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  EXHIBIT
10.3

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

FRIENDABLE,
INC.

	

Warrant Shares: 186,000,000       
  

	

Initial Exercise Date: October 7, 2016

Warrant
No: 10-2016-001

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, [Recipient] its registered assigns (the
“Holder”), with an address
at: [Recipient Address], is entitled, upon the terms and subject to
the limitations on exercise and the conditions hereinafter set
forth, at any time on or after the date hereof (the
“Initial Exercise
Date”) and on or prior to the close of business on the
five (5) year anniversary of the Initial Exercise Date (the
“Termination
Date”) but not thereafter, to subscribe for and
purchase from Friendable,
Inc., a Nevada corporation (the “Company”), up to
186,000,000
shares (as subject to adjustment hereunder, the “Warrant Shares”) of
Common Stock. The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in
Section 2(b).

Section
1.                      Definitions.
Capitalized terms used and not otherwise defined herein shall have
the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”),
dated October 7, 2016, among the Company and the purchasers
signatory thereto.

Section
2.                      Exercise.
Exercise of the purchase rights represented by this Warrant may be
made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by
delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered
Holder at the address of the Holder appearing on the books of the
Company) of a duly executed facsimile copy of the Notice of
Exercise Form annexed hereto. Within two (2) Trading Days following
the date of exercise as aforesaid, the Holder shall deliver the
aggregate Exercise Price for the shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn
on a United States bank unless the cashless exercise procedure
specified in Section 2(c) below is specified in the applicable
Notice of Exercise. Notwithstanding anything herein to the contrary
(although the Holder may surrender the Warrant to, and receive a
replacement Warrant from, the Company), the Holder shall not be
required to physically surrender this Warrant to the Company until
the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which
case, the Holder shall surrender this Warrant to the Company for
cancellation within three (3) Trading Days of the date the final
Notice of Exercise is delivered to the Company. Partial exercises
of this Warrant resulting in purchases of a portion of the total
number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant
Shares purchased. The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such
purchases. The Company shall deliver any objection to any Notice of
Exercise Form within one (1) Trading Day of delivery of such
notice. The Holder and any
assignee, by acceptance of this Warrant, acknowledge and agree
that, by reason of the provisions of this paragraph, following the
purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given
time may be less than the amount stated on the face
hereof.

 

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a) Exercise Price. The initial
exercise price per share of the Common Stock under this Warrant
shall be $0.0030, subject to
adjustment hereunder (the “Exercise
Price”).

b) Cashless Exercise. If at any
time commencing 180 days after the Initial Exercise Date, there is
no effective Registration Statement registering, or no current
prospectus available for the resale of the Warrant Shares by the
Holder, then this Warrant may also be exercised at the
Holder’s election, in whole or in part, at such time by means
of a “cashless exercise” in which the Holder shall be
entitled to receive a number of Warrant Shares equal to the
quotient obtained by dividing [(A-B) (X)] by (A),
where:

 (A) = the
VWAP on the Trading Day immediately preceding the date on which
Holder elects to exercise this Warrant by means of a
“cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

Notwithstanding
anything herein to the contrary, on the Termination Date, unless
the Holder notifies the Company otherwise, if there is no effective
Registration Statement registering, or no current prospectus
available for, the resale of the Warrant Shares by the Holder, then
this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

c) Mechanics of
Exercise.

i.    
Delivery of Certificates
Upon Exercise. Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by
crediting the account of the Holder’s prime broker with The
Depository Trust Company through its Deposit or Withdrawal at
Custodian system (“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or
(B) this Warrant is being exercised via cashless exercise and Rule
144 is available, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that
is three (3) Trading Days after the latest of (A) the delivery to
the Company of the Notice of Exercise, (B) surrender of this
Warrant (if required) and (C) payment of the aggregate Exercise
Price as set forth above (including by cashless exercise, if
permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by
cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares, having been paid. The Company understands that a delay in the
delivery of the Warrant Shares after the Warrant Share Delivery
Date could result in economic loss to the Holder. As compensation
to the Holder for such loss, the Company agrees to pay (as
liquidated damages and not as a penalty) to the Holder for late
issuance of Warrant Shares upon exercise of this Warrant the
proportionate amount of $10 per Trading Day (increasing to $20 per
Trading Day after the fifth (5th)
Trading Day) after the Warrant Share Delivery Date for each $1,000
of Exercise Price of Warrant Shares for which this Warrant is
exercised which are not timely delivered. The Company shall pay any
payments incurred under this Section in immediately available funds
upon demand. Furthermore, in addition to any other remedies which
may be available to the Holder, in the event that the Company fails
for any reason to effect delivery of the Warrant Shares by the
Warrant Share Delivery Date, the Holder may revoke all or part of
the relevant Warrant exercise by delivery of a notice to such
effect to the Company, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to
the exercise of the relevant portion of this Warrant, except that
the liquidated damages described above shall be payable through the
date notice of revocation or rescission is given to the
Company.

 

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ii. Delivery of New Warrants Upon
Exercise. If this Warrant shall have been exercised in part,
the Company shall, at the request of a Holder and upon surrender of
this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to
the Holder a new Warrant evidencing the rights of the Holder to
purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with
this Warrant.

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(d)(i) by the
Warrant Share Delivery Date, then the Holder will have the right,
at any time prior to issuance of such Warrant Shares, to rescind
such exercise.

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

 

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v. No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall
be issued upon the exercise of this Warrant. As to any fraction of
a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay
a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up
to the next whole share.

vi. Charges, Taxes and Expenses.
Issuance of certificates for Warrant Shares shall be made without
charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate,
all of which taxes and expenses shall be paid by the Company, and
such certificates shall be issued in the name of the Holder or in
such name or names as may be directed by the Holder; provided, however, that in the event
certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay
all Transfer Agent fees required for same-day processing of any
Notice of Exercise.

vii. Closing
of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

 

 

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d) Holder’s Exercise
Limitations. The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the
extent that after giving effect to such issuance after exercise as
set forth on the applicable Notice of Exercise, the Holder
(together with the Holder’s Affiliates, and any other Persons
acting as a group together with the Holder or any of the
Holder’s Affiliates), would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below).  For
purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates shall
include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which
would be issuable upon (i) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of
its Affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company
(including, without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any
of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(e), beneficial ownership
shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this
Section 2(e) applies, the determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and
the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. In addition, a
determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. For purposes of
this Section 2(e), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder,
the Company shall within two Trading Days confirm orally and in
writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the
conversion or exercise of securities of the Company, including this
Warrant, by the Holder or its Affiliates since the date as of which
such number of outstanding shares of Common Stock was reported. The
“Beneficial
Ownership Limitation” shall be 9.99% of the number of
shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The Holder may, upon not less than 61
days’ prior notice to the Company, increase the Beneficial
Ownership Limitation provisions of this Section 2(e), provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of
the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any such increase will
not be effective until the 61st day after such
notice is delivered to the Company. The provisions of this
paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2(e) to
correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.

Section
3.                      Certain
Adjustments.

 

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a) Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (i)
pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or
equity equivalent securities payable in shares of Common Stock
(which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant or
pursuant to any of the other Transaction Documents), (ii)
subdivides outstanding shares of Common Stock into a larger number
of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares,
or (iv) issues by reclassification of shares of the Common Stock
any shares of capital stock of the Company, then in each case the
Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision,
combination or re-classification.

b) Subsequent Equity Sales. If the
Company or any Subsidiary thereof, as applicable, at any time while
this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise issue
(or announce any offer, sale, grant or any option to purchase or
other disposition) any Common Stock or Common Stock Equivalents, at
an effective price per share less than the Exercise Price then in
effect, excluding Exempt Issuances as defined in the Purchase
Agreement (such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”) (it
being understood and agreed that if the holder of the Common Stock
or Common Stock Equivalents so issued shall at any time, whether by
operation of purchase price adjustments, reset provisions, floating
conversion, exercise or exchange prices or otherwise, or due to
warrants, options or rights per share which are issued in
connection with such issuance, be entitled to receive shares of
Common Stock at an effective price per share that is less than the
Exercise Price, such issuance shall be deemed to have occurred for
less than the Exercise Price on such date of the Dilutive Issuance
at such effective price), then simultaneously with the consummation
of each Dilutive Issuance the Exercise Price shall be reduced and
only reduced to equal the Base Share Price and the number of
Warrant Shares issuable hereunder shall be increased such that the
aggregate Exercise Price payable hereunder, after taking into
account the decrease in the Exercise Price, shall be equal to the
aggregate Exercise Price prior to such adjustment. Such adjustment
shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no
adjustments shall be made, paid or issued under this Section 3(b)
in respect of an Exempt Issuance. The Company shall notify the
Holder, in writing, no later than the Trading Day following the
issuance or deemed issuance of any Common Stock or Common Stock
Equivalents subject to this Section 3(b), indicating therein the
applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice, the
“Dilutive Issuance
Notice”). For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to
this Section 3(b), upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Warrant Shares based
upon the Base Share Price regardless of whether the Holder
accurately refers to the Base Share Price in the Notice of
Exercise. If the Company enters into a Variable Rate Transaction,
despite the prohibition thereon in the Purchase Agreement, the
Company shall be deemed to have issued Common Stock or Common Stock
Equivalents at the lowest possible conversion or exercise price at
which such securities may be converted or exercised.
Notwithstanding the foregoing, the issuance of any Common Stock or
Common Stock Equivalents pursuant to the Purchase Agreement shall
not be deemed a Dilutive Issuance.

 

6

 

 

c) Subsequent Rights Offerings.
In addition to any adjustments
pursuant to Section 3(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase
stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the
“Purchase
Rights”), then the Holder
will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder
could have acquired if the Holder had held the number of shares of
Common Stock acquirable upon complete exercise of this Warrant
(without regard to any limitations on exercise hereof, including
without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the
grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights (provided, however, to the extent that the
Holder’s right to participate in any such Purchase Right
would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in
such Purchase Right to such extent (or beneficial ownership of such
shares of Common Stock as a result of such Purchase Right to such
extent) and such Purchase Right to such extent shall be held in
abeyance for the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Beneficial
Ownership Limitation).

d) Pro Rata Distributions. If the
Company, at any time while this Warrant is outstanding, shall
distribute to all holders of Common Stock (and not to the Holder)
evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to
Section 3(c)), then in each such case the Exercise Price shall be
adjusted by multiplying the Exercise Price in effect immediately
prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date
mentioned above, and of which the numerator shall be such VWAP on
such record date less the then per share fair market value at such
record date of the portion of such assets or evidence of
indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good
faith. In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or
evidences of indebtedness so distributed or such subscription
rights applicable to one share of Common Stock. Such adjustment
shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned
above.

 

 

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e) Fundamental Transaction. If, at
any time while this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another
Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a
series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders
of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted
by the holders of 50% or more of the outstanding Common Stock, (iv)
the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or
recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property,
or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or
other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person or group of Persons whereby such
other Person or group acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business
combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of
this Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant) the
number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property
to be received in a Fundamental Transaction, then the Holder shall
be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such
Fundamental Transaction. Notwithstanding anything to the contrary,
in the event of a Fundamental Transaction that is (1) an all cash
transaction, (2) a “Rule 13e-3 transaction” as defined
in Rule 13e-3 under the Exchange Act, or (3) a Fundamental
Transaction involving a person or entity not traded on a national
securities exchange or trading market (with such exchange or market
including, without limitation, the Nasdaq Global Select Market, the
Nasdaq Global Market, or the Nasdaq Capital Market, The New York
Stock Exchange, Inc., the NYSE or Amex), the Company or any
Successor Entity (as defined below) shall, at the Holder’s
option, exercisable concurrently with the consummation of the
Fundamental Transaction, purchase this
Warrant from the Holder by paying to the Holder the higher of
(i) an amount of cash equal to the Black Scholes Value of
the remaining unexercised portion of this Warrant on the date of
the consummation of such Fundamental Transaction, or (ii) the
positive difference between the cash per share paid in such
Fundamental Transaction minus the then in effect Exercise Price.
“Black Scholes
Value” means the value of the unexercised portion of
this Warrant based on the Black and Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg, L.P.
(“Bloomberg”) determined as
of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period
equal to the time between the date of the public announcement of
the applicable Fundamental Transaction and the Termination Date,
(B) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of
the Trading Day immediately following the public announcement of
the applicable Fundamental Transaction, (C) the underlying price
per share used in such calculation shall be the sum of the price
per share being offered in cash, if any, plus the value of any
non-cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date. The Company shall
cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the
provisions of this Section 3(e) pursuant to written agreements in
form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder,
deliver to the Holder in exchange for this Warrant a security of
the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which
is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value
of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for
the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and
substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the
other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other
Transaction Documents with the same effect as if such Successor
Entity had been named as the Company herein.

 

8

 

 

f) Calculations. All calculations
under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of
this Section 3, the number of shares of Common Stock deemed to be
issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding.

g) Notice to Holder.

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a
notice setting forth the Exercise Price after such adjustment and
any resulting adjustment to the number of Warrant Shares and
setting forth a brief statement of the facts requiring such
adjustment.

ii. Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the
granting to all holders of the Common Stock rights or warrants to
subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, or (E)
the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, to the extent that such information
constitutes material non-public information (as determined in good
faith by the Company) the Company shall follow the procedure
described in Section 13 of the Subscription Agreement and shall
deliver to the Holder at its last address as it shall appear upon
the Warrant Register of the Company, at least 20 calendar days
prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are
to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be
entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

 

9

 

 

Section
4.                      Transfer
of Warrant.

a) Transferability. Subject to
compliance with any applicable securities laws and the provisions
of the Purchase Agreement, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are
transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in
the form attached hereto duly executed by the Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees, as
applicable, and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new
Warrant issued.

b) New Warrants. This Warrant may
be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants
are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which
may be involved in such division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with
such notice. All Warrants issued on transfers or exchanges shall be
dated the initial issuance date of this Warrant and shall be
identical with this Warrant except as to the number of Warrant
Shares issuable pursuant thereto.

c) Warrant Register. The Company
shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.

Section
5.                      Miscellaneous.

 

10

 

 

a) Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall
be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or
(iv) transmitted by hand delivery, telegram, facsimile, or
electronic mail, addressed as set forth below or to such other
address as such party shall have specified most recently by written
notice. Any notice or other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by
the transmitting facsimile machine, at the address or number
designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to
be received), or (b) upon receipt, when sent by electronic mail
(provided confirmation of transmission is electronically generated
and keep on file by the sending party), or (c) on the second
business day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be: (i) if to the Company, to:
Friendable, Inc., 125 East
Campbell Avenue, 2nd Floor, Campbell CA
95008, Attn: Robert Rositano, CEO, fax: (408) 547-0110, email:
robert@ihookupsocial.com, with a copy by fax or email only to:
Lucosky Brookman LLP, 101 Wood Avenue South, Woodbridge, NJ 08830,
Attn: Steven A. Lipstein, Esq., fax: (732) 395-4401, email:
slipstein@lucbro.com, and (ii) if to the Holder, to: the address
and fax number indicated on the front page of this Warrant, with an
additional copy by fax only to (which shall not constitute notice):
Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream,
New York 11581, fax: (212) 697-3575, email:
counslers@aol.com.

b) No Rights as Stockholder Until
Exercise. This Warrant does not entitle the Holder to any
voting rights, dividends or other rights as a stockholder of the
Company prior to the exercise hereof as set forth in Section
2(d)(i).

c) Loss, Theft, Destruction or Mutilation
of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably
satisfactory to it (which, in the case of the Warrant, shall not
include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in
lieu of such Warrant or stock certificate.

d) Saturdays, Sundays, Holidays,
etc. If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein
shall not be a Trading Day, then, such action may be taken or such
right may be exercised on the next succeeding Trading
Day.

e) Authorized Shares.

The
Company covenants that, during the period the Warrant is
outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase
rights under this Warrant. The Company further covenants that its
issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase rights under
this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued
as provided herein without violation of any applicable law or
regulation, or of any requirements of the Trading Market upon which
the Common Stock may be listed. The Company covenants that all
Warrant Shares which may be issued upon the exercise of the
purchase rights represented by this Warrant will, upon exercise of
the purchase rights represented by this Warrant and payment for
such Warrant Shares in accordance herewith, be duly authorized,
validly issued, fully paid and non-assessable and free from all
taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

11

 

 

Except
and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant.

Before
taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction
thereof.

f) Jurisdiction. All questions
concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

g) Restrictions. The Holder
acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, or unless exercised in a cashless
exercise when Rule 144 is available, and the Holder does not
utilize cashless exercise, will have restrictions upon resale
imposed by state and federal securities laws.

h) Non-waiver and Expenses. No
course of dealing or any delay or failure to exercise any right
hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice the Holder’s rights, powers or
remedies. Without limiting any other provision of this Warrant or
the Purchase Agreement, if the Company willfully and knowingly
fails to comply with any provision of this Warrant, which results
in any material damages to the Holder, the Company shall pay to the
Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’
fees, including those of appellate proceedings, incurred by the
Holder in collecting any amounts due pursuant hereto or in
otherwise enforcing any of its rights, powers or remedies
hereunder.

i) Notices. Any notice, request or
other document required or permitted to be given or delivered to
the Holder by the Company shall be delivered in accordance with the
notice provisions of the Purchase Agreement.

j) Limitation of Liability. No
provision hereof, in the absence of any affirmative action by the
Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of the Holder, shall
give rise to any liability of the Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the
Company.

 

12

 

 

k) Remedies. The Holder, in
addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees
that monetary damages would not be adequate compensation for any
loss incurred by reason of a breach by it of the provisions of this
Warrant and hereby agrees to waive and not to assert the defense in
any action for specific performance that a remedy at law would be
adequate.

l) Successors and Assigns. Subject
to applicable securities laws, this Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Company
and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of any Holder
from time to time of this Warrant and shall be enforceable by the
Holder or holder of Warrant Shares.

m) Amendment. This Warrant may be
modified or amended or the provisions hereof waived with the
written consent of the Company and the
Holders of not less than a majority of the outstanding Warrants
issued pursuant to the Purchase Agreement.

n) Severability. Wherever
possible, each provision of this Warrant shall be interpreted in
such manner as to be effective and valid under applicable law, but
if any provision of this Warrant shall be prohibited by or invalid
under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this
Warrant.

o) Headings. The headings used in
this Warrant are for the convenience of reference only and shall
not, for any purpose, be deemed a part of this
Warrant.

 

********************

 

(Signature Page Follows)

 

 

 

 

 

 

 

 

 

13

 

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized as of the date first above
indicated.

 

 

	

 

	

FRIENDABLE, INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	

/s/ Robert Rositano	

 

	

 

	

 

	
Name: Robert A. Rositano Jr.

	

 

	

 

	

 

	

Title:
CEO

	

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

NOTICE OF EXERCISE

 

TO:            FRIENDABLE,
INC.

 

(1) The undersigned
hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

(2) Payment shall take
the form of (check applicable box):

[ ] in
lawful money of the United States; or

[ ] [if
permitted] the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number
of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

(3) Please issue a
certificate or certificates representing said Warrant Shares in the
name of the undersigned or in such other name as is specified
below:

_______________________________

 

(4) After giving effect
to this Notice of Exercise, the undersigned will not have exceeded
the Beneficial Ownership Limitation.

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

 

[SIGNATURE OF
HOLDER]

 

Name of
Investing Entity:
________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity:
_________________________________________________

Name of
Authorized Signatory:
___________________________________________________________________

Title
of Authorized Signatory:
____________________________________________________________________

Date:
________________________________________________________________________________________

 

 

 

 

 

 

 

ASSIGNMENT FORM

 

(To
assign the foregoing warrant, execute

this
form and supply required information.

Do not
use this form to exercise the warrant.)

 

FRIENDABLE,
INC.

 

 

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing
Warrant and all rights evidenced thereby are hereby assigned
to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

 

 

_______________________________________________________________

 

Dated:
______________, _______

 

 

Holder’s
Signature:     
_____________________________

 

Holder’s
Address:       
_____________________________

 

_____________________________

 

 

 

Signature
Guaranteed:
___________________________________________

 

 

NOTE:
The signature to this Assignment Form must correspond with the name
as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a
bank or trust company. Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.Blueprint

  EXHIBIT
10.4

 

HANG WITH, INC.

 

SERIES A CONVERTIBLE PARTICIPATING PREFERRED STOCK

PURCHASE AGREEMENT

 

This
Series A Convertible Participating Preferred Stock Purchase
Agreement (the
“Agreement”) is entered into as of this 7th day of
October, 2016, by and among Hang
With, Inc., a Nevada
corporation (the “Company”), and Friendable,
Inc., a Nevada corporation (the
“Purchaser”).

Recitals

Whereas,
the Company has authorized the sale
and issuance of an aggregate of up to Five Million (5,000,000)
shares of its Series A Convertible Participating Preferred Stock
with par value of $0.001 per share (the “Preferred
Stock”);

Whereas,
Purchaser desires to purchase 330,397
shares of Preferred Stock (the “Shares”) at a price per share of $2.27 for an
aggregate purchase price of $750,000 on the terms and conditions
set forth herein; and

Whereas,
the Company desires to issue and sell
the Shares to the Purchaser on the terms and conditions set forth
herein.

Now,
Therefore, in consideration of
the foregoing recitals and the mutual promises hereinafter set
forth, the parties hereto agree as follows:

Section 1. 

Agreement to Sell and Purchase.

1.1           Authorization
of Shares. On or prior to the
first Closing (as defined in Section 2
below), the Company shall have
authorized (i) the sale and issuance to Purchaser of the
Shares and (ii) the issuance of such shares of common stock of
the Company, $.001 par value (the “Common Stock”), to be issued upon conversion of the
Shares (the “Conversion
Shares”). The Shares and
the Conversion Shares shall have the rights, preferences,
privileges and restrictions set forth in the Amended and Restated
Articles of Incorporation of the Company filed with the Nevada
Secretary of State on October 14, 2014 (the
“Articles”).

1.2           Sale
and Purchase. Subject to the
terms and conditions hereof, the Company hereby agrees to issue and
sell to Purchaser, and Purchaser agrees to purchase from the
Company, an aggregate of 330,397 Shares at a purchase price of
$2.27 per share for an aggregate purchase price of $750,000. The
Purchaser paying the $750,000 aggregate purchase price to the
Company is conditional upon investors purchasing the
Purchaser’s securities for an aggregate purchase price of
$1,615,000 pursuant to a securities purchase agreement of even date
herewith entered into between the Purchaser and such investors. In
addition, as detailed in Section
2.2, the Company will issue one
hundred thousand (100,000) shares of Common Stock to the Purchaser
at the first Closing.

 

1

 

 

Section 2. 

Closing, Delivery and Payment.

2.1           Closing.
The three closing of the sale and
purchase of the Shares as well as the issuance of one hundred
thousand (100,000) shares of Common Stock to the Purchaser (each, a
“Closing”) shall take place at such times and places
as the Company and Purchaser may mutually agree (each such date is
hereinafter referred to as a “Closing Date”).

2.2           Delivery.

(a)           At
the first Closing, on the date hereof, subject to the terms and
conditions hereof, the Company will deliver to the Purchaser a
certificate made out in the name of Purchaser (or trust or entity
controlled by Purchaser as directed by Purchaser) for an aggregate
total of 99,118 shares of Preferred Stock and Purchaser shall pay
the Company, by check or wire transfer made payable to the order of
the Company the sum of Two Hundred Twenty Five Thousand Dollars
($225,000). In addition, the Company will issue one hundred
thousand (100,000) shares of Common Stock to the Purchaser at the
first Closing as compensation as part of the software license and
software development agreements that the Purchaser plans on
entering into with the Company (the “Compensation
Stock”). For the
avoidance of doubt, the issuance of the Compensation Stock is in
addition to the 154,185 shares of Preferred Stock to be issued at
the first Closing.

(b)           At
the second Closing, which will take place, subject to the terms and
conditions hereof, after the Purchaser receives financing
sufficient to pay the Company, by check or wire transfer made
payable to the order of the Company the sum of One Hundred Seventy
Five Thousand Dollars ($175,000) but in no event earlier than
November 3, 2016, the Company will deliver to the Purchaser a
certificate made out in the name of Purchaser (or trust or entity
controlled by Purchaser as directed by Purchaser) for an aggregate
total of 77,093 shares of Preferred Stock and Purchaser shall pay
the Company, by check or wire transfer made payable to the order of
the Company the sum of One Hundred Seventy Five Thousand Dollars
($175,000).

(c)           At
the third Closing, which will take place, subject to the terms and
conditions hereof, after the Purchaser receives financing
sufficient to pay the Company, by check or wire transfer made
payable to the order of the Company the sum of One Hundred Seventy
Five Thousand Dollars ($175,000) but in no event earlier than
December 5, 2016, the Company will deliver to the Purchaser a
certificate made out in the name of Purchaser (or trust or entity
controlled by Purchaser as directed by Purchaser) for an aggregate
total of 77,093 shares of Preferred Stock and Purchaser shall pay
the Company, by check or wire transfer made payable to the order of
the Company the sum of One Hundred Seventy Five Thousand Dollars
($175,000).

(c)           At
the fourth Closing, which will take place, subject to the terms and
conditions hereof, after the Purchaser receives financing
sufficient to pay the Company, by check or wire transfer made
payable to the order of the Company the sum of One Hundred Seventy
Five Thousand Dollars ($175,000) but in no event earlier than
January 4, 2017, the Company will deliver to the Purchaser a
certificate made out in the name of Purchaser (or trust or entity
controlled by Purchaser as directed by Purchaser) for an aggregate
total of 77,093 shares of Preferred Stock and Purchaser shall pay
the Company, by check or wire transfer made payable to the order of
the Company the sum of One Hundred Seventy Five Thousand Dollars
($175,000).

 

2

 

 

Section 3.

Representations and Warranties of the
Company.

 

Except
as set forth on any Schedule of Exceptions delivered to the
Purchaser, the Company hereby represents and warrants to Purchaser
as follows:

3.1           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 issue the Compensation Stock and to carry
out the provisions of this Agreement and the Articles and to carry
on its business as presently conducted and as presently proposed to
be conducted. The Company is duly qualified and is authorized to do
business and is in good standing as a foreign corporation in all
jurisdictions in which the nature of its activities and of its
properties (both owned and leased) make such qualifications
necessary, except for those jurisdictions in which failure to do so
would not have a material adverse effect on the Company or its
business.

3.2           Capitalization;
Voting Rights.

(a)           The
authorized capital stock of the Company, immediately prior to the
first Closing, will consist of (a) seventy five million
(75,000,000) shares of Common Stock, thirteen million four hundred
nineteen thousand nine hundred sixteen (13,419,916) shares of which
are issued and outstanding, three million eight hundred
seventy-three thousand eight hundred fifty three
(3,873,853) shares of which are currently reserved for
issuance pursuant to outstanding option agreements, and one million
one hundred twenty-six thousand one hundred forty seven (1,126,147)
shares of which will be reserved in the future for issuance to key
employees, consultants and others affiliated with the Company
pursuant to stock grant, stock purchase and/or option plans or any
other stock incentive program, arrangement or agreement approved by
the Company’s Board of Directors and (b) twenty million
(20,000,000) shares of Preferred Stock, five million (5,000,000) of
which are designated Series A Convertible Participating Preferred
Stock, two hundred sixty four thousand three hundred sixteen
(264,316) of which are issued and outstanding. All issued and
outstanding shares of the Company’s Common Stock
(i) have been duly authorized and validly issued,
(ii) are fully paid and nonassessable and (iii) were
issued in compliance with all applicable state and federal laws
concerning the issuance of securities.

(b)         
Under the Company’s 2013
Equity Compensation Plan and 2014 Equity Compensation Plan
(collectively, the
“Plans”): (i) there are 3,873,853 options
currently outstanding, and (ii) 1,126,147 shares of Common Stock
remain available for future issuances to officers, directors,
employees and consultants of the Company. The Company has not made
any representations regarding equity incentives to any officer,
employee, director or consultant that are inconsistent with any
share amounts and terms set forth in the Company’s board
minutes.

(c)           Other
than (i) the 3,873,853 options
currently outstanding, (ii) the 1,126,147 shares reserved for issuance
under the Plans, (iii) two Promissory Notes for a total of $200,000
plus interest convertible into shares of Common Stock at a price
per share of $1.50, and (iv) the conversion privileges of the
Series A Preferred Stock, and
except as may be granted pursuant to, or referred to in, this
Agreement, there are no outstanding options, warrants, rights
(including conversion or preemptive rights and rights of first
refusal), proxy or stockholder agreements, or agreements of any
kind for the purchase or acquisition from the Company of any of its
securities.

 

3

 

 

(d)           The
rights, preferences, privileges and restrictions of the Shares
and the Compensation Stock are
as stated in the Articles. The Conversion Shares have been duly and
validly reserved for issuance. When issued in compliance with the
provisions of this Agreement and the Articles, the Shares, the
Conversion Shares, and the
Compensation Stock will be validly issued, fully paid and
nonassessable, and will be free of any liens or encumbrances other
than (i) liens and encumbrances created by or imposed upon the
Purchaser; and (ii) any right of first refusal set forth in the
Company’s Bylaws; provided, however, that the Shares, the
Conversion Shares, and the
Compensation Stock 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. The sale of the Shares and the subsequent conversion
of the Shares into Conversion Shares and the issuance of
the Compensation Stock 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.

(e)           No
stock options, stock appreciation rights or other equity-based
awards issued or granted by the Company are subject to the
requirements of Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”). Each “nonqualified
deferred compensation plan” (as such term is defined under
Section 409A(d)(1) of the Code and the guidance thereunder) under
which the Company makes, is obligated to make or promises to make,
payments (each, a “409A
Plan”) complies in all material respects with the
requirements of Section 409A of the Code and the guidance
thereunder. No payment to be made under any 409A Plan is, or to the
knowledge of the Company will be, subject to the penalties of
Section 409A(a)(1) of the Code.

3.3           Authorization;
Binding Obligations. All
corporate action on the part of the Company, its officers,
directors and stockholders necessary for the authorization of this
Agreement, the performance of all obligations of the Company
hereunder and thereunder at each Closing and the authorization,
sale, issuance and delivery of the Shares and issuance of the
Compensation Stock pursuant
hereto and the Conversion Shares pursuant to the Articles has been
taken or will be taken prior to each Closing. The Agreement, when
executed and delivered, will be valid and binding obligations of
the Company enforceable in accordance with their terms, except (i)
as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other laws of general application affecting
enforcement of creditors’ rights; and (ii) as limited by
general principles of equity that restrict the availability of
specific performance, injunctive relief or other equitable
remedies. The sale of the Shares and the subsequent conversion of
the Shares into Conversion Shares and the issuance of the
Compensation Stock 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.

3.4           Subsidiaries.
The Company does not own or control
any equity security or other interest of any other corporation,
partnership, limited liability company or other business entity.
The Company is not a participant in any joint venture, partnership,
limited liability company or similar arrangement. Since its
inception, the Company has not consolidated or merged with,
acquired all or substantially all of the assets of, or acquired the
stock of or any interest in any corporation, partnership, limited
liability company or other business entity.

 

4

 

 

3.5           Liabilities. 
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 that have
not been, either in any individual case or in the aggregate,
materially adverse.

3.6           Agreements;
Action.

(a)           Except
for agreements explicitly contemplated hereby, there are no
agreements, understandings or proposed transactions between the
Company and any of its officers, directors, affiliates or any
affiliate thereof.

(b)           There
are no agreements, understandings, instruments, contracts, proposed
transactions, judgments, orders, writs or decrees to which the
Company is a party or to its knowledge by which it is bound which
may involve (i) obligations (contingent or otherwise) of, or
payments to, the Company (other than obligations of, or payments
to, the Company arising in the ordinary course of business), or
(ii) the license of any patent, copyright, trade secret or
other proprietary right to or from the Company (other than licenses
arising from the purchase of “off the shelf” or other
standard products), or (iii) provisions restricting or
affecting the development, manufacture or distribution of the
Company’s products or services, or (iv) indemnification
by the Company with respect to infringements of proprietary
rights.

(c)           The
Company has not (i) declared or paid any dividends, or
authorized or made any distribution upon or with respect to any
class or series of its capital stock, (ii) incurred any
indebtedness for money borrowed or any other liabilities (other
than with respect to dividend obligations, distributions,
indebtedness and other obligations incurred in the ordinary course
of business), (iii) made any loans or advances to any person,
other than ordinary advances for travel expenses, or
(iv) sold, exchanged or otherwise disposed of any of its
assets or rights, other than in the ordinary course of
business.

3.7           Obligations
to Related Parties. There are
no obligations of the Company to officers, directors, stockholders,
or employees of the Company other than (a) for payment of
salary for services rendered, (b) reimbursement for reasonable
expenses incurred on behalf of the Company and (c) for other
standard employee benefits made generally available to all
employees (including stock option agreements outstanding under any
stock option plan approved by the Board of Directors of the
Company). No officer, director or, to the best of the
Company’s knowledge, key employees, stockholders, or any member of their immediate
families, are indebted to the Company or have any direct or
indirect ownership interest in any firm or corporation with which
the Company is affiliated or with which the Company has a business
relationship, or any firm or corporation which competes with the
Company, except that officers, directors and/or stockholders of the
Company may own stock in publicly traded companies which may
compete with the Company. No such officer, director or stockholder,
or any member of their immediate families is, directly or
indirectly, interested in any material contract with the Company
(other than such contracts as relate to any such person’s
ownership of capital stock or other securities of the Company). The
Company is not a guarantor or indemnitor of any indebtedness of any
other person, firm or corporation.

 

5

 

 

3.8           Title
to Properties and Assets; Liens, Etc. The Company has good and marketable title to its
properties and assets, and good title to its leasehold estates, in
each case subject to no mortgage, pledge, lien, lease, encumbrance
or charge, other than (i) those resulting from taxes which have not
yet become delinquent, (ii) minor liens and encumbrances which do
not materially detract from the value of the property subject
thereto or materially impair the operations of the Company and
(iii) those that have otherwise arisen in the ordinary course of
business. All facilities, machinery, equipment, fixtures, vehicles
and other properties owned, leased or used by the Company are in
good operating condition and repair and are reasonably fit and
usable for the purposes for which they are being used. The Company
is in compliance with all material terms of each lease to which it
is a party or is otherwise bound.

3.9           Patents
and Trademarks.

(a) The
Company owns the trademark rights to the names "Hang With" and
“Hang W/” (the "Trademarks") and owns or possesses sufficient legal rights to all
patents, trademarks, service marks, trade names, copyrights, trade
secrets, information and other proprietary rights and processes
necessary for its business as now conducted and as proposed to be
conducted (the "Intellectual
Property Rights"), without any
known infringement of the rights of others.

(b) There
are no outstanding options, licenses or agreements of any kind
relating to the foregoing, nor is the Company bound by or a party
to any options, licenses or agreements of any kind with respect to
the patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights
and processes of any other person or entity other than such
licenses or agreements arising from the purchase of “off the
shelf” or standard products.

(c) The
Company has not received any communications alleging that the
Company has violated or, by conducting its business as proposed,
would violate any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights of
any other person or entity.

(d) The
Company is not aware that any of its employees is obligated under
any contract (including licenses, covenants or commitments or any
nature) or other agreement, or subject to any judgment, decree or
order of any court or administrative agency, that would interfere
with their duties to the Company’s business by the employees
of the Company, nor the conduct of the Company’s business as
proposed, will, to the Company’s knowledge, conflict with or
result in a breach of the terms, conditions or provisions of, or
constitute a default under, any contract, covenant or instrument
under which any employee is now obligated.

(e) The
Company does not believe it is or will be necessary to utilize any
inventions, trade secrets or proprietary information of any of its
employees made prior to their employment by the Company, except for
inventions, trade secrets or proprietary information that have been
assigned to the Company. To the Company's knowledge, the
Company has taken all necessary and appropriate steps to maintain
and protect the Company's Trademark and Intellectual Property
Rights.

 

6

 

 

(f) To
the best of Company’s knowledge, the owners of any
Intellectual Property Rights licensed, optioned or assigned to the
Company have taken all necessary and appropriate steps to maintain
and protect the Intellectual Property Rights that are subject to
such licenses, options or assignments. To the best of
Company’s knowledge, no Person other than the Company has
used, disclosed or appropriated the Company’s Trademark or
Intellectual Property Rights except for the benefit of the
Company.

(g) The
Company has not entered into any agreement granting any third party
the right to bring infringement actions with respect to, or
otherwise to enforce rights with respect to, the Company's
Trademarks or Intellectual Property Rights. The Company has not
entered into any agreement to indemnify any other person against
any charge of infringement of any third party intellectual property
right or the Company's Trademarks or Intellectual Property Rights
including, without limitation, in-licensed Intellectual Property
Rights.

(h) To
the Company’s knowledge, there have been no claims made
against the Company asserting the invalidity, misuse or
unenforceability of the Company's Trademarks or Intellectual
Property Rights, and to the best of Company’s knowledge,
there are no valid grounds for the same. The Company has not
received any notices of, and is not aware of any facts which
indicate a likelihood of, any infringement or misappropriation by,
or conflict with, any third party with respect to the Company's
Trademarks or Intellectual Property Rights (including, without
limitation, any demand or request that the Company license any
rights from a third party).

3.10         
Compliance with
Other Instruments. The Company
is not in violation or default of any term of its Articles of
Incorporation or Bylaws, or of any provision of any mortgage,
indenture, contract, agreement, instrument or contract to which it
is party or by which it is bound or of any judgment, decree, order,
writ or, to its knowledge, any statute, rule or regulation
applicable to the Company which would materially and adversely
affect the business, assets, liabilities, financial condition,
operations or prospects of the Company. The execution, delivery,
and performance of and compliance with this Agreement and the
related agreements, and the issuance and sale of the Shares and the
issuance of the Compensation Stock pursuant hereto and of the Conversion Shares
pursuant to the Articles, will not, with or without the passage of
time or giving of notice, result in any such material violation, or
be in conflict with or constitute a default under any such term, or
result in the creation of any mortgage, pledge, lien, encumbrance
or charge upon any of the properties or assets of the Company or
the suspension, revocation, impairment, forfeiture or nonrenewal of
any permit, license, authorization or approval applicable to the
Company, its business or operations or any of its assets or
properties.

3.11            
Litigation.
There is no action, suit, proceeding
or investigation pending or to the Company’s knowledge
currently threatened against the Company that questions the
validity of this Agreement or the right of the Company to enter
into any of such agreements, or to consummate the transactions
contemplated hereby or thereby, or which might result, either
individually or in the aggregate, in any material adverse change in
the assets, condition, affairs or prospects of the Company,
financially or otherwise, or any change in the current equity
ownership of the Company, nor is the Company aware that there is
any basis for the foregoing. The foregoing includes, without
limitation, actions pending or threatened (or any basis therefor
known to the Company) involving the prior employment of any of the
Company’s employees, their use in connection with the
Company’s business of any information or techniques allegedly
proprietary to any of their former employers, or their obligations
under any agreements with prior employers. The Company is not a
party or subject to the provisions of any order, writ, injunction,
judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or
investigation by the Company currently pending or which the Company
intends to initiate.

 

7

 

 

3.12            
Tax Returns and
Payments. The Company has
timely filed all tax returns (federal, state and local) required to
be filed by it. All taxes shown to be due and payable on such
returns, any assessments imposed, and to the Company’s
knowledge all other taxes due and payable by the Company on or
before each Closing have been paid or will be paid prior to the
time they become delinquent. The Company has not been advised
(i) that any of its returns, federal, state or other, have
been or are being audited as of the date hereof, or (ii) of
any deficiency in assessment or proposed judgment to its federal,
state or other taxes. The Company has no knowledge of any liability
of any tax to be imposed upon its properties or assets as of the
date of this Agreement that is not adequately provided
for.

3.13            
Employees.
The Company has no collective
bargaining agreements with any of its employees. There is no labor
union organizing activity pending or, to the Company’s
knowledge, threatened with respect to the Company. No employee has
any agreement or contract, written or verbal, regarding his
employment. To the Company’s knowledge, no employee of the
Company, nor any consultant with whom the Company has contracted,
is in violation of any term of any employment contract, proprietary
information agreement or any other agreement relating to the right
of any such individual to be employed by, or to contract with, the
Company because of the nature of the business to be conducted by
the Company; and to the Company’s knowledge the continued
employment by the Company of its present employees, and the
performance of the Company’s contracts with its independent
contractors, will not result in any such violation. The Company has
not received any notice alleging that any such violation has
occurred. No employee of the Company has been granted the right to
continued employment by the Company or to any material compensation
following termination of employment with the Company. The Company
is not aware that any officer or key employee, or that any group of
key employees, intends to terminate their employment with the
Company, nor does the Company have a present intention to terminate
the employment of any officer, key employee or group of key
employees.

3.14            
Obligations of Management.
Except for the Company’s chief financial officer who is paid
on an hourly basis and used when needed, each officer and key
employee of the Company is currently devoting substantially all of
his or her business time to the conduct of the business of the
Company and/or to its parent company. Except for the
Company’s chief financial officer, the Company is not aware
that any officer or key employee of the Company is planning to work
less than full time at the Company and/or its parent/affiliate
company in the future. No officer or key employee is currently
working or, to the Company’s knowledge, plans to work for a
competitive enterprise, whether or not such officer or key employee
is or will be compensated by such enterprise.

3.15            
No Excluded Works
or Inventions. No current
employee, officer or consultant of the Company has excluded works
or inventions made prior to his or her employment with the Company
from his or her assignment of inventions pursuant to such employee,
officer or consultant’s agreement. The Company, after
reasonable investigation, is not aware that any of its employees,
officers or consultants is in violation thereof and the Company
will use its best efforts to prevent any such
violation.

 

8

 

 

3.16             
Registration
Rights. The Company is
presently not under any obligation, and has not granted any rights,
to register any of the Company’s presently outstanding
securities or any of its securities that may hereafter be
issued. To the Company’s knowledge, no stockholder of
the Company has entered into any agreement with respect to the
voting of equity securities of the Company.

3.17          
     Compliance with Laws;
Permits. 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. No
governmental orders, permissions, consents, approvals or
authorizations are required to be obtained and no registrations or
declarations are required to be filed in connection with the
execution and delivery of this Agreement and the issuance of the
Shares or the Conversion Shares or the Compensation Stock, except
such as has been duly and validly obtained or filed, or with
respect to any filings that must be made after each Closing, as
will be filed in a timely manner. The Company has all franchises,
permits, licenses and any similar authority necessary for the
conduct of its business as now being conducted by it, the lack of
which could materially and adversely affect the business,
properties, prospects or financial condition of the Company and
believes it can obtain, without undue burden or expense, any
similar authority for the conduct of its business as planned to be
conducted.

3.18               
Environmental and
Safety Laws. The Company is not
in violation of any applicable statute, law or regulation relating
to the environment or occupational health and safety, and to its
knowledge, no material expenditures are or will be required in
order to comply with any such existing statute, law or
regulation.

3.19               
Offering
Valid. Assuming the accuracy of
the representations and warranties of the Purchaser contained
in Section 4.2
hereof, the offer, sale and issuance
of the Shares, the issuance of the Compensation Stock, and the
Conversion Shares will be exempt from the registration requirements
of the Securities Act of 1933, as amended (the
“Securities
Act”), and will have been
registered or qualified (or are 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 or the Compensation Stock to any person
or persons so as to bring the sale of such Shares and the issuance
of the Compensation Stock by
the Company within the registration provisions of the Securities
Act or any state securities laws.

 

9

 

 

3.21             Information.
The Company has provided the Purchaser
with all information requested by the Purchaser in connection with
his decision to purchase the Shares. To the Company’s
knowledge, neither this Agreement nor the exhibits hereto (if any)
contain any untrue statement of a material fact nor, to the
Company’s knowledge, omit to state a material fact necessary
in order to make the statements contained herein not
misleading.

Section 4.

Representations and Warranties of the
Purchaser

 

Purchaser
hereby represents and warrants to the Company as follows (such
representations and warranties do not lessen or obviate the
representations and warranties of the Company set forth in this
Agreement):

4.1           Requisite
Power and Authority. Purchaser
has all necessary power and authority under all applicable
provisions of law to execute and deliver this Agreement and to
carry out their provisions. All actions on the part of the
Purchaser required for the lawful execution and delivery of this
Agreement has been or will be effectively taken prior to each
Closing. Upon execution and delivery, this Agreement will be valid
and binding obligations of Purchaser, enforceable in accordance
with their terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of
general application affecting enforcement of creditors’
rights, and (ii) as limited by general principles of equity
that restrict the availability of specific performance, injunctive
relief or other equitable remedies.

4.2           Investment
Representations. Purchaser
understands that neither the Shares nor the Conversion Shares nor
the Compensation Stock have been registered under the Securities
Act. Purchaser also understands that the Shares are being offered
and sold and the Compensation Stock is being issued pursuant to an
exemption from registration contained in the Securities Act based
in part upon Purchaser’s representations contained in the
Agreement. Purchaser hereby represents and warrants as
follows:

(a)           Purchaser
Bears Economic Risk. Purchaser
has substantial experience in evaluating and investing in private
placement transactions of securities in companies similar to the
Company so that it is capable of evaluating the merits and risks of
its investment in the Company and has the capacity to protect its
own interests. Purchaser must bear the economic risk of this
investment indefinitely unless the Shares (or the Conversion
Shares) or the Compensation Stock are registered pursuant to the Securities Act, or
an exemption from registration is available. Purchaser understands
that the Company has no present intention of registering the
Shares, the Conversion Shares, the Compensation Stock, or any
shares of its Common Stock. Purchaser also understands that there
is no assurance that any exemption from registration under the
Securities Act will be available and that, even if available, such
exemption may not allow Purchaser to transfer all or any portion of
the Shares or the Conversion Shares or the Compensation
Stock under the circumstances,
in the amounts or at the times Purchaser might
propose.

(b)           Acquisition
for Own Account. Purchaser is
acquiring the Shares and the Conversion Shares and the Compensation
Stock for Purchaser’s own account for investment only, and
not with a view towards their distribution.

 

10

 

 

(c)           Purchaser
Can Protect Its Interest. Purchaser represents that by reason of its, or of
its management’s or advisor’s, business or financial
experience, Purchaser has the capacity to protect its own interests
in connection with the transactions contemplated in this Agreement.
Further, Purchaser is aware of no publication of any advertisement
in connection with the transactions contemplated in the
Agreement.

(d)           Accredited
Investor. Purchaser represents
that it is an accredited investor within the meaning of Regulation
D under the Securities Act.

(e)           Rule
144. Purchaser acknowledges and
agrees that the Shares and the Compensation Stock, 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 promulgated under the
Securities Act, which permits 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 not less than six months after a party has purchased and
paid for the security to be sold, the sale being through an
unsolicited “broker’s transaction” or in
transactions directly with a market maker (as said term is defined
under the Securities Exchange Act of 1934, as amended) and the
number of shares being sold during any three-month period not
exceeding specified limitations.

(f)           Company
Information. Such Purchaser has had an opportunity to
discuss the Company’s business, management and financial
affairs with directors, officers and management of the Company and
believes that such Purchaser has received all of the information
such Purchaser considers necessary or appropriate for deciding
whether to purchase the Shares. Such 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.

(g)           Legends.
It is understood that the certificates evidencing the Preferred
Stock (and the Conversion Stock) may bear a legend similar to
following:

“THE SHARES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY
TO THE ISSUER, THE TRANSFER QUALIFIES FOR AN EXEMPTION FROM OR
EXEMPTION TO THE REGISTRATION PROVISIONS
THEREOF”

 

Section 5. 

Conditions to Closing; Covenants.

5.1           Conditions
to Purchaser’s Obligations at each Closing.
Purchaser’s obligations to
purchase the Shares at each Closing are subject to the
satisfaction, at or prior to each Closing, of the following
conditions:

(a)           Representations
and Warranties True. The
representations and warranties made by the Company in
Section 3 hereof shall be true and correct in all material
respects as of each Closing Date.

 

11

 

 

(b)           Performance
of Obligations. The Company
shall have performed and complied with all agreements and
conditions herein required to be performed or complied with by the
Company on or before each Closing, and the Articles shall continue
to be in full force and effect as of each Closing
Date.

(c)           Legal
Investment. On each Closing
Date, the sale and issuance of the Shares and the proposed issuance
of the Conversion Shares and the issuance of the Compensation Stock
shall be legally permitted by all laws and regulations to which the
Purchaser and the Company are subject.

(d)           Consents,
Permits, and Waivers. The
Company shall have obtained any and all consents, permits and
waivers necessary or appropriate for consummation of the
transactions contemplated by the Agreement (except for such as may
be properly obtained subsequent to each
Closing).

(e)       
      Proceedings.
All corporate and other proceedings in
connection with the transactions contemplated at each Closing
hereby shall be reasonably satisfactory in substance and form to
the Purchaser and their counsel.

(f)         
Secretary’s
Certificate.
Purchaser shall have received from the Company’s Secretary a
certificate having attached thereto (i) the Company’s
Articles as in effect at the time of each Closing, (ii) the
Company’s Bylaws as in effect at the time of each Closing,
(iii) resolutions approved by the Board of Directors
authorizing the transactions contemplated hereby, (iv) a true and
correct list of the members of the Company’s Board of
Directors and a true an correct list of the Company’s
officers, (v) resolutions approved by the Company’s
stockholders authorizing the filing of the Articles; (vi) a
pre-closing and post-closing capitalization table, and
(vii) good standing certificates (including tax good standing)
with respect to the Company from the applicable authority(ies) in
Nevada and any other jurisdiction in which the Company is qualified
to do business, dated a recent date before each
Closing.

5.2           Conditions
to Obligations of the Company. The Company’s obligation to issue and sell
the Shares at each Closing and issue the Compensation Stock at the
first Closing is subject to the satisfaction, on or prior to such
Closing, of the following conditions:

(a)           Representations
and Warranties True. The
representations and warranties made by the Purchaser in Section 4
hereof shall be true and correct in all material respects at the
date of each Closing, with the same force and effect as if they had
been made on and as of said date.

(b)           Performance
of Obligations. The Purchaser
shall have performed and complied with all agreements and
conditions herein required to be performed or complied with by the
Purchaser on or before each Closing.

(c)           Consents,
Permits, and Waivers. The
Company shall have obtained any and all consents, permits and
waivers necessary or appropriate for consummation of the
transactions contemplated by the Agreement (except for such as may
be properly obtained subsequent to each
Closing).

 

12

 

 

Section 6. 

Affirmative Covenants of the Company.

The
Company agrees with the Purchaser as follows:

(a)           Financial
Information. The Company will deliver to the Purchaser,
within one hundred and eighty (180) days after the end of each
fiscal year, annual unaudited financial statements.

(b)           Rights
of Inspection. Subject to the
execution of a confidentiality agreement, and in addition to any
rights provided to a shareholder under Nevada law, Purchaser shall
have the right, no more than two (2) times each fiscal year, to
visit and inspect any of the properties of the Company and the
books and records of the Company (on at least 48 hours’ prior
written notice to the Company) and to discuss its affairs, finances
and accounts with its officers, at such reasonable times during
normal business hours as may be reasonably
requested.

(c)           Confidentiality.
Any information provided to Purchaser
under this Section 6,
as well as the terms and conditions of this Agreement itself, shall
be deemed to be confidential information of the Company, and
Purchaser shall not disclose such information to any third parties.
Notwithstanding the foregoing, if Purchaser is ordered by a court,
administrative agency, or other governmental body of competent
jurisdiction to disclose any such information, or if Purchaser is
served or otherwise becomes aware of a motion or similar request
that such an order is to be issued, then Purchaser will not be
liable to the Company for disclosure of the information required by
such order if Purchaser shall (a) promptly notify the Company
of the motion or order by the most expeditious means possible; and
(b) join or agree to (or at a minimum shall not oppose) a motion or
similar request by the Company for an order protecting the
confidentiality of the information covered by such order. In
addition, the Board of Directors, in its sole discretion, may
determine that certain information to be delivered hereunder is
competitively sensitive information and may refuse to deliver such
information to Purchaser if Purchaser is deemed by the Board to be
a competitor or potential competitor of the
Company.

(d)           Termination.
 The rights and
obligations of Purchaser under this Section 6 shall terminate upon
the earlier to occur of (i) the transfer of all of the Shares and
the Compensation Stock owned by
Purchaser; and (ii) the consummation by the Company of an initial
public offering of its Common Stock.

(e)           Anti-Dilution
Protection. For the avoidance of doubt, the Purchaser shall
have all of the anti-dilution protection included in Section B.5 of
Article FOURTH of the Articles.

Section 7. 

Miscellaneous.

7.1           Governing
Law. This Agreement shall be
governed in all respects by the laws of the State of California
without regard to principles of conflict of
laws.

7.2           Survival.
The representations, warranties,
covenants and agreements made herein shall survive any
investigation made by any Purchaser and the closing of the
transactions contemplated hereby. All statements as to factual
matters contained in any certificate or other instrument delivered
by or on behalf of the Company pursuant hereto in connection with
the transactions contemplated hereby shall be deemed to be
representations and warranties by the Company hereunder solely as
of the date of such certificate or instrument.

 

13

 

 

7.3           Successors
and Assigns. Except as
otherwise expressly provided herein, the provisions hereof shall
inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto
and shall inure to the benefit of and be enforceable by each person
who shall be a holder of the Shares or the Compensation Stock from
time to time.

7.4           Entire
Agreement. This Agreement, and
any Exhibits and Schedules hereto and the other documents delivered
pursuant hereto constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof
and no party shall be liable or bound to any other in any manner by
any representations, warranties, covenants and agreements except as
specifically set forth herein and therein.

7.5           Severability.
In case any provision of the Agreement
shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

7.6           Amendment
and Waiver.

(a)           This
Agreement may be amended or modified only upon the written consent
of the Company and holders of at least a majority of the Preferred
Stock (treated as if converted and including any Conversion Shares
into which the Shares have been converted that have not been sold
to the public).

(b)           The
obligations of the Company and the rights of the holders of the
Shares and the Conversion Shares under the Agreement may be waived
only with the written consent of the holders of at least a majority
of the Preferred Stock (treated as if converted and including any
Conversion Shares into which the Shares have been converted that
have not been sold to the public).

7.7           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 or the Articles, shall impair
any such right, power or remedy, nor shall it be construed to be a
waiver of any such breach, default or noncompliance thereafter
occurring. It is further agreed that any waiver, permit, consent or
approval of any kind of character on any Purchaser’s part of
any breach, default or noncompliance under this Agreement or under
the Articles or any waiver on such party’s part of any
provisions or conditions of the Agreement or the Articles must be
in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this
Agreement or the Articles, by law, or otherwise afforded to any
party, shall be cumulative and not alternative.

7.8           Notices.
All notices required or permitted
hereunder shall be in writing and shall be deemed effectively
given: (i) upon personal delivery to the party to be notified;
(ii) when sent by confirmed telex or facsimile if sent during
normal business hours of the recipient, if not, then on the next
business day; (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage
prepaid; or (iv) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications shall be sent
to the Company and to Purchaser at the addresses as set forth on
the signature page hereof or at such other address as the Company
or Purchaser may designate by ten (10) days advance written notice
to the other parties hereto.

 

14

 

 

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

7.10        
Counterparts.
This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all
of which together shall constitute one
instrument.

7.11         
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 in this Section 7.11
being untrue.

7.12          
Expenses.
Each party hereto shall pay their own
costs and expenses that they incur with respect to the negotiation,
execution, delivery and performance of the
Agreement.

7.13         
Exculpation.
Purchaser acknowledges that it is not
relying upon any person, firm, or corporation, other than the
Company and its officers and directors, in making its investment or
decision to invest in the Company. Each Purchaser agrees that no
Purchaser nor the respective controlling persons, officers,
directors, partners, agents, or employees of any Purchaser shall be
liable for any action heretofore or hereafter taken or omitted to
be taken by any of them in connection with the Shares, Conversion
Shares, and the Compensation Stock.

7.14           
Indemnification. The
Company hereby agrees to defend, indemnify, and hold harmless
Purchaser and each of Purchaser’s employees, agents,
attorneys, representatives, and affiliates, harmless from and
against any and all losses, liabilities, claims, demands,
judgments, costs and expenses (including attorneys’ fees and
actual costs and expenses) arising out of or related to: (i) the
breach or failure of the Company's obligations, representations,
warranties and/or covenants under this Agreement; or (ii) the
Company's negligence, recklessness, or willful misconduct in
connection with or relating to the performance of any of its
services.

[REMAINDER
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15

 

 

In
Witness Whereof, the parties
hereto have executed the Series
A Convertible Participating Preferred Stock Purchase
Agreement as of the date set
forth in the first paragraph hereof.

	

 

	

COMPANY:

 

Hang With, Inc.

	

 

	

 

	

Address:
Attn: Andrew Maltin

7
Studebaker

Irvine,
CA 92618 

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	

/s/ Andrew Maltin

	

 

	

 

	

Name: Andrew Maltin 

	

 

	

 

	

Title: CEO 

	

 

 

 

	
 

	

PURCHASER:

 

FRIENDABLE, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:  

	

/s/ Robert Rositano

	
 

	
 

	
Name:
Robert Rositano

	
 

	
 

	

Title:
CEO

	
 

	
 

	

Address:

	
 

	
 

	

 

	
 

	
 

	

1821
S Bascom Ave., Suite 353

	
 

	
 

	
Campbell,
CA 95008

	
 

	
 

	

 

	
 

 

 

 

 

 

 

 

 

16

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