Document:

Exhibit 10.1

 

FORM OF SERIES A PREFERRED STOCK PURCHASE
AGREEMENT

 

This SERIES A PREFERRED
STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of October 15, 2019, by and between C-BOND SYSTEMS, INC.,
a Colorado corporation, with its address at 6035 South Loop East, Houston, Texas 77033 (the “Company”), and [                                  
] (the “Buyer”).

 

WHEREAS:

 

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

 

B. Buyer desires to
purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, 96,000 shares of
Series A Preferred Stock of the Company (“Series A Shares”) with the rights and preferences as set forth on the Certificate
of Designation of the Series A Preferred Stock attached hereto as Exhibit A (“Certificate of Designation”).

 

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

 

1. Purchase and Sale
of Series A Shares.

 

a. Purchase of Series
A Shares.  On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company 96,000 Series A Shares with the rights and preferences as set forth in the Certificate of Designation.

 

b. Form of Payment.  On
the Closing Date (as defined below), (i) the Buyer shall pay $80,000.00 for the Series A Shares to be issued and sold to it at
the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company,
in accordance with the Company’s written wiring instructions, against delivery of the Series A Shares, and (ii) the
Company shall deliver such duly executed and authorized Series A Shares on behalf of the Company, to the Buyer, against delivery
of such Purchase Price.

 

c. Closing Date.  Subject
to the satisfaction (or written waiver) of the conditions set forth in Section 6 and Section 7 below, the date and time of the
issuance and sale of the Series A Shares pursuant to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern
Standard Time on or about October 18, 2019, or such other mutually agreed upon time. The closing of the transactions contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

     

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

c. Capitalization.  As
of the date hereof, the authorized common stock of the Company consists of 500,000,000
authorized shares of common stock, $0.001 par value per share, of which 108,939,633
shares are issued and outstanding and 1,000,000 shares of preferred stock, $0.10 par value per, of which no shares are outstanding.
On or prior to the Closing Date, the Certificate of Designation shall be filed with the Colorado Secretary of State authorizing
800,000 Series A Shares. All of such outstanding shares of capital stock are duly authorized, validly issued, fully paid and non-assessable.  

 

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

 

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

 

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

 

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g. Absence of Certain
Changes.  Since June 30, 2019, except as set forth in the SEC Documents, there has been no material adverse change
and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results
of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

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

 

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

 

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

 

4. COVENANTS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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8. Governing
Law; Miscellaneous.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

i. Further Assurances.  Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

j. No Strict Construction.  The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

 

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

 

    12

     

    

 

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

 

	C-BOND SYSTEMS, INC.	 
	 	 
	By:	             	 
	Name:	Scott Silverman	 
	Title:	Chief Executive Officer	 

 

	BUYER 	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	President	 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Number of Series A Preferred Shares purchased	 	 	96,000	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	$	80,000.00	 

 

    13

     

    

 

EXHIBIT A

 

Certificate of Designation

 

See attached.

 

 

14Exhibit 10.2

 

FORM OF SUBSCRIPTION AGREEMENT

 

This Subscription Agreement
is entered into as of October 17, 2019 between [ ], an individual whose principal residence is at the address set forth on the
signature page hereto (hereinafter "Subscriber"), and C-Bond Systems, Inc., a Colorado corporation (the "Company")
concerning an investment in the amount set forth on the signature page hereto (the “Common Stock”). The Subscriber
and the Company agree as follows:

 

1.       Subscription
and Method of Payment. Subject to the terms and conditions hereof, Subscriber hereby subscribes the amount set forth on
the signature page hereto to purchase such number of shares of Common Stock of the Company as determined by dividing the
amount subscribed by a price per share of $0.05 (the "Subscription Amount"). To satisfy this subscription, the
Subscriber will tender cash or a wire transfer equal to the Subscription Amount.

 

After the Subscription
Amount is paid timely and received in full by the Company will cause a stock certificate to be issued totaling 2,000,000 shares
of the Company’s common stock, par value $0.001 (the “Common Stock”).

 

2.       Representations
and Warranties of the Company. The Company hereby represents and warrants to Subscriber as follows:

 

         (a)   Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado and
has all requisite corporate power and authority to own and lease its properties, to carry on its business as presently conducted
and as proposed to be conducted and to carry out the transactions contemplated hereby.

 

         (b)   Authority.
The Company has all requisite power and authority to enter into this Agreement and perform Company’s obligations hereunder.
The execution, delivery and performance by the Company of this Agreement have been duly authorized by all requisite corporate action.
This Agreement has been duly executed and delivered by the Company and is a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms (except as enforceability may be limited by laws of bankruptcy or
insolvency and general equitable principles).

 

         (c)   No Conflicts.
The execution, delivery and performance by the Company of this Agreement, and the issuance, sale and delivery of the shares of
Common Stock being subscribed for, will not violate any law, statute, rule, regulation, order, judgment or decree of any court,
arbitrator, administrative agency or other governmental body applicable to the Company, or conflict with or result in any breach
of any of the terms, conditions or provisions of, or constitute a default under, or result in the creation of any encumbrance upon
any of the properties or assets of the Company pursuant to, the charter documents of the Company or any note, indenture, mortgage,
lease agreement or other agreement, contract or instrument to which the Company is a party or by which it or any of its property
is bound or affected.

 

    1 

     

    

  

         (d)   Approvals.
Except for the filing of any notice as may be required under applicable securities laws, no permit, authorization, notice, consent
or approval is required in connection with the execution, delivery or performance of this Agreement by the Company.

 

3.       Representations
and Warranties of Subscriber. The Subscriber represents and warrants to the Company as follows:

 

          (a)     Subscriber
is an "accredited investor" as such term is defined in Section 2(15) of the Securities Act of 1933, as amended (the “Act”)
and Rule 501 of Regulation D promulgated thereunder pursuant to the categories checked by the Subscriber on the signature page
hereto. Subscriber is aware of the significance to the Company of the foregoing representation, and they are made with the intention
that the Company will rely on them.

 

          (b)    Subscriber
has had an opportunity to ask questions of and receive answers from duly designated representatives of the Company concerning the
terms and conditions of the offering and has been afforded an opportunity to examine such documents and other information which
Subscriber has requested for the purpose of answering any questions Subscriber may have concerning the business and affairs of
the Company.

 

          (c)    
Subscriber is not subscribing for the Common Stock as a result of, or subsequent to, an advertisement, article, notice or
other communication published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or meeting or any other public solicitation.

 

         (d)     Subscriber
acknowledges and understands that the Common Stock has not been registered under the Securities Act of 1933, as amended (the "Act")
or the securities laws of any state ("State Law") and must be held indefinitely unless they are subsequently registered
under the Act and/or applicable State Law, or exemptions from such registration are available. Subscriber agrees that the Common
Stock will not be sold without registration under applicable securities laws (including the Act and State Law) or exemptions there
from. The Company is the only entity which may register its Common Stock under the Act and State Law.

 

          (e)     Subscriber
acknowledges that Subscriber has such knowledge and experience in financial business matters that it is capable of evaluating the
merits and risks of the prospective investment and to make an informed investment decision based upon the information provided
by the Company.

 

          (f)     Subscriber
further represents that Subscriber can bear the economic risk of loss of its entire investment; that the address set forth herein
is its principal residence (if an individual) or place of business (if an entity); that Subscriber intends to purchase the Common
Stock for Subscriber's own account and not, in whole or in part, for the account of any other person; that Subscriber is purchasing
the Common Stock for investment and not with a view to public resale or distribution; and that Subscriber has not formed any entity
for the purpose of purchasing the Common Stock; and that this Subscription Agreement has been duly authorized by all necessary
action on the part of the Subscriber and is a legal, valid and binding obligation of the Subscriber enforceable in accordance with
its terms.

 

    2 

     

    

 

          (g)    Subscriber
is aware that the Common Stock is and will be when issued "restricted securities" as that term is defined in Rule 144
of the General Rules and Regulations under the Act.

 

          (h)    Subscriber
is fully aware of the applicable limitations on the resale of the Common Stock according to law.

 

4.      Subscription
Not Revocable. The Subscriber hereby acknowledges and agrees that the Subscriber is not entitled to cancel, terminate or revoke
this Subscription Agreement or any agreements of the Subscriber herein and that this Subscription Agreement shall survive the death,
disability, dissolution, bankruptcy or insolvency of the Subscriber.

 

5.       Shares.
Company agrees to cause the shares of Common Stock of the Company to be issued hereunder to be duly authorized, validly issued,
fully paid and nonassessable.

 

6.       Miscellaneous.

 

          (a)     Subscriber
agrees not to transfer or assign this Subscription Agreement, or any of the Subscriber's interest herein, and further agrees that
the transfer or assignment of the Common Stock acquired pursuant hereto shall be made only in accordance with all applicable laws.

 

          (b)    This
Subscription Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and
may be amended only by a written execution by all parties.

 

          (c)     The
Subscription Agreement is being delivered and is intended to be performed in the State of Texas, and shall be construed and enforced
in accordance with, and the rights of parties shall be governed by, the law of such state. Jurisdiction and venue for any action
hereunder shall be in Harris county, Texas.

 

          (d)     Any
controversy or claim arising out of this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the
rules of the American Arbitration Association, and judgment upon the award rendered by the arbitration may be entered in any court
having jurisdiction thereof. The arbitration agreement set forth herein shall not limit a court from granting a temporary restraining
order or preliminary injunction in order to preserve the status quo of the parties pending arbitration. Further, the arbitrator(s)
shall have power to enter such orders by way of interim award, and they shall be enforceable in court. The place of such arbitration
shall be in Harris County, Texas.

 

          (e)     This
Subscription Agreement shall become effective upon execution and delivery hereof by all the parties hereto; delivery of this Subscription
Agreement may be made by facsimile or electronic transmission such as portable document format (“PDF”) or similar format
to the parties.

 

    3 

     

    

IN WITNESS WHEREOF, the undersigned have
executed this agreement as of the dates below.

	
        SUBSCRIBER:

         

         

        _____________________________

        Name

         
	
        Address for Notice:

        ____________________________________

        ____________________________________

        ____________________________________

        ____________________________________

         

         

        Date: _______________________________

         

         

        Subscription Amount: $100,000 for 2,000,000 shares
        of Common Stock of C-Bond Systems, Inc.

         

By executing above, the Subscriber also
hereby certifies that the Subscriber is an “accredited investor” as that term is defined in Rule 501(a) of Regulation
D promulgated under the Securities Act of 1933, as amended. The specific category(s) of accredited investor applicable to the undersigned
is checked below.

PLEASE CHECK ONE OF THE BOXES BELOW
– REQUIRED TO OBTAIN SHARES

 

	______	a.	 	Any director or executive officer of the Company;
	______	b.	 	Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of
his purchase exceeds $1,000,000;
	______	c.	 	Any natural person who had an individual income in excess of $200,000 in each of the two most recent years
or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching
the same income level in the current year;
	______	d.	 	Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or
similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets
in excess of $5,000,000;
	______	e.	 	Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the
securities offered, whose purchase is directed by a sophisticated person as described in Section 506(b)(2)(ii) of Reg D; or
	______	f.	 	an entity in which all of the equity owners are “accredited investors.”
	______	g.	 	Other (explain)________________________________________________________________________

 

ACCEPTED BY C-Bond
systems, INC.

By: ________________________________

Name: ______________________________

Title: _______________________________

Date: _______________________________

 

 

    4

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