318,400	 	 	 	185,230	 	 	 	185,230	 
	Mada Equities LLC	 	2018H4-4	 	1,061	 	 	106,100	 	 	 	61,724	 	 	 	61,724	 
	The Hewlett Fund LP	 	2018H4-5	 	1,061	 	 	106,100	 	 	 	61,724	 	 	 	61,724	 
	Zeiger Tower LLC	 	2018H4-6	 	530	 	 	53,000	 	 	 	30,833	 	 	 	30,833	 
	L1 Capital Global Opportunities Master Fund	 	2018H4-7	 	1,910	 	 	191,000	 	 	 	111,115	 	 	 	111,115	 
	Brio Capital Master Fund LTD.	 	2018H4-8	 	2,123	 	 	212,300	 	 	 	123,506	 	 	 	123,506	 
	SOS Investors Group LLC	 	2018H4-9	 	318	 	 	31,800	 	 	 	18,500	 	 	 	18,500	 
	Isaac Fruchthandler	 	2018H4-10	 	74	 	 	7,400	 	 	 	4,305	 	 	 	4,305	 
	Fame Associates	 	2018H4-11	 	743	 	 	74,300	 	 	 	43,224	 	 	 	43,224	 
	Richard Molinsky	 	2018H4-12	 	191	 	 	19,100	 	 	 	11,111	 	 	 	11,111	 
	Palladium Capital Advisors, LLC	 	2018H4-13	 	1,371	 	 	137,100	 	 	 	79,758	 	 	 	79,758SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of August 28, 2018, by and between PROPANC BIOPHARMA
INC., a Delaware corporation, with its address at 302, 6 Butler Street, Camberwell, VIC, 3124 Australia (the “Company”),
and POWER UP LENDING GROUP LTD., a Virginia corporation, with its address at 111 Great Neck Road, Suite 216, Great Neck,
NY 11021 (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
a convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of $53,000.00 (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, $0.001 par value per share, of the Company (the
“Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

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 the Closing Date (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.

 

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. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section
7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be 12:00 noon, Eastern Standard Time on or about August 28, 2018, 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.
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.

 

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 Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information
unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.

 

e.
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the
1933 Act; or may be sold pursuant to an applicable exemption from registration, the Conversion Shares may 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.”

 

    	2

    	 

    

 

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, which opinion
is in such satisfactory form, substance and scope as described above, 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 Note), it will be considered
an Event of Default pursuant to Section 3.2 of the Note.

 

f.
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.

 

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, 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.

 

    	3

    	 

    

 

c.
Capitalization. As of the date hereof, the authorized common stock of the Company consists of 400,000,000
authorized shares of Common Stock, $0.001 par value per share, of which 38,324,191 shares are issued and outstanding; and
74,125,874 shares are reserved for issuance upon conversion of the Note. All of such outstanding shares of capital stock are,
or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.

 

d.
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.

 

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, 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). 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, financial condition or prospects 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.

 

    	4

    	 

    

 

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.

 

g.
Absence of Certain Changes. Since March 31, 2018, except as set forth in the SEC Documents, and except as disclosed in
Schedule 3(g) to the Disclosure Schedule attached hereto, 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 and except as disclosed in Schedule 3(g) to the Disclosure
Schedule attached hereto, 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.

 

    	5

    	 

    

 

j.
No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions,
transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

k.
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.

 

l.
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 Section 3.4 of the Note.

 

4.
COVENANTS.

 

a.
Best Efforts. The Company shall use its best 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 to the extent any such filings are required by federal and state
laws.

 

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’ expenses shall be $3,000.00 for Buyer’s legal fees and due diligence fee.

 

e.
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 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 Section 3.4 of the
Note.

 

g.
Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, 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.

 

    	6

    	 

    

 

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 Note in accordance with the terms thereof (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 such term is defined in the Note) 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(e) 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 Note; (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 Note as and when
required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or
impairs, delays, and/or hinders 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 or otherwise pursuant
to the Note as and when required by the Note and/or this Agreement. 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, 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.

 

    	7

    	 

    

 

6.
Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note
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 Note 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 duly executed Note (in such denominations as the Buyer shall request) in accordance
with Section 1(b) above.

 

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.

 

    	8

    	 

    

 

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 Conversion Shares shall have been authorized for quotation on an exchange or electronic quotation system and trading in the
Common Stock on such exchange or electronic quotation system shall not have been suspended by the SEC or an exchange or electronic
quotation system.

 

8.
Governing Law; Miscellaneous.

 

a.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia 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 Note 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.

 

    	9

    	 

    

 

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 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,
or (iv) transmitted by hand delivery, telegram, 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 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 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.

 

    	10

    	 

    

 

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.
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.

 

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. 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.

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

    	11

    	 

    

 

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

 

	PROPANC
    BIOPHARMA INC.	 
	 	 	 
	By:	/s/
    James Nathanielsz	 
	 	James
    Nathanielsz	 
	 	Chief
    Executive Officer	 

 

	POWER
    UP LENDING GROUP LTD.	 
	 	 	 
	By:	/s/
    Curt Kramer	 
	Name:
    	Curt
    Kramer 	 
	Title:
    	Chief
    Executive Officer	 
	111 Great Neck Road, Suite 216	 
	Great Neck, NY 11021	 

 

	AGGREGATE SUBSCRIPTION
    AMOUNT:	 	 	 	 
	 	 	 	 	 
	Aggregate Principal Amount
    of Note:	 	$	53,000.00	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	$	53,000.00	 

 

    	12

    	 

    

 

DISCLOSURE
SCHEDULE

 

This
Disclosure Schedule is made and given in connection with the Securities Purchase Agreement, dated as of August 28, 2018 (the “Agreement”),
between Propanc Biopharma Inc. (the “Company”) and Power Up Lending Group Ltd. All capitalized terms used but
not defined herein shall have the meanings as defined in the Agreement, unless otherwise provided. The section numbers below correspond
to the section numbers of the representations and warranties in the Agreement; provided, however, that any information
disclosed herein under any section number shall be deemed to be disclosed and incorporated into any other section number under
the Agreement where such disclosure would be appropriate and such appropriateness is reasonably apparent from the face of such
disclosure. Nothing in this Disclosure Schedule is intended to broaden the scope of any representation or warranty contained in
the Agreement or to create any covenant. Inclusion of any item in this Disclosure Schedule (1) does not represent a determination
that such item is material or establish a standard of materiality, (2) does not represent a determination that such item did not
arise in the ordinary course of business, (3) does not represent a determination that the transactions contemplated by the Agreement
require the consent of third parties, and (4) shall not constitute, or be deemed to be, an admission to any third party concerning
such item.

 

3(g)
As part of its requirement for having a foreign operating subsidiary, the Company is required to file an informational Form 5471
to the Internal Revenue Service (the “IRS”), which is a form that explains the nature of the relationship between
the foreign subsidiary and the parent company. From 2012 through the 2014 the Company did not file this form in a timely manner.
As a result of the non-timely filings, the Company has incurred a penalty from the IRS in the amount of $10,000 per year, or $30,000,
subject to additional interest penalties. As of January 18, 2018, an aggregate of $37,824.77 was due. The Company has initiated
discussions with the IRS to coordinate payment of such penalties. The IRS has filed a lien against the Company’s assets
pending repayment or settlement of these penalties.

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