Document:

AMENDMENT
AND FORBEARANCE AGREEMENT

 

 

I

PARTIES

 

THIS
AMENDMENT AND FORBEARANCE AGREEMENT (the “Agreement”) is entered into as of the ____ day of June, 2019
(the “Effective Date”), by and between AFT FUNDING CORP. (“AFT”); and, LANDSTAR,
INC., a Nevada corporation (“LDSR”). LDSR and AFT are sometimes referred to collectively herein as the “Parties”,
and each individually as a “Party”.

 

II

RECITALS

 

A.
LDSR previously issued in favor of AFT that certain 8% Convertible Redeemable Note in the original principal amount of One
Hundred Ten Thousand Dollars ($110,000) on 16 October 2018, with a maturity date of 16 July 2019 (the “Note”).

 

B.
AFT is willing to forbear from enforcing its rights under the Note which arise with regard to the Forbearance Defaults, and
amend certain provisions of the Note, provided that LDSR complies with the terms of this Agreement.

 

C.
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

III

DEFINED
TERMS AND INTERPRETATION

 

3.1
Defined Terms in the Note. All capitalized terms used herein and not otherwise defined shall have the meanings assigned
to such terms in the Note.

 

3.2
Defined Terms in this Agreement. The following capitalized terms shall have the respective meanings specified in
this Article III. Other terms defined elsewhere herein shall have meanings so given them.

 

3.2.1.
Forbearance Default. “Forbearance Default” means (a) the occurrence of any of the Events of Default
under the Note; (b) the failure of LDSR to comply with any term, condition, or covenant set forth in this Agreement; (c) any representation
made by LDSR under or in connection with this Agreement which shall prove to be materially false or misleading as of the date
when made; or, (d) the filing of any petition (voluntary or involuntary) under the insolvency or bankruptcy laws of the United
States or any state thereof, with respect to LDSR, or any of its subsidiaries.

 

3.2.2.
Obligations. “Obligations” means each and every of the obligations of LDSR under the Note, which obligations
include, without limitation, payment and performance of under the Note.

 

3.2.3.
Securities Act. “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

3.2.4.
Additional Definitions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended.

 

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3.3
Interpretation.

 

3.3.1.
Provision Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between
the Parties; is the product of the work and efforts of all Parties; and, shall be deemed to have been drafted by all Parties.
Each Party has had the opportunity to be represented by independent legal counsel of its choice. In the event of a dispute, no
Party shall be entitled to claim that any provision should be construed against any other Party by reason of the fact that it
was drafted by one particular Party.

 

3.3.2.
Agreement Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section,
Subsection, Exhibit, or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits
and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

3.3.3.
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the
entire agreement and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly
set forth or referred to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and
negotiations between the Parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or
usage of the trade inconsistent with any of the terms hereof.

 

3.3.4.
Severability. Each and every provision of this Agreement is severable and independent of any other term or provision
of this Agreement. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such
invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid,
illegal, or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated
as originally contemplated to the greatest extent possible.

 

3.3.5.
Successors and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions,
conditions, and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties. This Agreement is not assignable by either Party without the expressed written consent of all Parties.

 

3.3.6.
Time. All Parties agree that time is of the essence as to this Agreement.

 

3.3.7.
Governing Law. This Agreement shall be governed by the laws of the State of North Carolina, without giving effect
to any choice or conflict of law provision or rule (whether of the State of North Carolina or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of North Carolina. If any court action is necessary
to enforce the terms and conditions of this Agreement, the Parties hereby agree that the Wake County Superior Court, Raleigh,
North Carolina, shall be the sole jurisdiction and venue for the bringing of such action.

 

IV

CONFIRMATION
OF OBLIGATIONS; AMENDED AND NEW COVENANTS

 

4.1
Absence of Certain Rights. LDSR hereby acknowledges and agrees that as of the Effective Date, LDSR has no right
of offset, defense, or counterclaim with respect to the Obligations.

 

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4.2
Continued Effectiveness. Except as otherwise expressly set forth in this Agreement, the terms of the Note remain
unchanged, and the Note shall remain in full force and effect and is hereby confirmed and ratified. LDSR shall continue to perform
and observe all terms and conditions of the Note, as modified under this Agreement.

 

4.3
No Novation. This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation, or release
of the Note, or, except as otherwise expressly provided herein, a waiver by AFT of any of its rights or remedies under the Note,
at law or in equity.

 

4.4
Reaffirmation. LDSR hereby reaffirms each and every covenant, condition, obligation, and provision set forth in
the Note, as modified under this Agreement.

 

4.5
Maturity Date. The Maturity Date under the Note shall be 15 April 2020.

 

4.6
Conversions. The Holder of the Note shall be entitled, at its option, to exercise the conversion rights under the
Note only upon the earlier of (i) the Maturity Date; or, (ii) and event of Default.

 

4.7
Principal Amount. As of and on the Effective Date, the principal face amount of the Note shall be increased to One
Hundred Twenty One Thousand Dollars ($121,000).

 

4.8
Interest Rate. As of and on the Effective Date, the interest rate under the Note shall be twelve percent (12%) per
annum.

 

4.9
Conversion Price. The Conversion Price under the Note shall be equal to sixty five percent (65%) of the lesser of
the lowest trading price of the Common Stock for (i) the 20-days immediately preceding the Effective Date; or, (ii) the 20-days
immediately preceding the date of conversion.

 

4.10
Share Reserve. As soon as practicable after the Effective Date, LDSR shall issue irrevocable instructions to its
transfer agent for the reservation of shares of Common Stock in compliance with the maximum number of shares to be reserved under
Section 12 of the Note. This Agreement shall be null and void, and cancelled in all respects in the event this Section 4.10 is
not satisfied within 30-days of the Effective Date.

 

V

AGREEMENT
TO FORBEAR

 

5.1
Forbearance. Provided that no Forbearance Default occurs as of or following the Effective Date, and LDSR satisfies
the requirements of Section 4.10, above, AFT hereby agrees to refrain and forbear from exercising any of its rights and remedies
under the Note that may exist. Upon the occurrence of any subsequent Forbearance Default after the Effective Date, the foregoing
forbearance by AFT shall be of no further force and effect, shall be automatically and without notice or demand deemed rescinded,
revoked, and terminated and all Forbearance Defaults shall be revived and reinstated and shall be deemed to have occurred and
to exist as if such forbearance had not been granted, with all rights and remedies of AFT under the Note based upon the Forbearance
Defaults revived and reinstated as if no forbearance had been granted.

 

5.2
Retained Rights. Except as expressly provided herein, the execution and delivery of this Agreement shall not: (a)
constitute an extension, modification, or waiver of any aspect of the Note; (b) extend the terms of any of the Note or the due
date of any of the Obligations; (c) give rise to any obligation on the part of AFT to extend, modify, or waive any term or condition
of the Note; (d) give rise to any defenses or counterclaims to the right of AFT to compel payment of the Obligations or to otherwise
enforce its rights and remedies under the Note; or, (e) establish a custom or course of dealing between or among LDSR and AFT.
Except as expressly limited herein, AFT hereby expressly reserves all of its rights and remedies under the Note and under applicable
law.

 

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5.3
LDSR Forbearance Obligations. In order to induce AFT to forbear from the exercise of its rights and remedies as
set forth above, LDSR hereby further covenants and agrees that at the request of AFT, LDSR shall give its transfer agent instructions
(supported by an opinion of LDSR counsel, if required or requested by the transfer agent) to the effect that, upon the transfer
agent’s receipt from AFT of (i) a certificate (a “Rule 144 Certificate”) certifying that AFT has satisfied
such matters as may be appropriate in accordance with Rule 144 under the Securities Act; and, (ii) an opinion of counsel acceptable
to LDSR that, based on the Rule 144 Certificate, the shares being sold may be sold pursuant to the provisions of Rule 144, even
in the absence of an effective registration statement, then the Transfer Agent is to effect the transfer of the shares being sold
and issue to the buyer(s) or transferee(s) thereof one or more stock certificates representing the transferred shares being sold
without any restrictive legend and without recording any restrictions on the transferability of such shares on the transfer agent’s
books and records (except to the extent any such legend or restriction results from facts other than the identity of the relevant
AFT, as the seller or transferor thereof, or the status, including any relevant legends or restrictions, of the shares of the
shares being sold while held by AFT). If LDSR’s transfer agent reasonably requires any additional documentation at the time
of the transfer, LDSR shall deliver or cause to be delivered all such reasonable additional documentation as may be necessary
to effectuate the issuance of an unlegended certificate.

 

VI

REPRESENTATIONS
AND WARRANTIES

 

6.1
LDSR. LDSR hereby represents and warrants to AFT as follows as of the Effective Date:

 

(a)
The execution, delivery, and performance of this Agreement by LDSR is within LDSR’s corporate power and has been duly authorized
by all necessary corporate action.

 

(b)
This Agreement constitutes a valid and legally binding agreement enforceable against LDSR in accordance with its terms subject
to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’ rights generally and
to general equitable principals.

 

(c)
The Note constitutes a valid and legally binding obligation of LDSR, enforceable against LDSR in accordance with the terms thereof
subject to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’ rights generally
and to general equitable principals.

 

6.2
AFT. AFT hereby represents and warrants to LDSR as follows as of the Effective Date:

 

(a)
AFT is (i) an “accredited investor” as that term is defined in Rule 501 under the 1933 Act; (ii) experienced in making
investments of the kind described in this Agreement and the related documents; and, (iii) able, by reason of the business and
financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or compensated in any
way by LDSR or any of its Affiliates or selling agents), to protect its own interests in connection with the transactions described
in this Agreement, and the related documents, and to evaluate the merits and risks of entering in to this Agreement.

 

(b)
This Agreement, and the transactions contemplated thereby, have been duly and validly authorized, executed, and delivered on behalf
of AFT and are valid and binding agreements of AFT enforceable in accordance with their respective terms, subject as to enforceability
to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally.

 

(c)
AFT is expressly not relying on any oral representations made by LDSR or any of its agents.

 

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VII

ADDITIONAL
PROVISIONS

 

7.1
Executed Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together
shall be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the
event that any signature is delivered by Fax or E-Mail, such signature shall create a valid and binding obligation of that Party
(or on whose behalf such signature is executed) with the same force and effect as an original thereof. Any photographic, photocopy,
or similar reproduction copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be
considered for all purposes as if it were an executed counterpart of this Agreement.

 

7.2
Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed
that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in
equity. The remedies of the Parties under this Agreement are cumulative and shall not exclude any other remedies to which any
person may be lawfully entitled.

 

7.3
Waiver. No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition
of this Agreement or to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other
covenant, duty, agreement, or condition.

 

7.4
Recovery of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret
this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees and other costs and expenses (including
expert witness fees) of the prevailing Party in such amount as the may be determined. In addition, such non-prevailing Party shall
pay reasonable attorneys’ fees incurred by the prevailing Party in enforcing, or on appeal from, a judgment in favor of
the prevailing Party. The preceding sentence is intended by the Parties to be severable from the other provisions of this Agreement
and to survive and not be merged into such judgment.

 

7.5
Recitals. The facts recited in Article II, above, are hereby conclusively presumed to be true as between and affecting
the Parties.

 

7.6
Amendment. This Agreement may be amended or modified only by a writing signed by all Parties.

 

7.7
No Third Party Beneficiaries. This Agreement has been entered into solely by and between the Parties, solely for
their benefit. There is no intent by either Party to create or establish a third party beneficiary to this Agreement, and no such
third party shall have any right to enforce any right, claim, or cause of action created or established under this Agreement.

 

7.8
Further Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information;
(ii) to execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another
Party may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall
be required to incur any material expense or potential exposure to legal liability pursuant to this Section 7.8.

 

7.9
Notices.

 

7.9.1.
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be
deemed given (a) if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt
of same; (c) if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified
mail, postage prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

7.9.2.
Consent to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for
communications and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a
communication (i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient
on record with the sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that
may thereafter be rendered into clearly legible tangible form.

 

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7.9.3.
Address Changes. Any Party may alter the Fax number, E-Mail address, physical address, or postage address to which
communications or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the
provisions of this Section 7.9.

 

7.10
Best Efforts. Each Party shall cooperate in good faith with the other Parties generally, and in particular, the
Parties shall use and exercise their best efforts, taking all reasonable, ordinary and necessary measures to ensure an orderly
and smooth relationship under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences
or problems which may arise in the future. However, the obligations under this Section 7.10 shall not include any obligation
to incur substantial expense or liability.

 

VIII

EXECUTION

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the Parties and shall be effective as of and on the Effective Date.
Each of the undersigned Parties hereby represents and warrants that it (i) has the requisite power and authority to enter into
and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder; and, (ii) it is
duly authorized and empowered to execute and deliver this Agreement.

 

	AFT:	 	LDSR:
	 	 	 
	AFT
    FUNDING CORP.	 	LANDSTAR,
    INC.
	 	 	 	 	 
	BY:	   	 	BY:	       
	 	 	 	 	 
	NAME:	 	 	NAME:	 
	 	 	 	 	 
	TITLE:	 	 	TITLE:	 
	 	 	 	 	 
	DATED:	 	 	DATED:	 

 

    	6AMENDMENT
AND FORBEARANCE AGREEMENT

 

I

PARTIES

 

THIS
AMENDMENT AND FORBEARANCE AGREEMENT (the “Agreement”) is entered into as of the ____ day of June, 2019
(the “Effective Date”), by and between BLUE CITI LLC (“Blue Citi”); and, LANDSTAR,
INC., a Nevada corporation (“LDSR”). LDSR and Blue Citi are sometimes referred to collectively herein as the
“Parties”, and each individually as a “Party”.

 

II

RECITALS

 

A.
LDSR previously issued in favor of Blue Citi that certain Consolidated Note in the original principal amount of Eight Hundred
Twenty Nine Thousand Six Hundred Eighty Dollars ($829,680) on 30 September 2018, with a maturity date of 31 March 2020 (the “Note”).

 

B.
Blue Citi is willing to forbear from enforcing its rights under the Note which arise with regard to the Forbearance Defaults,
and amend certain provisions of the Note, provided that LDSR complies with the terms of this Agreement.

 

C.
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

III

DEFINED
TERMS AND INTERPRETATION

 

3.1
Defined Terms in the Note. All capitalized terms used herein and not otherwise defined shall have the meanings assigned
to such terms in the Note.

 

3.2
Defined Terms in this Agreement. The following capitalized terms shall have the respective meanings specified in
this Article III. Other terms defined elsewhere herein shall have meanings so given them.

 

3.2.1.
Forbearance Default. “Forbearance Default” means (a) the occurrence of any of the Events of Default
under the Note; (b) the failure of LDSR to comply with any term, condition, or covenant set forth in this Agreement; (c) any representation
made by LDSR under or in connection with this Agreement which shall prove to be materially false or misleading as of the date
when made; or, (d) the filing of any petition (voluntary or involuntary) under the insolvency or bankruptcy laws of the United
States or any state thereof, with respect to LDSR, or any of its subsidiaries.

 

3.2.2.
Obligations. “Obligations” means each and every of the obligations of LDSR under the Note, which obligations
include, without limitation, payment and performance of under the Note.

 

3.2.3.
Securities Act. “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

3.2.4.
Additional Definitions. For purposes of this Agreement, (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them; (ii) wherever from the context it appears appropriate, each
term stated either in the singular or plural shall include the singular and plural; (iii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the others; (iv) the words “hereof”, “herein”,
“hereunder”, and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement; (v) all references to “Dollars” or “$” shall be construed
as being United States Dollars; (vi) the term “including” is not limiting and means “including without limitation”;
and, (vii) all references to all statutes, statutory provisions, regulations, or similar administrative provisions shall be construed
as a reference to such statute, statutory provision, regulation, or similar administrative provision as in force at the date of
this Agreement and as may be subsequently amended.

 

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3.3
Interpretation.

 

3.3.1.
Provision Not Construed Against Party Drafting Agreement. This Agreement is the result of negotiations by and between
the Parties; is the product of the work and efforts of all Parties; and, shall be deemed to have been drafted by all Parties.
Each Party has had the opportunity to be represented by independent legal counsel of its choice. In the event of a dispute, no
Party shall be entitled to claim that any provision should be construed against any other Party by reason of the fact that it
was drafted by one particular Party.

 

3.3.2.
Agreement Provisions, Exhibits, and Schedules. When a reference is made in this Agreement to an Article, Section,
Subsection, Exhibit, or Schedule, such reference shall be to said item of this Agreement unless otherwise indicated. The Exhibits
and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof as if set out in full herein.

 

3.3.3.
Entire Agreement. This Agreement, and all references, documents, or instruments referred to herein, contains the
entire agreement and understanding of the Parties in respect to the subject matter contained herein. The Parties have expressly
not relied upon any promises, representations, warranties, agreements, covenants, or undertakings, other than those expressly
set forth or referred to herein. This Agreement supersedes (i) any and all prior written or oral agreements, understandings, and
negotiations between the Parties with respect to the subject matter contained herein; and, (ii) any course of performance and/or
usage of the trade inconsistent with any of the terms hereof.

 

3.3.4.
Severability. Each and every provision of this Agreement is severable and independent of any other term or provision
of this Agreement. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such
invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid,
illegal, or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated
as originally contemplated to the greatest extent possible.

 

3.3.5.
Successors and Assigns. Except as expressly provided in this Agreement, each and all of the covenants, terms, provisions,
conditions, and agreements herein contained shall be binding upon and shall inure to the benefit of the successors and assigns
of the Parties. This Agreement is not assignable by either Party without the expressed written consent of all Parties.

 

3.3.6.
Time. All Parties agree that time is of the essence as to this Agreement.

 

3.3.7.
Governing Law. This Agreement shall be governed by the laws of the State of New York, without giving effect to any
choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York. If any court action is necessary to enforce the
terms and conditions of this Agreement, the Parties hereby agree that the state courts in Dade and Broward County, Florida, and
the state court in New York County, New York, shall be the sole jurisdictions and venues for the bringing of such action, in the
sole discretion of the party bringing the action.

 

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IV

CONFIRMATION
OF OBLIGATIONS; AMENDED AND NEW COVENANTS

 

4.1
Absence of Certain Rights. LDSR hereby acknowledges and agrees that as of the Effective Date, LDSR has no right
of offset, defense, or counterclaim with respect to the Obligations.

 

4.2
Continued Effectiveness. Except as otherwise expressly set forth in this Agreement, the terms of the Note remain
unchanged, and the Note shall remain in full force and effect and is hereby confirmed and ratified. LDSR shall continue to perform
and observe all terms and conditions of the Note, as modified under this Agreement.

 

4.3
No Novation. This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation, or release
of the Note, or, except as otherwise expressly provided herein, a waiver by Blue Citi of any of its rights or remedies under the
Note, at law or in equity.

 

4.4
Reaffirmation. LDSR hereby reaffirms each and every covenant, condition, obligation, and provision set forth in
the Note, as modified under this Agreement.

 

4.5
Conversions. The Holder of the Note shall be entitled, at its option, to exercise the conversion rights under the
Note only upon the earlier of (i) the Maturity Date; or, (ii) any Event of Default.

 

4.6
Principal Amount. As of and on the Effective Date, the principal face amount of the Note shall be increased to One
Million Eighty Three Thousand Five Hundred Dollars ($1,083,500).

 

4.7
Interest Rate. As of and on the Effective Date, the interest rate under the Note shall be twelve percent (12%) per
annum.

 

4.8
Conversion Price. The Conversion Price under the Note shall be equal to eighty five percent (85%) of the lesser
of the lowest trading price of the Common Stock for (i) the 20-days immediately preceding the Effective Date; or, (ii) the 20-days
immediately preceding the date of conversion.

 

4.9
Share Reserve. As soon as practicable after the Effective Date, LDSR shall issue irrevocable instructions to its
transfer agent for the reservation of one billion three hundred million (1,300,000,000) shares of Common Stock for conversion
under the Note. This Agreement shall be null and void, and cancelled in all respects in the event this Section 4.9 is not satisfied
within 30-days of the Effective Date.

 

4.10
Increase in Share Reserve. As soon as practicable after the earlier of (i) the effectiveness of a reverse stock
split undertaken by LDSR; or, (ii) ninety (90) days from the Effective Date, LDSR shall issue irrevocable instructions to its
transfer agent for the reservation of under the Note of that number of shares of Common Stock which is three times the number
of shares into which the Note can then be converted.

 

V

AGREEMENT
TO FORBEAR

 

5.1
Forbearance. Provided that no Forbearance Default occurs as of or following the Effective Date, and LDSR satisfies
the requirements of Section 4.9, above, Blue Citi hereby agrees to refrain and forbear from exercising any of its rights and remedies
under the Note that may exist. Upon the occurrence of any subsequent Forbearance Default after the Effective Date, the foregoing
forbearance by Blue Citi shall be of no further force and effect, shall be automatically and without notice or demand deemed rescinded,
revoked, and terminated and all Forbearance Defaults shall be revived and reinstated and shall be deemed to have occurred and
to exist as if such forbearance had not been granted, with all rights and remedies of Blue Citi under the Note based upon the
Forbearance Defaults revived and reinstated as if no forbearance had been granted.

 

5.2
Retained Rights. Except as expressly provided herein, the execution and delivery of this Agreement shall not: (a)
constitute an extension, modification, or waiver of any aspect of the Note; (b) extend the terms of any of the Note or the due
date of any of the Obligations; (c) give rise to any obligation on the part of Blue Citi to extend, modify, or waive any term
or condition of the Note; (d) give rise to any defenses or counterclaims to the right of Blue Citi to compel payment of the Obligations
or to otherwise enforce its rights and remedies under the Note; or, (e) establish a custom or course of dealing between or among
LDSR and Blue Citi. Except as expressly limited herein, Blue Citi hereby expressly reserves all of its rights and remedies under
the Note and under applicable law.

 

    	3

    	 

    

 

5.3
LDSR Forbearance Obligations. In order to induce Blue Citi to forbear from the exercise of its rights and remedies
as set forth above, LDSR hereby further covenants and agrees that at the request of Blue Citi, LDSR shall give its transfer agent
instructions (supported by an opinion of LDSR counsel, if required or requested by the transfer agent) to the effect that, upon
the transfer agent’s receipt from Blue Citi of (i) a certificate (a “Rule 144 Certificate”) certifying
that Blue Citi has satisfied such matters as may be appropriate in accordance with Rule 144 under the Securities Act; and, (ii)
an opinion of counsel acceptable to LDSR that, based on the Rule 144 Certificate, the shares being sold may be sold pursuant to
the provisions of Rule 144, even in the absence of an effective registration statement, then the Transfer Agent is to effect the
transfer of the shares being sold and issue to the buyer(s) or transferee(s) thereof one or more stock certificates representing
the transferred shares being sold without any restrictive legend and without recording any restrictions on the transferability
of such shares on the transfer agent’s books and records (except to the extent any such legend or restriction results from
facts other than the identity of the relevant Blue Citi, as the seller or transferor thereof, or the status, including any relevant
legends or restrictions, of the shares of the shares being sold while held by Blue Citi). If LDSR’s transfer agent reasonably
requires any additional documentation at the time of the transfer, LDSR shall deliver or cause to be delivered all such reasonable
additional documentation as may be necessary to effectuate the issuance of an unlegended certificate.

 

VI

REPRESENTATIONS
AND WARRANTIES

 

6.1
LDSR. LDSR hereby represents and warrants to Blue Citi as follows as of the Effective Date:

 

(a)
The execution, delivery, and performance of this Agreement by LDSR is within LDSR’s corporate power and has been duly authorized
by all necessary corporate action.

 

(b)
This Agreement constitutes a valid and legally binding agreement enforceable against LDSR in accordance with its terms subject
to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’ rights generally and
to general equitable principals.

 

(c)
The Note constitutes a valid and legally binding obligation of LDSR, enforceable against LDSR in accordance with the terms thereof
subject to the effects of bankruptcy, insolvency, fraudulent conveyance, and other laws affecting creditors’ rights generally
and to general equitable principals.

 

6.2
Blue Citi. Blue Citi hereby represents and warrants to LDSR as follows as of the Effective Date:

 

(a)
Blue Citi is (i) an “accredited investor” as that term is defined in Rule 501 under the 1933 Act; (ii) experienced
in making investments of the kind described in this Agreement and the related documents; and, (iii) able, by reason of the business
and financial experience of its officers (if an entity) and professional advisors (who are not affiliated with or compensated
in any way by LDSR or any of its Affiliates or selling agents), to protect its own interests in connection with the transactions
described in this Agreement, and the related documents, and to evaluate the merits and risks of entering in to this Agreement.

 

(b)
This Agreement, and the transactions contemplated thereby, have been duly and validly authorized, executed, and delivered on behalf
of Blue Citi and are valid and binding agreements of Blue Citi enforceable in accordance with their respective terms, subject
as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting
the enforcement of creditors’ rights generally.

 

(c)
Blue Citi is expressly not relying on any oral representations made by LDSR or any of its agents.

 

    	4

    	 

    

 

VII

ADDITIONAL
PROVISIONS

 

7.1
Executed Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together
shall be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart. In the
event that any signature is delivered by Fax or E-Mail, such signature shall create a valid and binding obligation of that Party
(or on whose behalf such signature is executed) with the same force and effect as an original thereof. Any photographic, photocopy,
or similar reproduction copy of this Agreement, with all signatures reproduced on one or more sets of signature pages, shall be
considered for all purposes as if it were an executed counterpart of this Agreement.

 

7.2
Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, it is agreed
that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in
equity. The remedies of the Parties under this Agreement are cumulative and shall not exclude any other remedies to which any
person may be lawfully entitled.

 

7.3
Waiver. No failure by any Party to insist on the strict performance of any covenant, duty, agreement, or condition
of this Agreement or to exercise any right or remedy on a breach shall constitute a waiver of any such breach or of any other
covenant, duty, agreement, or condition.

 

7.4
Recovery of Fees by Prevailing Party. In the event of any legal action (including arbitration) to enforce or interpret
this Agreement, the non-prevailing Party shall pay the reasonable attorneys’ fees and other costs and expenses (including
expert witness fees) of the prevailing Party in such amount as the may be determined. In addition, such non-prevailing Party shall
pay reasonable attorneys’ fees incurred by the prevailing Party in enforcing, or on appeal from, a judgment in favor of
the prevailing Party. The preceding sentence is intended by the Parties to be severable from the other provisions of this Agreement
and to survive and not be merged into such judgment.

 

7.5
Recitals. The facts recited in Article II, above, are hereby conclusively presumed to be true as between and affecting
the Parties.

 

7.6
Amendment. This Agreement may be amended or modified only by a writing signed by all Parties.

 

7.7
No Third Party Beneficiaries. This Agreement has been entered into solely by and between the Parties, solely for
their benefit. There is no intent by either Party to create or establish a third party beneficiary to this Agreement, and no such
third party shall have any right to enforce any right, claim, or cause of action created or established under this Agreement.

 

7.8
Further Assurances. Each Party agrees (i) to furnish upon request to each other Party such further information;
(ii) to execute and deliver to each other Party such other documents; and, (iii) to do such other acts and things, all as another
Party may reasonably request for the purpose of carrying out the intent of this Agreement and the transactions envisioned hereunder.
However, this provision shall not require that any additional representations or warranties be made and no Party shall
be required to incur any material expense or potential exposure to legal liability pursuant to this Section 7.8.

 

7.9
Notices.

 

7.9.1.
Method and Delivery. All notices, requests and demands hereunder shall be in writing and delivered by hand, by Electronic
Transmission, by mail, or by recognized commercial over-night delivery service (such as Federal Express or UPS), and shall be
deemed given (a) if by hand delivery, upon such delivery; (b) if by Electronic Transmission, upon telephone confirmation of receipt
of same; (c) if by mail, forty-eight (48) hours after deposit in the United States mail, first class, registered or certified
mail, postage prepaid; or, (d) if by recognized commercial over-night delivery service, upon such delivery.

 

    	5

    	 

    

 

 

7.9.2.
Consent to Electronic Transmission. Each Party hereby expressly consents to the use of Electronic Transmission for
communications and notices under this Agreement. For purposes of this Agreement, “Electronic Transmission” means a
communication (i) delivered by Fax or E-Mail when directed to the Fax number or E-Mail address, respectively, for that recipient
on record with the sending Party; and, (ii) that creates a record that is capable of retention, retrieval, and review, and that
may thereafter be rendered into clearly legible tangible form.

 

7.9.3.
Address Changes. Any Party may alter the Fax number, E-Mail address, physical address, or postage address to which
communications or copies are to be sent by giving notice of such change of address to the other Parties in accordance with the
provisions of this Section 7.9.

 

7.10
Best Efforts. Each Party shall cooperate in good faith with the other Parties generally, and in particular, the
Parties shall use and exercise their best efforts, taking all reasonable, ordinary and necessary measures to ensure an orderly
and smooth relationship under this Agreement, and further agree to work together and negotiate in good faith to resolve any differences
or problems which may arise in the future. However, the obligations under this Section 7.10 shall not include any obligation
to incur substantial expense or liability.

 

VIII

EXECUTION

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the Parties and shall be effective as of and on the Effective Date.
Each of the undersigned Parties hereby represents and warrants that it (i) has the requisite power and authority to enter into
and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder; and, (ii) it is
duly authorized and empowered to execute and deliver this Agreement.

 

	BLUE
    CITI:	 	LDSR:
	 	 	 
	BLUE
    CITI LLC 	 	LANDSTAR,
    INC.
	 	 	 	 	 
	BY:	 	 	BY:	     
	 	 	 	 	 
	NAME:	 	 	NAME:	 
	 	 	 	 	 
	TITLE:
    	 	 	TITLE:	 
	 	 	 	 	 
	DATED:
    	 	 	DATED:
    	 

 

    	6

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