Document:

EXHIBIT 4.3

 

EXHIBIT
4.3

 

FORM
OF WARRANT AGREEMENT

 

THIS
WARRANT AGREEMENT (“Agreement”) is made and entered into as of this ____ day of ______, 2013, by and between AVANGARD
CAPITAL GROUP, INC., a Nevada corporation (“Company”), and INTERWEST TRANSFER COMPANY, INC., as warrant agent (“Warrant
Agent”).

 

WHEREAS,
the Company has filed a registration statement on Form S-1 (“Registration Statement”) under the Securities Act of
1933, as amended, with the Securities Exchange Commission (the “Commission”) File No. 333-_________ relating to the
subscription for and sale of 5,000,000 units (“Units”) each Unit consisting of four (4) shares of common stock of
the Company (“Common Stock”) and a warrant to purchase two (2) shares of common stock of the Company at a per share
exercise price of $2.00 (“Warrants”); and

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection
with the issuance, registration, registration of transfer, exchange and exercise of the Warrants.

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as follows:

 

1.
Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with
the instructions hereinafter set forth in this Agreement, and the Warrant Agent hereby accepts such appointment.

 

2.
Form of Warrants. (a) The text and the terms of the Warrants shall be substantially as set forth in Exhibit A attached hereto
and made a part hereof. The Warrants shall be executed on behalf of the Company by the manual or facsimile signature of the president
or a vice president of the Company and by the manual or facsimile signature of the secretary or assistant secretary of the Company
under its corporate seal, affixed or in facsimile.

 

(b)
The Warrants shall be dated by the Warrant Agent as of the initial date of issuance thereof, and upon transfer or exchange, the
replacement Warrant shall be dated as of such subsequent issuance date.

 

3.
Registration and Countersignature. The Warrant Agent shall maintain books for the transfer and registration of the Warrants.
Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the names of the
respective registered holders, and upon subsequent issuance, such Warrants shall be registered in the names of the respective
succeeding registered holders. The Warrants shall be countersigned by the Warrant Agent (or by any successor to the Warrant
Agent then acting as warrant agent under this Agreement) and shall not be valid for any purpose unless so countersigned.
Warrants may be so countersigned, however, by the Warrant Agent (or by its successor as warrant agent) and be delivered by
the Warrant Agent, notwithstanding that the persons whose manual or facsimile signatures appear thereon as proper officers of
the Company shall have ceased to be such officers at the time of such countersignature or delivery. Until a Warrant is
transferred on the books of the Warrant Agent, the Company and the Warrant Agent may treat any registered holder of Warrants
as the absolute owner thereof for all purposes, notwithstanding any notice to the contrary.

 

    	 

    	 

    

 

4.
Registration of Transfers and Exchanges. The Warrant Agent shall transfer any outstanding Warrants on the books to be maintained
by the Warrant Agent for that purpose, upon surrender thereof for transfer, properly endorsed or accompanied by appropriate instructions
for transfer with proper documentary stamps affixed thereto, if requested. Upon any such transfer, a new Warrant shall be issued
to the transferee, and the surrendered Warrant shall be canceled by the Warrant Agent. Warrants so canceled shall be delivered
by the Warrant Agent to the Company from time to time. Warrants may be exchanged at the option of the holder thereof when surrendered
at the office of the Warrant Agent, for another Warrant, or other Warrants of different denominations, of like tenor and representing
in the aggregate the right to purchase a like number of shares of Common Stock. The Warrant Agent is hereby irrevocably authorized
to countersign and deliver the Warrants in accordance with the provisions of this Section 4, and the Company, whenever required
by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

 

5.
Exercise of Warrants. (a) Subject to the provisions of this Agreement, each registered holder of Warrants shall have the right,
which right may be exercised as in such Warrants expressed, commencing on the date the registered holder purchases the Warrant
and ending on December 31, 20__, to purchase from the Company, and the Company shall issue and sell to such registered holder
of Warrants, the number of fully paid and non-assessable shares of Common Stock specified in such Warrants, upon surrender to
the Company at the office of the Warrant Agent, with the form of election to purchase duly completed and signed, and upon payment
to the Warrant Agent for the account of the Company of the Exercise Price, as hereinafter defined, for the number of shares of
Common Stock in respect of which such Warrants are then exercised. Payment of such Exercise Price may be made in cash or by certified
check, bank draft, or postal or express money order, payable in United States dollars, to the order of the Company. Subject to
the provisions of Section 9 hereof, upon such surrender of Warrants and payment of the Exercise Price as foresaid, the Company,
acting through the Warrant Agent, shall issue and cause to be delivered with all reasonable dispatch to or upon the written order
of the registered holder of such Warrants and in such name or names as such registered holder may designate, a certificate or
certificates for the full number of shares of Common Stock so purchased upon the exercise of such Warrants. Such certificates
shall be deemed to have been issued, and any person so designated to be named therein shall be deemed to have become a holder
of record of such Common Stock, as of the date of surrender of such Warrants and payment of the Exercise Price, as aforesaid;
provided, however, that if, at the date of surrender of such Warrants and the payment of such Exercise Price, the transfer books
for the Common Stock purchasable upon the exercise of such Warrants shall be closed, the certificates for the shares in respect
of which such Warrants are then exercised shall be issuable as of the date on which such books shall next be opened, and until
such date the Company shall be under no duty to deliver any certificate for such shares; provided further, however, that the transfer
books, unless otherwise required by law, shall not be closed at any one time for a period longer than twenty (20) days. The right
of purchase represented by the Warrants shall be exercisable, at the election of the registered holders thereof, either as an
entirety or, from time to time, for part of the shares specified therein, and in the event that any Warrant is exercised in respect
of less than all of the shares specified therein at any time prior to the date of expiration of the Warrants, a new Warrant or
Warrants will be issued for the remaining number of Common Stock specified in the Warrant so surrendered, and the Warrant Agent
is hereby irrevocably authorized to countersign and to deliver the required new Warrants pursuant to the provisions of this Section
5 and of Section 3 of this Agreement, and the Company, whenever required by the Warrant Agent, will supply the Warrant Agent with
Warrants duly executed on behalf of the Company for such purposes.

 

    	 

    	 

    

  

(b)
Notwithstanding any other provision of this Agreement, no Warrant may be exercised if the issuance of Common Stock in connection
therewith would constitute a violation of the registration provisions of federal or state securities laws.

 

(c)
The Company will use its best efforts to file and keep effective a current prospectus which will permit the purchase and sale
of the Warrants and the Common Stock underlying the Warrants. In addition, the Company will use its best efforts to qualify for
sale the Warrants and the Common Stock underlying the Warrants in those states in which the Warrants and the Common Stock are
to be offered. 

 

(d) The “Exercise Price”
of the Warrants shall mean the exercise price specified in the Warrants.

  

6.
Reservation of Common Stock. The Company shall at all times reserve and keep available, solely for the purpose of providing for
the exercise of the rights to purchase all shares of common stock granted pursuant to the Warrants, such number of shares of Common
Stock and other stock, securities and property as from time to time are receivable upon exercise of the Warrants. The Company
covenants that all shares of Common Stock issuable upon exercise of the Warrants, upon receipt by the Company of the full Exercise
Price therefor, shall be validly issued, fully paid, nonassessable, and free of preemptive rights.

 

7.
Adjustments in Certain Cases. In case the Company shall at any time prior to the exercise or termination of any of the Warrants
shall subdivide its outstanding shares of Common Stock into a greater number of shares or issue shares of Common Stock as a dividend
on the outstanding shares of Common Stock, the number of shares into which each share of Preferred Stock is convertible shall
be proportionately increased, and conversely, in case this Corporation shall combine its outstanding shares of Common Stock into
a smaller number of shares, the number of shares into which each share of Preferred Stock is convertible shall be proportionately
decreased.

  

(d)
Whenever the number of shares of Common Stock or other types of securities or assets purchasable upon exercise of any of the Warrants
shall be adjusted as provided herein, the Company shall forthwith file with its corporate records a certificate setting forth
the computation and the adjusted number of shares of Common Stock or other securities or assets purchasable hereunder resulting
from such adjustments.

 

(e)
In the event that at any time as a result of an adjustment made pursuant hereto the holders of the Warrants shall become entitled
to purchase upon exercise thereof shares, evidences of indebtedness, or other securities or assets (other than Common Stock, then,
wherever appropriate, all references herein to Common Stock shall be deemed to refer to and include such shares, evidences of
indebtedness, or other securities or assets, and thereafter the number of such shares, evidences of indebtedness, or other securities
or assets shall be subject to adjustment from time to time in a manner and upon terms as nearly equivalent as practicable to the
provisions hereof.

 

    	 

    	 

    

  

8.
Redemption. (a) The Warrants may be redeemed at the option of Company, subject to the conditions set forth below in this Section
8, at any time, by Redemption Notice given within thirty (30) days, after the occurrence of a “Redemption Event”.
A Redemption Event shall be the fifth consecutive trading day upon which the Common Stock has been trading at $3.00 per share,
determined by the taking the average price between the “bid” and the “ask” of the Common Stock on each
such day, at a price of $.001 per number of Shares which may be purchased by the Warrants, plus any dividends declared but unpaid
thereon, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization
affecting such shares (the “Redemption Price”).

 

(b)
The Company shall provide notice to the holder of the Warrants (“Holder”) of the time, manner and place of redemption
(the “Redemption Date”). The Warrants and the Redemption Price (a “Redemption Notice”), by first class
or registered mail, postage prepaid, to the Holder at the address for such Holder last shown on the records of the transfer agent
therefor, not less than thirty (30) days prior to the Redemption Date. The Holder of the Warrants may elect to exercise all or
any part of the Warrants on or before such Redemption Date pursuant to Section 5(a) hereof prior to the applicable Redemption
Date. Except as provided in Section 7(c) hereof, the Holder shall surrender to the Company on the applicable Redemption Date this
Warrant, in the manner and at the place designated in the Redemption Notice. Thereupon, the Redemption Price shall be paid to
the order of the holder of the Warrant and this Warrant shall be cancelled. 

 

(c)
Unless there shall have been a failure to pay the Redemption Price, on the Redemption Date all rights of the holder for this Warrant
for this Warrant will cease, except the right to receive the Redemption Price, without interest, upon presentation and surrender
of this Warrant, and this Warrant will not from and after such Redemption Date be deemed to be outstanding.

 

9.
Payment of Taxes. The Company will pay all documentary stamp taxes, if any, attributable to the initial issuance of securities
upon the exercise of the Warrants; provided, however, that the Company shall not be required to pay any tax or taxes that may
be payable in respect of any transfer involved in the issue or delivery of any securities in a name other than that of the registered
holder of Warrants in respect of which such securities are issued and, in such case, neither the Company nor the Warrant Agent
shall be required to issue or deliver any certificate representing such securities or any Warrant until the person requesting
the same has paid to the Company or the Warrant Agent the amount of such tax or has established to the Company’s satisfaction
that such tax has been paid.

 

10.
Mutilated or Missing Warrants. In case any of the Warrants shall be mutilated, lost, stolen or destroyed, the Warrant Agent may
countersign and deliver in exchange and substitution for and upon cancellation of the mutilated Warrant or in lieu of and substitution
for the Warrant lost, stolen or destroyed, a new Warrant of like tenor and representing an equivalent right or interest, but only
upon receipt of evidence satisfactory to the Warrant Agent of such loss, theft or destruction of such Warrants and indemnity,
if requested, also satisfactory to them. Applicants for such substitute Warrants shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Company or the Warrant Agent may prescribe.

 

11.
Reservation of Common Stock. Prior to the issuance of any Warrants, there shall have been reserved, and the Company shall at all
times keep reserved out of the authorized and unissued Common Stock, a number of shares of Common Stock sufficient to provide
for the exercise of the rights of purchase represented by the Warrants, and the transfer agent for the Common Stock and every
subsequent transfer for any of the Company’s Common Stock issuable upon the exercise of any of the rights of purchase aforesaid
are hereby irrevocably authorized and directed at all times to reserve such number of authorized and unissued Common Stock as
shall be requisite for such purpose. The Company agrees that all Common Stock issued upon exercise of the Warrants shall be, at
the time of delivery of the certificates representing such Common Stock, validly issued and outstanding, fully paid and non-assessable.
The Company will keep a copy of this Agreement on file with the transfer agent for the Common Stock and with every subsequent
transfer agent for the Company’s Common Stock issuable upon the exercise of the right of purchase represented by the Warrants.
The Warrant Agent is hereby irrevocably authorized to requisition from time to time from such transfer agent stock certificates
required to honor outstanding Warrants that have been exercised. The Company will supply such transfer agent with duly executed
stock certificates for such purpose. All Warrants surrendered in the exercise of the rights thereby evidenced shall be canceled
by the Warrant Agent and shall thereafter be delivered to the Company, and such canceled Warrants shall constitute sufficient
evidence of the number of shares of Common Stock that have been issued upon the exercise of such Warrants. All Warrants surrendered
for transfer, exchange or partial exercise shall be canceled by the Warrant Agent and delivered to the Company. Promptly after
the date of expiration of the Warrants, the Warrant Agent shall certify to the Company the total aggregate amount of warrants
then outstanding and, thereafter, no Common Stock shall be subject to reservation in respect of such Warrants.

 

    	 

    	 

    

 

12.
Disposition of Proceeds on Exercise of Warrants. Upon the exercise of the Warrants, the Warrant Agent shall promptly deposit the
payment into an escrow account established by mutual agreement of the Company and the Warrant Agent at a federally insured commercial
bank. All funds deposited in the escrow account will be disbursed on a weekly basis to the Company once they have been determined
by the Warrant Agent to be collected funds. Once the funds are determined to be collected, the Warrant Agent shall cause the share
certificate(s) representing the exercised Warrants to be issued.

 

13.
Merger or Consolidation or Change of Name of Warrant Agent. Any corporation or company that may succeed to the business of the
Warrant Agent by merger or consolidation or otherwise to which the Warrant Agent shall be a party, or any corporation or company
or otherwise succeeding to the business of the Warrant Agent shall be the successor to the Warrant Agent hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that such corporation
would be eligible for appointment as a successor Warrant Agent under the provisions of Section 14 of this Agreement. In case at
the time such successor to the Warrant Agent shall succeed to the agency created by this Agreement or in case at any time the
name of the Warrant Agent shall be changed, and any of the Warrants shall have been countersigned but not delivered, any such
successor to the Warrant Agent may adopt the countersignature of the original Warrant Agent and deliver such Warrants so countersigned;
and in case at the time any of the Warrants shall not have been countersigned, the successor to the Warrant Agent may countersign
such Warrants, either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such
cases, such Warrants shall have the full force provided in the Warrants and in this Agreement.

 

In
case at any time the name of the Warrant Agent shall be changed and at such time any of the Warrants shall have been countersigned
but not delivered, the Warrant Agent may adopt the countersignature under its prior name and deliver Warrants so countersigned;
and if at that time any of the Warrants shall not have been countersigned, the Warrant Agent may countersign such Warrants either
in its prior name or in its changed name; and in all such cases, such Warrants shall have the full force provided in the Warrants
and this Agreement.

 

    	 

    	 

    

  

14.
Duties of the Warrant Agent. (a) The Warrant Agent undertakes the duties and obligations imposed by this Agreement upon the following
terms and conditions, by all of which the Company shall be bound:

 

(i)
The statements contained herein and in the Warrants shall be taken as statements of the Company, and the Warrant Agent assumes
no responsibility for the correctness of any of the same, except such as described by the Warrant Agent or action or actions taken
or to be taken by it. The Warrant Agent assumes no responsibility with respect to the distribution of the Warrants, except as
herein otherwise provided.

 

(ii)
The Warrant Agent shall not be responsible for any failure of the Company to comply with any of the covenants contained in this
Agreement or in the Warrants to be complied with by the Company.

 

(iii)
The Warrant Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder, either
itself, or by or through its attorneys, agents or employees.

 

(iv)
The Warrant Agent may consult at any time with counsel satisfactory to it (who may be counsel for the Company), and the Warrant
Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the opinion or advice of such counsel, provided the Warrant
Agent shall have exercised reasonable care in the selection and continued employment of such counsel.

 

(v)
The Warrant Agent shall incur no liability or responsibility to the Company or to any holder of any Warrant for any action taken
in reliance upon any notice, resolution, waiver, consent, order, certificate or other paper, document or instrument reasonably
believed by it to have been signed, sent or presented by the proper party or parties.

 

(vi)
The Company agrees to pay the Warrant Agent reasonable compensation for all services rendered by the Warrant Agent in the execution
of this Agreement; to reimburse the Warrant Agent for all expenses, taxes, governmental charges and other charges of any kind
and nature incurred by the Warrant Agent in the execution of this Agreement; and to indemnify the Warrant Agent and save it harmless
from and against any and all liabilities, including judgments, costs and reasonable attorneys’ fees for anything done or
omitted by the Warrant Agent in the execution of this Agreement, except as a result of the Warrant Agent’s negligence or
bad faith.

 

(vii)
The Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding, or to take any other action
likely to involve expense, unless the Company or one or more registered holders of Warrants shall furnish the Warrant Agent with
reasonable security and indemnity. All rights of action under this Agreement or under any of the Warrants or in the production
thereof at any trial or other proceeding relative thereto, and any such action, suit or proceeding instituted by the Warrant Agent
shall be brought in its name as Warrant Agent, and any recovery of judgment shall be for the benefit of the registered holders
of the Warrants, as their respective rights or interests may appear.

 

(viii)
The Warrant Agent and any stockholder, director, officer, partner or employee of the Warrant Agent may buy, sell or deal in any
of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may
be interested, or contract with or lend money to or otherwise act as fully and freely as though it were not the Warrant Agent
under this Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for
any other legal entity.

  

    	 

    	 

    
 

(ix)
The Warrant Agent shall act hereunder solely as agent, and its duties shall be determined solely by the provisions hereof. The
Warrant Agent shall not be liable for anything that it may do or refrain from doing in connection with this Agreement, except
for its own negligence or bad faith.

 

(x) The Warrant Agent shall
keep copies of this Agreement available for inspection by holders of the Warrants during normal business hours at its principal
office in New York.

 

15.
Change of Warrant Agent. The Warrant Agent may resign and be discharged from its duties under this Agreement by giving notice
in writing to the Company and by giving notice by mail to holders of the Warrants at their addresses as such addresses appear
on the Warrant register of such resignation, specifying a date when such resignation shall take effect, which date shall not be
less than thirty (30) days after the mailing of said notice. The Warrant Agent may be removed at the discretion of the Company
by like notice to the Warrant Agent from the Company and by like mailing of notice to the holders of the Warrants. If the Warrant
Agent shall resign or be removed or otherwise become incapable of acting, the Company shall appoint a successor to the Warrant
Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after such removal, or after it
has been notified in writing of such resignation or incapacity by the resigning or incapacitated Warrant Agent or by the registered
holder of a Warrant (who shall, with such notice, submit his Warrant for inspection by the Company), then the registered holder
of any Warrant may apply to any court of competent jurisdiction for the appointment of a successor to the Warrant Agent. After
appointment, any successor Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it had
been originally named as Warrant Agent without further act or deed, but the former Warrant Agent shall deliver and transfer to
the successor Warrant Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance
act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall give notice
thereof to the predecessor Warrant Agent and each transfer agent for the Common Stock, and shall forthwith give notice to the
holders of the Warrants in the manner prescribed in this Section 15. Failure to file or mail any notice provided for in this Section
15, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Warrant Agent
or the appointment of any successor Warrant Agent, as the case may be.

 

16.
Identity of Transfer Agent. Forthwith upon the appointment of any transfer agent other than the Warrant Agent for the Common Stock
of the Company issuable upon the exercise of the rights of purchase represented by the Warrants, the Company will file with the
Warrant Agent a statement setting forth the name and address of such transfer agent.

 

17.
Notices. Any notice pursuant to this Agreement to be given or made by the Warrant Agent or by the registered holder of any Warrant
to the Company shall be deemed to have been sufficiently given or made if sent by certified mail, return receipt requested, or
by Federal Express, Express Mail or similar overnight delivery or courier service, postage prepaid, or delivered (in person or
by telecopy, telex or similar telecommunications equipment) against receipt to the party to whom it is to be given, addressed
(until another address is filed in writing by the Company with the Warrant Agent) as follows:

 

    	 

    	 

    

 

To
the Company:

 

Avangard
Capital Group, Inc.

2708 Commerce Way, Suite 300

 Philadelphia, PA 19154

 Attn: Chief Executive Officer

 

To
the Warrant Agent:

  

Interwest
Transfer Company, Inc. 

 

Any
notice pursuant to this Agreement to be given or made by the Company or by the registered holder of any Warrant to the Warrant
Agent shall be deemed to have been sufficiently given or made if sent by certified mail, return receipt requested, postage prepaid,
addressed (until another address is filed in writing by the Warrant Agent with the Company) to the Warrant Agent as set forth
above.

 

18.
Standard of Conduct. Notwithstanding any implication to the contrary elsewhere herein, whenever the Company or the Warrant Agent
are required or permitted to make any judgment or to take any action, no such judgment or action shall be made or taken in bad
faith or in any arbitrary or capricious fashion.

 

19.
Supplements and Amendments. The Company and the Warrant Agent may, from time to time, supplement or amend this Agreement without
the approval of any of the holders of the Warrants in order to cure any ambiguity or to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provision herein, or to make any other provisions in regard to matters
or questions arising hereunder that the Company and the Warrant Agent may deem necessary or desirable, that shall not be inconsistent
with the provisions of the Warrants, and that shall not materially adversely affect the rights of the holders of the Warrants.

 

20.
Successors. All of the covenants and provisions hereof by or for the benefit of the Company or the Warrant Agent shall bind and
inure to the benefit of their respective successors and assigns hereunder.

 

21.
Merger or Consolidation of the Company. The Company will not merge or consolidate with or into any other corporation, unless the
corporation resulting from such merger or consolidation (if not the Company) shall expressly assume, by supplemental agreement
satisfactory in form to the Warrant Agent and executed and delivered to the Warrant Agent, the due and punctual performance and
observance of each and every covenant and condition of this Agreement to be performed and observed by the Company.

 

22.
Governing Law. This Agreement and each Warrant issued hereunder shall be construed in accordance with the laws of the State of
New York applicable to contracts made and performed with such State, without giving effect to conflicts of law principles.

 

    	 

    	 

    

 

23.
Consent to Jurisdiction. The Company irrevocably consents to the jurisdiction of the courts of the State of New York and of any
federal court located in such State in connection with any action or proceeding arising out of or relating to this Warrant, any
document or instrument delivered pursuant to, in connection with or simultaneously with this Warrant, or a breach of this Warrant
or any such document or instrument. In any such action or proceeding, the Company waives personal service of any summons, complaint
or other process and agrees that service thereof may be made in accordance with Section 16 hereof. Within thirty (30) days after
such service, or such other time as may be mutually agreed upon in writing by the attorneys for the parties to such action or
proceeding, the Company shall appear to answer such summons, complaint or other process.

 

24.
Benefits of this Agreement. Nothing in this Agreement shall be construed to give any person or corporation, other than the Company,
the Warrant Agent and the registered holders of the Warrants, any legal or equitable right, remedy or claim under this Agreement,
but this Agreement shall be for the sole and exclusive benefit of the Company and the Warrant Agent and their respective successors
and of the holders of the Warrant certificates.

 

25.
Waiver. No course of dealing and no delay or omission on the part of the Holder in exercising any right or remedy shall operate
as a waiver thereof or otherwise prejudice the Holder’s rights, powers or remedies. No right, power or remedy conferred
by this Warrant upon the Holder shall be exclusive of any other right, power or remedy referred to herein or now or hereafter
available at law, in equity, by statute or otherwise, and all such remedies may be exercised singly or concurrently.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	 	AVANGARD CAPITAL GROUP, INC.
	 	 	 
	 	By:	
	 	Name:	Alan Gulko
	 	Title:	 Chief Executive Officer 
	 	 	 
	 	INTERWEST TRANSFER COMPANY, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

Exhibit
A

 

NUMBER No.:
W-______________________________________________________CUSIP __________________

 

Shares:
______________

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED UNDER AND ARE GOVERNED BY AND ARE SUBJECT TO THAT CERTAIN WARRANT AGREEMENT,
DATED AS OF ______________, 2013, A COPY OF SUCH WARRANT AGREEMENT WILL BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF UPON
WRITTEN REQUEST AND WITHOUT CHARGE.

 

Redeemable
Common Stock Purchase Warrant

 

AVANGARD
CAPITAL GROUP, INC.

 

(THIS
WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO 5:00 P.M.

NEW
YORK CITY TIME,                          , 2015)

 

THIS
WARRANT CERTIFIES THAT, for value received                             or registered agents, is the registered holder of a Warrant or Warrants expiring [
               ], 2015 (the “Warrant”) to purchase one fully paid and non-assessable ordinary share, par value $.001 per share (the
“Shares”), of Avangard Capital Group, Inc., a Nevada corporation (the “Company”), for each Warrant evidenced
by this Warrant Certificate.

 

The
Warrant entitles the holder thereof to purchase from the Company, commencing on the date the Warrant commences separate trading
from the Units (the “Detachment Date”), such number of Shares at the price of $        per share (the “Warrant Price”),
upon surrender of this Warrant Certificate and payment of the Warrant Price at the office or agency of the Warrant Agent, Interwest
Transfer Company, Inc., such payment to be made by check made payable to the Warrant Agent), but only subject to the conditions
set forth herein and in the Warrant Agreement between the Company and Interwest Transfer Company, Inc. In no event shall the registered
holder(s) of this Warrant be entitled to receive a net-cash settlement, Shares or other consideration in lieu of physical settlement
in Shares of the Company. The Warrant Agreement provides that, upon the occurrence of certain events, the Warrant Price and the
number of Warrant Shares purchasable hereunder, set forth on the face hereof, may be adjusted, subject to certain conditions.
The term Warrant Price as used in this Warrant Certificate refers to the price per Share at which Shares may be purchased at the
time the Warrant is exercised.

 

This
Warrant will expire on the date first above written if it is not exercised prior to such date by the registered holder pursuant
to the terms of the Warrant Agreement or if it is not redeemed by the Company prior to such date.

 

No
fraction of a Share will be issued upon any exercise of a Warrant. If, upon exercise of a Warrant, a holder would be entitled
to receive a fractional interest in a Share, the Company will, upon exercise, round up to the nearest whole number the number
of Shares to be issued to the warrant holder.

 

Upon
any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the registered
holder(s) hereof or its assignee(s) a new Warrant Certificate covering the number of Shares for which the Warrant has not been
exercised.

 

Warrant
Certificates, when surrendered at the office or agency of the Warrant Agent by the registered holder(s) hereof in person or by
attorney duly authorized in writing, may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement,
but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing
in the aggregate a like number of Warrants.

 

    	 

    	 

    

  

Upon
due presentment for registration of transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to
the transferee(s) in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without
charge except for any applicable tax or other governmental charge.

 

The
Company and the Warrant Agent may deem and treat the registered holder(s) as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by anyone) for the purpose of any exercise hereof, of
any distribution to the registered holder(s), and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary.

 

This
Warrant does not entitle the registered holder(s) to any of the rights of a shareholder of the Company.

 

The
Company reserves the right to call the Warrant at any time prior to its exercise, with a notice of call in writing to the holder(s)
of record of the Warrant, giving 30 days’ notice of such call at any time after the Warrant becomes exercisable if the last
sales price of the Shares has been equal to or greater than $3.00, on each of ten (10) consecutive trading days. The call price
of the Warrants is to be $.001 per Warrant. Any Warrant either not exercised or tendered back to the Company by the end of the
date specified in the notice of call shall be canceled on the books of the Company and have no further value except for the $.001
call price.

 

	COUNTERSIGNED:
	 
	INTERWEST
    STOCK TRANSFER COMPANY, INC.
	WARRANT
    AGENT
	 
	BY:
	AUTHORIZED
    OFFICER
	DATED:
	 
	AVANGARD
    CAPITAL GROUP, INC.
	 
	(Signature)
	CHIEF
    EXECUTIVE OFFICER
	(Seal)
	(Signature)
	PRESIDENT

 

    	 

    	 

    

 

 [REVERSE
OF CERTIFICATE]

SUBSCRIPTION
FORM

 

To
Be Executed by the Registered Holder(s) in Order to Exercise Warrants

 

The undersigned
Registered Holder(s) irrevocably elect(s) to exercise                  Warrants represented by this Warrant Certificate, and to purchase the shares
of Common Stock issuable upon the exercise of such Warrants, and requests that Certificates for such shares shall be issued in
the name(s) of

 

(PLEASE
TYPE OR PRINT NAME(S) AND ADDRESS)

 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER(S))

	 	 	 
	and
                                    be delivered

        to
	 	 

	 	 	(PLEASE PRINT OR
    TYPE NAME(S) AND ADDRESS)

 

and, if
such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for
the balance of such Warrants be registered in the name of, and delivered to, the Registered Holder(s) at the address(es) stated
below:

 

Dated:

 

(SIGNATURE(S))

 

(ADDRESS(ES))

 

(TAX IDENTIFICATION
NUMBER(S))

 

    	 

    	 

    

 

ASSIGNMENT

  

To
Be Executed by the Registered Holder in Order to Assign Warrants

 

For Value
Received,                         hereby sell(s), assign(s), and transfer(s) unto

 

(PLEASE
TYPE OR PRINT NAME(S) AND ADDRESS(ES))

 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER(S))

	 	 	 
	and
                                    be delivered

        to
	 	 

	 	 	(PLEASE PRINT OR
    TYPE NAME(S) AND ADDRESS(ES))

 

of the Warrants
represented by this Warrant Certificate, and hereby irrevocably constitute and appoint                           Attorney to transfer this Warrant Certificate
on the books of the Company, with full power of substitution in the premises.

 

Dated:

 

(SIGNATURE(S))

 

Notice:
The signature(s) to this assignment must correspond with the name(s) as written upon the face of the certificate in every particular,
without alteration or enlargement or any change whatever.

Signature(s)
Guaranteed:

 

THE SIGNATURE(S)
MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS
WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

THE SIGNATURE(S)
TO THE ASSIGNMENT OF THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME(S) WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN
EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST
COMPANY OR A MEMBER FIRM OF THE NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR CHICAGO STOCK EXCHANGE.EXHIBIT 4.5

 

EXHIBIT 4.5

 

AVANGARD CAPITAL GROUP, INC.

SERIES A PREFERRED STOCK SUBSCRIPTION AGREEMENT

 

THIS SERIES A PREFERRED STOCK SUBSCRIPTION
AGREEMENT (this “Agreement”) is made as of the 22nd day of June, 2011, by and between AVANGARD
CAPITAL GROUP, INC ., a Nevada corporation (the “Company”), and FRIEDMANS FINANCIAL GROUP LLC.
(“Purchaser”).

 

RECITALS

 

WHEREAS, the Company has authorized
the sale and issuance of its Series A Preferred Stock (the “Series A Preferred”);

 

WHEREAS, the Series A Preferred has
the rights, preferences, privileges and restrictions set forth in the form attached hereto as Exhibit A (“Exhibit
A”);

 

WHEREAS, Purchaser desires to purchase
shares of Series A Preferred on the terms set forth in this Agreement;

 

WHEREAS, the Company desires to issue
and sell such shares of Series A Preferred to Purchaser in accordance with the terms hereof; and

 

    	1

    	 

    

 

WHEREAS, this Agreement is
entered into as part of a series of similar agreements (collectively with this Agreement, the “Subscription Agreements”) pursuant to which the Company will sell and issue the Series A Preferred to the persons or entities listed on
the signature pages of such Subscription Agreements (collectively with Purchaser, the “Series A Investors”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of
the foregoing recitals and the mutual promises, representations, warranties, and covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Purchase and Sale; Closing.

 

(a)
Subject to the terms and conditions hereof, Purchaser hereby agrees to purchase from the Company and the Company hereby agrees
to issue and sell to Purchaser Eight Hundred Fifty-Six Thousand Seven Hundred Sixty Three (856,763)   shares
of Series A Preferred (the “Shares”) at a purchase price of $1.00 per share for a total
consideration of Eight Hundred Fifty-Six Thousand Seven Hundred Sixty Three Dollars ($856,763.00) (the “Purchase
Price”). The Purchase Price shall be payable no later than September 30, 2012. The Purchase Price may be payable
with cash, stocks, bonds, notes, or any other cash equivalents.

 

(b) The
issuance of the Series A Preferred to the Series A Investors shall take place on June 22, 2012 (the date
on which such shares of Series A Preferred are issued shall be referred to herein as the “Initial Closing
Date”). The date on which the Shares are issued, whether on the Initial Closing Date or thereafter, shall be
referred to herein as the “Closing Date.”

 

(c)
Promptly following the Closing Date, the Company shall deliver to Purchaser a certificate registered in Purchaser’s
name representing the Shares.

 

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

 

(a)
Purchaser has all necessary power and authority to execute and deliver this Agreement and to carry out its provisions. All
action on Purchaser’s part required for the lawful execution and delivery of this Agreement has been taken. Upon its execution
and delivery, this Agreement will be a valid and binding obligation of Purchaser, enforceable in accordance with its terms, except
(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting
enforcement of creditors’ rights, and (b) as limited by general principles of equity that restrict the availability
of equitable remedies.

  

    	2

    	 

    

 

(b)
Purchaser is aware that neither the Shares nor any shares of Common Stock to be issued to Purchaser upon conversion of the
Shares (the “Conversion Shares”) have been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and that the Shares and the Conversion Shares are deemed to constitute “restricted
securities” under Rule 144 promulgated under the Securities Act (“Rule 144”). Purchaser also
understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities
Act based in part upon Purchaser’s representations contained in this Agreement.

 

(c)
Purchaser is obtaining the Shares and the Conversion Shares for Purchaser’s own account.

 

(d)
Purchaser has sufficient knowledge and experience in business and financial matters to evaluate the Company, its proposed
activities and the risks and merits of this investment. Purchaser has the ability to accept the high risk and lack of liquidity
inherent in this type of investment.

 

(e)
Purchaser had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers
and management of the Company. Purchaser has also had the opportunity to ask questions of and receive answers from the Company
and its management regarding the terms and conditions of this investment. Purchaser understands the significant risks of this
investment.

 

(f)
Purchaser has the capacity to protect its own interests in connection with the purchase of the Shares by virtue of its business
or financial expertise.

 

(g)
Purchaser understands that the Shares and, if issued, the Conversion Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration is available. Purchaser has been advised or is aware
of the provisions of Rule 144, as in effect from time to time, which permit limited resale of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among other things, the availability of certain current
public information about the Company, the resale occurring following the required holding period under Rule 144, and the
number of shares being sold during any three month period not exceeding specified limitations.

 

(h)
Purchaser acknowledges and agrees that the Shares are subject to restrictions on transfer set forth in Section 5 hereof.

 

(i)
If Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as
amended (the “Code”)), Purchaser hereby represents that Purchaser has satisfied itself as to the full
observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement,
including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange
restrictions applicable to such purchase, (iii) any government or other consents that may need to be obtained in connection
with such purchase, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding,
redemption, sale or transfer of the Shares. The Company’s offer and sale and Purchaser’s subscription and payment
for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of Purchaser’s
jurisdiction.

 

    	3

    	 

    

  

(j)
Purchaser has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing
this Agreement and fully understands all provisions of this Agreement.

 

(k)
If Purchaser is an individual, then Purchaser resides in the state or province identified in the address of Purchaser set
forth on the signature page hereto; if Purchaser is a partnership, corporation, limited liability company or other entity, then
the office or offices of Purchaser in which its investment decision was made is located at the address or addresses of Purchaser
set forth on the signature page hereto.

 

3.
Representations and Warranties of the Company. The Company hereby represents and warrants to and agrees with Purchaser that
except as set forth on the Schedule of Exceptions attached hereto as  Exhibit B, each of the following statements is true
and correct on the date hereof and, if this subscription is accepted by the Company in whole or in part, will be true and correct
on the Closing Date:

 

(a)
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada. The Company has all requisite corporate power and authority to own and operate its properties
and assets, to execute and deliver this Agreement, to issue and sell the Shares and the Conversion Shares and to carry out the
provisions of this Agreement and the Exhibit A.

 

(b)
Voting Rights. The rights, preferences, privileges and restrictions of the Shares are as set forth in Exhibit A. The Conversion
Shares have been duly and validly reserved for issuance. When issued in compliance with the provisions of this Agreement and Exhibit
A, the Shares and the Conversion Shares will be validly issued, fully paid and non-assessable, and will be free of any liens or
encumbrances, other than any right of first refusal set forth in the Company’s Bylaws; provided, however, that the
Shares may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise
required by such laws at the time a transfer is proposed.

 

(c)
Authorization; Binding Obligations. All corporate action on the part of the Company, its officers, directors and stockholders
necessary for the authorization of this Agreement and the Exhibit A, the performance of all obligations of the Company hereunder
and thereunder at the Closing and the authorization, sale, issuance and delivery of the Shares pursuant hereto and pursuant to
the Exhibit A has been taken or will be taken prior to the Closing Date. This Agreement, when executed and delivered, will be
valid and binding obligation of the Company enforceable in accordance with its terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’
rights, and (b) general principles of equity that restrict the availability of equitable remedies. The sale of the Shares
hereunder and the subsequent conversion of the Shares into the Conversion Shares are not and will not be subject to any preemptive
rights or rights of first refusal that have not been properly waived or complied with as of the date of such sale or conversion.

 

    	4

    	 

    

  

(d)
Liabilities. Except as set forth on the Schedule of Exceptions attached hereto as Exhibit B, as of the date hereof,
the Company has no material liabilities and, to the best of its knowledge, no material contingent liabilities, except current
liabilities incurred in the ordinary course of business.

 

(e)
Compliance with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order
or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its
business or the ownership of its properties, which violation would materially and adversely affect the business, assets, liabilities,
financial condition, operations or prospects of the Company.

 

(f)
Registration Rights. Except as set forth in Section 4(c) below, the Company is presently not under any obligation, and
has not granted any rights, to register under the Securities Act any of the Company’s presently outstanding securities or
any of its securities that may hereafter be issued.

 

(g)
Offering Valid. Assuming the accuracy of Purchaser’s representations and warranties contained herein, the offer, sale
and issuance of the Shares and the Conversion Shares will be exempt from the registration requirements of the Securities Act,
and will have been registered or qualified (or will be exempt from registration and qualification) under the registration, permit
or qualification requirements of all applicable state securities laws. Neither the Company nor any agent on its behalf has solicited
or will solicit any offers to sell or has offered to sell or will offer to sell all or any part of the Shares to any person or
persons so as to bring the sale of the Shares by the Company within the registration provisions of the Securities Act or any state
securities laws.

 

4.
Covenants of the Company.

 

(a)
Basic Financial Information and Reporting.

 

(i)
The Company will maintain true books and records of account in which full and correct entries will be made of all its business
transactions pursuant to a system of accounting established and administered in accordance with United States generally accepted
accounting principles consistently applied (except as noted therein), and will set aside on its books all such proper accruals
and reserves as shall be required under United States generally accepted accounting principles consistently applied.

 

    	5

    	 

    

  

(ii)
To the extent requested by a Series A Investor, as soon as practicable after the end of each fiscal year of the Company (and
in any event within 120 days thereafter), the Company will furnish such Series A Investor a balance sheet of the Company, as at
the end of such fiscal year, and a statement of income and a statement of cash flows of the Company, for such fiscal year, all
prepared in accordance with United States generally accepted accounting principles consistently applied (except as noted therein)
and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail.

 

(b)
Preemptive Rights.

 

(i)
Preemptive Rights. Subject to applicable securities laws, each Series A Investor that is an accredited investor within the
meaning of Regulation D of the Securities Act (an “Accredited Investor”) at the time of such proposed
sale or issuance shall have a preemptive right to purchase up to its pro rata share of all Equity Securities, as defined
below, that the Company may, from time to time, propose to sell and issue after the Closing Date applicable to such Series A Investor,
other than the Equity Securities excluded by Section 4(b)(vi) hereof. Each such Series A Investor’s pro rata
share is equal to the ratio of (a) the number of shares of the Company’s Common Stock (including all shares of Common
Stock issuable or issued upon conversion of the Company’s Preferred Stock or upon the exercise of outstanding warrants or
options) of which such Series A Investor is deemed to be a holder immediately prior to the issuance of the Equity Securities to
(b) the total number of shares of the Company’s outstanding Common Stock (including all shares of Common Stock issued
or issuable upon conversion of the Company’s Preferred Stock or upon the exercise of any outstanding warrants or options)
immediately prior to the issuance of the Equity Securities. The term “Equity Securities” shall mean
(i) any Common Stock, Preferred Stock or other security of the Company, (ii) any security convertible into or exercisable
or exchangeable for, with or without consideration, any Common Stock, Preferred Stock or other security of the Company (including
any option to purchase such a convertible security), (iii) any security carrying any warrant or right to subscribe to or
purchase any Common Stock, Preferred Stock or other security of the Company or (iv) any such warrant or right.

 

(ii)
Exercise of Rights. If the Company proposes to issue any Equity Securities, it shall give each Series A Investor written notice
of its intention, describing the Equity Securities, the price and the terms and conditions upon which the Company proposes to
issue the same. Each Series A Investor shall have fifteen (15) days from the giving of such notice to agree to purchase up
to its pro rata share of the Equity Securities for the price and upon the terms and conditions specified in the notice
by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased. Such written notice
given to the Company shall also include evidence reasonably satisfactory to the Company that the Series A Investor giving the
notice will be an Accredited Investor at the time of consummation of the proposed sale. Notwithstanding the foregoing, the Company
shall not be required to offer or sell such Equity Securities to any Series A Investor who would cause the Company to be in violation
of applicable state or federal securities laws by virtue of such offer or sale or who is not an Accredited Investor at the time
of such sale.

 

    	6

    	 

    
 

(c)
Additional Investor Rights. If the Company grants to investors participating in the Company’s Series A Preferred Stock
financing (or such other financing that is the Company’s next round of equity financing) (“Future Investors”) registration, information, preemptive, or board observation rights (collectively, “Investor Rights”), then each Series A Investor shall be entitled to receive such Investor Rights on the same terms and conditions
granted to such Future Investors; provided, however , that each such Series A Investor shall, as a condition to receiving
such Investor Rights, execute and become a party to any agreement or agreements granting such Investor Rights to the Future Investors
and shall be subject to the all of the terms, conditions and limitations (including any limitations related to minimum share requirements)
of such agreement or agreements to the same extent as the Future Investors.

 

5. Miscellaneous.

 

(a)
Further Assurances. The parties agree to execute such further instruments and to take all such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

(b)
Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal
delivery or delivery by facsimile, electronic mail or express courier, or upon deposit in the United States Post Office, by registered
or certified mail with postage and fees prepaid, addressed to the other party hereto at its address, electronic mail address,
or facsimile number hereinafter shown below its signature or at such other address as such party may designate by ten (10) days’
advance written notice to the other party hereto.

 

(c)
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

 

(d)
Successors and Assigns. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject
to the restrictions on transfer herein set forth, shall be binding upon Purchaser, his or her heirs, executors, administrators,
successors and assigns.

 

    	7

    	 

    

  

(e)
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof
and supersedes and merges all prior agreements or understandings, whether written or oral.

 

(f)
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, portions of such
provisions, or such provisions in their entirety, to the extent necessary, shall be severed from this Agreement, and the balance
of this Agreement shall be interpreted as if such provisions were so excluded and shall be enforceable in accordance with its
terms.

 

(g)
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Either or all parties may execute this Agreement by facsimile
signature or scanned signature in PDF format, and any such facsimile signature or scanned signature, if identified, legible and
complete, shall be deemed an original signature and each of the parties is hereby authorized to rely thereon.

 

(h)
Amendment and Waiver. This Agreement may be amended or modified, and the obligations of the Company and the rights of the
Series A Investors under the Subscription Agreements (including the rights of Purchaser under this Agreement) may be waived or
terminated, only upon the written consent of the Company and holders of a majority of the shares of Series A Preferred purchased
or agreed to be purchased pursuant to the Subscription Agreements (the “Required Series A Investors”).
Purchaser acknowledges that because this Agreement may be amended or terminated with the consent of the Required Series A Investors,
Purchaser’s rights hereunder, including Purchaser’s preemptive rights, may be amended, terminated or waived without
Purchaser’s individual consent. Upon the effectuation of such termination, waiver or amendment in conformance with this
Section 7(h), the Company shall promptly give written notice thereof to the record holders of the Series A Preferred who
have not previously consented thereto in writing.

 

(i)
Expenses. Subject to Section 7(k) hereof, each party shall pay all costs and expenses that it incurs with respect to
the negotiation, execution, delivery and performance of this Agreement.

 

(j)
Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party,
upon any breach, default or noncompliance by another party under this Agreement, the Subscription Agreements or the Exhibit A,
shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance,
or any acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. It is further agreed
that any waiver, permit, consent or approval of any kind or character on any party’s part of any breach, default or noncompliance
under this Agreement, the Subscription Agreements or the Exhibit A or any waiver on such party’s part of any provisions
or conditions of this Agreement, the Subscription Agreements, or the Exhibit A must be in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under this Agreement, the Subscription Agreements,
the Exhibit A, law, or otherwise afforded to any party, shall be cumulative and not alternative.

 

    	8

    	 

    

  

(k) Attorneys’ Fees. In
the event that any suit or action is instituted under or in relation to this Agreement, including without limitation to enforce
any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees,
costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including without limitation,
such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses
of appeals.

 

(l) Titles and Subtitles. The
titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.

 

(m) Broker’s Fees. Each
party hereto represents and warrants that no agent, broker, investment banker, person or firm acting on behalf of or under the
authority of such party hereto is or will be entitled to any broker’s or finder’s fee or any other commission directly
or indirectly in connection with the transactions contemplated herein. Each party hereto further agrees to indemnify each other
party for any claims, losses or expenses incurred by such other party as a result of the representation made by the indemnifying
party in this Section 7(m) being untrue.

 

(n) Pronouns. All pronouns contained
herein, and any variations thereof, shall be deemed to refer to the masculine, feminine or neutral, singular or plural, as to the
identity of the parties hereto may require.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	9

    	 

    

 

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

 

	PURCHASER:	 
	 	 	 	 
	FRIEDMANS FINANCIAL GROUP, LLC.	 
	 	 	 	 
	By:	 	/s/ Simon
Friedman	 
	Name:	 	Simon Frideman	 
	Title:	 	General Manager	 
	 	 	 	 
	Address:	 	2708 Commerce Way 

Philadelphia, PA 19154	 
	 	 	 	 
	 	 	 	 

  

	ACCEPTED:	 
	 	 
	AVANGARD CAPITAL GROUP, INC.	 
	 	 	 
	By:	 	/s/ Alan Gulko	 
	Name:	 	Alan Gulko	 
	Title:	 	President	 
	 	 	 
	Address:	 	
        2708 Commerce Way, #300

        Philadelphia, PA 19154
	 
	 	 	 
	Telephone:	 	215-464-7300	 
	Fax:	 	215-464-7333	 

  

SIGNATURE PAGE TO

SERIES A PREFERRED STOCK SUBSCRIPTION AGREEMENT

 

    	 

    	 

    
 

EXHIBIT A

  

CERTIFICATE
OF DESIGNATIONS, PREFERENCES AND RIGHTS OF SERIES A CONVERTIBLE PREFERRED STOCK OF AVANGARD CAPITAL GROUP,
INC.

 

AVANGARD CAPITAL GROUP, INC., a corporation
organized and existing under the laws of the State of Nevada (the “Corporation”), DOES HEREBY CERTIFY THAT:

 

Pursuant to authority conferred upon the
Board of Directors (the “Board”) and by the Articles of Incorporation of the Corporation (the “Articles of
Incorporation”) and pursuant to the Bylaws of the Corporation and as pursuant to State law, the Board, pursuant to a
unanimous written consent, adopted the following resolution providing for the designations, preferences and relative, participating,
optional and other rights, and the qualifications, limitations and restrictions, of the Series A Convertible Preferred Stock.

 

WHEREAS, the Articles of Incorporation
allows for a Series A Convertible Preferred Stock with no par value per share (the “Preferred Stock”),
and

 

WHEREAS, the Board is authorized by the
Articles of Incorporation and Bylaws to provide for the issuance of the shares of Preferred Stock in series, and by issuing a Certificate
pursuant to the applicable laws of the State of Nevada, to establish from time to time the number of shares to be included in such
series and to fix the designations, preferences and rights of the shares of each such series and the qualifications, limitations
and restrictions thereof.

 

NOW, THEREFORE, BE IT RESOLVED, that the
Board deems it advisable to, and hereby does, designate a Series A Convertible Preferred Stock and fixes and determines the preferences,
rights, qualifications, limitations and restrictions relating to the Preferred Stock as follows:

 

Section 1—Designation and Initial Number:

 

The shares of Preferred Stock hereby
described shall be issued by Avangard Capital Group, Inc., a Nevada corporation (the “Corporation”), at its sole discretion,
and shall be designated as “Class A Preferred Stock” on the stock Certificate(s). The number of authorized shares of
the Preferred Stock shall be 150,000,000.

 

Section 2—Dividends:

 

Dividends may be declared and paid on the Preferred Stock
from funds legally available therefor as and when determined by the Board. The Holders of the Preferred Stock (the “Holders”)
shall be entitled to receive a dividend payment of $0.045 per share, payable only and when the Board should declare such
dividends, to occur not sooner than on a quarter-annual basis, commencing no earlier than August 31, 2012, if, and to the extent
that, a cash dividend or cash distribution is legally payable on the Preferred Stock as per the Board’s sole discretion and
as allowable under the provisions of Nevada Law.

 

Section 3—Voting Rights:

 

		(A)	The shares of the Preferred Stock shall be voting. For any voting rights as provided under Nevada Law, such shares shall be
voted equally with the shares of every other series of Preferred Stock of this Corporation then outstanding on matters requiring
a vote of all holders of Preferred Stock voting as holders of preferred stock.

 

		B)	So long as any shares of Preferred Stock shall be outstanding, in addition to any other vote or consent required in the Articles
of Incorporation or by law, the consent of the Holders of at least 66.66% of the shares of the Preferred Stock at the time outstanding,
voting as one class, in person or by proxy, either in writing without a meeting or by a vote at any meeting called for the purpose,
shall be necessary for effecting or validating any amendment, alteration, or repeal of any provision of the Articles of Incorporation,
or of the By-Laws of this Corporation, which affects adversely the voting powers, preferences, or other special rights or qualifications,
limitations, or restrictions of the Preferred Stock, or which authorizes the issuance of any additional class or series of Preferred
Stock which is prior to or equal in right of liquidation preference, voting or dividends to the Preferred Stock. The filing of
a Certificate of Designations, Preferences and Rights for another series of Preferred Stock of this Corporation shall be deemed
to be an amendment of the Articles of Incorporation for purposes of this paragraph.

 

    	 

    	 

    

 

Section 4—Liquidation Rights:

 

		(A)	Upon the dissolution, liquidation or winding up of this Corporation, whether voluntary or involuntary, the Holders shall be
entitled to receive out of the assets of this Corporation available for distribution to stockholders, before any payment or distribution
shall be made on the Common Stock or on any other class of stock ranking junior to the Preferred Stock, an amount to $1.00 per
share (the “Per Share Liquidation Value”), before any distribution is made on the Common Stock. This Corporation shall
make appropriate filings under state Uniform Commercial Code statutes to perfect a first priority security interest of the Holders
of the Preferred Stock in the assets of this Corporation. For purposes of this Section 4, the merger or consolidation of this Corporation
or the sale, lease or conveyance of all or a substantial part of this Corporation’s assets shall not be deemed to be a liquidation,
dissolution or winding up of this Corporation. After the payment to the Holders of the full Per Share Liquidation Value provided
for in this Section 4, the Holders as such shall have no right or claim to any of the remaining assets of this Corporation.

 

		(B)	In the event the assets of this Corporation available for distribution to the Holders upon any dissolution, liquidation or
winding up of this Corporation shall be insufficient to pay in full all amounts to which such Holders are entitled pursuant to
this Section 4, no such distribution shall be made upon account of any shares of any other stock with liquidation preference pari
passu with the Preferred Stock upon such dissolution, liquidation or winding up unless proportionate distributive amounts
shall be paid on account of the shares of the Preferred Stock, ratably, in proportion to the full distributable amounts to which
holders of all such other stock and Preferred Stock are respectively entitled upon such dissolution, liquidation or winding up.

 

		(C)	In the event of any voluntary or involuntary liquidation, dissolution or winding up of this Corporation which will involve
the distribution of assets other than cash, this Corporation shall promptly engage competent independent appraisers to determine
the value of the assets to be distributed. This Corporation shall, upon receipt of such appraiser’s valuation give prompt written
notice to the Holders of the appraiser’s valuation.

 

Section 5—Conversion:

 

		(A)	At the option of the Holders, each share of the Preferred Stock shall be convertible into Three (3) Shares of the Class A Common
Stock (the “Common Stock”).

 

		(B)	In case at any time this Corporation shall subdivide its outstanding shares of Common Stock into a greater number of shares
or issue shares of Common Stock as a dividend on the outstanding shares of Common Stock, the number of shares into which each share
of Preferred Stock is convertible shall be proportionately increased, and conversely, in case this Corporation shall combine its
outstanding shares of Common Stock into a smaller number of shares, the number of shares into which each share of Preferred Stock
is convertible shall be proportionately decreased.

 

IN WITNESS WHEREOF, the undersigned has
executed this Certificate of Designations as of this 15 day of June, 2012, and affirms that this Certificate of Designations is
his act and deed and that the statements contained herein are true under penalties of perjury.

  

	AVANGARD CAPITAL GROUP, INC.	 
	 	 	 
	BY:	/s/ Alan Gulko	 
	 	Alan Gulko	 
	 	 	 
	ITS: 	Chairman and President	 

 

    	2

    	 

    
 

EXHIBIT B

 

SCHEDULE OF EXCEPTIONS

 

AVANGARD CAPITAL GROUP, INC.

SERIES A PREFERRED STOCK SUBSCRIPTION AGREEMENT

 

THIS SERIES A PREFERRED STOCK SUBSCRIPTION
AGREEMENT (this “Agreement”) is made as of the 22nd day of June, 2011, by and between AVANGARD
CAPITAL GROUP, INC ., a Nevada corporation (the “Company”), and DJS INVESTMENTS, LLC. (“Purchaser”).

 

RECITALS

 

WHEREAS, the Company has authorized
the sale and issuance of its Series A Preferred Stock (the “Series A Preferred”);

 

WHEREAS, the Series A Preferred has
the rights, preferences, privileges and restrictions set forth in the form attached hereto as Exhibit A (“Exhibit
A”);

 

WHEREAS, Purchaser desires to purchase
shares of Series A Preferred on the terms set forth in this Agreement;

 

WHEREAS, the Company desires to issue
and sell such shares of Series A Preferred to Purchaser in accordance with the terms hereof; and

 

WHEREAS, this Agreement is entered
into as part of a series of similar agreements (collectively with this Agreement, the “Subscription Agreements
”) pursuant to which the Company will sell and issue the Series A Preferred to the persons or entities listed on the signature
pages of such Subscription Agreements (collectively with Purchaser, the “Series A Investors”).

 

    	3

    	 

    
 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual promises, representations, warranties, and covenants
hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

2.
Purchase and Sale; Closing.

 

(d)
Subject to the terms and conditions hereof, Purchaser hereby agrees to purchase from the Company and the Company hereby agrees
to issue and sell to Purchaser Forty-Eight Thousand Two Hundred Thirty-Seven (48,237)   shares of Series A
Preferred (the “Shares”) at a purchase price of $1.00 per share for total consideration
of  Forty-Eight Thousand Two Hundred Thirty-Seven Dollars ($48,237.00) (the “Purchase Price”).
The Purchase Price shall be payable no later than September 30, 2012. The Purchase Price may be payable with cash, stocks,
bonds, notes, or any other cash equivalents.

 

(e)
The issuance of the Series A Preferred to the Series A Investors shall take place on June 22, 2012 (the
date on which such shares of Series A Preferred are issued shall be referred to herein as the “Initial Closing Date”).
The date on which the Shares are issued, whether on the Initial Closing Date or thereafter, shall be referred to herein as the
“Closing Date.”

 

(f)
Promptly following the Closing Date, the Company shall deliver to Purchaser a certificate registered in Purchaser’s
name representing the Shares.

 

3.
Representations and Warranties of Purchaser. Purchaser hereby represents and warrants to the Company as follows:

 

(l)
Purchaser has all necessary power and authority to execute and deliver this Agreement and to carry out its provisions. All
action on Purchaser’s part required for the lawful execution and delivery of this Agreement has been taken. Upon its execution
and delivery, this Agreement will be a valid and binding obligation of Purchaser, enforceable in accordance with its terms, except
(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting
enforcement of creditors’ rights, and (b) as limited by general principles of equity that restrict the availability
of equitable remedies.

 

(m)
Purchaser is aware that neither the Shares nor any shares of Common Stock to be issued to Purchaser upon conversion of the
Shares (the “Conversion Shares”) have been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and that the Shares and the Conversion Shares are deemed to constitute “restricted
securities” under Rule 144 promulgated under the Securities Act (“Rule 144”). Purchaser also understands
that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in
part upon Purchaser’s representations contained in this Agreement.

 

(n)
Purchaser is obtaining the Shares and the Conversion Shares for Purchaser’s own account.

 

    	4

    	 

    

 

(o)
Purchaser has sufficient knowledge and experience in business and financial matters to evaluate the Company, its proposed
activities and the risks and merits of this investment. Purchaser has the ability to accept the high risk and lack of liquidity
inherent in this type of investment.

 

(p)
Purchaser had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers
and management of the Company. Purchaser has also had the opportunity to ask questions of and receive answers from the Company
and its management regarding the terms and conditions of this investment. Purchaser understands the significant risks of this
investment.

 

(q)
Purchaser has the capacity to protect its own interests in connection with the purchase of the Shares by virtue of its business
or financial expertise.

 

(r)
Purchaser understands that the Shares and, if issued, the Conversion Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration is available. Purchaser has been advised or is aware
of the provisions of Rule 144, as in effect from time to time, which permit limited resale of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among other things, the availability of certain current
public information about the Company, the resale occurring following the required holding period under Rule 144, and the
number of shares being sold during any three month period not exceeding specified limitations.

 

(s)
Purchaser acknowledges and agrees that the Shares are subject to restrictions on transfer set forth in Section 5 hereof.

 

(t)
If Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as
amended (the “Code”)), Purchaser hereby represents that Purchaser has satisfied itself as to the full
observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Shares or any use of this Agreement,
including (i) the legal requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange
restrictions applicable to such purchase, (iii) any government or other consents that may need to be obtained in connection
with such purchase, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding,
redemption, sale or transfer of the Shares. The Company’s offer and sale and Purchaser’s subscription and payment
for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of Purchaser’s
jurisdiction.

 

(u)
Purchaser has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to executing
this Agreement and fully understands all provisions of this Agreement.

 

(v)
If Purchaser is an individual, then Purchaser resides in the state or province identified in the address of Purchaser set
forth on the signature page hereto; if Purchaser is a partnership, corporation, limited liability company or other entity, then
the office or offices of Purchaser in which its investment decision was made is located at the address or addresses of Purchaser
set forth on the signature page hereto.

 

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4. Representations and Warranties of the Company.
The Company hereby represents and warrants to and agrees with Purchaser that except as set forth on the Schedule of Exceptions
attached hereto as  Exhibit B , each of the following statements is true and correct on the date hereof and, if this subscription
is accepted by the Company in whole or in part, will be true and correct on the Closing Date:

 

(h)
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada. The Company has all requisite corporate power and authority to own and operate its properties
and assets, to execute and deliver this Agreement, to issue and sell the Shares and the Conversion Shares and to carry out the
provisions of this Agreement and the Exhibit A.

 

(i)
Voting Rights. The rights, preferences, privileges and restrictions of the Shares are as set forth in Exhibit A. The Conversion
Shares have been duly and validly reserved for issuance. When issued in compliance with the provisions of this Agreement and Exhibit
A, the Shares and the Conversion Shares will be validly issued, fully paid and non-assessable, and will be free of any liens or
encumbrances, other than any right of first refusal set forth in the Company’s Bylaws; provided, however, that the
Shares may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise
required by such laws at the time a transfer is proposed.

 

(j)
Authorization; Binding Obligations. All corporate action on the part of the Company, its officers, directors and stockholders
necessary for the authorization of this Agreement and the Exhibit A, the performance of all obligations of the Company hereunder
and thereunder at the Closing and the authorization, sale, issuance and delivery of the Shares pursuant hereto and pursuant to
the Exhibit A has been taken or will be taken prior to the Closing Date. This Agreement, when executed and delivered, will be
valid and binding obligation of the Company enforceable in accordance with its terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’
rights, and (b) general principles of equity that restrict the availability of equitable remedies. The sale of the Shares
hereunder and the subsequent conversion of the Shares into the Conversion Shares are not and will not be subject to any preemptive
rights or rights of first refusal that have not been properly waived or complied with as of the date of such sale or conversion.

 

    	6

    	 

    

 

(k)
Liabilities. Except as set forth on the Schedule of Exceptions attached hereto as Exhibit B, as of the date hereof,
the Company has no material liabilities and, to the best of its knowledge, no material contingent liabilities, except current
liabilities incurred in the ordinary course of business.

 

(l)
Compliance with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order
or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its
business or the ownership of its properties, which violation would materially and adversely affect the business, assets, liabilities,
financial condition, operations or prospects of the Company.

 

(m)
Registration Rights. Except as set forth in Section 4(c) below, the Company is presently not under any obligation, and
has not granted any rights, to register under the Securities Act any of the Company’s presently outstanding securities or
any of its securities that may hereafter be issued.

 

(n)
Offering Valid. Assuming the accuracy of Purchaser’s representations and warranties contained herein, the offer, sale
and issuance of the Shares and the Conversion Shares will be exempt from the registration requirements of the Securities Act,
and will have been registered or qualified (or will be exempt from registration and qualification) under the registration, permit
or qualification requirements of all applicable state securities laws. Neither the Company nor any agent on its behalf has solicited
or will solicit any offers to sell or has offered to sell or will offer to sell all or any part of the Shares to any person or
persons so as to bring the sale of the Shares by the Company within the registration provisions of the Securities Act or any state
securities laws.

 

5. Covenants of the Company.

 

(b)
Basic Financial Information and Reporting.

 

(iii)
The Company will maintain true books and records of account in which full and correct entries will be made of all its business
transactions pursuant to a system of accounting established and administered in accordance with United States generally accepted
accounting principles consistently applied (except as noted therein), and will set aside on its books all such proper accruals
and reserves as shall be required under United States generally accepted accounting principles consistently applied.

 

(iv)
To the extent requested by a Series A Investor, as soon as practicable after the end of each fiscal year of the Company (and
in any event within 120 days thereafter), the Company will furnish such Series A Investor a balance sheet of the Company, as at
the end of such fiscal year, and a statement of income and a statement of cash flows of the Company, for such fiscal year, all
prepared in accordance with United States generally accepted accounting principles consistently applied (except as noted therein)
and setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail.

 

    	7

    	 

    

 

(c) Preemptive Rights.

 

(iii)
Preemptive Rights. Subject to applicable securities laws, each Series A Investor that is an accredited investor within the
meaning of Regulation D of the Securities Act (an “Accredited Investor”) at the time of such proposed
sale or issuance shall have a preemptive right to purchase up to its pro rata share of all Equity Securities, as defined
below, that the Company may, from time to time, propose to sell and issue after the Closing Date applicable to such Series A Investor,
other than the Equity Securities excluded by Section 4(b)(vi) hereof. Each such Series A Investor’s pro rata
share is equal to the ratio of (a) the number of shares of the Company’s Common Stock (including all shares of Common
Stock issuable or issued upon conversion of the Company’s Preferred Stock or upon the exercise of outstanding warrants or
options) of which such Series A Investor is deemed to be a holder immediately prior to the issuance of the Equity Securities to
(b) the total number of shares of the Company’s outstanding Common Stock (including all shares of Common Stock issued
or issuable upon conversion of the Company’s Preferred Stock or upon the exercise of any outstanding warrants or options)
immediately prior to the issuance of the Equity Securities. The term “Equity Securities” shall mean
(i) any Common Stock, Preferred Stock or other security of the Company, (ii) any security convertible into or exercisable
or exchangeable for, with or without consideration, any Common Stock, Preferred Stock or other security of the Company (including
any option to purchase such a convertible security), (iii) any security carrying any warrant or right to subscribe to or
purchase any Common Stock, Preferred Stock or other security of the Company or (iv) any such warrant or right.

 

(iv)
Exercise of Rights. If the Company proposes to issue any Equity Securities, it shall give each Series A Investor written notice
of its intention, describing the Equity Securities, the price and the terms and conditions upon which the Company proposes to
issue the same. Each Series A Investor shall have fifteen (15) days from the giving of such notice to agree to purchase up
to its pro rata share of the Equity Securities for the price and upon the terms and conditions specified in the notice
by giving written notice to the Company and stating therein the quantity of Equity Securities to be purchased. Such written notice
given to the Company shall also include evidence reasonably satisfactory to the Company that the Series A Investor giving the
notice will be an Accredited Investor at the time of consummation of the proposed sale. Notwithstanding the foregoing, the Company
shall not be required to offer or sell such Equity Securities to any Series A Investor who would cause the Company to be in violation
of applicable state or federal securities laws by virtue of such offer or sale or who is not an Accredited Investor at the time
of such sale.

 

(c)
Additional Investor Rights. If the Company grants to investors participating in the Company’s Series A Preferred Stock
financing (or such other financing that is the Company’s next round of equity financing) (“Future Investors”)
registration, information, preemptive, or board observation rights (collectively, “Investor Rights”),
then each Series A Investor shall be entitled to receive such Investor Rights on the same terms and conditions granted to such
Future Investors; provided, however, that each such Series A Investor shall, as a condition to receiving such Investor
Rights, execute and become a party to any agreement or agreements granting such Investor Rights to the Future Investors and shall
be subject to the all of the terms, conditions and limitations (including any limitations related to minimum share requirements)
of such agreement or agreements to the same extent as the Future Investors.

 

    	8

    	 

    

 

6. Miscellaneous.

 

(o)
Further Assurances. The parties agree to execute such further instruments and to take all such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

(p)
Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal
delivery or delivery by facsimile, electronic mail or express courier, or upon deposit in the United States Post Office, by registered
or certified mail with postage and fees prepaid, addressed to the other party hereto at its address, electronic mail address,
or facsimile number hereinafter shown below its signature or at such other address as such party may designate by ten (10) days’
advance written notice to the other party hereto.

 

(q)
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

 

(r)
Successors and Assigns. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject
to the restrictions on transfer herein set forth, shall be binding upon Purchaser, his or her heirs, executors, administrators,
successors and assigns.

 

(s)
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof
and supersedes and merges all prior agreements or understandings, whether written or oral.

 

(t)
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, portions of such
provisions, or such provisions in their entirety, to the extent necessary, shall be severed from this Agreement, and the balance
of this Agreement shall be interpreted as if such provisions were so excluded and shall be enforceable in accordance with its
terms.

 

(u)
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Either or all parties may execute this Agreement by facsimile
signature or scanned signature in PDF format, and any such facsimile signature or scanned signature, if identified, legible and
complete, shall be deemed an original signature and each of the parties is hereby authorized to rely thereon.

 

    	9

    	 

    
 

(v)
Amendment and Waiver. This Agreement may be amended or modified, and the obligations of the Company and the rights of the
Series A Investors under the Subscription Agreements (including the rights of Purchaser under this Agreement) may be waived or
terminated, only upon the written consent of the Company and holders of a majority of the shares of Series A Preferred purchased
or agreed to be purchased pursuant to the Subscription Agreements (the “Required Series A Investors”).
Purchaser acknowledges that because this Agreement may be amended or terminated with the consent of the Required Series A Investors,
Purchaser’s rights hereunder, including Purchaser’s preemptive rights, may be amended, terminated or waived without
Purchaser’s individual consent. Upon the effectuation of such termination, waiver or amendment in conformance with this
Section 7(h), the Company shall promptly give written notice thereof to the record holders of the Series A Preferred who
have not previously consented thereto in writing.

 

(w)
Expenses. Subject to Section 7(k) hereof, each party shall pay all costs and expenses that it incurs with respect to
the negotiation, execution, delivery and performance of this Agreement.

 

(x)
Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to any party,
upon any breach, default or noncompliance by another party under this Agreement, the Subscription Agreements or the Exhibit A,
shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach, default or noncompliance,
or any acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. It is further agreed
that any waiver, permit, consent or approval of any kind or character on any party’s part of any breach, default or noncompliance
under this Agreement, the Subscription Agreements or the Exhibit A or any waiver on such party’s part of any provisions
or conditions of this Agreement, the Subscription Agreements, or the Exhibit A must be in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under this Agreement, the Subscription Agreements,
the Exhibit A, State law, or otherwise afforded to any party, shall be cumulative and not alternative.

 

(y)
Attorneys’ Fees. In the event that any suit or action is instituted under or in relation to this Agreement, including
without limitation to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover
from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include,
without limitation, all fees, costs and expenses of appeals.

 

    	10

    	 

    

 

(z)
Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and
are not to be considered in construing this Agreement.

 

(aa)
Broker’s Fees. Each party hereto represents and warrants that no agent, broker, investment banker, person or firm acting
on behalf of or under the authority of such party hereto is or will be entitled to any broker’s or finder’s fee or
any other commission directly or indirectly in connection with the transactions contemplated herein. Each party hereto further
agrees to indemnify each other party for any claims, losses or expenses incurred by such other party as a result of the representation
made by the indemnifying party in this Section 7(m) being untrue.

 

(bb)
Pronouns. All pronouns contained herein, and any variations thereof, shall be deemed to refer to the masculine, feminine or
neutral, singular or plural, as to the identity of the parties hereto may require.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	11

    	 

    

 

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

 

	PURCHASER:	 
	 	 	 
	DJS INVESTMENTS, LLC.	 
	 	 	 
	By	/s/ Alan Gulko	 
	Name:	Alan Gulko	 
	Title:	General Manager	 
	 	 	 
	Address:	 3439 Colonial Circle 

Huntingdon Valley, PA 19006	 
	 	 	 
	 	 	 

 

	ACCEPTED:	 
	 	 	 
	AVANGARD CAPITAL GROUP, INC.	 
	 	 	 
	By:	/s/ Alan Gulko	 
	Name:	Alan Gulko	 
	Title:	President	 
	 	 	 
	Address:	2708 Commerce Way, #300

 Philadelphia, PA 19154	 
	 	 	 
	Telephone:	215-464-7300	 
	Fax:	215-464-7333	 

  

SIGNATURE PAGE TO

SERIES A PREFERRED STOCK SUBSCRIPTION AGREEMENT

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