Document:

Exhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE
AGREEMENT (the “Agreement”) dated as of April 8, 2020, is entered into by and among Sharing Economy International Inc.,
a Nevada corporation (“Sharing Economy”), and OOB HK Media HK Limited, a Hong Kong corporation (“OOB HK HK”),
and the shareholders of OOB HK listed on Annex A to this Agreement (each, a “Shareholder” and, collectively,
the “Shareholders”).

 

RECITALS

 

A. The Shareholders
own the number of shares of capital stock of OOB HK (the “Shares”) set forth opposite each Shareholder’s name
on Annex A, which Shares collectively constitute all of the issued and outstanding shares of capital stock in OOB HK

 

B. Sharing Economy desires
to purchase from the Shareholders, and the Shareholders desire to sell to Sharing Economy, the Shares in exchange for shares of
Sharing Economy Common Stock, all on the terms and subject to the conditions set forth in this Agreement (the “Exchange”).

 

D. As a result of the
Exchange, Sharing Economy will become the sole shareholder of OOB HK

 

E. Certain capitalized
terms used in this Agreement are defined on Exhibit A hereto.

 

AGREEMENT

 

In consideration of
the agreements, provisions and covenants set forth below, Sharing Economy, OOB HK and the Shareholders, hereby agree as follows:

 

ARTICLE I.

 

EXCHANGE OF SHARES

 

1.1 Agreement to
Sell.

 

Upon the terms and subject
to all of the conditions contained herein, each of the Shareholders hereby agrees to sell, assign, transfer and deliver to Sharing
Economy, and Sharing Economy hereby agrees to purchase and accept from each of the Shareholders, on the Closing Date, the Shares.

 

1.2 Purchase Price.

 

As full consideration
for the sale, assignment, transfer and delivery of the Shares by the Shareholders to Sharing Economy, and upon the terms and subject
to all of the conditions contained herein, Sharing Economy shall issue to the Shareholders an aggregate of 239,387,189 shares of
Sharing Economy series A convertible preferred stock (the “Acquisition Shares”) on a pro rata basis based upon their
respective beneficial ownership interest in OOB HK, as certified by the President of OOB HK, at the Closing.

 

     

     

    

 

1.3 Mechanics of
Exchange.

 

(a) At the Closing,
each Shareholder shall be entitled to surrender the certificate or certificates that immediately prior to the Closing represented
the OOB HK Shares of Common Stock and Preferred Stock (the “Certificates”) to the exchange agent designated by Sharing
Economy in exchange for the Acquisition Shares.

 

(b) Promptly after the
Closing, Sharing Economy or its designated exchange agent shall make available to each Shareholder a letter of transmittal and
instructions for use in effecting the surrender of Certificates in exchange for the Acquisition Shares. Upon surrender of a Certificate
to such exchange agent together with the letter of transmittal, duly executed, the Shareholder shall be entitled to receive in
exchange therefore such number of Acquisition Shares as such Shareholder has the right to receive in respect of the Certificate
so surrendered pursuant to the provisions of this Article I.

 

1.4 No Fractional
Shares.

 

No fraction of a share
of Sharing Economy Common Stock shall be issued in the Exchange. In lieu of fractional shares, the Shareholders upon surrender
of their Certificates as set forth in Section 1.3 shall be issued that number of shares of common stock resulting by rounding up
to the nearest whole number of shares of Acquisition Shares that each such Shareholder shall receive as a result of the Exchange.

 

1.5 Closing.

 

The closing of the transactions contemplated
by this Agreement (the “Closing”) shall take place at 9:00 a.m., Hong Kong Time, at the principal administrative offices
of Sharing Economy, or at a location mutually agreement upon by Sharing Economy and OOB HK, on or before June 21, 2020 (the “Closing
Date”); provided, however, that if all of the other conditions set forth in articles VI and VII hereof are not satisfied
or waived, unless this agreement has been terminated under Section 9 hereof, or at such date, the Closing Date shall be the business
day following the day on which all such conditions have been satisfied or waived, or at such other date, time and place as Sharing
Economy, OOB HK and the Shareholders shall agree.

 

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ARTICLE II.

 

REPRESENTATIONS AND WARRANTIES OF OOB
HK

 

Except as set forth
in the Disclosure Schedule, consisting of information about OOB HK provided by OOB HK to Sharing Economy in connection with this
Agreement (the “OOB HK Disclosure Schedule”), each of OOB HK and the Shareholders represents and warrants jointly and
severally to Sharing Economy as follows:

 

2.1 Organization
and Qualification.

 

OOB HK is duly incorporated, validly and in good standing existing
under the laws of Hong Kong , has all requisite authority and power (corporate and other), governmental licenses, authorizations,
consents and approvals to carry on its business as presently conducted and as contemplated to be conducted, to own, hold and operate
its properties and assets as now owned, held and operated by it, to enter into this Agreement, to carry out the provisions hereof
except where the failure to be in good standing or to have such governmental licenses, authorizations, consents and approvals will
not, in the aggregate, either (i) have a Material Adverse Effect on the business, assets or financial condition of OOB HK, or (ii)
impair the ability of OOB HK to perform its material obligations under this Agreement. OOB HK is duly qualified, licensed or domesticated
as a foreign corporation in good standing in each jurisdiction wherein the nature of its activities or its properties owned or
leased requires such qualification, licensing or domestication, except where the failure to be so qualified, licensed or domesticated
will not have a Material Adverse Effect. Set forth as part of the OOB HK Disclosure Schedule is a list of those jurisdictions in
which each of OOB HK presently conducts its business, owns, holds and operates its properties and assets.

 

2.2 Subsidiaries.

 

 

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Except as illustrated
in the chart above, OOB HK does not own directly or indirectly, any equity or other ownership interest in any corporation, partnership,
joint venture or other entity or enterprise. OOB HK does not have any direct or indirect interests of stock ownership or otherwise
in any corporation, partnership, joint venture, firm, association or business enterprise, and is not party to any agreement to
acquire such an interest.

 

2.3 Articles of Incorporation
and Bylaws.

 

The copies of the charter
document and corporate governance document of OOB HK (collectively, the “Organizational Documents”) that have been
delivered to Sharing Economy prior to the execution of this Agreement are true and complete and have not been amended or repealed.
OOB HK is not in violation or breach of any of the provisions of the Organizational Documents, except for such violations or breaches
which, in the aggregate, will not have a Material Adverse Effect on OOB HK

 

2.4 Authorization
and Validity of this Agreement.

 

This Agreement and each
of the Transaction Agreements constitute the legal, valid and binding obligation of each person or entity who is a party thereto
(other than Sharing Economy), enforceable against each such person or entity in accordance with its terms, except as such enforcement
is limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors
rights generally. Each OOB HK shareholder has all requisite legal capacity to execute and deliver this Agreement and the Transaction
Agreements to which he or she is a party, and to perform its, his or her obligations hereunder and thereunder. The execution and
delivery by each of OOB HK and each of the Shareholders of this Agreement and the Transaction Agreements (to the extent either
is a party thereto), and the consummation of the transactions contemplated herein and therein (the “Transactions”)
have been authorized by all necessary corporate or other action on the part of OOB HK and each of the Shareholders. This Agreement
and the Transaction Agreements have been duly executed and delivered by the parties thereto (other than Sharing Economy).

 

2.5 No Violation.

 

Neither the execution
nor delivery of this Agreement or the Transaction Agreements, nor the consummation or performance of any of the Transactions by
OOB HK or the Shareholders will directly or indirectly:

 

(i) violate or conflict
with any provision of the Organizational Documents of OOB HK; (B) result in (with or without notice or lapse of time) a violation
or breach of, or conflict with or constitute a default or result in the termination or in a right of termination or cancellation
of, or accelerate the performance required by, or require notice under, any agreement, promissory note, lease, instrument or arrangement
to which OOB HK or any of its assets are bound or result in the creation of any Liens upon OOB HK or any of its assets; (C) violate
any order, writ, judgment, injunction, ruling, award or decree of any Governmental Body; (“Governmental Body”); (D)
violate any statute, law or regulation of any jurisdiction as such statute, law or regulation that relates to the Shareholders
or OOB HK or any of the assets of OOB HK; or (E) result in cancellation, modification, revocation or suspension of any permits,
licenses, registrations, consents, approvals, authorizations or certificates issued or granted by any Governmental Body which are
held by or granted to the Shareholders or OOB HK or which are necessary for the conduct of OOB HK’s business; or

 

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(ii) to the knowledge
of OOB HK or any of the Shareholders, cause OOB HK to become subject to, or to become liable for the payment of, any Tax (as hereinafter
defined) or cause any of the assets owned by OOB HK to be reassessed or revalued by any taxing authority or other Governmental
Body.

 

None of OOB HK or the
Shareholders is or will be required to give any notice to or obtain any approval, consent, ratification, waiver or other authorization
(a “Consent”) from any person or entity (including, without limitation, any Governmental Body) in connection with (i)
the execution and delivery of this Agreement or any of the Transaction Agreements, or (ii) the consummation or performance of any
of the Transactions.

 

2.6 Capitalization
and Related Matters.

 

(a) Capitalization. OOB HK has issued and outstanding
ten thousand shares of common stock and two thousand and six shares of preferred stock. Except as set forth in the preceding sentence,
no other class of capital stock or other security of OOB HK is authorized, issued, reserved for issuance or outstanding. The Shareholders,
as of the Closing Date, are the lawful, record and beneficial owners of the number of OOB HK Shares of Common Stock and Preferred
Stock .set forth opposite each Seller’s name on Annex A attached hereto. The Shareholders have, as of the date hereof
and as of the Closing Date, valid and marketable title to their respective Shares, free and clear of all Liens (including, without
limitation, any claims of spouses under applicable community property laws) and are the lawful, record and beneficial owners of
all of the Shares. Except as is issued to and held by the Shareholders or OOB HK, no other class of capital stock or other security
of OOB HK, as applicable, is authorized, issued, reserved for issuance or outstanding. At the Closing, Sharing Economy will be
vested with good and marketable title to the Shares, free and clear of all Liens (including, without limitation, any claims of
spouses under applicable community property laws). No legend or other reference to any purported Lien appears upon any certificate
representing the Shares. Each of the Shares has been duly authorized and validly issued and is fully paid and nonassessable. None
of the outstanding capital or other securities of OOB HK was issued, redeemed or repurchased in violation of the Securities Act
of 1933, as amended (the “Securities Act”), or any other securities or “blue sky” laws.

 

(b) No Redemption
Requirements. There are no authorized or outstanding options, warrants, equity securities, calls, rights, commitments or agreements
of any character by which OOB HK or any of the Shareholders is obligated to issue, deliver or sell, or cause to be issued, delivered
or sold, any shares of capital stock or other securities of OOB HK There are no outstanding contractual obligations (contingent
or otherwise) of OOB HK to retire, repurchase, redeem or otherwise acquire any outstanding shares of capital stock of, or other
ownership interests in, OOB HK or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise)
in any other entity.

 

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2.7 Compliance with
Laws and Other Instruments.

 

Except as would not
have a Material Adverse Effect, the business and operations of OOB HK has been and are being conducted in accordance with all applicable
foreign, federal, provincial and local laws, rules and regulations and all applicable orders, injunctions, decrees, writs, judgments,
determinations and awards of all courts and governmental agencies and instrumentalities. There are no permits, bonuses, registrations,
consents, approvals, authorizations, certificates, or any waiver of the foregoing, which are required to be issued or granted by
a Governmental Body for the conduct of the Business as presently conducted or the ownership of the assets of OOB HK Except as would
not have a Material Adverse Effect, OOB HK is not, and has not received notice alleging that it is, in violation of, or (with or
without notice or lapse of time or both) in default under, or in breach of, any term or provision of the Organizational Documents
or of any indenture, loan or credit agreement, note, deed of trust, mortgage, security agreement or other material agreement, lease,
license or other instrument, commitment, obligation or arrangement to which OOB HK is a party or by which any of OOB HK’s
properties, assets or rights are bound or affected. To the knowledge of OOB HK, no other party to any material contract, agreement,
lease, license, commitment, instrument or other obligation to which OOB HK is a party is (with or without notice or lapse of time
or both) in default thereunder or in breach of any term thereof. OOB HK is not subject to any obligation or restriction of any
kind or character, nor is there, to the knowledge of OOB HK, any event or circumstance relating to OOB HK that materially and adversely
affects in any way its business, properties, assets or prospects or that prohibits OOB HK from entering into this Agreement and
the Transaction Agreements or would prevent or make burdensome its performance of or compliance with all or any part of this Agreement,
the Transaction Agreements or the consummation of the Transactions contemplated hereby or thereby.

 

2.8 Certain Proceedings.

 

There are no outstanding
or pending preceding that has been commenced against or involving OOB HK or any of its assets and, to the knowledge of OOB HK and
the Shareholders, no matters of the foregoing nature are contemplated or threatened. None of OOB HK or the Shareholders have been
charged with, and is not threatened with, or under any investigation with respect to, any allegation concerning any violation of
any provision of any federal, provincial, local or foreign law, regulation, ordinance, order or administrative ruling, and is not
in default with respect to any order, writ, injunction or decree of any Governmental Body.

 

2.9 No Brokers or
Finders.

 

None of OOB HK, the
Shareholders, or any officer, director, independent contractor, consultant, agent or employee of OOB HK has agreed to pay, or has
taken any action that will result in any person or entity becoming obligated to pay or entitled to receive, any investment banking,
brokerage, finder’s or similar fee or commission in connection with this Agreement or the Transactions. OOB HK and the Shareholders
shall jointly and severally indemnify and hold Sharing Economy harmless against any liability or expense arising out of, or in
connection with, any such claim.

 

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2.10 Title to and
Condition of Properties.

 

OOB HK has good, valid
and marketable title to all of its properties and assets (whether real, personal or mixed, and whether tangible or intangible)
reflected as owned in its books and records, free and clear of all Liens. OOB HK owns or holds under valid leases or other rights
to use all real property, plants, machinery, equipment and all assets necessary for the conduct of its business as presently conducted,
except where the failure to own or hold such property, plants, machinery, equipment and assets would not have a Material Adverse
Effect on OOB HK No Person other than OOB HK owns or has any right to the use or possession of the assets used in OOB HK’s
business. The material buildings, plants, machinery and equipment necessary for the conduct of the business of OOB HK as presently
conducted are structurally sound, are in good operating condition and repair and are adequate for the uses to which they are being
put or would be put in the Ordinary Course of Business, in each case, taken as a whole, and none of such buildings, plants, machinery
or equipment is in need of maintenance or repairs, except for ordinary, routine maintenance and repairs that are not material in
nature or cost.

 

2.11 Absence of Undisclosed
Liabilities.

 

OOB HK has no debt,
obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether asserted or unasserted, whether
due or to become due, whether or not known to OOB HK) arising out of any transaction entered into prior to the Closing Date or
any act or omission prior to the Closing Date which individually or taken together would constitute a Material Adverse Effect on
OOB HK and have no debt, obligation or liability to each other or any of the Shareholders or their affiliates, except to the extent
specifically set forth on or reserved against on the Balance Sheet of OOB HK

 

The financial statements
are consistent with the books and records of OOB HK and fairly present in all material respects the financial condition, assets
and liabilities of OOB HK, as applicable, taken as a whole, as of the dates and periods indicated, and were prepared in accordance
with GAAP (except as otherwise indicated therein or in the notes thereto).

 

2.12 Changes.

 

OOB HK has not, since
the date of its incorporation:

 

(a) Ordinary Course
of Business. Conducted its business or entered into any transaction other than in the Ordinary Course of Business, except for
this Agreement.

 

(b) Adverse Changes.
Suffered or experienced any change in, or affecting, its condition (financial or otherwise), properties, assets, liabilities, business,
operations, results of operations or prospects which would have a Material Adverse Effect;

 

(c) Loans. Made
any loans or advances to any Person other than travel advances and reimbursement of expenses made to employees, officers and directors
in the Ordinary Course of Business;

 

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(d) Compensation
and Bonuses. Made any payments of any bonuses or compensation other than regular salary payments, or increase in the salaries,
or payment on any of its debts in the Ordinary Course of Business, to any of its shareholders, directors, officers, employees,
independent contractors or consultants or entry into by it of any employment, severance, or similar contract with any director,
officer, or employee, independent contractor or consultant; Adopted, or increased in the payments to or benefits under, any profit
sharing, bonus, deferred compensation, savings, insurance, pension, retirement, or other employee benefit plan for or with any
of its employees;

 

(e) Liens. Created
or permitted to exist any Lien on any of its properties or assets other than Permitted Liens;

 

(f) Capital Stock.
Issued, sold, disposed of or encumbered, or authorized the issuance, sale, disposition or encumbrance of, or granted or issued
any option to acquire any shares of its capital stock or any other of its securities or any Equity Security, or altered the term
of any of its outstanding securities or made any change in its outstanding shares of capital stock or its capitalization, whether
by reason of reclassification, recapitalization, stock split, combination, exchange or readjustment of shares, stock dividend or
otherwise; changed its authorized or issued capital stock; granted any stock option or right to purchase shares of its capital
stock; issued any security convertible into any of its capital stock; granted any registration rights with respect to shares of
its capital stock; purchased, redeemed, retired, or otherwise acquired any shares of its capital stock; declared or paid any dividend
or other distribution or payment in respect of shares of capital stock of any other entity;

 

(g) Dividends.
Declared, set aside, made or paid any dividend or other distribution to any of its shareholders;

 

(h) Material Contracts.
Terminated or modified any of its Material Contract except for termination upon expiration in accordance with the terms of such
agreements, a description of which is included in the OOB HK’s Disclosure Schedule;

 

(i) Claims. Released,
waived or cancelled any claims or rights relating to or affecting OOB HK in excess of $1,000 in the aggregate or instituted or
settled any Proceeding involving in excess of $10,000 in the aggregate;

 

(j) Discharged Liabilities.
Paid, discharged, cancelled, waived or satisfied any claim, obligation or liability in excess of $1,000 in the aggregate, except
for liabilities incurred prior to the date of this Agreement in the Ordinary Course of Business;

 

(k) Indebtedness.
Created, incurred, assumed or otherwise become liable for any Indebtedness or commit to any endeavor involving a commitment in
excess of $1,000 in the aggregate, other than contractual obligations incurred in the Ordinary Course of Business;

 

(l) Guarantees.
Guaranteed or endorsed in a material amount any obligation or net worth of any Person;

 

(m) Acquisitions.
Acquired the capital stock or other securities or any ownership interest in, or substantially all of the assets of, any other Person;

 

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(n) Accounting.
Changed its method of accounting or the accounting principles or practices utilized in the preparation of its financial statements,
other than as required by GAAP;

 

(o) Agreements.
Entered into any agreement, or otherwise obligated itself, to do any of the foregoing.

 

2.13 Material Contracts.

 

OOB HK has delivered
to Sharing Economy, prior to the date of this Agreement, true, correct and complete copies of each of its Material Contracts.

 

(a) No Defaults.
The Material Contracts of OOB HK are valid and binding agreements of OOB HK, as applicable, and are in full force and effect and
are enforceable in accordance with their terms. Except as would not have a Material Adverse Effect, OOB HK is not in breach or
default of any of its Material Contracts to which it is a party and, to the knowledge of OOB HK, no other party to any of its Material
Contracts is in breach or default thereof. Except as would not have a Material Adverse Effect, no event has occurred or circumstance
has existed that (with or without notice or lapse of time) would (a) contravene, conflict with or result in a violation or breach
of, or become a default or event of default under, any provision of any of its Material Contracts or (b) permit OOB HK or any other
Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel,
terminate or modify any of its Material Contracts. OOB HK has not received any notice and has no knowledge of any pending or threatened
cancellation, revocation or termination of any of its Material Contracts to which it is a party, and there are no renegotiations
of, or attempts to renegotiate.

 

2.14 Tax Returns
and Audits.

 

(a) Tax Returns.
(a) All material Tax Returns required to be filed by or on behalf of OOB HK have been timely filed and all such Tax Returns were
(at the time they were filed) and are true, correct and complete in all material respects; (b) all Taxes of OOB HK required to
have been paid (whether or not reflected on any Tax Return) have been fully and timely paid, except those Taxes which are presently
being contested in good faith or for which an adequate reserve for the payment of such Taxes has been established on OOB HK’s
balance sheet; (c) no waivers of statutes of limitation have been given or requested with respect to OOB HK in connection with
any Tax Returns covering OOB HK or with respect to any Taxes payable by it; (d) no Governmental Body in a jurisdiction where OOB
HK does not file Tax Returns has made a claim, assertion or threat to OOB HK that OOB HK is or may be subject to taxation by such
jurisdiction; (e) OOB HK has duly and timely collected or withheld, paid over and reported to the appropriate Governmental Body
all amounts required to be so collected or withheld for all periods under all applicable laws; (f) there are no Liens with respect
to Taxes on the property or assets of OOB HK other than Permitted Liens; (g) there are no Tax rulings, requests for rulings, or
closing agreements relating to OOB HK for any period (or portion of a period) that would affect any period after the date hereof;
and (h) any adjustment of Taxes of OOB HK made by a Governmental Body in any examination that OOB HK is required to report to the
appropriate provincial, local or foreign taxing authorities has been reported, and any additional Taxes due with respect thereto
have been paid. No state of fact exists or has existed which would constitute ground for the assessment of any tax liability by
any Governmental Body. All Tax Returns filed by OOB HK are true, correct and complete.

 

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(b) No Adjustments,
Changes. Neither OOB HK nor any other Person on behalf of OOB HK (a) has executed or entered into a closing agreement pursuant
to Section 7121 of the Code or any predecessor provision thereof or any similar provision of provincial, local or foreign law;
or (b) has agreed to or is required to make any adjustments pursuant to Section 481(a) of the Code or any similar provision of
provincial, local or foreign law.

 

(c) No Disputes.
There is no pending audit, examination, investigation, dispute, proceeding or claim with respect to any Taxes of or Tax Return
filed or required to be filed by OOB HK, nor is any such claim or dispute pending or contemplated. OOB HK has made available to
Sharing Economy true, correct and complete copies of all Tax Returns, examination reports and statements of deficiencies assessed
or asserted against or agreed to by OOB HK since January 1, 2016, and any and all correspondence with respect to the foregoing.
OOB HK does not have any outstanding closing agreement, ruling request, request for consent to change a method of accounting, subpoena
or request for information to or from a Governmental Body in connection with any Tax matter.

 

(d) No Tax Allocation,
Sharing. OOB HK is not a party to any Tax allocation or sharing agreement. OOB HK (a) has not been a member of a Tax Group
filing a consolidated income Tax Return under Section 1501 of the Code (or any similar provision of provincial, local or foreign
law), and (b) does not have any liability for Taxes for any Person under Treasury Regulations Section 1.1502-6 (or any similar
provision of provincial, local or foreign law) as a transferee or successor, by contract or otherwise.

 

2.15 Material Assets.

 

The financial statements
of OOB HK reflect the material properties and assets (real and personal) owned or leased by them.

 

2.16 Insurance Coverage.

 

OOB HK has no insurance
or general liability policies maintained by OOB HK on its properties and assets.

 

2.17 Litigation;
Orders.

 

There is no Proceeding
(whether federal, provincial, local or foreign) pending or, to the knowledge of OOB HK, threatened or appealable against or affecting
OOB HK or any of its properties, assets, business or employees. To the knowledge of OOB HK, there is no fact that might result
in or form the basis for any such Proceeding. OOB HK is not subject to any Orders and has not received any written opinion or memorandum
or legal advice from their legal counsel to the effect that OOB HK is exposed, from a legal standpoint, to any liability which
would be material to its business. OOB HK is not engaged in any legal action to recover monies due it or for damages sustained
by any of them.

 

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2.18 Licenses.

 

Except as would not
have a Material Adverse Effect, OOB HK possesses from the appropriate Governmental Body all licenses, permits, authorizations,
approvals, franchises and rights that are necessary for it to engage in its business as currently conducted and to permit it to
own and use its properties and assets in the manner in which it currently owns and uses such properties and assets (collectively,
“PERMITS”). Except as would not have a Material Adverse Effect, OOB HK has not received any written notice from any
Governmental Body or other Person that there is lacking any license, permit, authorization, approval, franchise or right necessary
for OOB HK to engage in its business as currently conducted and to permit OOB HK to own and use its properties and assets in the
manner in which it currently owns and uses such properties and assets. Except as would not have a Material Adverse Effect, the
Permits are valid and in full force and effect. Except as would not have a Material Adverse Effect, no event has occurred or circumstance
exists that may (with or without notice or lapse of time): (a) constitute or result, directly or indirectly, in a violation of
or a failure to comply with any Permit; or (b) result, directly or indirectly, in the revocation, withdrawal, suspension, cancellation
or termination of, or any modification to, any Permit. OOB HK has not received any written notice from any Governmental Body or
any other Person regarding: (a) any actual, alleged, possible or potential contravention of any Permit; or (b) any actual, proposed,
possible or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to, any Permit. All applications
required to have been filed for the renewal of such Permits have been duly filed on a timely basis with the appropriate Persons,
and all other filings required to have been made with respect to such Permits have been duly made on a timely basis with the appropriate
Persons. All Permits are renewable by their terms or in the Ordinary Course of Business without the need to comply with any special
qualification procedures or to pay any amounts other than routine fees or similar charges, all of which have, to the extent due,
been duly paid.

 

2.19 Interested party
Transactions.

 

No officer, director
or shareholder of OOB HK or any Affiliate, Related Person or “associate” (as such term is defined in Rule 405 of the
Commission under the Securities Act) of any such Person, either directly or indirectly, (1) has an interest in any Person which
(a) furnishes or sells services or products which are furnished or sold or are proposed to be furnished or sold by OOB HK, or (b)
purchases from or sells or furnishes to, or proposes to purchase from, sell to or furnish OOB HK any goods or services; (2) has
a beneficial interest in any contract or agreement to which OOB HK is a party or by which it may be bound or affected; or (3) is
a party to any material agreements, contracts or commitments in effect as of the date hereof with OOB HK “Related Person”
means: (i) with respect to a particular individual, the individual’s immediate family which shall include the individual’s
spouse, parents, children, siblings, mothers and fathers-in-law, sons and daughters-in-law, and brothers and sisters-in-law; and
(ii) with respect to a specified individual or entity, any entity or individual that, directly or indirectly, controls, is controlled
by, or is under common control with such specified entity or individual.

 

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2.20 Governmental
Inquiries.

 

OOB HK has made available
to Sharing Economy a copy of each material written inspection report, questionnaire, inquiry, demand or request for information
received by OOB HK from (and the response of OOB HK thereto), and each material written statement, report or other document filed
by OOB HK with, any Governmental Body since January 1, 2016.

 

2.21 Bank Accounts
and Safe Deposit Boxes.

 

The OOB HK Disclosure
Schedule discloses the title and number of each bank or other deposit or financial account, and each lock box and safety deposit
box used by OOB HK, the financial institution at which that account or box is maintained and the names of the persons authorized
to draw against the account or otherwise have access to the account or box, as the case may be.

 

2.22 Intellectual
Property.

 

Any Intellectual Property
OOB HK uses in its business as presently conducted is owned by OOB HK or properly licensed.

 

2.23 Stock Option
Plans; Employee Benefits.

 

(a) OOB HK does not
have any employee benefit plans or arrangements covering their present and former employees or providing benefits to such persons
in respect of services provided to OOB HK OOB HK has no commitment, whether formal or informal and whether legally binding or not,
to create any additional plan, arrangement or practice similar to the Approved Plans.

 

2.24 Employee Matters.

 

(a) No former or current
employee of OOB HK is a party to, or is otherwise bound by, any agreement or arrangement (including, without limitation, any confidentiality,
non-competition or proprietary rights agreement) that in any way adversely affected, affects, or will affect (i) the performance
of his, her or its duties to OOB HK, or (ii) the ability of OOB HK to conduct its business.

 

(b) OOB HK has no employees,
directors, officers, consultants, independent contractors, representatives or agents whose contract of employment or engagement
cannot be terminated by three months’ notice. (c) OOB HK is not required or obligated to pay, and since the date if its incorporation,
have not paid any moneys to or for the benefit of, any director, officer, employee, consultant, independent contractor, representative
or agent of OOB HK (d) OOB HK is in compliance with all applicable laws respecting employment and employment practices, terms and
conditions or employment and wages and hours, and is not engaged in any unfair labor practice. There is no labor strike, dispute,
shutdown or stoppage actually pending or, to the knowledge of OOB HK or the Shareholders, threatened against or affecting OOB HK

 

    12

     

    

 

2.25 Environmental
and Safety Matters.

 

Except as would not
have a Material Adverse Effect:

 

(a) OOB HK has at all
times been and is in compliance with all Environmental Laws and Orders applicable to OOB HK, as applicable.

 

(b) There are no Proceedings
pending or, to the knowledge of OOB HK, threatened against OOB HK alleging the violation of any Environmental Law or Environmental
Permit applicable to OOB HK or alleging that OOB HK is a potentially responsible party for any environmental site contamination.
None of OOB HK or the Shareholders are aware of, or has ever received notice of, any past, present or future events, conditions,
circumstances, activities, practices, incidents, actions or plans which may interfere with or prevent continued compliance, or
which may give rise to any common law or legal liability, or otherwise form the basis of any claim, action, suit, proceeding, hearing
or investigation, based on or related to the manufacture, processing, distribution, use, treatment, storage, disposal, transport,
or handling, or the emission, discharge, release or threatened release into the environment, of any pollutant, contaminant, or
hazardous or toxic material or waste.

 

(c) Neither this Agreement
nor the consummation of the transactions contemplated by this Agreement shall impose any obligations to notify or obtain the consent
of any Governmental Body or third Persons under any Environmental Laws applicable to OOB HK

 

2.26 Material Customers.

 

Since the date of its
incorporation, none of the Material Customers (as hereinafter defined) of OOB HK has notified any of OOB HK or the Shareholders
of their intent to terminate their business with OOB HK business because of any dissatisfaction on the part of any such person
or entity. The Transactions have not caused any of the Material Customers of OOB HK to terminate or provide notice of their intent
or threaten to terminate their business with OOB HK or to notify OOB HK or the Shareholders of their intent not to continue to
do such business with OOB HK after the Closing. As used herein, “Material Customers” means those customers from whom
OOB HK derives annual revenues in excess of US $5,000.

 

2.27 Inventories.

 

All inventories of OOB
HK are of good, usable and merchantable quality in all material respects, and, except as set forth in the OOB HK Disclosure Schedule,
do not include a material amount of obsolete or discontinued items. Except as set forth in the OOB HK Disclosure Schedule, (a)
all such inventories are of such quality as to meet in all material respects the quality control standards of OOB HK, (b) all such
inventories are recorded on the books at the lower of cost or market value determined in accordance with GAAP, and (c) no write-down
in inventory has been made or should have been made pursuant to GAAP during the past two years.

 

2.28 Money Laundering
Laws.

 

The operations of OOB
HK are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of
the money laundering statutes of all U.S. and non-U.S. jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any Governmental Body (collectively, the “Money Laundering
Laws”) and no Proceeding involving OOB HK with respect to the Money Laundering Laws is pending or, to the knowledge of OOB
HK, threatened.

 

    13

     

    

 

2.29 Disclosure.

 

(a) Any information
set forth in this Agreement, the OOB HK Disclosure Schedule, or the Transaction Agreements shall be true, correct and complete
in all material respects.

 

(b) No statement, representation
or warranty of OOB HK or the Shareholders in this Agreement (taken with the Schedules) or the Transaction Agreements or any exhibits
or schedules thereto contain any untrue statement of a material fact or omits to state a material fact necessary to make the statements
herein or therein, taken as a whole, in light of the circumstances in which they were made, not misleading.

 

(c) Except as set forth
in the OOB HK Disclosure Schedule, the Shareholders and OOB HK have no knowledge of any fact that has specific application to OOB
HK (other than general economic or industry conditions) and that adversely affects the assets or the business, prospects, financial
condition, or results of operations of OOB HK

 

(d) In the event of
any inconsistency between the statements in the body of this Agreement and those in the Schedules (other than an exception expressly
set forth as such in the Schedules with respect to a specifically identified representation or warranty), the statements in the
Schedules shall control.

 

(e) The books of account,
minute books and stock record books of OOB HK, all of which have been made available to Sharing Economy, are complete and accurate
and have been maintained in accordance with sound business practices. Without limiting the generality of the foregoing, the minute
books of OOB HK contain complete and accurate records of all meetings held, and corporate action taken, by the shareholders, the
boards of directors, and committees of the boards of directors of OOB HK, as applicable, and no meeting of any such shareholders,
board of directors, or committee has been held for which minutes have not been prepared and are not contained in such minute books.

 

2.30 Finders and
Brokers.

 

(a) None of OOB HK or
the Shareholders or any Person acting on behalf of OOB HK or the Shareholders has engaged any finder, broker, intermediary or any
similar Person in connection with the Exchange.

 

(b) None of OOB HK the
Shareholders nor any Person acting on behalf of OOB HK or the Shareholders has entered into a contract or other agreement that
provides that a fee shall be paid to any Person or Entity if the Exchange is consummated.

 

    14

     

    

 

ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES OF SHARING
ECONOMY

 

Sharing Economy hereby
represents and warrants to the Shareholders as of the date hereof:

 

3.1 Organization;
Good Standing.

 

Sharing Economy is duly
incorporated, validly and in good standing existing under the laws of Nevada, has all requisite authority and power (corporate
and other), governmental licenses, authorizations, consents and approvals to carry on its business as presently conducted and as
contemplated to be conducted, to own, hold and operate its properties and assets as now owned, held and operated by it, to enter
into this Agreement, to carry out the provisions hereof except where the failure to be in good standing or to have such governmental
licenses, authorizations, consents and approvals will not, in the aggregate, either (i) have a Material Adverse Effect on the business,
assets or financial condition of Sharing Economy, or (ii) impair the ability of Sharing Economy to perform its material obligations
under this Agreement. Sharing Economy is duly qualified, licensed or domesticated as a foreign corporation in good standing in
each jurisdiction wherein the nature of its activities or its properties owned or leased requires such qualification, licensing
or domestication, except where the failure to be so qualified, licensed or domesticated will not have a Material Adverse Effect.

 

3.2 Sharing Economy
Common Stock.

 

As of April 6, 2020,
there were 4,697,620,787 shares of Sharing Economy’s common stock issued and outstanding. The Acquisition Shares, when issued
in connection with this Agreement and the other Transactional Agreements, will be duly authorized, validly issued, fully paid and
nonassessable. Sharing Economy will take all reasonable efforts subsequent to the Closing to effect and amendment to its Articles
of Incorporation, as amended, to effect an increase in its authorized shares of common stock to issue and deliver to the Shareholders
any portion of the Acquisition Shares not delivered at Closing to the Shareholders.

 

3.3 Authority; Binding
Nature of Agreements.

 

(a) The execution, delivery
and performance of this Agreement, the Transactional Agreements, and all other agreements and instruments contemplated to be executed
and delivered by Sharing Economy in connection herewith have been duly authorized by all necessary corporate action on the part
of Sharing Economy and its board of directors.

 

(b) This Agreement,
the Transactional Agreements, and all other agreements and instruments contemplated to be executed and delivered by Sharing Economy
constitute the legal, valid and binding obligation of Sharing Economy, enforceable against Sharing Economy in accordance with their
terms, except to the extent that enforceability may be limited by applicable bankruptcy, Exchange, insolvency, moratorium or other
laws affecting the enforcement of creditors’ rights generally and by general principles of equity regardless of whether such
enforceability is considered in a proceeding in law or equity.

 

    15

     

    

 

(c) There is no pending
Proceeding, and, to Sharing Economy’s knowledge, no Person has threatened to commence any Proceeding that challenges, or
that may have the effect of preventing, delaying, making illegal or otherwise interfering with, the Exchange or Sharing Economy’s
ability to comply with or perform its obligations and covenants under the Transactional Agreements, and, to the knowledge of Sharing
Economy, no event has occurred, and no claim, dispute or other condition or circumstance exists, that might directly or indirectly
give rise to or serve as a basis for the commencement of any such Proceeding.

 

3.4 Non-contravention;
Consents.

 

The execution and delivery
of this Agreement and the other Transactional Agreements, and the consummation of the Exchange, by Sharing Economy will not, directly
or indirectly (with or without notice or lapse of time):

 

(a) contravene, conflict
with or result in a material violation of (i) Sharing Economy’s Certificate of Incorporation or Bylaws, or (ii) any resolution
adopted by Sharing Economy Board or any committee thereof or the stockholders of Sharing Economy;

 

(b) to the knowledge
of Sharing Economy, contravene, conflict with or result in a material violation of, or give any Governmental Body the right to
challenge the Exchange or to exercise any remedy or obtain any relief under, any legal requirement or any Order to which Sharing
Economy or any material assets owned or used by it are subject;

 

(c) to the knowledge
of Sharing Economy, cause any material assets owned or used by Sharing Economy to be reassessed or revalued by any taxing authority
or other Governmental Body;

 

(d) to the knowledge
of Sharing Economy, contravene, conflict with or result in a material violation of any of the terms or requirements of, or give
any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that
is held by Sharing Economy or that otherwise relates to Sharing Economy’s business or to any of the material assets owned
or used by Sharing Economy, where such contraventions, conflict, violation, revocation, withdrawal, suspension, cancellation, termination
or modification would have a Material Adverse Effect on Sharing Economy;

 

(e) contravene, conflict
with or result in a material violation or material breach of, or material default under, any Contract to which Sharing Economy
is a party;

 

(f) give any Person
the right to any payment by Sharing Economy or give rise to any acceleration or change in the award, grant, vesting or determination
of options, warrants, rights, severance payments or other contingent obligations of any nature whatsoever of Sharing Economy in
favor of any Person, in any such case as a result of the Exchange; or

 

(g) result in the imposition
or creation of any material Lien upon or with respect to any material asset owned or used by Sharing Economy.

 

    16

     

    

 

Except for Consents,
filings or notices required under the state and federal securities laws or any other laws or regulations or as otherwise contemplated
in this Agreement and the other Transactional Agreements, Sharing Economy will not be required to make any filing with or give
any notice to, or obtain any Consent from, any Person in connection with the execution and delivery of this Agreement and the other
Transactional Agreements or the consummation or performance of the Exchange.

 

3.5 Finders and Brokers.

 

(a) Neither Sharing
Economy nor any Person acting on behalf of Sharing Economy has engaged any finder, broker, intermediary or any similar Person in
connection with the Exchange.

 

(b) Sharing Economy
has not entered into a contract or other agreement that provides that a fee shall be paid to any Person or Entity if the Exchange
is consummated.

 

3.6 Reports and Financial
Statements; Absence of Certain Changes.

 

(a) Sharing Economy
has filed all reports required to be filed with the SEC pursuant to the Exchange Act since January 1, 2016 (all such reports, including
those to be filed prior to the Closing Date and all registration statements and prospectuses filed by Sharing Economy with the
SEC, are collectively referred to as the “Sharing Economy SEC Reports). All of the Sharing Economy SEC Reports, as of their
respective dates of filing (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such
filing): (i) complied in all material respects as to form with the applicable requirements of the Securities Act or Exchange Act
and the rules and regulations thereunder, as the case may be, and (ii) did not contain any untrue statement of a material fact
or omit 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. The audited financial statements of Sharing Economy included in the
Sharing Economy SEC Reports comply in all material respects with the published rules and regulations of the SEC with respect thereto,
and such audited financial statements (i) were prepared from the books and records of Sharing Economy, (ii) were prepared in accordance
with GAAP applied on a consistent basis (except as may be indicated therein or in the notes or schedules thereto) and (iii) present
fairly the financial position of Sharing Economy as of the dates thereof and the results of operations and cash flows for the periods
then ended. The unaudited financial statements included in the Sharing Economy SEC Reports comply in all material respects with
the published rules and regulations of the SEC with respect thereto; and such unaudited financial statements (i) were prepared
from the books and records of Sharing Economy, (ii) were prepared in accordance with GAAP, except as otherwise permitted under
the Exchange Act and the rules and regulations thereunder, on a consistent basis (except as may be indicated therein or in the
notes or schedules thereto) and (iii) present fairly the financial position of Sharing Economy as of the dates thereof and the
results of operations and cash flows (or changes in financial condition) for the periods then ended, subject to normal year-end
adjustments and any other adjustments described therein or in the notes or schedules thereto.

 

    17

     

    

 

(b) Except as specifically
contemplated by this Agreement or reflected in the Sharing Economy SEC Reports, since January 1, 2016, there has not been (i) any
material adverse change in Sharing Economy’s business, assets, liabilities, operations, and, to the knowledge of Sharing
Economy, no event has occurred that is likely to have a material adverse effect on Sharing Economy’s business, assets, liabilities
or operations, (ii) any declarations setting aside or payment of any dividend or distribution with respect to the Sharing Economy
Common Stock other than consistent with past practices, (iii) any material change in Sharing Economy’s accounting principles,
procedures or methods, (iv) cancellation in writing of any material customer contract or (v) the loss of any customer relationship
which would have a material adverse effect on Sharing Economy’s business, assets, liabilities or operations.

 

3.7 Compliance with
Applicable Law.

 

Except as disclosed
in the Sharing Economy SEC Reports filed prior to the date of this Agreement and except to the extent that the failure or violation
would not in the aggregate have a Material Adverse Effect on the business, results of operations or financial condition of Sharing
Economy, to Sharing Economy’s knowledge Sharing Economy holds all Governmental Authorizations necessary for the lawful conduct
of its business under and pursuant to, and the business of Sharing Economy is not being conducted in violation of, any Governmental
Authorization applicable to Sharing Economy.

 

3.8 Complete Copies
of Requested Reports.

 

Sharing Economy has
delivered or made available true and complete copies of each document that has been reasonably requested by OOB HK or the Shareholders.

 

3.9 Full Disclosure.

 

(a) Neither this Agreement
(including all Schedules and exhibits hereto) nor any of the Transactional Agreements contemplated to be executed and delivered
by Sharing Economy in connection with this Agreement contains any untrue statement of material fact; and none of such documents
omits to state any material fact necessary to make any of the representations, warranties or other statements or information contained
therein not misleading.

 

(b) All of the information
set forth in the prospectus and all other information regarding Sharing Economy and the business, condition, assets, liabilities,
operations, financial performance, net income and prospects of either that has been furnished to OOB HK or the Shareholders by
or on behalf of Sharing Economy or any of the Sharing Economy’s Representatives, is accurate and complete in all material
respects.

 

    18

     

    

 

ARTICLE IV.

 

COVENANTS OF OOB HK

 

4.1 Access and Investigation.

 

OOB HK shall ensure
that, at all times during the Pre-Closing Period:

 

(a) OOB HK and their
Representatives provide Sharing Economy and its Representatives access, at reasonable times and with twenty-four (24) hours’
notice from Sharing Economy to OOB HK, to all of the premises and assets of OOB HK, to all existing books, records, Tax Returns,
work papers and other documents and information relating to OOB HK, and to responsible officers and employees of OOB HK, and OOB
HK and its Representatives provide Sharing Economy and its Representatives with copies of such existing books, records, Tax Returns,
work papers and other documents and information relating to OOB HK as Sharing Economy may request in good faith;

 

(b) Each of OOB HK and
its Representatives confer regularly with Sharing Economy upon its request, concerning operational matters and otherwise report
regularly (not less than semi-monthly and as Sharing Economy may otherwise request) to Sharing Economy and discuss with Sharing
Economy and its Representatives concerning the status of the business, condition, assets, liabilities, operations, and financial
performance of OOB HK, and promptly notify Sharing Economy of any material change in the business, condition, assets, liabilities,
operations, and financial performance of OOB HK, or any event reasonably likely to lead to any such change.

 

4.2 Operation of
the Business.

 

OOB HK shall ensure
that, during the Pre-Closing Period:

 

(a) It conducts its
operations in the Ordinary Course of Business and in the same manner as such operations have been conducted prior to the date of
this Agreement;

 

(b) It uses its commercially
reasonable efforts to preserve intact its current business organization, keep available and not terminate the services of its current
officers and employees and maintain its relations and goodwill with all suppliers, customers, landlords, creditors, licensors,
licensees, employees and other Persons having business relationships with OOB HK;

 

(c) It does not declare,
accrue, set aside or pay any dividend or make any other distribution in respect of any shares of its capital stock, and does not
repurchase, redeem or otherwise reacquire any shares of its capital stock or other securities, except with respect to the repurchase
of shares of OOB HK Common Stock upon termination of employees at the original purchase price pursuant to agreements existing at
the date hereof;

 

(d) It does not sell
or otherwise issue (or grant any warrants, options or other rights to purchase) any shares of capital stock or any other securities,
except the issuance of OOB HK Shares of Common Stock pursuant to option grants to employees made under the Option Plan in the Ordinary
Course of Business;

 

(e) It does not amend
its charter document, corporate governance document or other Organizational Documents, and does not affect or become a party to
any recapitalization, reclassification of shares, stock split, reverse stock split or similar transaction;

 

(f) It does not form
any subsidiary or acquire any equity interest or other interest in any other Entity;

 

    19

     

    

 

(g) It does not establish
or adopt any Employee Benefit Plan, and does not pay any bonus or make any profit sharing or similar payment to, or increase the
amount of the wages, salary, commissions, fringe benefits or other compensation or remuneration payable to, any of its directors,
officers or employees;

 

(h) It does not change
any of its methods of accounting or accounting practices in any respect;

 

(i) It does not make
any Tax election;

 

(j) It does not commence
or take any action or fail to take any action which would result in the commencement of any Proceeding;

 

(k) It does not (i)
acquire, dispose of, transfer, lease, license, mortgage, pledge or encumber any fixed or other assets, other than in the Ordinary
Course of Business; (ii) incur, assume or prepay any indebtedness, Indebtedness or obligation or any other liabilities or issue
any debt securities, other than in the Ordinary Course of Business; (iii) assume, guarantee, endorse for the obligations of any
other person, other than in the Ordinary Course of Business; (iv) make any loans, advances or capital contributions to, or investments
in, any other Person, other than in the Ordinary Course of Business; or (v) fail to maintain insurance consistent with past practices
for its business and property;

 

(l) It pays all debts
and Taxes, files all of its Tax Returns (as provided herein) and pays or performs all other obligations, when due;

 

(m) It does not enter
into or amend any agreements pursuant to which any other Person is granted distribution, marketing or other rights of any type
or scope with respect to any of its services, products or technology;

 

(n) It does not hire
any new officer-level employee;

 

(o) It does not revalue
any of its assets, including, without limitation, writing down the value of inventory or writing off notes or accounts receivable,
except as required under GAAP and in the Ordinary Course of Business;

 

(p) Except as otherwise
contemplated hereunder, it does not enter into any transaction or take any other action outside the Ordinary Course of Business;
and

 

(q) It does not enter
into any transaction or take any other action that likely would cause or constitute a Breach of any representation or warranty
made by it in this Agreement.

 

    20

     

    

 

4.3 Filings and Consents;
Cooperation.

 

OOB HK shall ensure
that:

 

(a) Each filing or notice
required to be made or given (pursuant to any applicable Law, Order or contract, or otherwise) by OOB HK or the Shareholders in
connection with the execution and delivery of any of the Transactional Agreements, or in connection with the consummation or performance
of the Exchange, is made or given as soon as possible after the date of this Agreement;

 

(b) Each Consent required
to be obtained (pursuant to any applicable Law, Order or contract, or otherwise) by OOB HK or the Shareholders in connection with
the execution and delivery of any of the Transactional Agreements, or in connection with the consummation or performance of the
Exchange, is obtained as soon as possible after the date of this Agreement and remains in full force and effect through the Closing
Date;

 

(c) It promptly delivers
to Sharing Economy a copy of each filing made, each notice given and each Consent obtained by OOB HK during the Pre-Closing Period;
and

 

(d) During the Pre-Closing
Period, it and its Representatives cooperate with Sharing Economy and Sharing Economy’s Representatives, and prepare and
make available such documents and take such other actions as Sharing Economy may request in good faith, in connection with any
filing, notice or Consent that Sharing Economy is required or elects to make, give or obtain.

 

4.4 Notification;
Updates to Disclosure Schedules.

 

(a) During the Pre-Closing
Period, OOB HK shall promptly notify Sharing Economy in writing of:

 

(i) the discovery by
it of any event, condition, fact or circumstance that occurred or existed on or prior to the date of this Agreement which is contrary
to any representation or warranty made by it in this Agreement or in any of the other Transactional Agreements, or that would upon
the giving of notice or lapse of time, result in any of its representations and warranties set forth in this agreement to become
untrue or otherwise cause any of the conditions of Closing set forth in Article VI or Article VII not to be satisfied;

 

(ii) any event, condition,
fact or circumstance that occurs, arises or exists after the date of this Agreement (except as a result of actions taken pursuant
to the express written consent of Sharing Economy) and that is contrary to any representation or warranty made by it in this Agreement,
or that would upon the giving of notice or lapse of time, result in any of its representations and warranties set forth in this
agreement to become untrue or otherwise cause any of the conditions of Closing set forth in Article VI or Article VII not to be
satisfied;

 

(b) If any event, condition,
fact or circumstances that is required to be disclosed pursuant to Section 4.4(a) requires any material change in the OOB HK Disclosure
Schedule, or if any such event, condition, fact or circumstance would require such a change assuming the OOB HK Disclosure Schedule
were dated as of the date of the occurrence, existence or discovery of such event, condition, fact or circumstances, then OOB HK,
as applicable, shall promptly deliver to Sharing Economy an update to the OOB HK Disclosure Schedule specifying such change (a
“Disclosure Schedule Update”).

 

    21

     

    

 

(c) It will promptly
update any relevant and material information provided to Sharing Economy after the date hereof pursuant to the terms of this Agreement.

 

4.5 Commercially
Reasonable Efforts.

 

During the Pre-Closing
Period, OOB HK shall use its commercially reasonable efforts to cause the conditions set forth in Article VI and Article VII to
be satisfied on a timely basis and so that the Closing can take place on or before June 21, 2020, in accordance with Section 1.5,
and shall not take any action or omit to take any action, the taking or omission of which would or could reasonably be expected
to result in any of the representations and warranties of OOB HK set forth in this Agreement becoming untrue, or in any of the
conditions of Closing set forth in Article VI or Article VII not being satisfied.

 

4.6 Confidentiality;
Publicity.

 

OOB HK shall ensure
that:

 

(a) It and its Representatives
keep strictly confidential the existence and terms of this Agreement prior to the issuance or dissemination of any mutually agreed
upon press release or other disclosure of the Exchange; and

 

(b) neither it nor any
of its Representatives issues or disseminates any press release or other publicity or otherwise makes any disclosure of any nature
(to any of its suppliers, customers, landlords, creditors or employees or to any other Person) regarding any of the Exchange; except
in each case to the extent that it is required by law to make any such disclosure regarding such transactions or as separately
agreed by the parties; provided, however, that if it is required by law to make any such disclosure, OOB HK advises Sharing Economy,
at least five business days before making such disclosure, of the nature and content of the intended disclosure.

 

ARTICLE V.

 

COVENANTS OF SHARING ECONOMY

 

5.1 Notification.

 

During the Pre-Closing
Period, Sharing Economy shall promptly notify OOB HK in writing of:

 

(a) the discovery by
Sharing Economy of any event, condition, fact or circumstance that occurred or existed on or prior to the date of this Agreement
which is contrary to any representation or warranty made by Sharing Economy in this Agreement; and,

 

(b) any event, condition,
fact or circumstance that occurs, arises or exists after the date of this Agreement (except as a result of actions taken pursuant
to the written consent of OOB HK) and that is contrary to any representation or warranty made by Sharing Economy in this Agreement;

 

    22

     

    

 

5.2 Filings and Consents;
Cooperation.

 

Sharing Economy shall
ensure that:

 

(a) Each filing or notice
required to be made or given (pursuant to any applicable Law, Order or contract, or otherwise) by Sharing Economy in connection
with the execution and delivery of any of the Transactional Agreements, or in connection with the consummation or performance of
the Exchange, is made or given as soon as possible after the date of this Agreement;

 

(b) Each Consent required
to be obtained (pursuant to any applicable Law, Order or contract, or otherwise) by Sharing Economy in connection with the execution
and delivery of any of the Transactional Agreements, or in connection with the consummation or performance of the Exchange, is
obtained as soon as possible after the date of this Agreement and remains in full force and effect through the Closing Date;

 

(c) Sharing Economy
promptly delivers to OOB HK and a copy of each filing made, each notice given and each Consent obtained by Sharing Economy during
the Pre-Closing Period; and

 

(d) During the Pre-Closing
Period, Sharing Economy and its Representatives cooperate with OOB HK and their Representatives, and prepare and make available
such documents and take such other actions as OOB HK may request in good faith, in connection with any filing, notice or Consent
that OOB HK is required or elects to make, give or obtain.

 

5.3 Commercially
Reasonable Efforts.

 

During the Pre-Closing
Period, Sharing Economy shall use its commercially reasonable efforts to cause the conditions set forth in Article VI and Article
VII to be satisfied on a timely basis and so that the Closing can take place on or before January 31, 2020, or as soon thereafter
as is reasonably practical, in accordance with Section 1.5, and shall not take any action or omit to take any action, the taking
or omission of which would or could reasonably be expected to result in any of the representations and warranties or Sharing Economy
set forth in this Agreement becoming untrue or in any of the conditions of closing set forth in Article VI or Article VII not being
satisfied.

 

5.4 Disclosure of
Confidential Information.

 

(a) Each of Sharing
Economy and the Shareholders acknowledges and agrees that it may receive Confidential Information in connection with this Transaction
including without limitation, the OOB HK Disclosure Schedule and any information disclosed during the due diligence process, the
public disclosure of which will harm the disclosing party’s business. The Receiving Party may use Confidential Information
only in connection with the Transaction. The results of the due diligence review may not be used for any other purpose other than
in connection with the Transaction. Except as expressly provided in this Agreement, the Receiving Party shall not disclose Confidential
Information to anyone without the Disclosing Party’s prior written consent. The Receiving Party shall take all reasonable
measures to avoid disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum, those measures
it takes to protect its own confidential information of a similar nature. The Receiving Party shall not export any Confidential
Information in any manner contrary to the export regulations of the governmental jurisdiction to which it is subject.

 

    23

     

    

 

(b) The Receiving Party
may disclose Confidential Information as required to comply with binding orders of governmental entities that have jurisdiction
over it, provided that the Receiving Party (i) gives the Disclosing Party reasonable notice (to the extent permitted by law) to
allow the Disclosing Party to seek a protective order or other appropriate remedy, (ii) discloses only such information as is required
by the governmental entity, and (iii) uses commercially reasonable efforts to obtain confidential treatment for any Confidential
Information so disclosed.

 

(c) All Confidential
Information shall remain the exclusive property of the Disclosing Party. The Disclosing Party’s disclosure of Confidential
Information shall not constitute an express or implied grant to the Receiving Party of any rights to or under the Disclosing Party’s
patents, copyrights, trade secrets, trademarks or other intellectual property rights.

 

(d) The Receiving Party
shall notify the Disclosing Party immediately upon discovery of any unauthorized use or disclosure of Confidential Information
or any other breach of this Agreement by the Receiving Party. The Receiving Party shall cooperate with the Disclosing Party in
every reasonable way to help the Disclosing Party regain possession of such Confidential Information and prevent its further unauthorized
use.

 

(e) The Receiving Party
shall return or destroy all tangible materials embodying Confidential Information (in any form and including, without limitation,
all summaries, copies and excerpts of Confidential Information) promptly following the Disclosing Party’s written request;
provided, however, that, subject to the provisions of this Agreement, the Receiving Party may retain one copy of such materials
in the confidential, restricted access files of its legal department for use only in the event a dispute arises between the parties
related to the Transaction and only in connection with that dispute. At the Disclosing Party’s option, the Receiving Party
shall provide written certification of its compliance with this Section.

 

5.5 Indemnification.

 

(a) Each of OOB HK and
the Shareholders, jointly and severally, each shall defend, indemnify and hold harmless Sharing Economy, and its respective employees,
officers, directors, stockholders, controlling persons, affiliates, agents, successors and assigns (collectively, the “Sharing
Economy Indemnified Persons”), and shall reimburse the Sharing Economy Indemnified Person, for, from and against any loss,
liability, claim, damage, expense (including costs of investigation and defense and reasonable attorneys’ fees) or diminution
of value, whether or not involving a third-party claim (collectively, “Damages”), directly or indirectly, relating
to, resulting from or arising out of:

 

(i) any untrue representations,
misrepresentations or breach of warranty by or of OOB HK or the Shareholders contained in or pursuant to this Agreement, and the
OOB HK Disclosure Schedule; (ii) any breach or nonfulfillment of any covenant, agreement or other obligation by or of OOB HK or
the Shareholders (only to the extent made or occurring prior to or at the Closing) contained in or pursuant to this Agreement,
the Transaction Agreements executed by OOB HK or any of the Shareholders in their individual capacity, the OOB HK Disclosure Schedule,
or any of the other agreements, documents, schedules or exhibits to be entered into by OOB HK or any of the Shareholders in their
individual capacity pursuant to or in connection with this Agreement;

 

    24

     

    

 

(iii) all of Pre-Closing
liabilities of OOB HK or the Shareholders; and

 

(iv) any liability,
claim, action or proceeding of any kind whatsoever, whether instituted or commenced prior to or after the Closing Date, which directly
or indirectly relates to, arises or results from, or occurs in connection with facts or circumstances relating to the conduct of
business of OOB HK or the assets of OOB HK, or events or circumstances existing on or prior to the Closing Date.

 

(b) Sharing Economy
shall defend, indemnify and hold harmless OOB HK and its respective affiliates, agents, successors and assigns (collectively, the
“OOB HK Indemnified Persons”), and shall reimburse the OOB HK Indemnified Persons, for, from and against any Damages,
directly or indirectly, relating to, resulting from or arising out of:

 

(i) any untrue representation,
misrepresentation or breach of warranty by or of Sharing Economy contained in or pursuant to this Agreement;

 

(ii) any breach or nonfulfillment
of any covenant, agreement or other obligations by or of Sharing Economy contained in or pursuant to this Agreement, the Transaction
Agreements or any other agreements, documents, schedules or exhibits to be entered into or delivered to pursuant to or in connection
with this Agreement.

 

(c) Promptly after receipt
by an indemnified Party under Section 5.6 of this Agreement of notice of a claim against it (“Claim”), such indemnified
Party shall, if a claim is to be made against an indemnifying Party under such Section, give notice to the indemnifying Party of
such Claim, but the failure to so notify the indemnifying Party will not relieve the indemnifying Party of any liability that it
may have to any indemnified Party, except to the extent that the indemnifying Party demonstrates that the defense of such action
is prejudiced by the indemnified Party’s failure to give such notice.

 

(d) A claim for indemnification
for any matter not involving a third-party claim may be asserted by notice to the Party from whom indemnification is sought.

 

    25

     

    

 

ARTICLE VI.

 

CLOSING CONDITIONS OF SHARING ECONOMY

 

Sharing Economy’s
obligations to affect the Closing and consummate the Exchange are subject to the satisfaction of each of the following conditions:

 

6.1 Accuracy of Representations
and Warranties.

 

The representations
and warranties of OOB HK and the Shareholders in this Agreement shall have been true and correct as of the date of this Agreement
and shall be true and correct on and as of the Closing. OOB HK and the Shareholders shall have performed all obligations in this
Agreement required to be performed or observed by them on or prior to the Closing.

 

6.2 Additional Conditions
to Closing.

 

(a) All necessary approvals
under federal and state securities laws and other authorizations relating to the issuance of the Acquisition Shares and the transfer
of the Shares shall have been received.

 

(b) Sharing Economy
shall have obtained an opinion stating that the terms of the Exchange are fair, just and equitable to Sharing Economy and its shareholders.

 

(c) No preliminary or
permanent injunction or other order by any federal, state or foreign court of competent jurisdiction which prohibits the consummation
of the Exchange shall have been issued and remain in effect. No statute, rule, regulation, executive order, stay, decree, or judgment
shall have been enacted, entered, issued, promulgated or enforced by any court or governmental authority which prohibits or restricts
the consummation of the Exchange. All authorizations, consents, orders or approvals of, or declarations or filings with, and all
expirations of waiting periods imposed by, any Governmental Body which are necessary for the consummation of the Exchange, other
than those the failure to obtain which would not materially adversely affect the consummation of the Exchange or in the aggregate
have a material adverse effect on Sharing Economy and its subsidiaries, taken as a whole, shall have been filed, occurred or been
obtained (all such permits, approvals, filings and consents and the lapse of all such waiting periods being referred to as the
“Requisite Regulatory Approvals”) and all such Requisite Regulatory Approvals shall be in full force and effect.

 

(d) There shall not
be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the Exchange,
by any Governmental Body which, in connection with the grant of a Requisite Regulatory Approval, imposes any material condition
or material restriction upon Sharing Economy or its subsidiaries or OOB HK, including, without limitation, requirements relating
to the disposition of assets, which in any such case would so materially adversely impact the economic or business benefits of
the Exchange as to render inadvisable the consummation of the Exchange.

 

6.3 Performance of
Agreements.

 

OOB HK or the Shareholders,
as the case may be, shall have executed and delivered each of the agreements, instruments and documents required to be executed
and delivered, and performed all actions required to be performed by OOB HK or any of the Shareholders, as the case may be, pursuant
to this Agreement, except as Sharing Economy has otherwise consented in writing.

 

    26

     

    

 

6.4 Consents.

 

Each of the Consents
identified or required to have been identified in the OOB HK Disclosure Schedule shall have been obtained and shall be in full
force and effect, other than those Consents, which have been expressly waived by Sharing Economy.

 

6.5 No Material Adverse
Change and Satisfactory Due Diligence.

 

There shall not have
been any material adverse change in the business, condition, assets, liabilities, operations or financial performance of OOB HK
since the date of this Agreement as determined by Sharing Economy in its discretion. Sharing Economy shall be satisfied in all
respects with the results of its due diligence review of OOB HK

 

6.6 OOB HK Closing
Certificate.

 

In addition to the documents
required to be received under this Agreement, Sharing Economy shall also have received the following documents:

 

(a) copies of resolutions
of OOB HK, certified by a Secretary, Assistant Secretary or other appropriate officer of OOB HK, authorizing the execution, delivery
and performance of this Agreement and other Transactional Agreements;

 

(b) good standing certificate
of OOB HK; and

 

(c) such other documents
as Sharing Economy may request in good faith for the purpose of (i) evidencing the accuracy of any representation or warranty made
by OOB HK, (ii) evidencing the compliance by OOB HK, or the performance by OOB HK of, any covenant or obligation set forth in this
Agreement or any of the other Transactional Agreements, (iii) evidencing the satisfaction of any condition set forth in Article
VII or this Article VI, or (iv) otherwise facilitating the consummation or performance of the Exchange.

 

6.7 Transactional
Agreements.

 

Each Person (other than
Sharing Economy) shall have executed and delivered prior to or on the Closing Date all Transactional Agreements to which it is
to be a party.

 

6.8 Resignation of
Directors and Officers.

 

Sharing Economy shall
have received a written resignation from each of the directors and officers of OOB HK effective as of the Closing.

 

6.9 Delivery of Stock
Certificates, Minute Book and Corporate Seal.

 

The Shareholders shall
have delivered to Sharing Economy the stock books, stock ledgers, minute books and corporate seals of OOB HK

 

    27

     

    

 

ARTICLE VII.

 

CLOSING CONDITIONS OF THE SHAREHOLDERS

 

The Shareholders’
obligations to affect the Closing and consummate the Exchange are subject to the satisfaction of each of the following conditions:

 

7.1 Accuracy of Representations
and Warranties.

 

The representations and warranties of Sharing
Economy in this Agreement shall have been true and correct as of the date of this Agreement and shall be true and correct on and
as of the Closing and Sharing Economy shall have performed all obligations in this Agreement required to be performed or observed
by them on or prior to the Closing.

 

7.2 Additional Conditions
to Closing.

 

(a) All necessary approvals
under federal and state securities laws and other authorizations relating to the issuance and transfer of the Acquisition Shares
by Sharing Economy and the transfer of the Shares by OOB HK shall have been received.

 

(b) No preliminary or
permanent injunction or other order by any federal, state or foreign court of competent jurisdiction which prohibits the consummation
of the Exchange shall have been issued and remain in effect. No statute, rule, regulation, executive order, stay, decree, or judgment
shall have been enacted, entered, issued, promulgated or enforced by any court or governmental authority which prohibits or restricts
the consummation of the Exchange. All Requisite Regulatory Approvals shall have been filed, occurred or been obtained and all such
Requisite Regulatory Approvals shall be in full force and effect.

 

(c) There shall not
be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the Exchange,
by any federal or state Governmental Body which, in connection with the grant of a Requisite Regulatory Approval, imposes any condition
or restriction upon the Surviving Corporation or its subsidiaries (or, in the case of any disposition of assets required in connection
with such Requisite Regulatory Approval, upon Sharing Economy, its subsidiaries, OOB HK or any of their subsidiaries), including,
without limitation, requirements relating to the disposition of assets, which in any such case would so materially adversely impact
the economic or business benefits of the Exchange as to render inadvisable the consummation of the Exchange.

 

7.3 Sharing Economy
Closing Certificates.

 

The Shareholders shall
have received the following documents:

 

(a) copies of resolutions
of Sharing Economy, certified by a Secretary, Assistant Secretary or other appropriate officer of Sharing Economy, authorizing
the execution, delivery and performance of the Transactional Agreements and the Exchange;

 

    28

     

    

 

(b) good standing certificates
for the State of Nevada; and

 

(c) such other documents
as OOB HK may request in good faith for the purpose of (i) evidencing the accuracy of any representation or warranty made by Sharing
Economy, (ii) evidencing the compliance by Sharing Economy with, or the performance by Sharing Economy of, any covenant or obligation
set forth in this Agreement or any of the other Transactional Agreements, (iii) evidencing the satisfaction of any condition set
forth in Article VI or this Article VII, or (iv) otherwise facilitating the consummation or performance of the Exchange.

 

7.4 No Material Adverse
Change.

 

There shall not have
been any material adverse change in Sharing Economy’s business, condition, assets, liabilities, operations or financial performance
since the date of this Agreement.

 

7.5 Performance of
Agreements.

 

Sharing Economy shall
have executed and delivered each of the agreements, instruments and documents required to be executed and delivered, and performed
all actions required by Sharing Economy pursuant to this Agreement, except as OOB HK and the Shareholders have otherwise consented
in writing.

 

7.6 Consents.

 

Each of the Consents
identified or required to have been identified in Section 3.4 shall have been obtained and shall be in full force and effect, other
than those Consents the absence of which shall not have a material adverse effect on Sharing Economy.

 

7.7 Sharing Economy
Stock.

 

On the Closing Date,
shares of Sharing Economy Common Stock shall be eligible for quotation on the OTCMarkets.

 

ARTICLE VIII.

 

FURTHER ASSURANCES

 

Each of the parties
hereto agrees that it will, from time to time after the date of the Agreement, execute and deliver such other certificates, documents
and instruments and take such other action as may be reasonably requested by the other party to carry out the actions and transactions
contemplated by this Agreement, including the closing conditions described in Articles VI and VII. OOB HK and the Shareholders
shall reasonably cooperate with Sharing Economy in its obtaining of the books and records of OOB HK, or in preparing any solicitation
materials to be sent to the shareholders of Sharing Economy in connection with the approval of the Exchange and the transactions
contemplated by the Transactional Agreements.

 

    29

     

    

 

ARTICLE IX.

 

TERMINATION

 

9.1 Termination.

 

This Agreement may be
terminated and the Exchange abandoned at any time prior to the Closing Date:

 

(a) by mutual written
consent of Sharing Economy, OOB HK and the Shareholders;

 

(b) by Sharing Economy
if (i) there is a material Breach of any covenant or obligation of OOB HK or the Shareholders; provided however, that if such Breach
or Breaches are capable of being cured prior to the Closing Date, such Breach or Breaches shall not have been cured within 10 days
of delivery of the written notice of such Breach, or (ii) Sharing Economy reasonably determines that the timely satisfaction of
any condition set forth in Article VI has become impossible or impractical (other than as a result of any failure on the part of
Sharing Economy to comply with or perform its covenants and obligations under this Agreement or any of the other Transactional
Agreements);

 

(b) by OOB HK if (i)
there is a material Breach of any covenant or obligation of Sharing Economy; provided, however, that if such Breach
or Breaches are capable of being cured prior to the Closing Date, such Breach or Breaches shall not have been cured within 10 days
of delivery of the written notice of such Breach, or (ii) OOB HK reasonably determines that the timely satisfaction of any condition
set forth in Article VII has become impossible or impractical (other than as a result of any failure on the part of OOB HK or any
Shareholder to comply with or perform any covenant or obligation set forth in this Agreement or any of the other Transactional
Agreements);

 

(d) by Sharing Economy
if the Closing has not taken place on or before January 31, 2020, (except if as a result of any failure on the part of Sharing
Economy to comply with or perform its covenants and obligations under this Agreement or in any other Transactional Agreement);

 

(e) by OOB HK if the
Closing has not taken place on or before January 31, 2020 (except if as a result of the failure on the part of OOB HK or the Shareholders
to comply with or perform any covenant or obligation set forth in this Agreement or in any other Transactional Agreement);

 

(f) by any of Sharing
Economy, on the one hand or OOB HK, on the other hand, if any court of competent jurisdiction in the United States or other United
States governmental body shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise
prohibiting the Exchange and such order, decree, ruling or any other action shall have become final and non-appealable; provided,
however, that the party seeking to terminate this Agreement pursuant to this clause (f) shall have used all commercially reasonable
efforts to remove such order, decree or ruling; or

 

(g) The parties hereby
agree and acknowledge that a breach of the provisions of Articles 4.1, 4.2, 4.3, 4.4 and 4.6 are, without limitation, material
Breaches of this Agreement.

 

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9.2 Termination Procedures.

 

If Sharing Economy wishes
to terminate this Agreement pursuant to Section 9.1, Sharing Economy shall deliver to the Shareholders and OOB HK a written notice
stating that Sharing Economy is terminating this Agreement and setting forth a brief description of the basis on which Sharing
Economy is terminating this Agreement. If OOB HK wishes to terminate this Agreement pursuant to Section 9.1, OOB HK shall deliver
to Sharing Economy a written notice stating that OOB HK is terminating this Agreement and setting forth a brief description of
the basis on which OOB HK is terminating this Agreement.

 

9.3 Effect of Termination.

 

In the event of termination
of this Agreement as provided above, this Agreement shall forthwith have no further effect. Except for a termination resulting
from a Breach by a party to this Agreement, there shall be no liability or obligation on the part of any party hereto. In the event
of a breach, the remedies of the non-breaching party shall be to seek damages from the breaching party or to obtain an order for
specific performance, in addition to or in lieu of other remedies provided herein. Upon request after termination, each party will
redeliver or, at the option of the party receiving such request, destroy all reports, work papers and other material of any other
party relating to the Exchange, whether obtained before or after the execution hereof, to the party furnishing same; provided,
however, that OOB HK and the Shareholders shall, in all events, remain bound by and continue to be subject to Section 4.6 and all
parties shall in all events remain bound by and continue to be subject to Section 5.4 and 5.5.

 

Notwithstanding the
above, both Sharing Economy, on the one hand, and OOB HK and the Shareholders, on the other hand, shall be entitled to announce
the termination of this Agreement by means of a mutually acceptable press release.

 

ARTICLE X.

 

MISCELLANEOUS

 

10.1 Survival of
Representations and Warranties.

 

All representations
and warranties of OOB HK and the Shareholders in this Agreement and the OOB HK Disclosure Schedule shall survive shall survive
indefinitely. The right to indemnification, reimbursement or other remedy based on such representations and warranties will not
be affected by any investigation conducted by the parties.

 

10.2 Expenses.

 

Except as otherwise
set forth herein, each of the parties to the Exchange shall bear its own expenses incurred in connection with the negotiation and
consummation of the transactions contemplated by this Agreement.

 

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10.3 Entire Agreement.

 

This Agreement and the
other Transactional Agreements contain the entire agreement of the parties hereto, and supersede any prior written or oral agreements
between them concerning the subject matter contained herein, or therein. There are no representations, agreements, arrangements
or understandings, oral or written, between the parties to this Agreement, relating to the subject matter contained in this Agreement
and the other Transaction Agreements, which are not fully expressed herein or therein. The schedules and each exhibit attached
to this Agreement or delivered pursuant to this Agreement are incorporated herein by this reference and constitute a part of this
Agreement.

 

10.4 Counterparts.

 

This Agreement may be
executed in any number of counterparts, each of which shall be deemed an original but all of which shall constitute one and the
same instrument.

 

10.5 Descriptive
Headings.

 

The Article and Section
headings in this Agreement are for convenience only and shall not affect the meanings or construction of any provision of this
Agreement.

 

10.6 Notices.

 

Any notices required
or permitted to be given under this Agreement shall be in writing and shall be deemed sufficiently given on the earlier to occur
of the date of personal delivery, the date of receipt or three (3) days after posting by overnight courier or registered or certified
mail, postage prepaid, addressed as follows:

 

If to Sharing Economy:

 

Sharing Economy International Inc.

M03, 3/F, Eton Tower,

No. 8 Hysan Avenue, Causeway Bay, Hong Kong

 

If to OOB HK:

 

OOB Media HK Limited

2003, 20/F, Tower 5

China Hong Kong City, 33 Canton Road

Tsim Sha Tsui, Kowloon, Hong Kong

 

If to the Shareholders:

 

c/o OOB Media HK Limited

2003, 20/F, Tower 5

China Hong Kong City, 33 Canton Road

Tsim Sha Tsui, Kowloon, Hong Kong

 

To such address or addresses as
a party shall have previously designated by notice to the sender given in accordance with this section.

 

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10.7 Choice of Law.

 

This Agreement shall
be construed in accordance with and governed by the laws of the State of Nevada without regard to choice of law principles. Each
of the parties hereto consents to the jurisdiction of the courts of the State of California, County of Los Angeles and to the federal
courts located in the County of Los Angeles, State of California.

 

10.8 Binding Effect;
Benefits.

 

This Agreement shall
inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. Nothing in this
Agreement, express or implied, is intended to confer on any Person other than the parties or their respective successors and permitted
assigns, the Shareholders and other Persons expressly referred to herein, any rights, remedies, obligations or liabilities under
or by reason of this Agreement.

 

10.9 Assignability.

 

Neither this Agreement
nor any of the parties’ rights hereunder shall be assignable by any party without the prior written consent of the other
parties and any attempted assignment without such consent shall be void.

 

10.10 Waiver and
Amendment.

 

Any term or provision
of this Agreement may be waived at any time by the party, which is entitled to the benefits thereof. The waiver by any party of
a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. The parties
may, by mutual agreement in writing, amend this Agreement in any respect. OOB HK and the Shareholders hereby acknowledge their
intent that this Agreement includes as a party any holder of capital stock in OOB HK at the time of Closing. Sharing Economy, OOB
HK and the Shareholders therefore agree that this Agreement may be amended, without the further consent of any party to this Agreement,
(i) to add as a new Shareholder any existing shareholder of OOB HK and (ii) to modify Annex A to reflect the addition of such shareholder.

 

10.11 Attorney’
Fees.

 

In the event of any
action or proceeding to enforce the terms and conditions of this Agreement, the prevailing party shall be entitled to an award
of reasonable attorneys’ and experts’ fees and costs, in addition to such other relief as may be granted.

 

10.12 Severability.

 

If any provision of
this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement
will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

 

10.13 Construction.

 

In executing this Agreement,
the parties severally acknowledge and represent that each: (a) has fully and carefully read and considered this Agreement; (b)
has or has had the opportunity to consult independent legal counsel regarding the legal effect and meaning of this document and
all terms and conditions hereof; (c) has been afforded the opportunity to negotiate as to any and all terms hereof; and (d) is
executing this Agreement voluntarily, free from any influence, coercion or duress of any kind. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will
be applied against any party.

 

[signature page follows]

 

    33

     

    

 

IN WITNESS WHEREOF, this Agreement has been
executed by the parties hereto as of the day and year first above written.

 

Sharing Economy:

 

	SHARING ECONOMY INTERNATIONAL INC.	 
	 	 	 	 
	By:	 	 
	 	Name:	Ping Kee Lau	 
	 	Title:	Executive Director	 
	 	 	 	 
	OOB HK: 	 
	 	 
	OOB MEDIA HK LIMITED	 
	 	 	 	 
	By: 	 	 
	 	Name: 	Fook Khong Yee	 
	 	Title:	Director	 
	 	 	 	 
	OOB HK SHAREHOLDERS:	 
	 	 
	 	 
	Fook Khong Yee	 
	 	 
	 	 
	Rana Vikram Jitendra	 
	 	 
	 	 
	Tack Yoan Chan	 
	 	 
	 	 
	Yen Hock Ting	 
	 	 
	 	 
	Seng Bee Lim	 

 

    34

     

    

 

EXHIBIT A

 

CERTAIN DEFINITIONS

 

For purposes of the Agreement (including
this Exhibit A):

 

Agreement. “Agreement”
shall mean the Share Exchange Agreement to which this Exhibit A is attached (including all Disclosure Schedules and all Exhibits),
as it may be amended from time to time.

 

Approved Plans.
“Approved Plans” shall mean a stock option or similar plan for the benefit of employees or others, which has been approved
by the shareholders of OOB HK

 

OOB HK Shares of
Common Stock. “OOB HK Shares of Common Stock” shall mean the shares of common stock of OOB HK

 

Breach. There
shall be deemed to be a “Breach” of a representation, warranty, covenant, obligation or other provision if there is
or has been any inaccuracy in or breach of, or any failure to comply with or perform, such representation, warranty, covenant,
obligation or other provision.

 

Certificates.
“Certificates” shall have the meaning specified in Section 1.3 of the Agreement.

 

Sharing Economy.
“Sharing Economy” shall have the meaning specified in the first paragraph of the Agreement.

 

Sharing Economy Common
Stock. “Sharing Economy Common Stock” shall mean the shares of common stock of Sharing Economy.

 

Sharing Economy SEC
Reports. “Sharing Economy SEC Reports” shall have the meaning specified in Section 4.6 of the Agreement.

 

Closing. “Closing”
shall have the meaning specified in Section 1.5 of the Agreement.

 

Closing Date.
“Closing Date” shall have the meaning specified in Section 1.5 of the Agreement.

 

Code. “Code”
shall mean the Internal Revenue Code of 1986 or any successor law, and regulations issued by the IRS pursuant to the Internal Revenue
Code or any successor law.

 

Confidential Information.
“Confidential Information” shall mean all nonpublic information disclosed by one party or its agents (the “Disclosing
Party”) to the other party or its agents (the “Receiving Party”) that is designated as confidential or that,
given the nature of the information or the circumstances surrounding its disclosure, reasonably should be considered as confidential.
Confidential Information includes, without limitation (i) nonpublic information relating to the Disclosing Party’s technology,
customers, vendors, suppliers, business plans, intellectual property, promotional and marketing activities, finances, agreements,
transactions, financial information and other business affairs, and (ii) third-party information that the Disclosing Party is obligated
to keep confidential.

 

    35

     

    

 

Confidential Information
does not include any information that (i) is or becomes publicly available without breach of this Agreement, (ii) can be shown
by documentation to have been known to the Receiving Party at the time of its receipt from the Disclosing Party, (iii) is received
from a third party who, to the knowledge of the Receiving Party, did not acquire or disclose such information by a wrongful or
tortious act, or (iv) can be shown by documentation to have been independently developed by the Receiving Party without reference
to any Confidential Information.

 

Consent. “Consent”
shall mean any approval, consent, ratification, permission, waiver or authorization (including any Governmental Authorization).

 

Disclosure Schedule
Update. “Disclosure Schedule Update” shall have the meaning specified in Section 4.4 of the Agreement.

 

OOB HK Disclosure
Schedule. “OOB HK Disclosure Schedule” shall have the meaning specified in introduction to Article II of the Agreement.

 

Entity. “Entity”
shall mean any corporation (including any nonprofit corporation), general partnership, limited partnership, limited liability partnership,
joint venture, estate, trust, cooperative, foundation, society, political party, union, company (including any limited liability
company or joint stock company), firm or other enterprise, association, organization or entity.

 

Environmental Laws.
“Environmental Laws” shall mean any Law or other requirement relating to the protection of the environment, health,
or safety from the release or disposal of hazardous materials.

 

Environmental Permit.
“Environmental Permit” means all licenses, permits, authorizations, approvals, franchises and rights required under
any applicable Environmental Law or Order.

 

Equity Securities.
“Equity Security” shall mean any stock or similar security, including, without limitation, securities containing equity
features and securities containing profit participation features, or any security convertible into or exchangeable for, with or
without consideration, any stock or similar security, or any security carrying any warrant, right or option to subscribe to or
purchase any shares of capital stock, or any such warrant or right.

 

Exchange Act.
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 

GAAP. “GAAP”
shall mean United States Generally Accepted Accounting Principles, applied on a consistent basis.

 

    36

     

    

 

Governmental Authorization.
“Governmental Authorization” shall mean any:

 

		(F)	permit, license, certificate, franchise, concession, approval, consent, ratification, permission,
clearance, confirmation, endorsement, waiver, certification, designation, rating, registration, qualification or authorization
that is issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any
Law; or

 

(b) right under any
contract with any Governmental Body.

 

Governmental Body.
“Governmental Body” shall mean any:

 

		(F)	nation, principality, state, commonwealth, province, territory, county, municipality, district
or other jurisdiction of any nature;

 

(b) federal, state,
local, municipal, foreign or other government;

 

(c) governmental or
quasi-governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch,
office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or Entity and
any court or other tribunal); or

 

(d) individual, Entity
or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military
or taxing authority or power of any nature, including any court, arbitrator, administrative agency or commissioner, or other governmental
authority or instrumentality.

 

Indebtedness.
“Indebtedness” shall mean any obligation, contingent or otherwise. Any obligation secured by a Lien on, or payable
out of the proceeds of, or production from, property of the relevant party will be deemed to be Indebtedness.

 

Intellectual Property.
“Intellectual Property” means all industrial and intellectual property, including, without limitation, all U.S. and
non-U.S. patents, patent applications, patent rights, trademarks, trademark applications, common law trademarks, Internet domain
names, trade names, service marks, service mark applications, common law service marks, and the goodwill associated therewith,
copyrights, in both published and unpublished works, whether registered or unregistered, copyright applications, franchises, licenses,
know-how, trade secrets, technical data, designs, customer lists, confidential and proprietary information, processes and formulae,
all computer software programs or applications, layouts, inventions, development tools and all documentation and media constituting,
describing or relating to the above, including manuals, memoranda, and records, whether such intellectual property has been created,
applied for or obtained anywhere throughout the world.

 

Knowledge. A
corporation shall be deemed to have “knowledge” of a particular fact or matter only if a director or officer of such
corporation has, had or should have had knowledge of such fact or matter.

 

Laws. “Laws”
means, with respect to any Person, any U.S. or non-U.S. federal, national, state, provincial, local, municipal, international,
multinational or other law (including common law), constitution, statute, code, ordinance, rule, regulation or treaty applicable
to such Person.

 

    37

     

    

 

Lien. “Lien”
shall mean any mortgage, pledge, security interest, encumbrance, lien or charge, right of first refusal, encumbrance or other adverse
claim or interest of any kind, including, without limitation, any conditional sale or other title retention agreement, any lease
in the nature thereof and the filing of or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction
and including any lien or charge arising by Law.

 

Material Adverse
Effect. “Material Adverse Effect” means any change, effect or circumstance which, individually or in the aggregate,
would reasonably be expected to (a) have a material adverse effect on the business, assets, financial condition or results of operations
of the affected party, in each case taken as a whole or (b) materially impair the ability of the affected party to perform its
obligations under this Agreement and the Transaction Agreements, excluding any change, effect or circumstance resulting from (i)
the announcement, pendency or consummation of the transactions contemplated by this Agreement, (ii) changes in the United States
securities markets generally, or (iii) changes in general economic, currency exchange rate, political or regulatory conditions
in industries in which the affected party operates.

 

Material Contract.
“Material Contract” means any and all agreements, contracts, arrangements, understandings, leases, commitments or otherwise,
providing for potential payments by or to the company in excess of $1,000, and the amendments, supplements and modifications thereto.

 

Order. “Order”
shall mean any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by
any Governmental Body.

 

Ordinary Course of
Business. “Ordinary Course of Business” shall mean an action taken by OOB HK if (i) such action is taken in normal
operation, consistent with past practices, (ii) such action is not required to be authorized by the Shareholders, Board of Directors
or any committee of the Board of the Directors or other governing body of OOB HK and (iii) does not require any separate or special
authorization or consent of any nature by any Governmental Body or third party.

 

Permitted Liens.
“Permitted Liens” shall mean (a) Liens for Taxes not yet payable or in respect of which the validity thereof is being
contested in good faith by appropriate proceedings and for the payment of which the relevant party has made adequate reserves;
(b) Liens in respect of pledges or deposits under workmen’s compensation laws or similar legislation, carriers, warehousemen,
mechanics, laborers and materialmen and similar Liens, if the obligations secured by such Liens are not then delinquent or are
being contested in good faith by appropriate proceedings conducted and for the payment of which the relevant party has made adequate
reserves; and (c) statutory Liens incidental to the conduct of the business of the relevant party which were not incurred in connection
with the borrowing of money or the obtaining of advances or credits and that do not in the aggregate materially detract from the
value of its property or materially impair the use thereof in the operation of its business.

 

    38

     

    

 

Person. “Person”
shall mean any individual, Entity or Governmental Body.

 

Pre-Closing Period.
“Pre-Closing Period” shall mean the period commencing as of the date of the Agreement and ending on the Closing Date.

 

Proceeding. “Proceeding”
shall mean any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative
or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation,
commenced, brought, conducted or heard by or before, or otherwise has involved, any Governmental Body or any arbitrator or arbitration
panel.

 

Representatives.
“Representatives” of a specified party shall mean officers, directors, employees, attorneys, accountants, advisors
and representatives of such party, including, without limitation, all subsidiaries of such specified party, and all such Persons
with respect to such subsidiaries. The Related Persons of OOB HK shall be deemed to be “Representatives” of OOB HK,
as applicable.

 

SEC. “SEC”
shall mean the United States Securities and Exchange Commission.

 

Securities Act.
“Securities Act” shall mean the United States Securities Act of 1933, as amended.

 

Taxes. “Taxes”
shall mean all foreign, federal, state or local taxes, charges, fees, levies, imposts, duties and other assessments, as applicable,
including, but not limited to, any income, alternative minimum or add-on, estimated, gross income, gross receipts, sales, use,
transfer, transactions, intangibles, ad valorem, value-added, franchise, registration, title, license, capital, paid-up capital,
profits, withholding, payroll, employment, unemployment, excise, severance, stamp, occupation, premium, real property, recording,
personal property, federal highway use, commercial rent, environmental (including, but not limited to, taxes under Section 59A
of the Code) or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest, penalties or additions to tax with respect to any of the foregoing; and “Tax”
means any of the foregoing Taxes.

 

Tax Group. “Tax
Group” shall mean any federal, state, local or foreign consolidated, affiliated, combined, unitary or other similar group
of which OOB HK is now or was formerly a member.

 

Tax Return. “Tax
Return” shall mean any return, declaration, report, claim for refund or credit, information return, statement or other similar
document filed with any Governmental Body with respect to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

 

Transaction Agreements.
“Transactional Agreements” shall mean this Agreement and any agreement or document to be executed pursuant to this
Agreement.

 

    39

     

    

 

ANNEX A

 

	Stockholder	 	Number of Shares of Common Stock of OOB HK Held	 	 	Number of Shares of Preferred Stock of OOB HK Held	 
	Fook Khong Yee	 	 	9500	 	 	 	2006	 
	Rana Vikram Jitemdra	 	 	339	 	 	 	0	 
	Seng Bee Lim	 	 	81	 	 	 	0	 
	Yen Hock Ting	 	 	52	 	 	 	0	 
	Tack Yoan Chan	 	 	28	 	 	 	0	 
	 	 	 	TOTAL 10,000	 	 	 	TOTAL 2006	 

 

 

40Microsoft Word - Consolidated comments EQUITY FINANCING AGREEMENT APPLIFE.doc

EQUITY FINANCING AGREEMENT

 

This EQUITY FINANCING AGREEMENT (the “Agreement”), dated as of April 4, 2018 (the “Execution Date”), is entered into by and between Applife Digital Solutions, Inc., a Nevada corporation with its principal executive office at 338 N. Market St., #161, San Jose, CA 95110 (the “Company”),and GHS Investments LLC, a Nevada limited liability company, with offices at 420 Jericho Turnpike, Suite 207, Jericho, NY 11753. (the “Investor”)

 

RECITALS:

 

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Five Million Dollars ($5,000,000) (the "Commitment Amount"), through the purchase of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) from time to time over the course of twenty-four (24) months following an effective registration of the underlying shares (the “Contract Period”);

 

WHEREAS, such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act, and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments in Common Stock to be made hereunder; and

 

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and applicable state securities laws.

 

NOW THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION I. DEFINITIONS

 

For all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable to the singular and plural forms of such defined terms.

 

“1933 Act” shall have the meaning set forth in the recitals.

 

“1934 Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder, all as the same will then be in effect.

 

“Affiliate” shall have the meaning set forth in Section 5.7.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Articles of Incorporation” shall have the meaning set forth in Section 4.3.

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“By-laws” shall have the meaning set forth in Section 4.3.

 

“Closing” shall have the meaning set forth in Section 2.4.

 

“Commitment Note” shall have the meaning set forth in Section 2.7.

 

“Closing Date” shall have the meaning set forth in Section 2.4.

 

“Common Stock” shall have the meaning set forth in the recitals. “Control” or “Controls” shall have the meaning set forth in Section 5.7.

“Effective Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Environmental Laws” shall have the meaning set forth in Section 4.13.

 

“Execution Date” shall have the meaning set forth in the preamble. “Indemnified Liabilities” shall have the meaning set forth in Section 10.

“Indemnitees” shall have the meaning set forth in Section 10.

 

“Indemnitor” shall have the meaning set forth in Section 10.

 

“Ineffective Period” shall mean any period of time that the Registration Statement or any supplemental registration statement becomes ineffective or unavailable for use for the sale or resale, as applicable, of any or all of the Registrable Securities (as defined in the Registration Rights Agreement) for any reason (or in the event the prospectus under either of the above is not current and deliverable) during any time period required under the Registration Rights Agreement.

 

“Investor” shall have the meaning set forth in the preamble.

 

“Market Price” shall mean the lowest traded price of the Company's Common Stock during the Pricing Period.

 

“Material Adverse Effect” shall have the meaning set forth in Section 4.1.

 

“Maximum Common Stock Issuance” shall have the meaning set forth in Section 2.5.

 

“Open Period” shall mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the earlier to occur of (i) the date which is twenty four

(24) months from the Effective Date; or (ii) termination of the Agreement in accordance with Section 8.

 

“Pricing Period” shall mean ten (10) consecutive trading days preceding the receipt of the applicable Put Notice.

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“Principal Market” shall mean the New York Stock Exchange, the NYSE Amex, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC Markets, whichever is the principal market on which the Common Stock is listed.

 

“Prospectus” shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

“Purchase Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

“Purchase Price” shall mean eighty percent (80%) of the Market Price.

 

“Put” shall mean the Company is entitled to request equity investments (the “Put” or “Puts”) by the Investor during the Contract Period, pursuant to which the Company will issue Common Stock to the Investor with an aggregate Purchase Price equal to the value of the Put, subject to a price per share calculation based on the Market Price.

 

“Put Amount” shall mean the total dollar amount requested by the Company pursuant to an applicable Put. The timing and amounts of each Put shall be at the discretion of the Company. The maximum dollar amount of each Put will not exceed two hundred percent (200%) of the average daily trading dollar volume for the Company’s Common Stock during the ten (10) trading days preceding the Put Date. No Put will be made in an amount greater than three hundred thousand dollars ($300,000). Puts are further limited to the Investor owning no more than 9.99% of the outstanding stock of the Company at any given time.

 

“Put Notice” shall mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued and outstanding on such date.

 

“Put Notice Date” shall mean the Trading Day, as set forth below, on which the Investor receives a Put Notice.

 

 

“Put Restriction” shall mean a minimum of ten (10) days following a Put Notice Date. During this time, the Company shall not be entitled to deliver another Put Notice.

 

“Put Shares Due” shall have the meaning set forth in Section 2.4.

 

“Registered Offering Transaction Documents” shall mean this Agreement, the Commitment Note and the Registration Rights Agreement between the Company and the Investor as of the date herewith.

 

“Registration Rights Agreement” shall have the meaning set forth in the recitals.

 

“Registration Statement” means the registration statement of the Company filed under the 1933 Act covering the Securities issuable hereunder.

 

“Related Party” shall have the meaning set forth in Section 5.7.

 

“Resolution” shall have the meaning set forth in Section 7.5.

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“SEC” shall mean the U.S. Securities and Exchange Commission. “SEC Documents” shall have the meaning set forth in Section 4.6.

“Securities” shall mean the shares of Common Stock issued pursuant to the terms of this Agreement.

 

“Settlement Date” shall have the meaning set forth in Section 6.2.

 

“Shares” shall mean the shares of the Company’s Common Stock. “Subsidiaries” shall have the meaning set forth in Section 4.1.

“Trading Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00 pm.

 

“Transaction Documents” shall mean this Agreement, the Commitment Note, the Registration Rights Agreement and supporting documents between the Company and the Investor as of the date hereof.

 

“Waiting Period” shall have the meaning set forth in Section 2.2.

 

SECTION II

PURCHASE AND SALE OF COMMON STOCK

 

2.1PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Price of Five Million Dollars ($5,000,000). 

 

2.2DELIVERY OF PUT NOTICES. Subject to the terms and conditions herein, and from time to time during the Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor, which states the dollar amount (designated in U.S. Dollars), which the Company intends to sell to the Investor on a Closing Date (the “Put”). The Put Notice shall be in the form attached hereto as Exhibit C and incorporated herein by reference. The price of the Put shall be eighty (80%) percent of the “Market Price”, which is the lowest traded price of the Company’s Common Stock for ten (10) consecutive trading days preceding the Put Date. During the Open Period, the Company shall not be entitled to submit a Put Notice until after the previous Closing has been completed. There will be a minimum of ten (10) trading days between Put Notices. 

 

2.3CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement, the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing unless each of the following conditions are satisfied: 

 

i.a Registration Statement shall have been declared effective and shall remain effective and available for the resale of all the Registrable Securities (as defined in the Registration Rights Agreement) at all times until the Closing with respect to the subject Put Notice; 

 

ii.at all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date, the Common Stock shall have been listed or quoted 

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for trading on the Principal Market and shall not have been suspended from trading thereon for a period of two (2) consecutive Trading Days during the Open Period and the Company shall not have been notified of any pending or threatened proceeding or other action to suspend the trading of the Common Stock;

 

iii.the Company has complied with its obligations and is otherwise not in breach of or in default under, this Agreement, the Registration Rights Agreement or any other agreement executed between the parties, which has not been cured prior to delivery of the Investor’s Put Notice Date; 

 

iv.no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and 

 

v.the issuance of the Securities will not violate any shareholder approval requirements of the Principal Market. 

 

If any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation to purchase the Put Amount of Common Stock set forth in the applicable Put Notice.

 

2.4MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.5, 7 and 8 of this Agreement, at the end of the Pricing Period, the Purchase Price shall be established and the number of Put Shares shall be delivered for a particular Put. In the event that (i) the lowest volume-weighted average price (the “VWAP”) of the Company’s Common Stock for any given trading day during the ten (10) trading days following a Put Notice (the “Trading Period”) is less than 80% of the Market Price used to determine the Purchase Price in connection with the Put and (ii) as of the end of such Trading Period, the Investor holds Shares issued pursuant to such Put Notice (the “Trading Period Shares”), then the Company shall issue such additional Shares, on the Trading Day immediately following the Trading Period, as may be necessary to adjust the Purchase Price for that portion of the Put represented by the Trading Period Shares to equal the lowest VWAP during the Trading Period. 

 

The Closing of a Put shall occur upon the first Trading Day following the receipt and approval by Investor's broker of the Put Shares, whereby the Company shall have caused the Transfer Agent to electronically transmit, prior to the applicable Closing Date, the applicable Put Shares by crediting the account of the Investor's broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system. The Investor shall deliver the Investment Amount specified in the Put Notice by wire transfer of immediately available funds to an account designated by the Company within twenty four (24) business hours of receipt and approval by the Investor’s Broker ("Closing Date" or "Closing"). In addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each other all documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

 

2.5OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period the Company becomes listed on an exchange which limits the number of shares of Common Stock that may be issued without shareholder approval, then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the shares of Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be approved by 

5

the Company’s shareholders in accordance with applicable law and the By-laws and the Articles of Incorporation of the Company, if such issuance of shares of Common Stock could cause a delisting on the Principal Market. The parties understand and agree that the Company’s failure to seek or obtain such shareholder approval shall in no way adversely affect the validity and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance, and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.5.

 

2.6LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 9.99% of the number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act. 

 

2.7COMMITMENT NOTE. Upon the execution of the Transaction Documents, the Company shall issue to the Investor a $67,500 Promissory Note, maturing nine (9) months from execution, as a Commitment Note ("Commitment Note"). The Commitment Note shall be deemed earned upon the execution of this Agreement. 

 

 

 

SECTION III

 

INVESTOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The Investor represents and warrants to the Company, and covenants, that to the best of the Investor's knowledge:

 

3.1SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating the merits and risks of an investment in the Securities and making an informed investment decision; (II) protecting its own interest; and (III) bearing the economic risk of such investment for an indefinite period of time. 

 

3.2AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor 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. 

 

3.3SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. 

 

3.4ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act. 

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3.5NO CONFLICTS. The execution, delivery and performance of the Documents by the Investor and the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of Partnership Agreement or other organizational documents of the Investor. 

 

3.6OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations, which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company with the Company’s management. 

 

3.7INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions of the 1933 Act (or pursuant to an exemption from such registration provisions). 

 

3.8NO REGISTRATION AS A DEALER. The Investor is not required to be registered as a “dealer” under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise. 

 

3.9GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing in the State of its Nevada. 

 

3.10TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities. 

 

3.11REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable. 

 

3.12NO SHORT SALES. No short sales shall be permitted by the Investor or its affiliates during the period commencing on the Execution Date and continuing through the termination of this Agreement. 

 

SECTION IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the Schedules attached hereto, or as disclosed on the Company’s SEC Documents, the Company represents and warrants to the Investor that:

 

4.1ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under the laws of the State of Nevada and has the requisite corporate power and authorization to own its properties and to carry on its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Registered offering Transaction Documents. 

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4.2AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS. 

 

i.The Company has the requisite corporate power and authority to enter into and perform this Investment Agreement and the Registration Rights Agreement (collectively, the “Registered Offering Transaction Documents”), and to issue the Securities in accordance with the terms hereof and thereof. 

 

ii.The execution and delivery of the Registered Offering Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation the issuance of the Securities pursuant to this Agreement, have been duly and validly authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors, or its shareholders. 

 

iii.The Registered Offering Transaction Documents have been duly and validly executed and delivered by the Company. 

 

iv.The Registered Offering Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. 

 

4.3CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 510,000,000 shares of the Common Stock, par value $0.001 per share, of which as of the date hereof ares are issued and outstanding. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable. 

_________sh

0

 

Except as disclosed in the Company’s publicly available filings with the SEC or as otherwise set forth on Schedule 4.3:

 

i.no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; 

 

ii.there are no outstanding debt securities; 

 

iii.there are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries; 

 

iv.there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement); 

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v.there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; 

 

vi.there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement; 

 

vii.the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and 

 

viii.there is no dispute as to the classification of any shares of the Company’s capital stock. 

 

The Company has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s Articles of Incorporation, as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

 

4.4ISSUANCE OF SHARES. The Company has reserved the amount of Shares included in the Company’s registration statement for issuance pursuant to the Registered Offering Transaction Documents, which have been duly authorized and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. In the event the Company cannot register a sufficient number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable. 

 

4.5NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Articles of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws; or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party, or to the Company’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading market on which the Common Stock is traded or listed) 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. Neither the Company nor its Subsidiaries is in violation of any term of, or in default under, the Articles of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational charter or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations, amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation 

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of any governmental authority or agency, regulatory or self-regulatory agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities laws of any states, to the Company’s knowledge, the Company is not required to obtain any consent, authorization, permit or order of, or make any filing or registration (except the filing of a registration statement as outlined in the Registration Rights Agreement between the parties) with, any court, governmental authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Registered Offering Transaction Documents in accordance with the terms hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date hereof. The Company and its Subsidiaries are unaware of any facts or circumstances, which might give rise to any of the foregoing. The Company is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date hereof and on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal Market in the foreseeable future.

 

4.6 SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, 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 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 incorporated by reference therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”). The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and complete copies of the SEC Documents. As of their respective filing dates, 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 or the time they were amended, if amended, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, 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 generally accepted accounting principles, by a firm that is a member of the Public Companies Accounting Oversight Board (“PCAOB”) consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents, including, without limitation, information referred to in Section 4.3 of this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of their officers, directors, employees or agents have provided the Investor with any material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, employees or agents prior to any Closing Date shall be publicly disclosed by the Company prior to such Closing Date. 

 

4.7ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the business operations of the Company in any 

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material way. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit, 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 executive officers of Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a Material Adverse Effect. 

 

4.9ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length Investor with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that the Company’s decision to enter into the Registered Offering Transaction Documents has been based solely on the independent evaluation by the Company and its representatives. 

 

4.10NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced. 

 

4.11EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s employ or otherwise terminate such officer’s employment with the Company. 

 

4.12INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated, or are expected to expire or terminate within two (2) years from the date of this Agreement. 

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The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties.

 

4.13TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 

 

4.14INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

 

4.15REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits which if not obtained, or such revocations or modifications which, would not have a Material Adverse Effect. 

 

4.16INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership to the PCAOB and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company’s management has determined that the 

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Company’s internal accounting controls were not effective as of the date of this Agreement as further described in the SEC Documents.

 

4.17NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement, which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect. 

 

4.18TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

 

4.19CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and except for arm’s length transactions pursuant to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain from disinterested third parties , none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.. 

 

4.20DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. 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 on the shareholders of the Company. The Board of Directors of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Registered Offering Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company. 

 

4.21NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged in any form of general solicitation or general advertising (within 

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the meaning of Regulation D) in connection with the offer or sale of the Common Stock to be offered as set forth in this Agreement.

 

4.22NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement. 

 

4.23EXCLUSIVITY. The Company shall not pursue a similar Equity Financing transaction with any other party unless and until good faith negotiations have terminated between the Investor and the Company or until such time as the registration statement has been declared effective by the SEC. 

 

SECTION V COVENANTS OF THE COMPANY

 

5.1BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth in Section 7 of this Agreement. 

 

5.2REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8 and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933 Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated pursuant to Section 8. 

 

5.3USE OF PROCEEDS. The Company will use the proceeds from the sale of the Shares (excluding amounts paid by the Company for fees as set forth in the Registered Offering Transaction Documents) for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest of the Company. 

 

5.4FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof to the shareholders; and (iii) within two 

(2) calendar days of filing or delivery thereof, copies of all documents filed with, and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory Association, unless such information is material nonpublic information.

 

5.5RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount of Shares included in the Company’s registration statement for issuance pursuant to the Registered Offering Transaction Documents. In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve and keep available for issuance as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional shares. 

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5.6LISTING. The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation system, if any, upon which shares of  Common Stock are then listed (subject to official notice of issuance) and shall maintain, such listing of all Registrable Securities from time to time issuable under the terms of the Registered Offering Transaction Documents. Neither the Company nor any of its Subsidiaries shall take any action, which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.6. 

 

5.7TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend, modify or supplement, or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction, commitment or arrangement with any of its or any Subsidiary’s officers, directors, persons who were officers or directors at any time during the previous two (2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates or with any individual related by blood, marriage or adoption to any such individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest (each a “Related Party”), except for (i) customary employment arrangements and benefit programs on reasonable terms, 

(ii) any agreement, transaction, commitment or arrangement on an arms-length basis on terms no less favorable than terms which would have been obtainable from a disinterested third party other than such Related Party, or (iii) any agreement, transaction, commitment or arrangement which is approved by a majority of the disinterested directors of the Company. For purposes hereof, any director who is also an officer of the Company or any Subsidiary of the Company shall not be a disinterested director with respect to any such agreement, transaction, commitment or arrangement. “Affiliate” for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has a 5% or more equity interest in that person or entity, (ii) has 5% or more common ownership with that person or entity, (iii) controls that person or entity, or (iv) is under common control with that person or entity. “Control” or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly, to conduct or govern the policies of another person or entity.

 

5.8FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Registered Offering Transaction Documents in the form required by the 1934 Act, if such filing is required. 

 

5.9CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence of the Company. 

 

5.10NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of the qualification or exemption from 

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qualification of any of the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any Put Notice during the continuation of any of the foregoing events in this Section 5.10.

 

5.11TRANSFER AGENT. The Company shall deliver instructions to its transfer agent to issue Shares to the Investor that are issued to the Investor Pursuant to the Transactions contemplated herein. 

 

5.12ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement. 

 

SECTION VI

CONDITIONS OF THE COMPANY’S OBLIGATION TO SELL

 

The obligation hereunder of the Company to issue and sell the Securities to the Investor 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.

 

6.1The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company. 

6.2The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor. 

6.3No 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. 

 

SECTION VII

FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE

 

The obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of each of the following conditions set forth below.

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7.1The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor. 

 

7.2The 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 and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the Registered Offering Transaction Documents to be performed, satisfied or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing Date regarding the representation contained in Section 4.3. 

 

7.3The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing. 

 

7.4The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”) and such Resolutions shall not have been amended or rescinded prior to such Closing Date. 

 

7.5No 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. 

 

7.6Pursuant to the terms of the Registration Rights Agreement, within thirty (30) days after the Agreement is executed, the Company agrees to use its best efforts to file with the SEC the Registration Statement covering the shares of stock underlying the Equity Financing contemplated herein. Such Registration Statement shall conform to the requirements of the rules and regulations of the SEC and the terms and conditions of Equity Financing this agreement as expressed in the Registration Statement shall be reviewed and approved by the Investor. The Company will take any and all steps necessary to have the Registration Statement declared effective by the SEC within 30 days but no more than 90 days after the Company has filed the Registration Statement. Such Registration Statement shall conform to the requirements of the rules and regulations of the SEC and the terms and conditions of the equity financing as expressed in the Registration Statement and shall be reviewed and approved by the Investor. The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration Statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing Date (I) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns have been addressed), and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist. 

 

7.7At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein) and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure or an update supplement to the prospectus. 

 

7.8If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common Stock Issuance in accordance with Section 2.5 or the 

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Company shall have obtained appropriate approval pursuant to the requirements of applicable state and federal laws and the Company’s Articles of Incorporation and By-laws.

 

7.9The conditions to such Closing set forth in Section 2.3 shall have been satisfied on or before such Closing Date. 

 

7.10The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of the existence of the necessary number of shares of Common Stock reserved for issuance. 

 

SECTION VIII TERMINATION

 

This Agreement shall terminate upon any of the following events:

 

8.1when the Investor has purchased an aggregate of Five Million Dollars ($5,000,000) worth of the Common Stock of the Company pursuant to this Agreement; or 

 

8.2on the date which is twenty four (24) months after the Effective Date; or 

 

8.3at such time that the Registration Statement is no longer in effect. 

 

Any and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.

 

SECTION IX SUSPENSION

 

This Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:

 

i.The trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period of two (2) consecutive Trading Days during the Open Period; or 

 

ii.The Common Stock ceases to be quoted, listed or traded on the Principal Market or the Registration Statement is no longer effective (except as permitted hereunder). Immediately upon the occurrence of one of the above-described events, the Company shall send written notice of such event to the Investor. 

 

SECTION X INDEMNIFICATION

 

In consideration of the parties mutual obligations set forth in the Transaction Documents, the Company ( the “Indemnitor”) shall defend, protect, indemnify and hold harmless the Investor and all of the investor’s shareholders, officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing person’s agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,  fees, liabilities and damages, and reasonable expenses in connection therewith (irrespective of whether any

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such 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 any Indemnitee as a result of, or arising out of, or relating to (I) any misrepresentation or breach of any representation or warranty made by the Indemnitor or any other certificate, instrument or document contemplated hereby or thereby; (II) any breach of any covenant, agreement or obligation of the Indemnitor contained in the Registered Offering Transaction Documents 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 Indemnitee by a third party and arising out of or resulting from the execution, delivery, performance or enforcement of the Registered Offering Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, except insofar as any such misrepresentation, breach or any untrue statement, alleged untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished to Indemnitor which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus or amendments to the prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights Indemnitor may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION XI

GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION.

 

11.1LAW GOVERNING THIS AGREEMENT. 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 or federal courts located in New York City, New York State. 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 parties executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Documents 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. 

 

11.2LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Registered Offering Transaction Documents (including but not limited to Section V of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers, counsel, the accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Any attorneys’ fees and expenses incurred by either the Company or the Investor in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating to the enforcement of the rights of any 

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party, after the occurrence of any breach of the terms of this Agreement by another party or any default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities.

 

11.3COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same force and effect as if such signature page were an original thereof. 

 

11.4HEADINGS; 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. 

 

11.5SEVERABILITY. 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. 

 

11.6ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the Parties. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. The execution and delivery of the Registered Offering Transaction Documents shall not alter the force and effect of any other agreements between the Parties, and the obligations under those agreements. 

 

11.7NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (III) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:  

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	If to the Company:

	Applife Digital Solutions, Inc Attn: Matthew Reid

	 

	 

	338 N. Market St., #161

	 

	 

	San Jose, CA 95110

	 

	 

	Fax:

	 

	 

	 

	 

	 

	 

	 

	With a copy to:

	 via email: mreid@applifedigital.com,

	 

	 

	mattreid.email@gmail.com

	 

	 

	Attn:

	 

	 

	 

	 

	 

	 

	 

	 

	Fax:

	 

	 

	  

	 

	 

	 

	 

	If to the Investor:

	GHS Investments, LLC

	 

	 

	420 Jericho Turnpike,

	 

	 

	Suite 207

	 

	 

	Jericho, NY 11753

 

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

 

11.8NO ASSIGNMENT. This Agreement may not be assigned. 

 

11.9NO 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, except that the Company acknowledges that the rights of the Investor may be enforced by its general partner. 

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11.10SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section 10, shall survive each of the Closings and the termination of this Agreement. 

 

11.11PUBLICITY. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel. 

 

11.12FURTHER 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. 

 

11.13PLACEMENT AGENT. If so required, the Company agrees to pay a registered broker dealer, to act as placement agent, a percentage of the Put Amount on each Put toward the fee as outlined in that certain placement agent agreement entered into between the Company and the placement agent. The Investor shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other persons or entities for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Registered Offering Transaction Documents. The Company shall indemnify and hold harmless the Investor, their employees, officers, directors, agents, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorney’s fees) and expenses incurred in respect of any such claimed or existing fees, as such fees and expenses are incurred. 

 

11.14NO 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, as the parties mutually agree that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it. 

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11.15REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision of this Agreement, including the recovery of reasonable attorneys fees and costs, and to exercise all other rights granted by law. 

 

11.16PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 

 

11.17PRICING OF COMMON STOCK. For purposes of this Agreement, the price of the Common Stock shall be as reported by Quotestream Media. 

 

SECTION XII

NON-DISCLOSURE OF NON-PUBLIC INFORMATION

 

The Company shall not disclose non-public information to the Investor, its advisors, or its representatives.

 

Nothing herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, and the Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a public offering, to money managers or to securities analysts, provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non- public information (whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in which they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean that such persons or entities other than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

SECTION XIII ACKNOWLEDGEMENTS OF THE PARTIES

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Notwithstanding anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor will not short the Company’s common stock at any time during this Agreement; (ii) the Company shall, by 8:30 a.m. EST on the second Trading Day following the date hereof, file a current report on Form 8-K disclosing the material terms of the transactions contemplated hereby and in the other Registered Offering Transaction Documents; (iii) the Company has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any transactions in the securities of the Company.

 

[Signature page follows]

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Your signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as of the date first written above. The undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and the representations made by the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms.

 

	 

	 

	GHS INVESTMENTS, LLC

	 

	 

	 

	 

	 

	 

	 

	By: 

	/s/ Sarfraz Hajee 

	 

	Name: 

	SarfrazHajee

	 

	Title: 

	Member

	 

	 

	 

	 

	 

	APPLIFE DIGITAL SOLUTIONS, INC.

	 

	 

	 

	 

	By: 

	/s/ Matt Reid

	 

	Name: 

	MatthewReid

	 

	Title:

	 ceo

 

 

[SIGNATURE PAGE OF EQUITY FINANCING AGREEMENT]

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LIST OF EXHIBITS

 

 

 

EXHIBIT ARegistration Rights Agreement EXHIBIT BNotice of Effectiveness EXHIBIT CPut Notice 

EXHIBIT DPut Settlement Sheet 

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EXHIBIT A REGISTRATION RIGHTS AGREEMENT

See attached.

27

 

 

EXHIBIT B

 

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

 

Date: __________

 

[TRANSFER AGENT]

 

Re: Applife Digital Solutions, Inc., Ladies and Gentlemen:

We are counsel to Applife Digital Solutions, Inc., a Nevada corporation (the “Company”), and have represented the Company in connection with that certain Equity Financing Agreement (the “Investment Agreement”) entered into by and among the Company and GHS Investments, LLC(the “Investor”) pursuant to which the Company has agreed to issue to the Investor shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) on the terms and conditions set forth in the Investment Agreement. Pursuant to the Investment Agreement, the Company also has entered into a Registration Rights Agreement with the Investor (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of Common Stock issued or issuable under the Investment Agreement under the Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on________, 20__, the Company filed a Registration Statement on Form S- ___ (File No. __-________) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which names the Investor as a selling shareholder thereunder.

In connection with the foregoing, we advise you that a member of the SEC's  staff has  advised  us by telephone that the SEC has entered an order declaring the Registration Statement effective under  the 1933 Act at________on________, 20 and we have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and  the  Registrable Securities are available for sale under the 1933 Act pursuant to the Registration Statement

 

 

 

 

Very truly yours,

 

 

 

[Company Counsel]

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EXHIBIT C FORM OF PUT NOTICE

 

 

Date:

 

RE: Put Notice Number

 

 

Dear Mr./Ms.__________,

 

This is to inform you that as of today, Applife Digital Solutions, Inc., a _______ corporation (the “Company”), hereby elects to exercise its right pursuant to the Equity Financing Agreement to require GHS Investments LLC to purchase shares of its common stock. The Company hereby certifies that:

 

The amount of this put is $.________

 

 

The Pricing Period runs from________ until _______________. The Purchase Price is: $________

The number of Put Shares Due: ________.

 

The current number of shares of common stock issued and outstanding is: _________________. The number of shares currently available for issuance on the S-1 is: ________.

 

 

Regards,

 

Applife Digital Solutions, Inc.,

 

By: __________________________________ Name:

Title:

29

 

 

 

EXHIBIT D

 

PUT SETTLEMENT SHEET

 

Date: ________________ Dear Mr. ________,

Pursuant to the Put given by Applife Digital Solutions, Inc., to GHS Investments LLC (“GHS”) on

_________________ 201_, we are now submitting the amount of common shares for you to issue to GHS.

 

 

Please have a certificate bearing no restrictive legend totaling immediately and send via DWAC to the following account:

 

[INSERT]

 

If not DWAC eligible, please send FedEx Priority Overnight to:

 

[INSERT ADDRESS]

__________ shares issued to GHS

 

 

Once these shares are received by us, we will have the funds wired to the Company. Regards,

GHS INVESTMENTS LLC

 

 

By: _________________________________ Name:

Title

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