Document:

Exhibit 10.2

Komatsu Purchase Agreement

This purchase agreement (“Agreement”) is entered into as of June 23, 2017 (the “Effective Date”) by and between K & R, LLC, a Kentucky limited liability company (“Seller”), and Industrial Services of America, Inc., a Florida corporation (“Buyer”) and shall remain in effect for so long as Buyer owes any obligation or indebtedness to Seller pursuant to the terms and conditions set forth herein (the period lasting from the Effective date to the termination of this Agreement upon full payment of the Purchase Price as set forth below, the “Term”).

1.  Conveyance.  In consideration for good and valuable consideration, Seller sells, assigns, transfers, conveys and grants to Buyer, all of its right, title and interest in and to the goods listed on Exhibit A attached to and made a part of this Agreement (“Equipment”).

2.   Payment Terms.

(a)   Payment.  Buyer shall pay Seller the amount of sixty thousand dollars ($60,000.00) (the “Purchase Price”).  The Purchase Price shall be paid as follows:

(i)   A 20% down payment equal to twelve thousand dollars ($12,000) (“Down Payment”) shall be due and owing on or before the Effective Date; and 

(ii)   Forty-eight thousand dollars ($48,000), the remaining amount due, shall be evidenced by a Promissory Note, of even date herewith, made by Buyer in favor of Seller (the “Note”), which shall, provide that payments shall be paid by Buyer paid over twenty-four (24) equal monthly installments of two thousand ($2,000).  Each installment payment shall be due and payable in full on the first day of each month, with the first payment being due on July 1, 2017. The Note shall also include the following terms: 

All payments due under the Note shall be in United States dollars and made by check or electronic transfer. 

(b)   Late Payments.  All late payments shall bear interest at the lesser of the rate of one percent (1%) per month or the highest rate permissible under applicable law,  calculateddaily  and compounded monthly.  Buyer shall also reimburse Seller for all costs incurred in collecting any late payments, including, without limitation, attorneys’ fees.

(c)   No Setoff.  Buyer shall not withhold payment of any amounts due and payable under this Agreement by reason of any setoff of any claim or dispute with the Seller, whether relating to Seller’s breach, bankruptcy or otherwise.

3.   Other Buyer Covenants & Obligations.

(a)   Security Interests.  As security for (i) Buyer’s obligation to pay the Purchase Price (ii) any interest owed pursuant to Section 2(b), (iii) all costs incurred in collecting any late payments pursuant to Section 2(b), and (iv) all other unfulfilled obligations and liabilities of Buyer to Seller pursuant to the terms of this Agreement, Buyer hereby grants to Seller a security interest in the Equipment, in accordance with the terms of  a Security Agreement entered into between Buyer and Seller of even date herewith. 

(b)   Recordation and Enforcement.  From time to time at its own expense, Buyer shall perform any and all steps that may be necessary, or that Seller may reasonably request, to record, secure, enforce, perfect and maintain perfected Seller’s security interests in the Equipment, including, but not limited to, executing and delivering to Seller financing and continuation statements pursuant to the Uniform Commercial Code (“UCC”) in effect in any applicable jurisdiction and any other papers, documents or instruments reasonably required by Seller in connection therewith, placing and maintaining signs, appointing custodians, executing and filing notices of liens, and evidencing Seller’s security interest in any other manner reasonably requested by Seller.

(c)   No Encumbrances.  Buyer shall not create, permit or suffer to exist, and shall take such action as is necessary to remove, any claim to or interest in or lien or encumbrance upon the Equipment, other than any security interest granted or expressly permitted or required under this Agreement, and Buyer shall defend, at Buyer’s expense, Seller’s right, title and interest in and to the Equipment against all claims and demands of all persons and entities.  Buyer shall not assign, sell, lease, lend, transfer, or otherwise dispose of, abandon or encumber any part or all of the Equipment, or attempt, offer or agree to do any of the foregoing, without Seller’s prior written consent.  Buyer shall ensure that no Equipment becomes attached or affixed to real estate in such a manner that it becomes a fixture or part of such real estate.

(d)   Maintenance.  Buyer shall maintain the Equipment in good working condition during the Term and shall at all times during the Term exercise reasonable care in using the Equipment only for its intended purpose, and shall bear the risk of loss and be responsible to Seller for any damage to such Equipment caused by fire, theft, accident, neglect, or abuse.  Seller shall have the right, with reasonable notice to Buyer, to enter the premises where the Equipment is located for the purpose of inspecting the Equipment.

(e)   Insurance.

(i)   During the Term, Buyer shall, at its own expense: (i) fully insure the Equipment against any and all physical loss or damage by fire, theft, burglary or any other cause occurring during the Term; and shall fully insure against liability for personal injury or property damage caused by or related to the Equipment and occurring while the Equipment is in Buyer’s possession. 

(ii)   All insurance coverages required hereunder shall contain such terms, be in such form, cover such periods and be written by such companies as may be satisfactory to Seller. 

(iii)   All insurance policies required hereunder shall (A) provide for a minimum of thirty (30) days prior written cancellation notice to Seller and (B) name Seller as an additional insured. 

(iv)   Upon the written request of Seller, Buyer shall provide Seller with copies of the certificates of insurance and policy endorsements for all insurance coverage required by this Section 3(e), and shall not do anything to invalidate such insurance. This Section 3(e) shall not be construed in any manner as waiving, restricting, or limiting the liability of either party for any obligations imposed under this Agreement.

4.   Disclaimer of Warranties. SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE EQUIPMENT, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.  BUYER ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY MADE BY SELLER, OR ANY OTHER PERSON ON SELLER’S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN THIS AGREEMENT.

5.   Further Assurances. Seller for itself, its successors and assigns, hereby covenants and agrees that, at any time and from time to time on Buyer’s written request, Seller will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may be reasonably required by Buyer in order to assign, transfer, set over, convey, assure and confirm unto and vest in Buyer, its successors and assigns, title to the Equipment, provided however, that this Section 5 shall in no way limit Seller’s rights in the event of a Default.

6.   Default.  The occurrence of any one or more of the following events shall constitute an event of default by Buyer under this Agreement (each such occurrence a “Default” and collectively, “Events of Default”):

(a)   Buyer fails to perform, fulfill or observe any of its obligations under this Agreement including without limitation any failure to timely pay any installment payment under Section 2(a)(ii) or any failure to meet its obligations and covenants under Section 3.

(b)   Material loss, theft, damage or destruction of any of the Equipment which is not fully compensated by insurance proceeds or otherwise;

(c)   The making of any levy on, or seizure or attachment of, any of the Equipment;

(d)  Buyer becomes insolvent, makes an assignment for the benefit of creditors, appoints a committee of creditors, or makes or sends any notice of an intended bulk transfer; or

(e)   Any proceeding shall be instituted by or against Buyer, seeking to adjudicate Buyer as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of Buyer or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official Buyer or for a substantial part of its assets.

Buyer shall be granted a thirty (30) day period (“Cure Period”) within which it may cure a Default after receiving written notice from Seller that Buyer has committed a Default.  Should Buyer fail to cure such Default during the Cure Period, then in addition to all rights and remedies of a secured party available under the UCC, other applicable statutes or rules, or at law or in equity, in any jurisdiction in which enforcement is sought, all such rights and remedies being cumulative and not exhaustive and subject to successive or concurrent enforcement, Seller may direct Buyer by written notice to assemble and make available to Seller all or any part of the Equipment at a place designated by Seller which is reasonably convenient to both parties, so that Seller may take possession of and remove the Equipment, if it so desires, or Seller may enter without notice or legal process any premises where the Equipment may be found  in order to take possession of the Equipment, in each case for the purpose of effecting a public or private sale or other disposition in a commercially reasonable manner of the Equipment for cash or for such other consideration acceptable to Seller as payment and satisfaction of Buyer’s obligations hereunder.  Seller shall furnish Buyer with reasonable notice of the time and place of such public sale or other disposition or the time after which any private sale or other disposition is to be made, Buyer hereby agreeing that, unless otherwise expressly required by applicable law,  such requirement of reasonable notice shall be met if notice is mailed by certified mail, postage prepaid, to the address of Buyer set forth herein at least ten (10) days before either the time of any such public sale or disposition or the time after which any private sale or other disposition is to be made.

7.   Governing Law. This Agreement is governed by, and construed in accordance with, the laws of the Commonwealth of Kentucky, United States of America, without regard to the conflict of laws provisions thereof.

8.   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

IN WITNESS WHEREOF, Seller and Buyer has each duly executed and delivered this Agreement as of the Effective Date.

 

	
K & R, LLC

	
Industrial Services of America, Inc.

	
By  KLETTER HOLDING LLC, as Member

 

By:  /s/ Orson Oliver

Orson Oliver, President

 

	

By:  /s/ Todd Phillips

Name:  Todd Phillips

Title:  President and CFO

	
 

	
 

	
 

	
 

 

  

EXHIBIT A

EQUIPMENT DESCRIPTION

2011 Komatsu PC350LC-8, 2011 LaBountyMSD 2500r

Model Number: A10458 626199Exhibit
4.1

 

SUNSTOCK,
INC.

EMPLOYEES,
OFFICERS, DIRECTORS, AND CONSULTANTS STOCK PLAN FOR THE YEAR 2017

 

1. Introduction.
This Plan shall be known as the “Sunstock, Inc. Employees, Officers, Directors, and Consultants Stock Plan for the Year
2017” and is hereinafter referred to as the “Plan.” The purposes of this Plan are to enable Sunstock, Inc.,
a Delaware corporation (the “Company”), to promote the interests of the Company and its stockholders by attracting
and retaining Employees, Directors, and Consultants capable of furthering the future success of the Company and by aligning their
economic interests more closely with those of the Company’s stockholders, by paying their retainer or fees in the form of
shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”).

 

2. Definitions.
The following terms shall have the meanings set forth below:

 

“Board”
means the Board of Directors of the Company.

 

“Change
of Control” has the meaning set forth in Paragraph 12(d) hereof.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder. References to any provision of
the Code or rule or regulation thereunder shall be deemed to include any amended or successor provision, rule or regulation.

 

“Committee”
means the committee that administers this Plan, as more fully defined in Paragraph 13 hereof.

 

“Common
Stock” has the meaning set forth in Paragraph 1 hereof.

 

“Company”
has the meaning set forth in Paragraph 1 hereof.

 

“Consultants”
means the Company’s consultants and advisors only if: (i) they are natural persons; (ii) they provide bona fide services
to the Company; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction,
and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

“Deferral
Election” has the meaning set forth in Paragraph 6 hereof.

 

“Deferred
Stock Account” means a bookkeeping account maintained by the Company for a Participant representing the Participant’s
interest in the shares credited to such Deferred Stock Account pursuant to Paragraph 7 hereof.

 

“Delivery
Date” has the meaning set forth in Paragraph 6 hereof.

 

“Director”
means an individual who is a member of the Board of Directors of the Company.

 

“Dividend
Equivalent” for a given dividend or other distribution means a number of shares of the Common Stock having a Fair Market
Value, as of the record date for such dividend or distribution, equal to the amount of cash, plus the Fair Market Value on the
date of distribution of any property, that is distributed with respect to one share of the Common Stock pursuant to such dividend
or distribution; such Fair Market Value to be determined by the Committee in good faith.

 

“Effective
Date” has the meaning set forth in Paragraph 3 hereof.

 

“Employee”
means any officer or employee of the Company.

 

“Exchange
Act” has the meaning set forth in Paragraph 12(d) hereof.

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“Fair
Market Value” means the mean between the highest and lowest reported sales prices of the Common Stock on the New York Stock
Exchange Composite Tape or, if not listed on such exchange, on any other national securities exchange on which the Common Stock
is listed or on The Nasdaq Stock Market, or, if not so listed on any other national securities exchange or The Nasdaq Stock Market,
then the average of the bid price of the Common Stock during the last five trading days on the OTC Bulletin Board or the OTC Markets
Group Inc. immediately preceding the last trading day prior to the date with respect to which the Fair Market Value is to be determined.
If the Common Stock is not then publicly traded, then the Fair Market Value of the Common Stock shall be the book value of the
Company per share as determined on the last day of March, June, September, or December in any year closest to the date when the
determination is to be made. For the purpose of determining book value hereunder, book value shall be determined by adding as
of the applicable date called for herein the capital, surplus, and undivided profits of the Company, and after having deducted
any reserves theretofore established; the sum of these items shall be divided by the number of shares of the Common Stock outstanding
as of said date, and the quotient thus obtained shall represent the book value of each share of the Common Stock of the Company.

 

“Participant”
has the meaning set forth in Paragraph 4 hereof.

 

“Payment
Time” means the time when a Stock Award is payable to a Participant pursuant to Paragraph 5 hereof (without regard to the
effect of any Deferral Election).

 

“Stock
Award” has the meaning set forth in Paragraph 5 hereof.

 

“Third
Anniversary” has the meaning set forth in Paragraph 6 hereof.

 

3. Effective
Date of the Plan. This Plan was adopted by the Board effective June 13, 2017 (the “Effective Date”).

 

4. Eligibility.
Each individual who is an Employee, Director, or Consultant on the Effective Date and each individual who becomes an Employee,
Director, or Consultant thereafter during the term of this Plan shall be a participant (the “Participant”) in this
Plan, in each case during such period as such individual remains an Employee, Director, or Consultant of the Company or any of
its subsidiaries. Each credit of shares of the Common Stock pursuant to this Plan shall be evidenced by a written agreement duly
executed and delivered by or on behalf of the Company and a Participant, if such an agreement is required by the Company to assure
compliance with all applicable laws and regulations.

 

5. Grants
of Shares. Commencing on the Effective Date, the amount of compensation or bonus for service to the Participants shall be
payable in shares of the Common Stock (the “Stock Award”) pursuant to this Plan. The deemed issuance price of shares
of the Common Stock subject to each Stock Award shall not be less than 85 percent of the Fair Market Value of the Common Stock
on the date of the grant. In the case of any person who owns securities possessing more than ten percent of the combined voting
power of all classes of securities of the issuer or its parent or subsidiaries possessing voting power, the deemed issuance price
of shares of the Common Stock subject to each Stock Award shall be at least 100 percent of the Fair Market Value of the Common
Stock on the date of the grant.

 

6. Deferral
Option. From and after the Effective Date, a Participant may make an election (a “Deferral Election”) on an annual
basis to defer delivery of the Stock Award specifying which one of the following ways the Stock Award is to be delivered (a) on
the date which is three years after the Effective Date for which it was originally payable (the “Third Anniversary”),
(b) on the date upon which the Participant ceases to be a Participant for any reason (the “Departure Date”) or (c)
in five equal annual installments commencing on the Departure Date (the “Third Anniversary” and “Departure Date”
each being referred to herein as a “Delivery Date”). Such Deferral Election shall remain in effect for each Subsequent
Year unless changed, provided that, any Deferral Election with respect to a particular Year may not be changed less than six months
prior to the beginning of such Year, and provided, further, that no more than one Deferral Election or change thereof may be made
in any Year.

 

Any
Deferral Election and any change or revocation thereof shall be made by delivering written notice thereof to the Committee no
later than six months prior to the beginning of the Year in which it is to be effected; provided that, with respect to the Year
beginning on the Effective Date, any Deferral Election or revocation thereof must be delivered no later than the close of business
on the 30th day after the Effective Date.

 

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7. Deferred
Stock Accounts. The Company shall maintain a Deferred Stock Account for each Participant who makes a Deferral Election to
which shall be credited, as of the applicable Payment Time, the number of shares of the Common Stock payable pursuant to the Stock
Award to which the Deferral Election relates. So long as any amounts in such Deferred Stock Account have not been delivered to
the Participant under Paragraph 8 hereof, each Deferred Stock Account shall be credited as of the payment date for any dividend
paid or other distribution made with respect to the Common Stock, with a number of shares of the Common Stock equal to (a) the
number of shares of the Common Stock shown in such Deferred Stock Account on the record date for such dividend or distribution
multiplied by (b) the Dividend Equivalent for such dividend or distribution.

 

8. Delivery
of Shares.

 

 (a) The
shares of the Common Stock in a Participant’s Deferred Stock Account with respect to any Stock Award for which a Deferral
Election has been made (together with dividends attributable to such shares credited to such Deferred Stock Account) shall be
delivered in accordance with this Paragraph 8 as soon as practicable after the applicable Delivery Date. Except with respect to
a Deferral Election pursuant to Paragraph 6 hereof, or other agreement between the parties, such shares shall be delivered at
one time; provided that, if the number of shares so delivered includes a fractional share, such number shall be rounded to the
nearest whole number of shares. If the Participant has in effect a Deferral Election pursuant to Paragraph 6 hereof, then such
shares shall be delivered in five equal annual installments (together with dividends attributable to such shares credited to such
Deferred Stock Account), with the first such installment being delivered on the first anniversary of the Delivery Date; provided
that, if in order to equalize such installments, fractional shares would have to be delivered, such installments shall be adjusted
by rounding to the nearest whole share. If any such shares are to be delivered after the Participant has died or become legally
incompetent, they shall be delivered to the Participant’s estate or legal guardian, as the case may be, in accordance with
the foregoing; provided that, if the Participant dies with a Deferral Election pursuant to Paragraph 6 hereof in effect, the Committee
shall deliver all remaining undelivered shares to the Participant’s estate immediately. References to a Participant in this
Plan shall be deemed to refer to the Participant’s estate or legal guardian, where appropriate.

 

 (b) The
Company may, but shall not be required to, create a grantor trust or utilize an existing grantor trust (in either case, the “Trust”)
to assist it in accumulating the shares of the Common Stock needed to fulfill its obligations under this Paragraph 8. However,
Participants shall have no beneficial or other interest in the Trust and the assets thereof, and their rights under this Plan
shall be as general creditors of the Company, unaffected by the existence or nonexistence of the Trust, except that deliveries
of Stock Awards to Participants from the Trust shall, to the extent thereof, be treated as satisfying the Company’s obligations
under this Paragraph 8.

 

9. Share
Certificates; Voting and Other Rights. The certificates for shares delivered to a Participant pursuant to Paragraph 8 above
shall be issued in the name of the Participant, and from and after the date of such issuance the Participant shall be entitled
to all rights of a stockholder with respect to the Common Stock for all such shares issued in his name, including the right to
vote the shares, and the Participant shall receive all dividends and other distributions paid or made with respect thereto.

 

10. General
Restrictions.

 

 (a) Notwithstanding
any other provision of this Plan or agreements made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior to fulfillment of all of the following conditions:

 

 (i) Listing
or approval for listing upon official notice of issuance of such shares on the New York Stock Exchange, Inc., or such other securities
exchange as may at the time be a market for the Common Stock;

 

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 (ii) Any
registration or other qualification of such shares under any state or federal law or regulation, or the maintaining in effect
of any such registration or other qualification which the Committee shall, upon the advice of counsel, deem necessary or advisable;
and

 

 (iii) Obtaining
any other consent, approval, or permit from any state or federal governmental agency which the Committee shall, after receiving
the advice of counsel, determine to be necessary or advisable.

 

 (b) Nothing
contained in this Plan shall prevent the Company from adopting other or additional compensation arrangements for the Participants.

 

11. Shares
Available. Subject to Paragraph 12 below, the maximum number of shares of the Common Stock which may in the aggregate be paid
as Stock Awards pursuant to this Plan is 8,070,000. Shares of the Common Stock issuable under this Plan may be taken from treasury
shares of the Company or purchased on the open market.

 

12. Adjustments;
Change of Control.

 

 (a) In
the event that there is, at any time after the Board adopts this Plan, any change in corporate capitalization, such as a stock
split, combination of shares, exchange of shares, warrants or rights offering to purchase the Common Stock at a price below its
Fair Market Value, reclassification, or recapitalization, or a corporate transaction, such as any merger, consolidation, separation,
including a spin-off, stock dividend, or other extraordinary distribution of stock or property of the Company, any reorganization
(whether or not such reorganization comes within the definition of such term in Section 368 of the Code) or any partial or complete
liquidation of the Company (each of the foregoing a “Transaction”), in each case other than any such Transaction which
constitutes a Change of Control (as defined below), (i) the Deferred Stock Accounts shall be credited with the amount and kind
of shares or other property which would have been received by a holder of the number of shares of the Common Stock held in such
Deferred Stock Account had such shares of the Common Stock been outstanding as of the effectiveness of any such Transaction, (ii)
the number and kind of shares or other property subject to this Plan shall likewise be appropriately adjusted to reflect the effectiveness
of any such Transaction, and (iii) the Committee shall appropriately adjust any other relevant provisions of this Plan and any
such modification by the Committee shall be binding and conclusive on all persons.

 

 (b) If
the shares of the Common Stock credited to the Deferred Stock Accounts are converted pursuant to Paragraph 12(a) into another
form of property, references in this Plan to the Common Stock shall be deemed, where appropriate, to refer to such other form
of property, with such other modifications as may be required for this Plan to operate in accordance with its purposes. Without
limiting the generality of the foregoing, references to delivery of certificates for shares of the Common Stock shall be deemed
to refer to delivery of cash and the incidents of ownership of any other property held in the Deferred Stock Accounts.

 

 (c) In
lieu of the adjustment contemplated by Paragraph 12(a), in the event of a Change of Control, the following shall occur on the
date of the Change of Control (i) the shares of the Common Stock held in each Participant’s Deferred Stock Account shall
be deemed to be issued and outstanding as of the Change of Control; (ii) the Company shall forthwith deliver to each Participant
who has a Deferred Stock Account all of the shares of the Common Stock or any other property held in such Participant’s
Deferred Stock Account; and (iii) this Plan shall be terminated.

 

 (d) For
purposes of this Plan, Change of Control shall mean any of the following events:

 

 (i) The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 80 percent or more of either (1) the then outstanding shares of the Common
Stock of the Company (the “Outstanding Company Common Stock”), or (2) the combined voting power of then outstanding
voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control (A) any acquisition
directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege unless the security being
so converted was itself acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any
acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following such reorganization, merger
or consolidation, the conditions described in clauses (A), (B) and (C) of paragraph (iii) of this Paragraph 12(d) are satisfied;
or

 

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 (ii) Individuals
who, as of the date hereof, constitute the Board of the Company (as of the date hereof, “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

 

 (iii) Approval
by the stockholders of the Company of a reorganization, merger, binding share exchange or consolidation, unless, following such
reorganization, merger, binding share exchange or consolidation (A) more than 60 percent of, respectively, then outstanding shares
of common stock of the corporation resulting from such reorganization, merger, binding share exchange or consolidation and the
combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such reorganization, merger, binding share exchange or consolidation in substantially the same proportions as their ownership,
immediately prior to such reorganization, merger, binding share exchange or consolidation, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding the Company, any employee benefit plan
(or related trust) of the Company or such corporation resulting from such reorganization, merger, binding share exchange or consolidation
and any Person beneficially owning, immediately prior to such reorganization, merger, binding share exchange or consolidation,
directly or indirectly, 20 percent or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities, as
the case may be) beneficially owns, directly or indirectly, 20 percent or more of, respectively, then outstanding shares of common
stock of the corporation resulting from such reorganization, merger, binding share exchange or consolidation or the combined voting
power of then outstanding voting securities of such corporation entitled to vote generally in the election of directors, and (C)
at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger, binding
share exchange or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing
for such reorganization, merger, binding share exchange or consolidation; or

 

 (iv) Approval
by the stockholders of the Company of (1) a complete liquidation or dissolution of the Company, or (2) the sale or other disposition
of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale
or other disposition, (A) more than 60 percent of, respectively, then outstanding shares of common stock of such corporation and
the combined voting power of then outstanding voting securities of such corporation entitled to vote generally in the election
of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale
or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B)
no Person (excluding the Company and any employee benefit plan (or related trust) of the Company or such corporation and any Person
beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 20 percent or more of the Outstanding
Company Common Stock or Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly,
20 percent or more of, respectively, then outstanding shares of common stock of such corporation and the combined voting power
of then outstanding voting securities of such corporation entitled to vote generally in the election of directors, and (C) at
least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time
of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the
Company.

 

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13. Administration;
Amendment and Termination.

 

 (a) The
Plan shall be administered by the Compensation Committee (the “Committee”) of, or appointed by, the Board of Directors
of the Company (the “Board”). The Committee shall select one of its members as Chairman and shall act by vote of a
majority of a quorum, or by unanimous written consent. A majority of its members shall constitute a quorum. The Committee shall
be governed by the provisions of the Company’s Bylaws and of Delaware law applicable to the Board, except as otherwise provided
herein or determined by the Board. The Committee shall have full and complete authority, in its discretion, but subject to the
express provisions of this Plan to administer all aspects of the Plan. All interpretations and constructions of this Plan by the
Committee, and all of its actions hereunder, shall be binding and conclusive on all persons for all purposes.

 

 (b) The
Board may from time to time make such amendments to this Plan, including to preserve or come within any exemption from liability
under Section 16(b) of the Exchange Act, as it may deem proper and in the best interest of the Company without further approval
of the Company’s stockholders, provided that, to the extent required under Delaware law or to qualify transactions under
this Plan for exemption under Rule 16b-3 promulgated under the Exchange Act, no amendment to this Plan shall be adopted without
further approval of the Company’s stockholders and, provided, further, that if and to the extent required for this Plan
to comply with Rule 16b-3 promulgated under the Exchange Act, no amendment to this Plan shall be made more than once in any six
month period that would change the amount, price or timing of the grants of the Common Stock hereunder other than to comport with
changes in the Code, the Employee Retirement Income Security Act of 1974, as amended, or the regulations thereunder. The Board
may terminate this Plan at any time by a vote of a majority of the members thereof.

 

14. Term
of Plan. No shares of the Common Stock shall be issued, unless and until the Directors of the Company have approved this Plan
and all other legal requirements have been met. This Plan was adopted by the Board effective June 13, 2017, and shall expire on
June 13, 2027.

 

15. Governing
Law. This Plan and all actions taken thereunder shall be governed by, and construed in accordance with, the laws of the State
of Delaware.

 

16. Information
to Shareholders. The Company shall furnish to each of its stockholders financial statements of the Company at least annually.

 

17. Miscellaneous.

 

 (a) Nothing
in this Plan shall be deemed to create any obligation on the part of the Board to nominate any Director for reelection by the
Company’s stockholders or to limit the rights of the stockholders to remove any Director.

 

 (b) The
Company shall have the right to require, prior to the issuance or delivery of any shares of the Common Stock pursuant to this
Plan, that a Participant make arrangements satisfactory to the Committee for the withholding of any taxes required by law to be
withheld with respect to the issuance or delivery of such shares, including, without limitation, by the withholding of shares
that would otherwise be so issued or delivered, by withholding from any other payment due to the Participant, or by a cash payment
to the Company by the Participant.

 

    	 	6	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, this Plan has been executed effective as of June 23, 2017.

 

	 	SUNSTOCK,
    INC.
	 	 	 
	 	By	/s/
    Jason C. Chang
	 	 	Jason
    C. Chang, President

 

    	 	7

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