Document:

Exhibit

Exhibit 10.32

December 11, 2015

Sue Swenson
16432 La Gracia
Rancho Santa Fe, CA 92067

Dear Sue,

Novatel Wireless, Inc. (the “Company”) is pleased to confirm the offer of employment set forth in this letter (this “Offer Letter”). Your employment under this Offer Letter would commence effective October 28, 2015, (the “Effective Date”), according to the terms outlined below.  Capitalized terms not defined in the Offer Letter have the meanings ascribed to them on Exhibit A.

		
	POSITION:
	You would be our Chief Executive Officer (“CEO”), an exempt position, and will report to our Board of Directors (the “Board”). This is a full-time position and you will be expected to devote all of your working time to the performance of your duties for the Company. During the Employment Period, you shall not (i) become employed by, engaged in or render business services for any Person other than the Company and its Subsidiaries or (ii) be a member of the board of directors of any Person without the consent of the Company; provided that nothing herein shall preclude you from (i) engaging in charitable or community affairs, (ii) managing your personal investments, or (iii) serving on the Board of Directors of (A) FirstNet, the First Responders Network Authority, (B) Wells Fargo & Company, (C) Spirent Communications plc, and (D) Harmonic, Inc., to the extent that such other activities do not violate the Confidentiality Agreement, as defined below.  Notwithstanding anything to the contrary in this Offer Letter or the Confidentiality Agreement, it shall not be a breach of this Offer Letter or the Confidentiality Agreement for you to hold not more than two percent (2%) of the outstanding securities of any class of any publicly-traded securities of any Person.  By signing this Offer Letter, you confirm that you are under no contractual or other legal obligations that would limit or prohibit you from performing your duties with the Company. 

During the Employment Period, you agree to use your reasonable best efforts to ensure that the business and activities of the Company and its Subsidiaries are conducted in compliance with all applicable laws, rules, and regulations in all material respects.  By signing this Offer Letter, you confirm that you are under no contractual or other legal obligations that would limit or prohibit you from performing your duties with the Company.

Nothing herein shall affect your role as a Director or Chairperson of the Board, except that, as of the Effective Date, you will no longer serve as a member of the Board’s Compensation Committee or the Nominating and Corporate Governance Committee.  Any cash compensation owed to you as a non-employee Director for fiscal 2015 will be pro-rated to the Effective Date.  You will continue to vest in any equity awards granted to you as a non-employee Director while you continue to serve on the Board.
 
		
	BASE COMPENSATION:
	Your annual base salary would be $1.00 (“Base Salary”), payable in cash, to be paid annually in arrears, subject to standard deductions and withholding.  Your Base Salary will be reviewed annually, together with the other elements of your 

overall compensation package, in accordance with standard practice of the Company for executive officers.   

		
	EQUITY AWARD:
	The Company will grant you non-qualified options to purchase shares of the Company’s Common Stock.  As of the Effective Date, the Company will grant you options to purchase 951,550 shares of the Company’s Common Stock with a per share exercise price equal to $2.27, the closing price of the Company’s Common Stock on the grant date (the “$2.27 Options”).  In addition, on January 4, 2016 (subject to your continued employment with the Company), the Company will grant you options to purchase an additional 951,550 shares of the Company’s Common Stock with a per share exercise price equal to the closing price of the Company’s Common Stock on January 4, 2016 (the “January 4, 2016 Options”).  

One-fourth (1/4) of the option shares under each of these two grants will vest on the first anniversary of their respective grant dates with the remaining three-fourths (3/4) of the option shares under each of these two grants vesting 1/36th on each of the 36 monthly anniversaries of the first anniversary of their respective grant dates.  The vesting of your options to purchase shares of the Company’s Common Stock shall be subject in each case to your continued employment as the CEO of the Company through each such vesting date and all vesting will cease as of the date that you are no longer serving as CEO of the Company.  Each option will expire on the earlier of (i) ten (10) years from the date of grant or (ii) ninety (90) days after you cease to perform services (in any capacity) on behalf of the Company.  

The $2.27 Options may only be exercised after vesting if the price of the Company’s Common Stock is at least $3.41 (or greater) on the date of exercise.  All equity awards described in this Offer Letter will be subject to the terms and conditions of the Novatel Wireless, Inc. Amended and Restated 2009 Omnibus Incentive Compensation Plan (or a successor plan) and associated grant documents.  Notwithstanding anything to the contrary contained in this Offer Letter, the vesting of each equity award described in this Offer Letter is expressly contingent on the Company having sufficient Common Stock authorized for issuance and reserved under its equity plans.  

		
	BENEFITS:
	You will be eligible to participate in the Company’s employee benefits programs, including any health, disability and/or life insurance, to the same extent as, and subject to the same terms, conditions and limitations applicable to, other employees of the Company of similar rank and tenure, if and when such benefit programs are made available by the Company, and in accordance with the terms of such plans.  You also will receive 20 days of paid time off per year in accordance with and subject to Company policies.  You acknowledge that the Company may change (including cancel) its benefit programs, including any or all of its paid time off policies from time to time, in its discretion and in accordance with applicable law.

		
	EXPENSES:
	The Company shall reimburse you for reasonable and properly documented business expenses incurred during your employment with the Company in accordance with the Company’s then-prevailing policies and procedures for expense reimbursement.  To the extent that any reimbursements pursuant to this Offer Letter are taxable to you, any such reimbursement payment due to you shall be paid to you as promptly as practicable, and in all events on or before the last day of the calendar year following the calendar year in which the related expense was incurred.  The reimbursements pursuant to this Offer Letter are not subject to liquidation or exchange for another benefit and the amount of such benefits and 

reimbursements that you receive in one taxable year shall not affect the amount of such benefits or reimbursements that you receive in any other taxable year.

		
	AT-WILL EMPLOYEE:
	If you accept this offer, your employment will be “at will”, meaning that either you or the Company will be entitled to terminate your employment at any time, with or without cause or prior notice. Please note that, although your job duties, title, compensation and benefits, as well as our personnel policies and procedures, may change from time to time, your at-will status only may be changed with the approval of the Board.  You would be entitled to certain severance benefits depending on the circumstances surrounding your termination, as determined pursuant to the Change in Control and Severance Agreement attached as Exhibit B.  

		
	DISPUTES:
	You agree that if any disputes should arise between you and the Company (including claims against its employees, officers, directors, shareholders, agents, successors and assigns) relating or pertaining to or arising out of your employment with the Company, the dispute will be submitted exclusively to binding arbitration before a neutral arbitrator in accordance with the rules of the American Arbitration Association in San Diego, California.   This means that disputes will be decided by an arbitrator rather than a court or jury, and that both you and the Company waive their respective rights to a court or jury trial, except to enforce the decision of the arbitrator. You understand that the arbitrator’s decision will be final and exclusive, and cannot be appealed. Nothing in this Agreement is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  The Company and you shall share in the arbitrator’s fees and expenses equally.  The arbitrator shall have the power to award the prevailing party its attorneys’ fees and costs of arbitration (including the arbitrator’s fees paid by the arbitrator) except to the extent prohibited by applicable law.  Notwithstanding the foregoing, you and the Company each have the right to resolve any issue or dispute over intellectual property rights by Court action instead of arbitration.

		
	OBLIGATIONS:
	As a condition of employment with the Company, you agree that you will acquire, as an employee, secret, confidential, or proprietary information or trade secrets of the Company, and, as such, you agree to continue to be bound by the Company’s Inventions Disclosure, Confidentiality & Proprietary Rights Agreement (the “Confidentiality Agreement”), attached hereto as Exhibit C. As a Company employee, you will be expected to continue to abide by Company rules and policies, including those set forth in the Company’s employee handbook. Except for policies related to at-will employment, which may only be revised as described earlier in this Offer Letter, you understand that any or all Company rules and policies may be revised from time to time, as deemed appropriate, advisable or required by the Company.

In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer, entity or other person to whom you have an obligation of confidentiality, including under any binding agreement. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. You agree that you will not bring on to Company premises any unpublished documents or property belonging to any former employer, entity or other person to whom you have an obligation of confidentiality.

Except as described above in the section entitled “Position”, during the Employment Period, you agree not to consult with, act as an advisor or consultant to, serve as an employee, agent, manager or director of, or otherwise provide services to, any company or organization (whether for profit, not-for-profit or otherwise) other than the Company unless you receive prior written approval from the Board.

		
	ELECTRONIC DELIVERY:
	The Company may, in its sole discretion, decide to deliver to you by email or any other electronic means any documents or notices related to this Offer Letter, securities of the Company or any of its affiliates or any other matter, including documents and/or notices required to be delivered to you by applicable securities law or any other law or the Company’s Certificate of Incorporation or Bylaws or otherwise. By accepting this offer of employment and signing below, you hereby consent to receive such documents and notices by such electronic delivery and agree to participate through any on-line or electronic system that may be established and maintained by the Company or a third party designated by the Company. 

		
	NONDISPARAGEMENT:
	You shall not disparage or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, shareholders, or employees, either publicly or privately, except in the reasonable good faith performance of your duties to the Company.  This obligation does not apply to (i) any testimony, pleading, or sworn statements in any legal or administrative proceeding; (ii) attorney-client communications; or (iii) any communications with a government or regulatory agency, and further, it shall not be construed to prevent you from filing a charge with the Equal Employment Opportunity Commission or a comparable state or local agency.

		
	WITHHOLDING:
	All forms of compensation referred to in this Offer Letter are subject to applicable withholding and payroll taxes.

		
	GOVERNING LAW:
	Except to the extent governed by Federal law, this Offer Letter shall be governed by and construed in accordance with the laws of the State of California, excluding laws relating to conflicts or choice of law.

		
	COOPERATION:
	You agree that, upon reasonable notice and without the necessity of the Company obtaining a subpoena or court order, you will provide reasonable cooperation in connection with any suit, action or proceeding (or any appeal from any suit, action or proceeding), or the decision to commence on behalf of the Company any suit, action or proceeding, and any investigation and/or defense of any claims asserted against any of the Company’s or its Subsidiaries’ current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, which relates to events occurring during your employment with the Company as to which you have relevant information (including but not limited to furnishing relevant information and materials to the Company or its designee and/or providing truthful testimony at depositions and at trial), provided that with respect to such cooperation occurring following termination of your employment with the Company, the Company shall reimburse you for expenses reasonably incurred in connection therewith and shall schedule such cooperation to the extent reasonably practicable so as not to unreasonably interfere with your business or personal affairs.  Notwithstanding anything to the contrary, you shall be not be required to devote more than forty (40) hours of your time, pursuant to this Cooperation provision, and all such time expended at a time you are not receiving severance from the Company shall be compensated at the rate of $125 per hour, except that such forty (40) hour cap shall not include or apply to any time 

spent testifying at a deposition or at trial, or spent testifying before or being interviewed by any administrative or regulatory agency.

		
	MISCELLANEOUS:
	If any provision or any part of this Offer Letter is adjudged by a court of competent jurisdiction (or an arbitrator) to be invalid or unenforceable, the same shall in no way affect any other provision or remaining part thereof of this Offer Letter, which shall be given full effect without regard to the invalid or unenforceable provision or part thereof, or the validity or enforceability of this Offer Letter.  This Offer Letter, together with the Change in Control and Severance Agreement attached as Exhibit B, the Confidentiality Agreement attached as Exhibit C, and the Indemnification Agreement, which you will execute on or prior to your first day of employment (the “Indemnification Agreement”), constitutes the entire agreement and understanding between the Company and you with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral), between you and the Company relating to such subject matter.  The rights and obligations of the parties under the Offer Letter shall survive, and remain binding and enforceable, notwithstanding the termination of this Offer Letter, to the extent necessary to preserve the intended benefits of such provisions.  This Offer Letter shall not be construed strictly for or against either party.  No provision of this Offer Letter may be amended, modified, waived or discharged except by a written document signed by you and a duly authorized officer of the Company (other than you).  The failure of a party to insist upon strict adherence to any term of this Offer Letter on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Offer Letter.  No failure or delay by either party in exercising any right or power hereunder will operate as a waiver thereof, nor will any single or partial exercise of any such right or power, or any abandonment of any steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.

		
	CLAWBACK:
	You agree that to the extent required by applicable law or written Company policy, to the extent it implements the requirements of such law (including without limitation Section 304 of the Sarbanes Oxley Act and Section 954 of the Dodd Frank Act), any equity compensation and any other incentive compensation shall be subject to any required clawback, forfeiture, recoupment or similar requirement pursuant to such law or policy.

		
	ASSIGNMENT:
	This Offer Letter is personal to you and is not assignable.

This Offer Letter shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors and permitted assigns (including, without limitation, successors by merger, consolidation, sale or similar transaction and in the event of your death, your estate and heirs in the case of any payments due to you hereunder).

		
	NOTICES:
	Any notice, request, claim, demand, document and other communication hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid (or if it is sent through any other method agreed upon by the parties), as follows:

    
If to the Company:
Novatel Wireless, Inc.
Attn: Board of Directors
9645 Scranton Road, Suite 205

San Diego, CA 92121
Facsimile: 858-812-3402
    
If to you, at the address set forth in your Company personnel file; 

or at any other address as any party shall have specified by notice in writing to the other party.

		
	INSTRUCTIONS:
	Please execute the original of this Offer Letter indicating your receipt, acknowledgment and agreement with this Offer Letter. This offer is contingent on your execution and delivery of this Offer Letter to the Company by the Effective Date.

 
We look forward to your serving as our Chief Executive Officer.

	
		
	Novatel Wireless

	 
	 

	/s/ Dave Werner

	Dave Werner

	Chairman, Compensation Committee

I am pleased to accept the offer of at-will employment under the terms stated in this Offer Letter, and I understand and agree to all of its terms.

	
		
	Accepted:
	/s/ Sue Swenson

	 
	Sue Swenson

	 
	 

	Date:
	December 11, 2015

EXHIBIT A

DEFINITIONS

(a) “Common Stock” means the Company’s common stock, par value $0.001 per share.
(b) “Employment Period” means the entire period during which you are employed by the Company.
(c) “Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company, trust, unincorporated organization, governmental or regulatory body, or other entity.
(d)“Subsidiary” means, with respect to any Person, (i) any corporation of which at least a majority of the voting power with respect to the capital stock is owned, directly or indirectly, by such Person, any of its other Subsidiaries or any combination thereof or (ii) any Person other than a corporation in which such Person, any of its other Subsidiaries or any combination thereof has, directly or indirectly, at least a majority of the total equity or other ownership interest therein.

EXHIBIT B

CHANGE IN CONTROL AND SEVERANCE AGREEMENT
This Change in Control and Severance Agreement (the “Agreement”) is made and entered into by and between Sue Swenson (“Executive”) and Novatel Wireless, Inc., a Delaware corporation (the “Company”), this 28th day of October, 2015 (the “Effective Date”).  
WHEREAS, The Board of Directors of the Company (the “Board”) recognizes the importance of Executive’s role at the Company and that the possibility of an acquisition of the Company or an involuntary termination can be a distraction to Executive and can cause Executive to consider alternative employment opportunities. The Board has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of such an event.
WHEREAS, the Board believes that it is in the best interests of the Company and its shareholders to provide Executive with an incentive to continue Executive’s employment and to motivate Executive to maximize the value of the Company upon a Change in Control (as defined below) for the benefit of its stockholders.
WHEREAS, the Board believes that it is imperative to provide Executive with severance benefits upon certain terminations of Executive’s service to the Company that enhance Executive’s financial security and provide incentive and encouragement to Executive to remain with the Company notwithstanding the possibility of such an event.
WHEREAS, unless otherwise defined herein, capitalized terms used in this Agreement are defined in Section 8 below.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, including the agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
		
	1.
	Term of Agreement.

This Agreement shall become effective as of the Effective Date and terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been satisfied.
		
	2.
	At-Will Employment.

The Company and Executive acknowledge that Executive’s employment shall be “at-will,” as defined under applicable law. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, the Indemnification Agreement between the Company and Executive entered into on or about the date hereof (the “Indemnification Agreement”), the Company’s bylaws (as may be amended from time to time), the Company’s Amended and Restated Certificate of Incorporation (as may be amended from time to time), and/or any other agreement evidencing the grant to Executive of equity compensation that is concurrently or hereafter entered into by the parties.
		
	3.
	Covered Termination Other Than During a Change in Control Period.

If Executive experiences a Covered Termination other than during a Change in Control Period and if Executive delivers to the Company a general release of all claims against the Company and its affiliates, in the form provided by the Company which shall be substantially in the form attached as Exhibit A (which form may be modified by the Company to comply with the facts and applicable law) (a “Release of Claims”) that becomes effective within 55 days following the Covered Termination and irrevocable within 62 days following the Covered Termination (the “Release Requirements”), then in addition to any accrued but unpaid salary, accrued but unused vacation, incurred but unreimbursed business expenses payable in accordance with applicable law, or vested benefits (other than 

severance) under any Company benefit plan (the “Accrued Amounts”) the Company shall provide Executive with the following:
(a)Equity Awards. Each outstanding and unvested stock option granted to you pursuant to the “Equity Award” section of your Offer Letter dated October 28, 2015 (the “Offer Letter”)  shall vest, on a proportional basis, based on the number of full months that you served as Chief Executive Officer following the respective  grant dates of the options prior to the Covered Termination (not to exceed one year from the grant date), divided by 48.  By way of example and for the avoidance of doubt, if you experience a Covered Termination on July 2, 2016, you would vest in (i) 8/48 of your options to purchase 951,550 shares of the Company’s common stock (representing the $2.27 Options) and (ii) 5/48 of your options to purchase 951,550 shares of the Company’s common stock (representing the January 4, 2016 Options), each as defined in the Offer Letter.  As a further example, if you experience a Covered Termination on November 2, 2016, you would vest in 9/48 of your options to purchase 951,550 shares of the Company’s common stock (representing the January 4, 2016 Options), but there would be no proportional accelerated vesting with respect to the $2.27 Options.  Regardless of any accelerated vesting, the $2.27 Options shall remain, in all cases, subject to the $3.41 exercise price restriction detailed in the Offer letter.  If you experience a Covered Termination other than during a Change in Control Period after October 28, 2016 (with respect to the $2.27 Options) or January 4, 2017 (with respect to the January 4, 2016 Options), you will receive only the Accrued Amounts and all vesting of the options granted to you pursuant to the “Equity Award” section of the Offer Letter shall cease, with no proportional accelerated vesting. 
		
	4.
	Covered Termination During a Change in Control Period.

If Executive experiences a Covered Termination during a Change in Control Period, and if Executive satisfies the Release Requirements, then in addition to any Accrued Amounts, but in lieu of any amounts the Executive otherwise could have received under Section 3 of this Agreement, the Company shall provide Executive with the following:
(a)Equity Awards. Each outstanding and unvested stock option granted to you pursuant to the “Equity Award” section of the Offer Letter shall automatically become vested and, if applicable, exercisable and any forfeiture restrictions or rights of repurchase thereon shall immediately lapse, as of immediately prior to the Termination Date with respect to one hundred percent (100%) of the unvested shares underlying Executive’s equity awards.  In all other respects Executive’s equity awards shall continue to be bound by and subject to the terms of their respective agreements and equity plans.  All such equity awards or the proceeds therefrom shall be held by the Company until such time as the Executive timely satisfied the Release Requirements, if at all. 
		
	5.
	In Contemplation.

In the event Executive is terminated in Contemplation of a Change in Control, Executive initially shall receive the amounts under Section 3 hereof, provided that, if the Change in Control actually occurs, that Change in Control satisfies the requirements of Treasury Regulation 1.409A-3(i)(5), and the Executive timely satisfied the Release Requirements, then Section 4(a) shall apply to any outstanding and unvested stock option and restricted stock unit award held by Executive.
		
	6.
	Other Terminations.

If Executive’s service with the Company is terminated by the Company or by Executive for any or no reason other than a Covered Termination, then Executive shall only be entitled to Accrued Amounts.
		
	7.
	Deemed Resignation.

Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with the Company or any of its affiliates, and, at the Company’s request, Executive shall execute such documents as are necessary or desirable to effectuate such resignations.

		
	8.
	Limitation on Payments.

Notwithstanding anything in this Agreement to the contrary, if any payment or distribution Executive would receive pursuant to this Agreement or otherwise (“Payment”) would (a) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall either be (i) delivered in full or (ii) delivered as to such lesser extent which would result in no portion of such Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and payroll taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the largest payment, notwithstanding that all or some portion the Payment may be taxable under Section 4999 of the Code. The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change in Control or, in the event such accounting firm is precluded from performing calculations hereunder, such other accounting firm of national reputation as may be determined by the Company, and reasonably acceptable to Executive, shall perform the foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm shall provide its calculations to the Company and Executive within fifteen (15) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments and/or benefits pursuant to this Section 8 will occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards other than stock options (with the later vesting reduced first) (3) cancellation of accelerated vesting of stock options (with the later vesting reduced first) and (4) reduction of other benefits payable to Executive or any such other order determined by the Company that will not result in adverse tax consequences under Section 409A of the Code.  
		
	9.
	Definition of Terms.

The following terms referred to in this Agreement shall have the following meanings:
(a)“Cause” means (i) any act of material misconduct or material dishonesty by Executive in the performance of his duties; (ii) any willful failure, gross neglect or refusal by Executive to attempt in good faith to perform his duties to the Company or to follow the lawful instructions of the Board (except as a result of physical or mental incapacity or illness) which is not promptly cured after written notice; (iii) Executive’s commission of any fraud or embezzlement against the Company (whether or not a misdemeanor); (iv) any material breach of any written agreement with the Company, which breach has not been cured by Executive (if curable) within thirty (30) days after written notice thereof to Executive by the Company; (v) Executive’s being convicted of (or pleading guilty or nolo contendere to) any felony or misdemeanor involving theft, embezzlement, dishonesty or moral turpitude; and/or (vi) Executive’s failure to materially comply with the material policies of the Company in effect from time to time relating to conflicts of interest, ethics, codes of conduct, insider trading, or discrimination and harassment, or other breach of Executive’s fiduciary duties to the Company, which failure or breach is or could reasonably be expected to be materially injurious to the business or reputation of the Company.
(b)“Change in Control” means either:
(i)any “person” (as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes, after the Effective Date, a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”) or of substantially all of the Company’s assets; provided, however, that an event described in this clause (i) shall not be deemed to be a Change in Control if any of following becomes such a beneficial owner: (A) the Company or any majority-owned subsidiary (provided, that this exclusion applies solely to the ownership levels of the Company or the majority-owned subsidiary), (B) any tax-qualified, broad-based employee benefit plan sponsored or maintained by the Company or any majority-owned subsidiary, (C) any underwriter temporarily 

holding securities pursuant to an offering of such securities, or (D) any person pursuant to a Non-Qualifying Transaction (as defined in clause (ii)); or 
(ii) the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than fifty percent (50%) of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of one hundred (100%) of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were members of the Board as of the date hereof or at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”).
(c)“Change in Control Period” means the period commencing 30 days prior to a Change in Control and ending on the 12-month anniversary of such Change in Control.
(d)“Contemplation of a Change in Control” means a Covered Termination that occurs as a result of an action directed or requested by a person that directly or indirectly undertakes a transaction that constitutes a Change in Control of the Company.
(e)“Covered Termination” means Executive’s resignation for Good Reason or the termination of Executive’s employment by the Company other than a Disability Termination or a termination for Cause that, in each case and to the extent necessary, constitutes a Separation from Service (as defined below).
(f)“Disability Termination” means a termination of employment by the Company of the Executive after the Executive has been unable for 90 days in any 365 day period to perform his material duties because of physical or mental incapacity or illness.
(g)“Good Reason” means the occurrence, without Executive’s written consent, of any of the following: (i) a material diminution in Executive’s base compensation, (ii) a material diminution in Executive’s job responsibilities, duties or authorities, or (iii) a material change of at least fifty (50) miles in the geographic location at which Executive must regularly perform Executive’s service.  Notwithstanding the foregoing, Executive shall not be deemed to have “Good Reason” unless: (x) the condition giving rise to such resignation continues more than thirty (30) days following Executive’s providing to the Company a written notice of detailing such condition, (y) such written notice is provided to the Company within ninety (90) days of the initial occurrence of such condition and (z) Executive’s resignation is effective within thirty (30) days following the expiration of the Company cure period pursuant to subclause (x). 
(h)“Termination Date” means the date Executive experiences a Covered Termination.
		
	10.
	Assignment and Successors.

The Company may assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise).  This Agreement shall be binding upon 

and inure to the benefit of the Company, Executive and their respective successors, permitted assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will or operation of law.
		
	11.
	Notices.

Any notice, request, claim, demand, document and other communication hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid (or if it is sent through any other method agreed upon by the parties), as follows:
		
	(i)
	if to the Company:

Novatel Wireless, Inc.
Attn: Board of Directors
9645 Scranton Road, Suite 205
San Diego, CA 92121
Facsimile: 858-812-3402
		
	(ii)
	if to Executive, at the address set forth in Executive’s personnel file with the Company; or

(iii)at any other address as any party shall have specified by notice in writing to the other party.
		
	12.
	Non-Disparagement.

Executive agrees that he shall not disparage, criticize or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, shareholders or employees, either publicly or privately, except in the reasonable good faith performance of his duties to the Company.  Nothing in this Section 12 shall have application to any evidence, testimony or disclosure required by any court, arbitrator or government agency.
		
	13.
	Dispute Resolution.

The parties agree that if any disputes should arise between Executive and the Company (including claims against its employees, officers, directors, shareholders, agents, successors and assigns) relating or pertaining to or arising out of Executive’s employment with the Company, the dispute will be submitted exclusively to binding arbitration before a neutral arbitrator in accordance with the rules of the American Arbitration Association in San Diego, California.   This means that disputes will be decided by an arbitrator rather than a court or jury, and that both Executive and the Company waive their respective rights to a court or jury trial, except to enforce the decision of the arbitrator. The parties understand that the arbitrator’s decision will be final and exclusive, and cannot be appealed. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  The Company and the Executive shall share in the arbitrator’s fees and expenses equally.  The arbitrator shall have the power to award the prevailing party its attorneys’ fees and costs of arbitration (including the arbitrator’s fees paid by the arbitrator) except to the extent prohibited by applicable law.  Notwithstanding the foregoing, Executive and the Company each have the right to resolve any issue or dispute over intellectual property rights by Court action instead of arbitration.
		
	14.
	Miscellaneous Provisions.

(a)Section 409A.
(i)Separation from Service. Notwithstanding any provision to the contrary in this Agreement, no amount deemed deferred compensation subject to Section 409A of the Code shall be payable pursuant to Sections 3, 4 or 5 above unless Executive’s termination of employment constitutes a “separation from service” with the Company within the meaning of Section 409A of the Code and the Department of Treasury regulations and other guidance promulgated thereunder (“Separation from Service”).

(ii)Specified Employee. Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed at the time of his separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (A) the expiration of the six (6)-month period measured from the date of Executive’s Separation from Service or (B) the date of Executive’s death. Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 14(a)(ii) shall be paid in a lump sum to Executive, and any remaining payments due under this Agreement shall be paid as otherwise provided herein.
(iii)Expense Reimbursements. To the extent that any reimbursements payable pursuant to this Agreement are subject to the provisions of Section 409A of the Code, any such reimbursements payable to Executive pursuant to this Agreement shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.
(iv)Reserved.
(v)Release. Notwithstanding anything to the contrary in this Agreement, to the extent that any payments due under this Agreement as a result of Executive’s termination of employment are subject to Executive’s execution and delivery of a Release of Claims, (A) the Company shall deliver the Release of Claims to Executive within ten (10) business days following the Termination Date, (B) if Executive fails to execute the Release of Claims on or prior to the Release Expiration Date (as defined below) or timely revokes his acceptance of the Release of Claims thereafter, Executive shall not be entitled to any payments or benefits otherwise conditioned on the Release of Claims, and (C) in any case where the Termination Date and the Release Expiration Date fall in two separate taxable years, any payments required to be made to Executive that are conditioned on the Release of Claims and are treated as nonqualified deferred compensation for purposes of Section 409A shall be made in the later taxable year. For purposes of this Section 14(a)(v), “Release Expiration Date” shall mean the date that is forty-five (45) days following the date upon which the Company timely delivers the Release of Claims to Executive. 
(b)Withholding. The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.
(c)Amendment; Waiver. This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a member of the Board or a Company officer designated by the Board. No waiver shall operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.
(d)Entire Agreement. The terms of this Agreement, collectively with the Offer Letter, the Confidentiality Agreement between the Company and Executive entered into on or about the date herewith (the “Confidentiality Agreement”), and the Indemnification Agreement, is intended by the Parties to be the final expression of their agreement with respect to the employment of Executive by the Company and supersede all prior understandings and agreements (but not the Confidentiality Agreement or the Indemnification Agreement), whether written or oral. The parties further intend that this Agreement, collectively with the Offer Letter, the Confidentiality Agreement, and the Indemnification Agreement, shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.
(e)Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.

(f)Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(g)Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.
 
	
			
	 
	 
	 

	NOVATEL WIRELESS, INC.

	 
	 

	By:
	 
	/s/ Dave Werner

	 
	 

	Title:
	 
	Chairman, Compensation Committee

	 
	 

	Date:
	 
	October 28, 2015

	 

	EXECUTIVE

	 

	/s/ Sue Swenson

	Sue Swenson

	 
	 

	Date:
	 
	October 28, 2015

EXHIBIT C

CONFIDENTIALITY AGREEMENTHydrocarb Energy Corp. 8-K

 

 

Exhibit 10.1

 

SPECIAL
pRIVATE pLACEMENT agreement

 

This Special Private Placement
Agreement (this “Agreement”), dated as of March 9, 2016, by and among Hydrocarb Energy
Corp.(HECC), a company formed and existing under the laws of Nevada (the “Company”) and Infinity Fund
LLC. a company formed under the laws of Wyoming (the “Purchaser”). The Company and the Purchaser are singly
referred to as a “party” and collectively as the “parties”.

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Purchaser shall invest (i) up to USD $25,000,000
(the “Commitment Amount”) to subscribe to purchase the Company’s common shares (the “Shares”)
being that $23,000,000 to be offered under the construct of an Equity Line and (ii) $2,000,000 (the “Initial Amount”)
to be given within 45 days of the signing of this contract for shares of a newly-designated series of preferred stock of the Company
(the “Preferred Stock Shares” and together with the Shares, including where applicable, the shares of common
stock issuable upon conversion of the Preferred Stock Shares, as applicable as provided below, the “Securities”),
to be registered within the S-1 filing.

 

NOW THEREFORE, the
parties hereby agree as follows:

 

1.

Initial $2 million Funding

 

1.1

The Company shall sell and
the Purchaser shall purchase the Initial Amount of Preferred Stock Shares, which shall be convertible into common stock of the
Company on a 1,000 for one basis, have no redemption rights, no voting rights, no dividend rights, be subject to a 9.99% ownership
limitation, and have such other terms and conditions as are agreed by the Company and Purchaser, including registration rights
in connection therewith. The Preferred Stock Shares issuable to the Purchaser shall be convertible into common stock of the Company
based on a 10% discount to market. The Initial Amount shall be paid by the Purchaser to the Company prior to the 45th
day following the parties’ entry into this Agreement (after such time as the Preferred Stock Shares have been designated
by the Company’s Board of Directors) at which time the Preferred Stock Shares shall be deemed purchased and the Company shall
deliver certificates to the Purchaser evidencing such Preferred Stock Shares. The Purchaser agrees that by entering into this Agreement,
the Purchaser is agreeing to purchase the Preferred Stock Shares and that such commitment shall be binding and enforceable against
the Purchaser upon execution hereof.

 

2.

Funding

This Section shall govern the procedures and
terms for the Investment Notices to be sent to the Company and the Shares to be issued in relation thereto by the Company to the
Purchaser.

 

2.1

Issue of and
Subscription for Shares

 

a. 

Issue of and
Subscription for Shares. Upon the terms and conditions set forth herein, the Company shall issue and allot to the Purchaser,
and the Purchaser shall subscribe for Shares having an initial Subscription Price of up to (AT MARKET
OF THE DAY OF NOTICE).The variable being that the investor is subscribing to the shares at a 10% discount to market at such times
as the investor will invest pursuant to a notice of investment. This discount to Market means that the Purchaser will give the
Company 90% of the value of the shares at Market.

 

 

    	1 

    	 

    

 

b.

Delivery of Investment
Notices. Subject to the terms and conditions of this Agreement the Purchaser may, in its sole discretion, deliver an Investment
Notice to the Company which states the estimated amount (the “Investment Amount”) and the number of Shares (the
“Investment Number”) which the Company intends to issue and allot to the Purchaser with regard to a Pricing
Period. A copy of the form of Investment Notice is attached hereto and made a part hereof as Exhibit A. The Purchaser
agrees that it shall not sell Shares below the Safety Net Price set by the Company in each Investment Notice at any time during
the applicable Pricing Period. During the three year term of this Agreement (the “Commitment Period”), the Purchaser
shall not be entitled to submit an Investment Notice until after the previous Closing has been completed or at such a time in which
the Company and the Purchaser agree upon the issuance of a notice before closing.

 

d.

Purchaser’s Obligation
to Subscribe for Shares. Subject to the conditions set forth in this Agreement and broker restrictions, following the Purchaser’s
receipt of a validly delivered Investment Notice, the Purchaser will subscribe for that number of freely tradable Shares equal
to the lesser of (i) more than 10% of the cumulative daily trading volume for the Shares on the Principal Market on each Trading
Day during the relevant Pricing Period (as long as the Purchaser has received in the Purchaser’s designated trading account
prior to the first day of the Pricing Period, Shares equal to not less than 100% of the amount set forth in the relevant Investment
Notice), excluding block trades of more than 5,000, pre-arranged special crossings, off market transfers, and trades in which Purchaser
had no opportunity to participate and Knockout Days and (ii) the number of Shares set forth in the relevant Investment Notice;
and further provided in each case that if in the reasonable opinion of the Purchaser the market behavior has not been regular with
regard to the trading of the Company’s Shares on the Principal Market, the Purchaser shall be entitled at its sole discretion
to elect (“Knockout Election”) to treat such Trading Day as a Knockout Day. If eighty per cent (80%) of the
VWAP on a given Trading Day is less than the Safety Net Price, being 50% decrease of the previous closing, the Purchaser will abstain
from Trading unless directed from the Company by notice to proceed. Should the stock continue the decline, the Purchaser may abstain
from trading for up to Seven(7) days without notice, then after the seventh day, the Purchaser will resume trading until asked
otherwise.

 

There is a volume restriction and it is calculated
by the past ten (10) average volume. The investor will subscribe to what the result of the formulae indicated below,

 

The Purchaser will subscribe in each Investment
Notice based on 10% of the daily average volume over the past 10 day period and the prices of the shares traded during that period.

 

So, the calculation is:

 

Daily volume for 10 days divided by 10 = avg.
volume times .10 (10%) giving an amount of shares.

 

As for pricing, the investment notice will
give an estimated price of:

 

10% times the trading prices over the past
10 days. The pricing in the Investment Notice will only be used as an estimate as to the amount of money expected for the Investment,
whereas the ACTUAL prices will be placed in the Closing Document, giving the ACTUAL prices the Purchaser pays for the shares and
for what the shares are sold for.

 

e.

Limitation on Purchaser’s
Obligation to Subscribe for Shares. Notwithstanding anything to the contrary in this Agreement, in no event shall the Purchaser
be required to subscribe for, and the Company shall in no event issue to the Purchaser, that number of Shares which when added
to the sum of the number of Shares beneficially owned, by the Purchaser, would exceed 9.99% of the number of Shares in issue on
the Investment Notice Date for such Pricing Period or such lesser or greater percentage as would require the Purchaser to make
a notice filing that would cause the purchaser to be considered an affiliate. Each Investment Notice shall include a representation
of the Company as to the number of Shares in issue on the related Investment Notice Date.

 

    	2 

    	 

    

 

f.

Shares Listing Requirement.
At all times during the period beginning on the related Investment Notice Date and ending on and including the related Closing
Date, the Company’s issued Shares shall have been listed on an acceptable public market or exchange (the “Principal
Market” and shall not have been suspended from trading thereon for a period of five (5) consecutive Trading Days during
the Commitment Period and the Company shall not have been notified of any pending or threatened proceeding or other action to delist
or suspend the Shares.

 

g. Mechanics of
Subscription for Shares by Purchaser. Subject to the satisfaction of the conditions set forth in Sections 2.1(f), 6 and 7,
each closing of the subscription for Shares by the Purchaser of Shares (each a “Closing”) shall occur on the
date which is the later of three (3) Trading Days following the end of the Pricing Period or the date of final settlement of the
Shares being sold by Purchaser during that Pricing Period (each a “Closing Date”).

 

h.

Overall Limit on Shares
Issuable. The Company shall not issue to the Purchaser under this Agreement the number of Shares that would exceed the number
of Shares that may be issuable without shareholder approval (the “Maximum Ordinary Share Issuance”).

 

i.

“Valuation Event”
shall mean an event in which the Company at any time during a Pricing Period takes any of the following actions:

 

(i)

subdivides or combines its Shares;

(ii)

pays a dividend in Free-Trading Shares

(iii)

issues any options or other rights to subscribe for or
purchase Shares and the price per share for which Shares may at any time thereafter be issuable pursuant to such options or other
rights shall be 25% less than the Subscription Price for each of the two (2)immediately prior Pricing Periods and are free-trading.

(iv)

issues any securities convertible into or exchangeable
for Shares and the consideration per share for which Shares may at any time thereafter be issuable pursuant to the terms of such
convertible or exchangeable securities shall be less than the Market Price by 25% for each of the two (2) immediately prior Pricing
Periods; or

(v)

issues Shares otherwise than as provided
in the foregoing subsections (i) through (iv), at a price per share less, or for other consideration lower, than 25% of Subscription
Price for each of the two (2) immediately prior Pricing Periods, or without consideration.

 

j.

The Company agrees that it
shall not take any action that would result in a Valuation Event occurring during a Pricing Period.

 

K.

Trading Protocol:
Notwithstanding anything to the contrary, upon the stock trading DOWN by 50% or more of its’ average or closing trading price
during a Pricing Period Infinity Fund agrees to cease trading of Company stock until the Purchaser receives written consent from
the Company to continue trading.

 

Should the Company not reply
to the Purchaser in 7 days, the Purchaser reserves the right to resume trading as per the agreement and SPPA.

 

    	3 

    	 

    

 

2.2

Trading Account.
The Company shall allocate a sufficient number of Shares for Investment Notices. The Company from time to time shall transfer to
the Purchaser’s designated trading account prior to the first day of each Pricing Period not less than the number of Shares
set forth in each Investment Notice. The Purchaser shall be entitled to sell the Shares commencing on the Investment Notice Date
and ending on the last day of the Pricing Period selected by the Purchaser in the applicable Investment Notice and pay for that
number of Shares sold no later than the Closing Date. The number of Shares to be subscribed by the Purchaser on a Closing Date
shall be referred to as the “Issue Amount”.

 

2.3

Investment
Closing

At or before 5:00 p.m. New York city time on
the 2nd day immediately following each Pricing Period, the Purchaser shall deliver to the Company a notice (the “Closing
Notice”) stating the amount of monies which it has to subscribed for in accordance with Section 2.1(d) stating the applicable
Subscription Price based on the Volume Restriction and the Average Price calculated in real time, during the Pricing Period. A
copy of the form of the Closing Notice is attached hereto and made a part hereof as Exhibit B.

 

2.4

Closing Procedures.

 

Subject to the terms and
conditions of this Agreement, on each Closing Date for the corresponding Pricing Period, the Purchaser shall pay for the number
of Shares set out in the relevant Closing Notice and shall remit by wire transfer to an account which the Company shall designate
an amount equal to the product of (A) such number of Shares and (B) the applicable Subscription Price, less applicable custodian
fees, brokerage commissions and other applicable trading costs and expenses.

 

2.5

Investment Notices
Upon Closing; Good Until Canceled. As required by Section 11(k), the Company shall not issue its press release until contracts
are signed. The first Investment Notice, as well as subsequent Investment Notices, shall be for a continuous number of trading
days and funding shall occur at the end of seven day trading period, at which time Company may elect to choose a different Safety
Net Price which shall apply to the next seven day trading period. This process shall continue until the subscribed amount has been
satisfied. With a said provision, Purchaser shall invest based on the amount of the notice. If the Purchaser wishes to change the
amount of investment during an Investment Notice Period, the Purchaser and the Company will negotiate an amount of shares and Investment.
Also, should the Purchaser complete Trading before the suggested timing of the Investment Notice, the Purchaser and the Company
will negotiate the amount of the Investment Notice.

 

3.

Purchaser’s
Representations and Warranties

 

The Purchaser hereby represents,
warrants and undertakes to the Company that the following statements are true and accurate in all respects. The warranties are
deemed to be repeated on each Notice Date, each Closing Date and each date on which Securities become issued pursuant to the Agreement
with reference to the facts and circumstances existing at that date.

 

(a)

The Purchaser has the requisite
power and authority to enter into and to consummate the transactions contemplated hereby and otherwise to carry out its obligations
hereunder. The subscription of the Securities pursuant to this Agreement by the Purchaser have been duly authorised by all necessary
action on part of the Purchaser, its directors and shareholders. This Agreement has been duly executed and delivered by the Purchaser
or on its behalf and the obligations assumed by the Purchaser pursuant to this Agreement constitute valid and legally binding obligations
of the Purchaser, enforceable against the Purchaser.

 

    	4 

    	 

    

 

(b)

Authorization;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Purchaser and
is a valid and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms, subject as
to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

 

(c) 

The Purchaser hereby acknowledges
that: (i) the Securities for which it may subscribe pursuant to the terms of this Agreement (ii) it will acquire the
Securities for its own account; and (iii) it agrees that it will not offer, sell or otherwise transfer (or offer to do so)
any of the Securities subscribed by it pursuant to this Agreement or any part thereof or interest therein to any other person or
entity.

 

(d)

The Purchaser agrees that
it shall not at any time during the Commitment Period sell Securities exceeding the number of Securities which it has the right
to sell and/or has the right to purchase pursuant to an outstanding Investment Notice. The Purchaser undertakes that prior to the
issuance to the Company of the first Investment Notice it will not carry out any dealing or enter into any arrangement by reference
to the Securities.

 

(e)

No Fiduciary Relationship.
Nothing contained in this Agreement creates or establishes a fiduciary relationship on the part of the Purchaser or its principals
with the Company.

 

(f)

If and when necessary, INFINITY
FUND will provide to the company an attorney(for legal opinion letter on the S-1) and auditor in which to complete the registration
statement. The costs for these services will be added onto the Shelf Registration. These agreements have already been put into
place through INFINITY FUND.

 

(g)

Purchaser is an “accredited
investor,” as such term is defined in Regulation D of the Securities Act of 1933, as amended (the “1933 Act”),
and will acquire the Securities for its own account and not with a view to a sale or distribution thereof as that term is used
in Section 2(a)(11) of the 1933 Act, in a manner which would require registration under the 1933 Act or any state securities laws.
Purchaser has such knowledge and experience in financial and business matters that such Purchaser is capable of evaluating the
merits and risks of the Securities. Purchaser can bear the economic risk of the Securities, has knowledge and experience in financial
business matters and is capable of bearing and managing the risk of investment in the Securities. Purchaser recognizes that the
Securities have not been registered under the 1933 Act, nor under the securities laws of any state and, therefore, cannot be resold
unless the resale of the Securities are registered under the 1933 Act or unless an exemption from registration is available. Purchaser
has carefully considered and has, to the extent Purchaser believes such discussion necessary, discussed with its professional,
legal, tax and financial advisors, the suitability of an investment in the Securities for its particular tax and financial situation
and its advisers, if such advisors were deemed necessary, and has determined that the Securities are a suitable investment for
it. Purchaser has not been offered the Securities by any form of general solicitation or advertising, including, but not limited
to, advertisements, articles, notices or other communications published in any newspaper, magazine, or other similar media or television
or radio broadcast or any seminar or meeting where, to Purchaser’s knowledge, those individuals that have attended have been
invited by any such or similar means of general solicitation or advertising. Purchaser has had an opportunity to ask questions
of and receive satisfactory answers from the Company, or any person or persons acting on behalf of the Company, concerning the
terms and conditions of the Securities and the Company, and all such questions have been answered to the full satisfaction of Purchaser.
The Company has not supplied Purchaser any information regarding the Securities or an investment in the Securities other than as
contained in this Agreement, and Purchaser is relying on its own investigation and evaluation of the Company and the Securities
and not on any other information. Purchaser is aware that the anti-manipulation rules of Regulation M under the Securities Exchange
Act of 1934, as amended, may apply to sales of the Securities and other activities with respect to the Securities by Purchaser.
Purchaser agrees to sell all Securities registered under any registration statement and sold in connection therewith, in compliance
with the plan of distribution set forth in such registration statement and any and all applicable prospectus delivery requirements,
and to immediately cease and refrain from selling Securities, upon written notice from the Company, that any registration statement
registering the resale of the Securities is not effective, contains any misstatements or omissions, that the prospectus included
in such registration statement no longer complies with the requirements of Section 10 of the 1933 Act, or that the prospectus or
registration statement can no longer be relied upon for any reason, until such time as Purchaser is notified by the Company that
such registration statement is effective or such prospectus is compliant with Section 10 of the 1933 Act, or otherwise, unless
Purchaser is able to, and does, sell such Securities pursuant to an available exemption from the registration requirements of Section
5 of the 1933 Act.

 

    	5 

    	 

    

 

(h)

The Purchaser is a limited
liability company duly organized, validly existing and in good standing under the laws of the state of its incorporation and has
all requisite corporate power and authority to carry on its business as now conducted. The Purchaser is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on
its business or properties.

 

(i)

All corporate action has
been taken on the part of the Purchaser, its officers, directors and stockholders necessary for the authorization, execution and
delivery of this Agreement. The Purchaser has taken all corporate action required to make all of the obligations of the Purchaser
reflected in the provisions of this Agreement, valid and enforceable obligations.

 

(j)

Each certificate or instrument
representing Securities will, until or unless registered under the 1933 Act, be endorsed with the following legend (or a substantially
similar legend), unless or until registered under the 1933 Act:

 

THE SECURITIES EVIDENCED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE TRANSFER IS MADE
IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE PURCHASER OF THESE
SECURITIES WHICH IS REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT
FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

(k)

Shorting and Hedging.
Purchaser may not engage in any “shorting” or “hedging” transaction(s) in the Company’s
Securities during the term of this Agreement.

 

4.

Representations And Warranties
Of The Company.

 

The Company hereby represents,
warrants and undertakes to the Purchaser as follows:

 

(a) Authorization;
Enforcement; Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority to enter into
and perform this Agreement, in connection with the transactions contemplated by this Agreement and to issue the Securities in accordance
with the terms hereof and thereof, which when issued shall constitute the valid and binding obligations of the Company.

 

    	6 

    	 

    

 

(b) 

No Conflicts. The
execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated
herein will not (i) result in a violation of its Constitution or (ii) conflict with, or constitute a material default under, or
give to others any rights of termination, amendment or acceleration of, any material agreement or instrument to which the Company
or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order, judgment or decree (including
securities laws and regulations of the Principal Market and the Listing Rules) 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.

 

(c) 

Issuance of Securities.
The Company has filed and will continue to file, as and when required, all documents required to be filed by it with the Principal
Market or other regulatory authority which would be likely to be material to Purchaser as the purchaser of the Securities under
this agreement (“Disclosure Documents”). The Disclosure Documents are fair and accurate and otherwise comply
in all material respects with the requirements of the corporate law of the country in which the Company was formed (the “Corporations
Act”) and the listing rules of the Principal Market or other regulatory authority.

 

(d) 

Consents and Approvals.
Neither the Company nor any Subsidiary is required to obtain any consent, waiver, authorisation or order of, or make any filing
or registration with, any court or other governmental or regulatory authority or other Person (including, without limitation, the
shareholders of the Company) in connection with the execution, delivery and performance by the Company of this Agreement, nor the
issue of Shares pursuant to a Closing Notice. As of the Closing Date any necessary consents and approvals (including, for the avoidance
of doubt, any necessary approvals as referred to above from with the Principal Market or other regulatory authority and shareholders
of the Company) in respect of the issue and allotment of any Shares required to be issued pursuant to any Closing Notice. The Company
shall procure that all Shares issued on the Closing Date shall, subject to the Admission of the Shares already in issue remaining
effective as of the opening of business on such Closing Date, be Admitted as soon as practicable.

 

(e) 

Non-Public Information.
The Company acknowledges neither it or any of its representatives or agents has provided the Purchaser or any of its representatives
or agents identified to or known by the Company as such with what it reasonably believes to be any material price-sensitive information
regarding or related to the Company or its respective operations, personnel, technologies or prospects that has not otherwise been
made publicly available. The Company has not, by act or omission, made any disclosure to Purchaser such that if Purchaser enters
into or completes any of the transactions contemplated under this Agreement, a breach by any party of insider trading rules of
the Corporations Act will occur or arise. Except as contemplated under this agreement, the Company must not disclose to Purchaser
any inside information which would constitute a violation of the Corporations Act that would apply (“Inside Information”).

 

(f) 

Solicitation Materials.
Other than as may be required by law or any regulation, the Company, its Affiliates and any Person acting on their behalf have
not and shall not: (i) distribute any offering materials in connection with the offering and issue of Securities pursuant to this
Agreement; or (ii) solicit any offer to buy or sell such securities by means of any form of general solicitation or advertising.

 

(g) 

Dilutive Effect. The
Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated
by this Agreement and recognize that they have a potential dilutive effect. The board of directors of the Company has concluded,
in its good faith business judgment that such issuance is in the best interests of the Company.

 

    	7 

    	 

    

 

(h)

Miscellaneous Expenses.
The Company shall pay all and any stamp duty or share transfer or similar duties arising under the laws of any jurisdiction in
connection with the subscription by the Purchaser for Securities pursuant to this Agreement. Other than as expressly set out in
this Agreement, the Company and the Purchaser shall pay its own costs, fees and expenses in connection with the negotiation and
execution of this Agreement and the completion of the transactions contemplated by this Agreement.

 

(i)

The Company must ensure that
an appropriate exemption applies to any issue of Securities under this Agreement and the Company agrees to give any and all notices
required to be filed under the Corporations Act.

 

(j)

During the Commitment Period
the Company agrees not to seek a dual listing on any exchange in Canada, the United States, Frankfurt, Hong Kong or any other listing
service, inter-dealer quotation service or exchange that would prevent the Purchaser from carrying out its obligations and/or performing
under this Agreement unless under the guidance of the purchaser or with the Purchaser’s knowledge.

 

(k)

Infinity Fund LLC. is may or may not be acting
as an underwriter and the funding it provides is based on specific terms and conditions, including the price and volume of the
company’s shares once the company is publicly listed. Infinity Fund LLC. does not provide volume, liquidity, investor relations
or public relations services. There is no advance fee charged by Infinity Fund LLC. to the company. This SPPA may not be copied,
saved, or modified by any other person or company. You may not sell, post, or redistribute this SPPA in any manner. Republishing
of this content is strictly prohibited and all rights are protected under applicable law. This SPPA is not for duplication or distribution
in any country.

 

(l)

An opinion of counsel acceptable
to the Company (for which purposes it is agreed that the initial Purchaser’s counsel shall be deemed acceptable if such opinion
is not given by Company counsel) that, based on the Rule 144, Securities Being Sold may be sold pursuant to the provisions of Rule
144, the Transfer Agent is to effect the transfer of the Securities Being Sold and issue to the buyer(s) to have the securities
transferred via DWAC, AKAT or DSR or other such acceptable electronic form, without any restrictive legend and without recording
any restrictions on such shares on the Transfer Agent’s books and records (except to the extent any such legend or restriction
results from facts other than the identity of the Purchaser, as the seller or transferor thereof, or the status, including any
relevant legends or restrictions, of the shares of the Securities Being Sold while held by the Purchaser). If the Transfer Agent
requires any additional documentation at the time of the transfer, the Company shall deliver or cause to be delivered all such
reasonable additional documentation as may be necessary to effectuate the issuance of an un-legended certificate.

 

5.

Covenants Of The Company

 

The Company hereby represents, warrants and
covenants to the Purchaser that the warranties set forth in this Section are true and accurate in all respects as at the date of
this Agreement. The warranties shall be deemed to have been repeated as of each Investment Notice Date, as of each Closing Date
and as of each date on which Securities become issued pursuant to this Agreement with reference to the facts and circumstances
existing on that date.

 

(a) 

Best Efforts. The
Company shall use its best efforts timely to satisfy each of the conditions to be satisfied by it as provided in Section 7 of this
Agreement.

 

(b)

Use of Proceeds. The
Company will use the proceeds from the sale of the Securities (excluding amounts paid by the Company for fees associated with this
transaction) for general corporate and working capital purposes and it will not provide any funding to or purchase an interest
in any Person listed by the United States Department of the Treasury’s Office of Foreign Assets Control as a Specially Designated
National and Blocked Person.

 

    	8 

    	 

    

 

(c) 

Filing of Notices.
The Company shall timely file all required reports, notices, disclosures and press releases as may be required by the Principal
Market or other regulatory authority, describing the terms of the transactions contemplated by this Agreement. Should the company
need assistance in this, the Purchaser reserves the right to assist the company in these matters.

 

(d)

Reimbursement. If
the Purchaser, by reason of the Company’s gross negligence or willful misconduct, becomes involved in any capacity in any
action, proceeding or investigation brought by any shareholder, the Principal Market or any regulatory authority, then in any such
case, the Company will reimburse Purchaser for its reasonable legal and other expenses (including the cost of any investigation
and preparation) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company
under this section shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms
and conditions to any Affiliates of Purchaser that are actually named in such action, proceeding or investigation, and partners,
directors, agents, employees, attorneys, accountants, auditors and controlling persons (if any), as the case may be, of Purchaser
and any such Affiliate, and shall be binding upon and inure to the benefit of any successors of the Company, Purchaser and any
such Affiliate and any such person.

 

(e)

Non-disclosure of Non-public Information.

 

(i) The Company covenants
and agrees that neither it nor any other Person acting on its behalf will provide the Purchaser or its agents or counsel with any
information that the Company believes constitutes material non-public information, unless prior thereto the Company identifies
such information as being material non-public information and provides one of the principals of the Purchaser with the opportunity
to accept or refuse to accept such material non-public information for review. The Company acknowledges that only the Purchaser’s
signatory to this Agreement shall have the authority to accept the receipt of material non-public information from the Company.
The Company acknowledges that any information provided to the Purchaser without first being accepted by the designated signatory
will be deemed not to be material non-public information and the Purchaser shall be under no duty to maintain the confidentiality
of such information. The Company understands and confirms that the Purchaser shall be relying on the foregoing representations
in effecting transactions in securities of the Company.

 

(ii) Nothing herein shall
require the Company to disclose non-public information to the Purchaser or its advisors or representatives. The Company represents
that it does not disseminate non-public information to any investors who subscribe for Shares in the Company in a public offering,
to money managers or to securities analysts.

 

(iii) Neither the Company
nor any of its Subsidiaries or any of their officers, directors, employees or agents have provided the Purchaser with any material,
non-public information which was not publicly disclosed prior to the date hereof. Nothing contained herein creates or establishes
a fiduciary relationship on the part of the Purchaser or its principals with the Company. The Company agrees that it shall not
disclose to the Purchaser, its principals or Affiliates any confidential non-public information for any reason. Nothing contained
herein establishes a duty on the part of the Purchaser or its principals not to trade on or otherwise use any information disclosed
to the Purchaser by the Company.

 

    	9 

    	 

    

 

6.

Conditions of the Company’s
Obligation to Issue Securities to the Purchaser.

 

The obligation hereunder
of the Company to issue and allot the Shares to the Purchaser is further subject to the satisfaction, at or before each Closing
Date, of each of the following conditions set forth below. 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 Purchaser shall have
executed this Agreement and delivered the same to the Company.

 

(b)

The Purchaser shall have
delivered to the Company the Subscription Price for the Shares being subscribed for by the Purchaser at the Closing (after receipt
of confirmation of delivery of such freely tradable Shares) by wire transfer of immediately available funds pursuant to the wire
instructions provided by the Company.

 

(c)

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

 

(d)

No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

(e)

No Valuation Event shall
have occurred since the applicable Pricing Period.

 

7.

Conditions
of the Purchaser’s Obligation to Subscribe for the Shares.

 

The obligation of the Purchaser
hereunder to subscribe for Shares is subject to the satisfaction, on or before each Investment Date and each Closing Date, of each
of the following conditions set forth below. Notwithstanding anything to the contrary in this Agreement, the Company shall not
be entitled to deliver an Investment Notice and require the Purchaser to subscribe for any Shares at a Closing unless each of the
following conditions are satisfied:

 

(a)

The Company shall have complied
with its material obligations and payments to all agents involved in the transaction and is otherwise not in breach of a material
provision, or in material default under, this Agreement;

 

(b)

No change shall have occurred
between the date of this Agreement and each Closing Date, in any law or regulation (whether governmental or otherwise) which would
adversely affect in any material aspect the holding or disposal of Shares by the Purchaser or the Purchaser’s rights in respect
thereof;

 

(c)

Admission of the issued Shares
shall not have been suspended by the Principal Market or applicable regulatory authority, at any time beginning on the date hereof
and through and including the respective Closing Date and Shares equal to not less than 100% of the amount set forth in the relevant
Investment Notice have been delivered to the Purchaser’s designated trading account in accordance with Section 2.2;

 

 

    	10 

    	 

    

 

(d)

The representations and warranties
of the Company shall be true and correct as of the date when made and as of the applicable Closing Date as though made at that
time (except for (i) representations and warranties that speak as of a specific date and (ii) with respect to the representations
made in Sections 4(g), (h) and (j) events which occur on or after the date of this Agreement and are disclosed in filings required
by the Principal Market or other regulatory authority made by the Company prior to the applicable Investment Notice Date) and the
Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by this Agreement to
be performed, satisfied or complied with by the Company on or before such Closing Date. The Purchaser may request an update as
of such Closing Date regarding the representation contained in Section 4(c) above;

 

(e)

The Company has all the Required
Approvals (in a form reasonably acceptable to the Purchaser) and such Required Approvals shall be in full force and effect such
that 100%(one hundred percent) of the number of shares represented by the Investment Number may be duly allotted and issued
to the Purchaser;

 

(f)

The Board of Directors of
the Company shall have adopted resolutions consistent with Section 4(b)(ii) above and in a form reasonably acceptable to the Purchaser
(the “Resolutions”) and such Resolutions shall not have been amended or rescinded prior to such Closing Date
and the Purchaser shall have been provided with a copy of those Resolutions;

 

(g)

No statute, Listing Rules,
regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court
or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by
this Agreement and any sale or resale of the Shares subscribed for under this Agreement will not violate the resale provisions
of the Principal Market or any other applicable regulatory authority;

 

(h)

The Shares shall be unencumbered
and freely tradable without restriction or holding period on each Investment Notice Date and each Closing Date and no stop order
suspending the effectiveness of the free tradability of the Shares shall be in effect or shall be pending or threatened.

 

(i)

There shall have been no
filing of a petition in bankruptcy, either voluntarily or involuntarily, with respect to the Company and there shall not have been
commenced any proceedings under any bankruptcy or insolvency laws, or any laws relating to the relief of debtors, readjustment
of indebtedness or reorganization of debtors, and there shall have been no calling of a meeting of creditors of the Company or
appointment of a committee of creditors or liquidating agents or offering of a composition or extension to creditors by, for, with
or without the consent or acquiescence of the Company;

 

(j)

If applicable, the shareholders
of the Company shall have approved the issuance of any Shares in excess of the Maximum Shares Issuance in accordance with Section
2.1(h); 

(k)

This Agreement shall be and
remain in full force and effect during the entire Commitment Period and there shall have been final settlement with respect to
any Shares sold during the applicable Pricing Period, which number of Shares shall not be less than the number of Shares being
subscribed during the applicable Pricing Period;

 

(l) 

Neither the Principal
Market, any regulatory authority, any governmental authority nor any person appointed under legislation exercises formal powers
to conduct an investigation into matters concerning all or any part of the affairs of the Company or any Subsidiary of the Company
(other than as part of an industry or sector or in the ordinary course of the authority’s activities); and

 

    	11 

    	 

    

 

(m) 

On each Investment Notice
Date and each Closing Date the trading of the Company’s Shares shall not meet the definition of having a “substantial
U.S. market interest” as currently defined and as may be amended under the United States Securities Act of 1933 (the
“Securities Act”).

 

“Substantial
U.S. market interest” with respect to a class of an issuer’s equity securities means:

i.

The securities
exchanges and inter-dealer quotation systems in the United States in the aggregate constituted the single largest market for such
class of securities in the shorter of the issuer’s prior fiscal year or the period since the issuer’s incorporation;
or

ii.

20 percent
or more of all trading in such class of securities took place in, on or through the facilities of securities exchanges and inter-dealer
quotation systems in the United States and less than 55 percent of such trading took place in, on or through the facilities
of securities markets of a single foreign country in the shorter of the issuer’s prior fiscal year or the period since the
issuer’s incorporation.

 

(n)

The purchase of that number
of Shares pursuant to an Investment Notice will not result in the Purchaser being required to file a shareholdings report or any
other filing, or subject the Purchaser to holding periods with respect to the Shares. If any of the events described in clauses
(a) through (n) above occurs during a Pricing Period or at any time on or before the delivery of the freely trading Shares to the
Purchaser covered by that Pricing Period, then the Purchaser shall have no obligation to subscribe for the Investment Number of
Shares set forth in the applicable Investment Notice and if such an event occurs after the delivery of the freely trading Shares
and before the Purchaser has sold such Shares, then the Purchaser shall not be permitted to issue another Investment Notice until
the Purchaser has sold all the Shares it subscribed for in the previous Investment Notice. Purchaser is under no obligation to
confirm an Investment or to subscribe for Shares under this Agreement if any of the representations and warranties in this Agreement
are not true and correct as of the Investment Notice Date or if any other condition has not been complied with.

 

8.

Termination.
This Section shall govern termination of the Agreement between the parties.

 

(a)

This Agreement
shall terminate, upon any of the following events:

 

(i) the earlier of the date upon which
the Purchaser has, pursuant to this Agreement, subscribed for all the Securities or the Commitment Amount has been fully funded;
provided that the Company’s representations, warranties and covenants contained in this Agreement insofar as applicable to
the transactions consummated hereunder prior to such termination, shall survive the termination of this Agreement for the period
of any applicable statute of limitations;

 

(ii) the day
following the last day of the Commitment Period;

 

(iii) if the Company shall file or
consent by answer or otherwise to the entry of an order for relief or approving a petition for relief, reorganization or arrangement
or any other petition in bankruptcy for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction,
or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a custodian, receiver, trustee
or other officer with similar powers of itself or of any substantial part of its property, or shall be adjudicated a bankrupt or
insolvent, or shall take corporate action for the purpose of any of the foregoing; or

 

    	12 

    	 

    

 

(iv) if the Company shall issue or
sell any equity securities or securities convertible into, or exchangeable for, equity securities or enter into any other equity
financing facility during the Commitment Period unless under full disclosure to the Purchaser in which the Purchaser and Company
will agree as to continue.

 

(V) the receipt by the Purchaser of
a written notice provided by the Company of its intent to terminate this Agreement.

 

Upon the occurrence of
one of the above-described events, the Company shall send written notice of such event to the Purchaser and the Purchaser will
have ten (10) calendar days from receipt of such notice to send the Company a waiver of termination. During the ten (10) day period
the Purchaser shall not issue any Investment Notices, unless Purchaser sends the written notice of waiver or the Company submits
a notice of Termination.

 

9.

Indemnification.

 

(a)

In consideration of the
Purchaser’s execution and delivery of this Agreement, and in addition to all of the Company’s other obligations under
this Agreement, the Company shall defend, protect, indemnify and hold harmless the Purchaser, and all of its officers, directors,
partners, employees and agents (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Purchaser Indemnitees”) from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective
of whether any such Purchaser Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Purchaser
Indemnitees or any of them as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation
or warranty made by the Company in this Agreement or any other certificate, instrument or document contemplated hereby or thereby,
(ii) any breach of any covenant, agreement or obligation of the Company contained in this Agreement or any other certificate, instrument
or document contemplated hereby or thereby, or (iii) any cause of action, suit or claim brought or made against such Purchaser
Indemnitee not arising out of any action or inaction of an Purchaser Indemnitee, and arising out of or resulting from the execution,
delivery, performance or enforcement of this Agreement or any other instrument, document or agreement executed pursuant hereto
by any of the Purchaser Indemnitees. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason,
the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is
permissible under applicable law.

 

(b)

In consideration of the
Company’s execution and delivery of this Agreement, and in addition to all of the Purchaser’s other obligations under
this Agreement, the Purchaser shall defend, protect, indemnify and hold harmless the Company and all of its officers, directors,
shareholders, employees and agents (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Company Indemnitees”) from and against any and all Indemnified Liabilities
incurred by the Company Indemnitees or any of them as a result of, or arising out of, or relating to (i) any misrepresentation
or breach of any representation or warranty made by the Purchaser in this Agreement or any instrument or document contemplated
hereby or thereby executed by the Purchaser, (ii) any breach of any covenant, agreement or obligation of the Purchaser(s) contained
in this Agreement or any other certificate, instrument or document contemplated hereby or thereby executed by the Purchaser, or
(iii) any cause of action, suit or claim brought or made against such Company Indemnitee based on misrepresentations or due to
a breach by the Purchaser and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement
or any other instrument, document or agreement executed pursuant hereto by any of the Company Indemnitees. To the extent that the
foregoing undertaking by the Purchaser may be unenforceable for any reason, the Purchaser shall make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

 

    	13 

    	 

    

 

(c)

The obligations of
the Company and the Purchaser to indemnify or make contribution under this Section 9 shall survive termination of this Agreement.

 

10.

Governing Law; Miscellaneous.

 

(a)

Governing Law.
This Agreement shall be governed by and interpreted in accordance with the laws and regulations of Wyoming. The parties hereby
waive a trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in respect
of any matter arising out or in connection with this Agreement. The parties agree that in the event of any action, litigation or
proceeding between the parties arising out of or in relation to this Agreement, the prevailing party in a final judgment after
the appeal period has passed shall be awarded, in addition to any damages, injunctions or other relief, such party’s costs
and expenses, including but not limited to all related costs and reasonable attorneys’, accountants’ and experts’
fees incurred in bringing such action, litigation or proceeding and/or enforcing any judgment or order granted therein.

 

(b)

Remedies. The parties
agree that the covenants and obligations contained in this Agreement relate to special, unique and extraordinary matters and that
a violation of any of the terms hereof or thereof would cause irreparable injury in an amount which would be impossible to estimate
or determine and for which any remedy at law would be inadequate. As such, the parties agree that if either party fails or refuses
to fulfill any of its obligations under this Agreement or to make any payment or deliver any instrument required hereunder or thereunder,
then the other party shall have the remedy of specific performance, which remedy shall be cumulative and nonexclusive and shall
be in addition to any other rights and remedies otherwise available under any other contract or at law or in equity and to which
such party might be entitled.

 

(c) 

Counterparts. This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if
the signature were an original, not a facsimile signature.

 

(d) 

Headings; Singular/Plural.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include
the feminine.

 

(e) 

Severability. If any
provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(f) 

Entire Agreement; Amendments.
This Agreement supersedes all other prior oral or written agreements between the parties, their affiliates and persons acting on
their behalf with respect to the matters discussed herein, and this Agreement and its Exhibits contains the entire understanding
of the parties with respect to the matters covered herein and, except as specifically set forth herein, no party makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by a writing
signed by the parties, and no provision hereof may be waived other than by an instrument in writing signed by the party against
whom enforcement is sought.

 

    	14 

    	 

    

 

(g) 

Notices. Any communications
required under the terms of this Agreement must be in writing. The addresses and facsimile numbers for such communications shall
be:

 

	 	If to the Company:
	 	 	 
	 	Mail to: Hydrocarb Energy Inc.
		800 Gessner
		Suite 375
		Houston, TX 77024 
		Attention: Mr. Kent Watts
	 	Telephone: (713) 970-1590
	 	Email: kwatts@hydrocarb.com
	 
	 
	 	If to the Purchaser:
	 
	 	Mail to:Infinity Fund LLC.
	 	155 N Wacker Drive STE: 4250
	 	Chicago, Illinois 60606
	 
	 	Attention: Anthony Saviano
	 	Telephone: 1-312-373-9283
	 	 	 
	 	With a copy also sent to the following e-mail:
	 
	 	Email: AS@pubcofunds.com

 

Each party shall provide
five (5) days’ prior written notice to the other party of any change in address or facsimile number.

 

(h) 

No Third Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto 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 Purchaser contained in Sections 2 and 3, the agreements and covenants set forth in Sections
4 and 5, and the indemnification provisions set forth in Section 9, shall survive each of the Closings. The Purchaser shall be
responsible only for its own representations, warranties, agreements and covenants hereunder.

 

(k)

Publicity. The Company
and Purchaser shall consult with each other in issuing any press releases or otherwise making public statements with respect to
the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such public statement
without the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed, except that
no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall provide
the other parties with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly disclose
the name of Purchaser without the prior written consent of such Purchaser, except to the extent required by law in the form of
an 8-K.

 

    	15 

    	 

    

 

(l) 

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.

 

 

	Infinity Fund LLC.	 	 
	 	 	 
	 	 	 
	 	 	 
	By:	/s/ Anthony Saviano	 	Date: 	3-9-2016
	 	Name: Anthony Saviano	 	 
	 	Title: President	 	 

 

 

 

	Hydrocarb Energy Corp.	 	 
	 	 	 
	 	 	 
	By: 	/s/ Kent Watts	 	Date:  	March 9, 2016
	 	Name: Kent Watts	 	 
	 	Title:CEO	 	 

 

    	16 

    	 

    

 

EXHIBIT A

INVESTMENT NOTICE NO.___1______

 

The undersigned, Infinity
Fund LLC hereby certifies, with respect to the issue and allotment of Shares of Hydrocarb Energy Corp.(HECC) (the “Company”)
in connection with this Investment Notice, delivered pursuant to the Special Private Placement Agreement (the “Agreement”),
as follows:

 

1.

The undersigned is a Member of the Purchaser.

 

2.

The Company has performed
in all material respects all covenants and agreements to be performed by the Company and has complied in all material respects
with all obligations and conditions contained in the Agreement on or prior to the Investment Notice Date, and shall continue to
perform in all material respects all covenants and agreements to be performed by the Company through the applicable Investment
Date. All conditions to the delivery of this Investment Notice are satisfied as of the date hereof.

 

3.

All conditions precedent
to the delivery of this Investment Notice pursuant to the Agreement have been satisfied.

 

4.

There are currently ____________________________
Shares in issue.

 

5. The Investment Amount determined is USD_______________________,
calculated upon the average price over the past 10 days times 90%. This price is an estimated price and the true price will be
contained in the Closing Notice.

 

6. 

The Investment Number is
_____________________________ Shares as per the last 10 days of Volume being _____________(representative of 10% of the average
volume)

 

7.

The Safety Net Price is ________________________.
The last closing day price minus 50%.

 

8. 

The number of Trading Days
in the Pricing period is ________________.

 

Give actual dates _____________________
to _____________________.

 

The undersigned has executed this Investment
Notice this ____ day of_________________.

 

 

	By:	 	 
	 	Name: Anthony Saviano	 
	 	Title: CEO	 

 

    	17 

    	 

    

 

Exhibit B

Closing
Notice

To: 

Attention: 

We refer to the Special Private Placement Agreement (the “Agreement”)
dated ______________ between Hydrocarb Energy Corp. and Infinity Fund LLC. and to the Investment Notice delivered by us on ____________.
Terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

We hereby give you notice pursuant to the Agreement
that we have given the Investment Notice for ____________ Shares, being __________ percent of the Shares stated therein. The
reason that such number of Shares represents a smaller/greater number than the number of Shares set forth in the Investment Notice
is as follows: _______________________________.

Amount of Shares Sold__________________

Price of Shares Sold _________________

The Market Price in the Pricing Period (excluding
any VWAPS on Knockout Days) is USD __________ and the resulting Subscription Price is 90% market value (10% discount of the prevailing
market price). The aggregate Subscription Price pursuant to this Closing Notice is therefore USD ______________.

This notice being accepted by both parties,

 

Infinity Fund LLC.

Signed by: _________________________________

CEO, Member

Date:__________________________

 

Hydrocarb Energy Corp.

Signed by:__________________________________

CEO

Date:___________________________

 

 

    	18

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