Document:

2050
MOTORS, INC.

 

SECURITIES
PURCHASE AGREEMENT

 

BY
AND BETWEEN

 

2050
MOTORS, INC.

 

AND

 

THE
INVESTOR

 

EFFECTIVE
AS OF MAY 5, 2019

 

 

 

    	 

    	 

    

 

SECURITIES
PURCHASE AGREEMENT

 

Series
B Preferred Stock

 

Securities
Purchase Agreement (this “Agreement”),
effective as of May 5, 2019, is entered into by and among 2050 Motors, Inc., a California corporation (the “Company”),
and Vikram Grover (the “Investor”). Certain capitalized terms used in this Agreement are defined in
Section 7.1 of this Agreement.

 

RECITALS

 

WHEREAS,
the Investor desires to purchase from the Company, and the Company desires to sell to the Investor, newly-authorized 1% Series
B Cumulative Convertible Preferred Stock, $.0001 par value per share, of the Company (the “Series B Preferred Stock”)
upon the terms and conditions set forth herein (the “Investment Transaction”); and

 

WHEREAS,
the Company has required as a condition and an inducement to its willingness to enter into this Agreement and to consummate the
Investment Transaction, that the Company and the Investors shall enter into a Stockholders’ Agreement with industry standard
definitions, protections, and stockholder rights and protections (the “Stockholders Agreement”).

 

NOW,
THEREFORE, in consideration of the foregoing, and of the mutual representations, warranties, covenants and agreements contained
in this Agreement and other valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto
agree as follows:

 

Section
1. Authorization and Sale of Acquired Shares.

 

1.1
Authorization.
The Company shall adopt and file with the Secretary of State of the State of California as soon as practicable an amended Certificate
of Determination disclosing the issuance of Series B Preferred shares to the Investor (the “Amended Certificate”).

 

1.2
Purchase and Sale.
On the basis of the representations, warranties, and agreements contained in this Agreement, and subject to the terms and conditions
of this Agreement, the Investor[s] shall purchase from the Company, and the Company shall sell, issue, and deliver to the Investor
400,000 shares of the Series B Preferred Stock (such shares of Series B Preferred Stock issued to the Investor, the “Acquired
Shares”), representing 400,000 of the outstanding shares of Series B Preferred Stock, at a purchase price of $1.2075
per share (“Per Share Price”), or an aggregate of $483,000 (“Aggregate Purchase Price”),
payable by the Investor as set forth in Section 1.3 hereof.

 

1.3
Payment of Purchase Price.
At the Closing, the Investor shall pay the Aggregate Purchase Price to the Company by issuing 210,000,000 free-trading shares
of Peer to Peer Network a.k.a. MobiCard Inc. to the Company in certificate form with no restrictive legend on the Closing Date.

 

    	 

    	 

    

 

1.4
Use of Proceeds.
The Company shall use the proceeds from the sale of the Acquired Shares for strategic investments, mergers and acquisitions, and
general corporate purposes.

 

1.5
The Closing.
The closing of the purchase and sale of the Acquired Shares (“Closing”) shall take place at 10:00 a.m.,
on May 5, 2019.

 

1.6
Deliveries at Closing.
At the Closing or as soon as practicable after the Secretary of State of California approves the Company’s Certificate of
Determination for its newly-created Series B Preferred Shares, (a) the Company shall deliver to the Investor a certificate or
certificates representing the number of Acquired Shares being purchased by the Investor at the Closing, registered in the name
of the Investor, and (b) the Investor shall pay to the Company the $483,000 of free-trading shares in the manner set forth in
Section 1.3 hereof.

 

Section
2. Representations and Warranties of
the Company. Except as set forth in any required disclosure
schedules, dated as of the date of this Agreement and attached hereto, that have been delivered by the Company to the Investor
prior to the execution and delivery of this Agreement (the “Disclosure Schedule”), which exceptions
shall be deemed to part of the representations and warranties made hereunder (the Disclosure Schedule shall be arranged in sections
corresponding to the numbered and lettered sections contained in Section 2, and each such exception set forth in the Disclosure
Schedule however shall not be deemed a disclosure or an exception with respect to any other section or sections of this Agreement
unless reliance of such items to such other section or sections is specifically referenced to each applicable item in the Disclosure
Schedule), the Company hereby represents and warrants to the Investor as follows:

 

2.1
Organization, Standing, and Power.
The Company is a corporation duly incorporated, validly existing, and in good standing under the Laws of the State of California
and has the requisite corporate power and authority to own, lease, operate and otherwise hold its properties and assets and to
carry on its business as it is now being conducted. The Company is duly qualified or licensed to do business as a corporation
and is in good standing in each jurisdiction in which the character or location of the property owned, leased, operated, or held
by it or the nature of the business transacted by it makes such qualification or license necessary, except where the failure to
be so qualified or licensed would not, individually or in the aggregate, have a Material Adverse Effect on the Company.

 

2.2
Authority; Due Execution.
The Company has all the requisite corporate power and authority to execute and deliver, and to perform its obligations hereunder
and to consummate the Investment Transaction contemplated by, this Agreement. The execution, delivery, and performance by the
Company of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and
thereby, including the Investment Transaction, have been duly and validly authorized by all necessary corporate action on the
part of the Company. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company and,
assuming due and valid authorization, execution and delivery by the Investor, each will constitute a legal, valid, and binding
obligation of the Company, enforceable against it in accordance with its terms (except to the extent enforceability may be limited
by (i) applicable bankruptcy, insolvency, reorganization, moratoriums, or similar Laws affecting creditors’ rights and remedies
generally, (ii) the availability of the equitable remedy of specific performance and injunctive relief is subject to the discretion
of the court before which any proceedings may be brought, or (iii) applicable federal and state securities Laws with respect to
indemnification provisions contained in the Stockholders Agreement and Registration Rights Agreement (the “Bankruptcy
and Equity Exceptions”).

 

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2.3
No Conflict or Required Approvals.

 

(a)
Except as set forth in the Disclosure Schedule,
neither the execution and delivery of this Agreement or any of the other Transaction Documents, nor the consummation by the Company
of Investment Transaction contemplated hereby, or compliance with any of the terms or provisions herein by the Company will: (i)
conflict with or violate any provision of the Articles of Incorporation or Bylaws, of the Company, assuming the filing of the
Amended Certificate of Determination in relation to the consummation of the Investment Transaction, (ii) conflict with, violate,
or constitute or result in a material breach of any term, condition, or provision of, or constitute a default (with or without
due notice or lapse of time or both) under, or give rise to any right of termination, modification, cancellation, or acceleration
of any obligation or the loss of any material benefit under, or require a Consent pursuant to any of the terms, provisions, or
conditions of any material loan or credit agreement, note, mortgage, indenture, deed of trust, lease, sublease, license, sublicense,
agreement, Permit, concession, franchise, security interest, instrument of indebtedness, plan or other instrument, purchase order,
or other agreement or Contract to which the Company or any of the Company’s Subsidiaries is a party or by which they are
bound or to which their properties or assets are subject, (iii) result in the imposition of any Lien upon any properties or assets
of the Company, or any of the Company Subsidiaries or in the suspension, revocation, forfeiture or nonrenewal of any material
Permit or license applicable to the Company or any of the Company’s Subsidiaries, or (iv) conflict with or violate any judgment,
order, writ, injunction, decree of any court, governmental, regulatory or administrative agency, commission, authority, instrumentality,
or other public body, domestic or foreign (a “Governmental Entity”), or material Law applicable to the
Company, or any of the Company Subsidiaries, or any of their respective assets or properties; except in the case of clauses (ii),
(iii), or (iv) of this Section 2.3(a), as would not have a Material Adverse Effect on the Company or its ability to consummate
and perform the terms of this Agreement.

 

(b)
Assuming the accuracy of the representations
made by the Investor in Section 3 of this Agreement, no notice to, registration, qualification, designation, declaration of, or
filing by the Company with, or the Consent or Permit of, or any action by any Governmental Entity or any other Person is required
on the part of the Company in connection with the execution and delivery of this Agreement or the other Transaction Documents,
or the consummation the Investment Transaction, including, without limitation, the offer, issuance, sale, and delivery of the
Acquired Shares, except: (i) the filing of the Amended Certificate of Determination, which shall be filed on closing or as soon
as practicable, and (ii) the filings as may be required under applicable provisions of United States federal securities Laws (including,
if applicable, pursuant to Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities
Act”)), and as may be required under applicable state securities Laws, each of which will be filed timely within
the applicable periods therefor.

 

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2.4
Capitalization.

 

(a)
The authorized capital stock of the Company as
of the Closing Date, after giving effect to the filing of the Amended Certificate but prior to giving effect to the Investment
Transaction contemplated hereby, shall consist of: (i) three billion (3,000,000,000) shares of common stock, par value nil per
share (“Common Stock”), of which 788,433,644 shares will be issued and outstanding, and no shares shall
have been reserved for issuance pursuant to outstanding Options, none of which have been issued under the Equity Incentive Plan,
and (ii) ten million (10,000,000) shares of preferred stock (“Preferred Stock”), of which (x) three
million (3,000,000) shares have been designated as Series A Preferred Stock, par value $.0001 per share (“Series A
Preferred Stock”), three million (3,000,000) of which will be issued and outstanding, and (y) six million (6,000,000)
shares have been designated as Series B Preferred Stock, par value $.0001 per share (“Series B Preferred Stock”),
none of which will be issued and outstanding, and (z) one million (1,000,000) shares shall have been designated as Series C Preferred
Stock, par value $.0001 per share (“Series C Preferred Stock”), one million (1,000,000) of which will
he issued and outstanding. The Company holds no shares of Common Stock or Preferred Stock as treasury shares. The rights, privileges,
and preferences of the Series B Preferred Stock are as stated in a Certificate of Determination filed with the Secretary of State
of California.

 

(b)
Each share of Series A Preferred Stock is convertible
into one (1) share of Common Stock and has fifty (50) votes on corporate matters, and the outstanding shares of Series A Preferred
Stock is convertible into an aggregate of three million (3) shares of Common Stock. None of the Series A Preferred Stock issued
by the Company has been converted into shares of Common Stock. The Company has reserved no shares of Common Stock for issuance
upon conversion of all the outstanding Series A Preferred Stock.

 

(c)
Each share of Series B Preferred Stock is convertible
into one thousand (1,000) shares of Common Stock and has one thousand (1,000) votes on corporate matters, and the outstanding
shares of Series B Preferred Stock is convertible into an aggregate of no shares of Common Stock. None of the Series B Preferred
Stock issued by the Company has been converted into shares of Common Stock. The Company has reserved no shares of Common Stock
for issuance upon conversion of all the outstanding Series B Preferred Stock.

 

(d)
Each share of Series C Preferred Stock is convertible
into one (1) share of Common Stock and has ten thousand (10,000) votes on corporate matters, and the outstanding shares of Series
C Preferred Stock is convertible into an aggregate of one million (1) shares of Common Stock. None of the Series C Preferred Stock
issued by the Company has been converted into shares of Common Stock. The Company has reserved no shares of Common Stock for issuance
upon conversion of all the outstanding Series C Preferred Stock.

 

(e)
All issued and outstanding shares of Common Stock
and Preferred Stock have been duly authorized and validly issued and are fully paid and nonassessable. All the issued and outstanding
shares of capital stock of the Company have been offered, sold, and issued by the Company in compliance with all registration
or qualification provisions, or exemptions therefrom, under applicable federal securities Laws and the blue sky and securities
Laws of all other applicable jurisdictions.

 

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(f)
The Company has reserved no shares of Common
Stock for issuance to officers, directors, employees, agents, and consultants pursuant to any Equity Incentive Plan duly adopted
by the Board of Directors and approved by the Company’s stockholders prior to the date of this Agreement (the “Equity
Incentive Plan”). As of the date of this Agreement, no shares of Common Stock have been issued pursuant to restricted
stock purchase agreements or Options granted under the Equity Incentive Plan, forty million (40,000,000) shares of Common Stock
are subject to issuance but not currently available for issuance or reserved under outstanding and unexercised Options issued
under warrant agreements for the Company’s Advisory Board (30,000,000 warrants issued at a strike price of $.01, 50,000,000
authorized) and strategic consultants (10,000,000 warrants issued at a strike price of $.005) (“Outstanding Options”),
and no shares of Common Stock remain available for issuance pursuant to future grants under the Equity Incentive Plan. The Company
has provided the Investor with a true and complete copy of the Equity Incentive Plan and all forms of awards and agreements used
in connection therewith.

 

(g)
 None of the Company’s outstanding Common
Stock and Preferred Stock, and none shares of the Company’s Common Stock underlying outstanding Options, and which may be
issued upon conversion of Preferred Stock, are subject to a right a first refusal in favor of the Company upon any proposed transfer.

 

2.5
Issuance of Acquired Shares and Conversion
Shares. The issuance, sale, and delivery of the Acquired Shares
to the Investor[s] pursuant to the Investment Transaction and the issuance of shares of Common Stock upon conversion of the Acquired
Shares (the “Conversion Shares”) have been duly authorized by all necessary corporate action on the
part of the Company. The Company has not reserved any shares of Common Stock for issuance upon conversion of any of the outstanding
Acquired Shares. The Acquired Shares, when issued, sold, and delivered against payment therefor in accordance with the provisions
of this Agreement, and the Conversion Shares (none of which have been reserved for issuance), when issued and delivered upon conversion
of the Acquired Shares in accordance with their terms and the Amended Articles, will be duly authorized and validly issued, fully
paid and nonassessable, and the Investor will receive full ownership of the Acquired Shares and, when converted, the Conversion
Shares, free and clear of any Liens, or preemptive or other similar rights, except those set forth in the Transaction Documents.

 

2.6
Financial Statements.

 

(a)
Neither the Company nor any of the Company’s
Subsidiaries has filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors,
suffered the appointment of a receiver to take possession of substantially all of its assets, or suffered the attachment or other
judicial seizure of substantially all of its assets, or made an assignment for the benefit of creditors or admitted in writing
its inability to pay its debts generally as the same become due.

 

2.7
Tax Matters.
The Company has duly filed or caused to be filed in a timely manner (within applicable extension periods) all material Tax Returns
and forms required to be filed by it and no material penalties or other charges are or will become due with respect to any of
Tax Returns as the result of the late filing thereof. All Tax Returns are true and complete in all material respects. The Company
(i) has paid all Taxes due or claimed to be due by any Taxing authority in connection with any of the Company’s Tax Returns
(without regard to whether or not such Taxes are shown as due on such Tax Returns), as well as all other Taxes, assessments, and
governmental charges which have become due and payable, including, without limitation, all Taxes which the Company is obligated
to withhold from amounts owing to employees, creditors, and third parties.

 

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2.8
Permits; No Violations; and Compliance
with Laws.

 

(a)
The Company (i) is not in conflict with or in
violation of any provision of its Articles of Incorporation or Bylaws, (ii) is not in conflict with or in violation or breach
of, or in default under (with or without due notice or lapse of time or both) material loan or credit agreement, note, mortgage,
indenture, deed of trust, lease, sublease, license, sublicense, agreement, Permit, concession, franchise, security interest, instrument
of indebtedness, plan or other instrument, purchase order, or other agreement or Contract to which the Company or by which it
is bound or to which its properties or assets are subject, (iii) is not in conflict with or in violation of any judgment, order,
writ, or decree of any Governmental Entity to which it the Company is a party or by which it is bound, or, to the Knowledge of
the Company, of any provision of any Laws of the United States and of all other jurisdictions applicable to the Company or any
of its assets or properties, and any Governmental Entity in respect of the conduct of its business, and (iv) to the Knowledge
of the Company, has not performed any act, the occurrence of which would result in the Company’s loss of any right granted
under any material license, distribution or other agreement.

 

2.9
No Litigation.
There is not now pending or, to the Knowledge of the Company, threatened in writing, any litigation, suit, claim, action,
or proceeding, including, without limitation, arbitration proceeding, mediation, or other alternative dispute resolution proceeding,
to which the Company is or will be a party (or, as applicable, to the Knowledge of the Company, any of its directors, officers
or employees in their capacities as such is or will be a party) or by which its property or assets will or may be bound or affected
in or before or by any Governmental Entity which: (a) is against the Company or any director, officer, or employee of the Company,
including, without limitation, actions involving the prior employment of any of the Company’s employees, their services
provided in connection with the Company’s business, or any information or actions allegedly proprietary to any of their
prior employers or their obligations under any agreement with prior employers, (b) challenges or seeks to question the validity
of the Investment Transaction or prevent, enjoin, alter or materially delay any of the transactions contemplated by this Agreement,
(c) would be reasonably likely to threaten, impede, impair or adversely affect the obligation of the Company to consummate the
transactions contemplated by the Agreement, or (d) which is reasonably likely to have a Material Adverse Effect on the Company.
In addition to the foregoing, there is no judgment, decree, writ, injunction, rule or order of any Governmental Entity or arbitrator
outstanding against the Company or, to the Knowledge of the Company, against any of its directors, officers, or employees which
would affect the Company. The Company has not received any written notification of, and to the Knowledge of the Company, there
is no, investigation by any Governmental Entity involving the Company or any of the Company’s Subsidiaries or any of their
respective assets that would reasonably be likely to have, individually or in the aggregate, a Material Adverse Effect on the
Company and the Company Subsidiaries, taken as a whole. There is no litigation, suit, claim, action, or proceeding by the Company
pending or which the Company intends to initiate.

 

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2.10
Intellectual Property Rights.

 

(a)
The Company is the sole and exclusive owner of,
or have a valid license or otherwise possess valid rights to use all Intellectual Property Rights necessary provide, produce,
use, sell and license the services and products currently provided, produced, used, sold and licensed by the Company and to conduct
the business of the Company as it is currently conducted, free and clear of all Liens.

 

(b)
To the Knowledge of the Company, the conduct
of the business of the Company as it is currently conducted and the products or services produced, sold or licensed by or under
development by the Company does not infringe, misappropriate or otherwise violate the Intellectual Property Rights of any third
party, or give rise to any obligations to any Person as a result of co-authorship, co-inventorship, or an express or implied contract
for any use or transfer. There are no pending or, to the Knowledge of the Company, threatened any litigation, suit, claim, action,
proceeding, hearing, investigation to demand that challenges the liability, validity, enforceability, or the use or ownership
by the Company of any portion of the Intellectual Property Rights owned by the Company or, to the Knowledge of the Company, licensed
to the Company. The Company has not received any written notice of any infringement or misappropriation by, or conflict with,
any third party with respect to such Intellectual Property Rights, and the Company has not received any notice of claims of infringement
or misappropriation of or other conflict with any Intellectual Property Right of any third party.

 

(c)
The Company has valid Licenses for all software
used in the conduct of the business of the Company as it is currently conducted and the Company has not been the subject of, or
have been given notice of, any actual or proposed or threatened software license audit by the Business Software Alliance or any
other entity, association or Person. None of the software necessary for the business of the Company is subject to an open source
software license (including without limitation any GNU General Public License, Creative Commons License, or any similar open source
license). Neither execution of this Agreement nor completion of the transaction contemplated herein will invalidate or violate
any License or other agreement with respect to the Intellectual Property Rights owned or used by the Company or any confidentiality
agreement or non-disclosure agreement or provision to which the Company is subject.

 

2.11
Employee Matters and Benefit Plans.

 

(a)
Employment Matters. The Company is in
material compliance with all applicable Laws relating to the employment and employment practices, including Laws regarding discrimination,
harassment, affirmative action, terms and conditions of employment, wage and hour requirements (including the proper classification
of, compensation paid to, and related withholding with respect to employees, leased employees, consultants, and independent contractors),
leaves of absence, equal opportunity, reasonable accommodation of disabilities, occupational health and safety requirements, collective
bargaining, workers’ compensation insurance and the payment of social security and other Taxes. The Company is not a party
to, nor to the Knowledge of the Company is threatened with, any material litigation, action, suit, or proceeding by any current
or former employee, including without limitation in respect to deferred salary, benefits or severance.

 

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2.12
Related-Party Transactions.
Except as set forth in Section 2.19 of the Disclosure Schedule:

 

(a)
 neither the Company nor any Company Subsidiary
is indebted, directly or indirectly, to any directors, officers, employees or stockholders of the Company or any Company Subsidiary
or to the Immediate Family Members of any such Person, or to any Affiliate of the foregoing, other than amounts payable in connection
with advances of expenses incurred in the ordinary course of business or for employee benefits made available to all employees.
None of the directors, officers, employees or stockholders of the Company or any Company Subsidiary or the Immediate Family Members
of any such Person are indebted, directly or indirectly, to the Company or any Company Subsidiary.

 

(b)
to the Knowledge of the Company, no employee,
officer or director of the Company or any Company Subsidiary, or Immediate Family Members of such Person, or any Affiliate of
the foregoing has any direct or indirect ownership interest in any firm or corporation with which the Company or any Company Subsidiary
is affiliated or with which the Company or any Company Subsidiary has a business relationship or any firm or corporation that
competes with the Company or any Company Subsidiary (other than the ownership of less than 2% of the common equity of publicly-traded
companies that may compete with the Company or any Company Subsidiary).

 

(c)
Other than the following: 1) a potential acquisition
of Kanab Corp. (www.kanab.club), a social media Company targeting the global cannabis industry owned and under development
by our CEO, Vikram Grover, 2) a planned acquisition of 50% of CLEC Networks Inc., a development stage company established to create
a facilities-based telecommunications carrier owned by EDGE FiberNet Inc. which is owned by our Advisory Board Member Ted Flomenhaft,
3) a planned investment in ERide Club Corp. (www.erideclub.com), an Internet platform targeting electric vehicle (“EV”)
rentals, sales and services owned and under development by our Advisory Board Member Aldo Baiocchi, 4) a potential acquisition
of EDGE FiberNet Inc. (www.edgefibernet.com), a facilities-based telecommunications carrier based in New York City owned
by our Advisory Board Member Ted Flomenhaft, and 5) a potential strategic investment in a property holding company in the Dominican
Republic called “Hacienda La Jibarita” owned by our Advisory Board Member Ted Flomenhaft, no employee, officer or
director of the Company or any Company Subsidiary, or immediate family member of such Person, or any Affiliate of the foregoing
(i) is directly or indirectly interested in any material Contract or proposed transaction with the Company or any Company Subsidiary,
other than standard employment agreements, Options granted under the Equity Incentive Plan approved by the Board of Directors,
and indemnification agreements with officers and directors of the Company approved by the Board of Directors (all of such approvals
reflected in the written minutes of the Board of Directors previously provided to the Investor), or (ii) has a material relationship
(including, without limitation, commercial, banking, industrial, legal, accounting, consulting, charitable or familial relationship)
with any customer, service provider, supplier, licensee or licensor, or joint venture partner of the Company or any Company Subsidiary.

 

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2.13
Environmental Matters.

 

(a)
Except as disclosed, or as would not have, individually
or in the aggregate, a Material Adverse Effect on the Company: (i) to the Knowledge of the Company, no Hazardous Materials have
been generated, transported, used, disposed, stored or treated by the Company or any Company Subsidiary and no Hazardous Materials
have been released, discharged, disposed, transported, placed or otherwise caused to enter the soil or water in violation with
any Environmental Law in, under, or affecting any current or previously owned or lease real properties of the Company, or any
Participation Facility or any Owned Property of the Company; (ii) to the Knowledge of the Company, the Company and the operation
of its business, and all of its current and previously owned or operated Participation Facilities and its Owned Properties are,
and have been, in compliance in all material respects with all applicable Environmental Laws; and (iii) there is no suit, claim,
action, or proceeding pending or, to the Knowledge of the Company, threatened before any Governmental Entity or other forum in
which the Company, or any current or previously owned or operated Participation Facility or Owned Property has been or, to the
Knowledge of the Company with respect to threatened proceedings, may be named as a defendant or a potentially responsible party
(x) for alleged noncompliance (including by any predecessor) with any Environmental Law, or (y) relating to the release into the
environment of any Hazardous Material in violation of applicable Law, whether or not occurring at, on, under, or involving a site
owned, leased, or operated by the Company, or any of its Participation Facilities or Owned Properties (or the Company in respect
of any Participation Facility or Owned Property).

 

2.14
Corporate Documents; Minute Book and Records.
A copy of the minute books of the Company, which have been furnished or otherwise made available to the Investor, contains the
minutes of all meetings (or written consents without a meeting) of the Board of Directors and of the stockholders of the Company
since the Company’s date of incorporation, and accurately reflects (in all material respects) all actions by the Board of
Directors and stockholders with respect to all transactions referred to in such minutes. The books of account, ledger, order books,
records and documents of the Company, each of which have been furnished or otherwise made available to the Investor, accurately
and completely reflect all material information relating to the business of the Company, the nature, acquisition, maintenance
and, location and collection of each of, its assets, and the nature of all transactions giving rise to the obligations or accounts
receivable of the Company.

 

2.15
Full Disclosure.
The Company has made available or provided to the Investor all information reasonably available to the Company that the Investor
have requested in connection with their decision whether to purchase the Acquired Shares, including certain of the Company’s
projections describing the proposed business plan. No representation or warranty of the Company contained in this Agreement, the
exhibits hereto, any certificate furnished at Closing or in the other Transaction Documents contain any untrue statement of a
material fact nor, to the Knowledge of the Company, omit to state a material fact necessary in order to make the statements contained
herein or therein not misleading.

 

2.16
Certain Business Practices.
Neither the Company or any Company Subsidiary nor, to the Knowledge of the Company, any director, officer, agent or employee of
the Company or any Company Subsidiary acting on behalf of the Company or any Company Subsidiary has: (a) used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity regarding the business of the Company
or any Company Subsidiary, or (b) made, offered, promised, or authorized any unlawful payment or gift of any money or anything
of value to or for the benefit of foreign or domestic government officials or employees or to foreign or domestic political parties
or campaigns, in each case in violation of the Foreign Corrupt Practices Act of 1977, as amended (“FCPA”).
Neither the Company or any Company Subsidiary nor, to the Knowledge of the Company, any director, officer, agent or employee of
the Company or any Company Subsidiary have made or authorized any bribe, payoff, kickback, payment for influence, rebate or other
unlawful payment of funds or received or retained such funds in violation of any Law.

 

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2.17
Real Property Holding Corporation.
The Company is not now and has never been a “United States real property holding corporation” as defined in Section
897(c)(2) of the Code and regulations promulgated thereunder.

 

2.18
Qualified Small Business Stock.
As of and immediately following the Closing, the Company meets and will meet all of the requirements for qualification as a “qualified
small business” set forth in Section 1202(d) of the Code, including without limitation the following: (i) the Company will
be a domestic C corporation, (ii) the Company’s (and any predecessor’s) aggregate gross assets, as defined by Section
1202(d)(2) of the Code, at no time between the date of its incorporation and the Closing, have exceeded U.S. $50 million, taking
into account the assets of any corporations required to be aggregated with the Company in accordance with Section 1202(d)(3)of
the Code, (iii) the Company has not made any purchases of its own stock described in Section 1202(c)(3)(B) of the Code during
the one year period preceding the Closing, and (iv) the Company is an eligible corporation as defined by Section 1202(e)(4) of
the Code; provided, however, that in no event shall the Company be liable to the Investor or any other party for damages arising
from subsequently proven or identified error in the Company’s determination with respect to the applicability or interpretation
of Section 1202 of the Code, unless the Company is grossly negligent or fraudulent in its determination.

 

2.19
Small Business Concern.
The Company is a “small business concern” under the Small Business Investment Act of 1958 (the “Small
Business Act”) as defined in Section 121.301 of Title 13 of the Code of Federal Regulations promulgated thereunder.

 

2.20
No Investment Company.
The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section
3. Representations and Warranties of
the Investor. The Investor, severally and not jointly, the
Investor hereby represents and warrants to the Company as follows:

 

3.1
Authority; Due Execution.

 

(a)
The Investor has all the requisite power and
authority to execute and deliver, and to perform its obligations hereunder and to consummate the Investment Transaction contemplated
by, this Agreement. The execution, delivery, and performance by each such Entity Investor of this Agreement and the other Transaction
Documents to which they are a party, and the consummation of the transactions contemplated hereby and thereby, including the Investment
Transaction, have been duly and validly authorized by all necessary action on the part of the Entity Investor. This Agreement
and other Transaction Documents to which they are a party have been duly executed and delivered by each such Entity Investor and,
assuming valid authorization, execution and delivery hereof by the Company and each other Investors to this Agreement, each will
constitute a legal, valid and binding obligation of such Equity Investor enforceable against it in accordance with its terms (except
to the extent enforceability may be limited by the Bankruptcy and Equity Exceptions).

 

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(b)
The Investor has the full legal capacity to execute
and deliver, and to perform its obligations hereunder and to consummate the Investment Transaction contemplated by this Agreement.
This Agreement and the other Transaction Documents to which they are a party have been duly executed and delivered by the Investor
and, assuming valid authorization, execution and delivery hereof by the Company, will constitute a legal, valid and binding obligation
of such Investor enforceable against it in accordance with its terms (except to the extent enforceability may be limited by the
Bankruptcy and Equity Exceptions).

 

3.2
No Conflict or Required Approvals.
Neither the execution and delivery of this Agreement and the other Transaction Documents to which they are a party, nor the consummation
by the Investor of Investment Transaction contemplated hereby, or compliance with any of the terms or provisions herein by the
Investor will (a) if an Entity Investor, conflict with or violate any provision of, or require a Consent under such Entity Investor’s
organizational, operating, and governance documents, (b) conflict with, violate, or constitute or result in a material breach
of any term, condition, or provision of, or constitute a default (with or without due notice or lapse of time or both) under,
or require a Consent pursuant to any of the terms, provisions, or conditions any credit agreement, note, indenture, lease, or
other instrument to which such Investor or by which any of its properties or assets are subject bound, or (c) conflict with or
violate any judgment, order, writ, injunction, decree of any Governmental Entity or material Law applicable to such Investor or
any of its assets or properties is subject. No notice, registration, qualification, designation, declaration, or filing with,
or the Consent or Permit of, or any action by any Governmental Entity is required on the part of an Investor in connection with
the execution and delivery of this Agreement or the other Transaction Documents, or the consummation the Investment Transaction.

 

3.3
Investment Intent.
Such Investor: (a) is the sole and true party in interest, and is acquiring its respective portion of the Acquired Shares, and
will acquire the Conversion Shares upon conversion of such Acquired Shares, solely for its own account, not as a nominee or agent,
for investment purposes only, and not with an intent or a view to the sale or distribution of any part thereof within the meaning
of Section 2(a)(11) of the Securities Act, (b) does not have any present intent of making a Transfer of, granting a participation
in, or otherwise distributing the Acquired Shares or any Conversion Shares (collectively, the “Securities”)
in a manner contrary to the Securities Act or the securities Laws of any other applicable jurisdiction, (c) does not have any
contract, undertaking, agreement, or arrangement with any Person to Transfer, grant any participation in, or otherwise distribute
any of the Securities to such Person, and (d) does not presently have any reason to anticipate any change in circumstances or
other particular occasion or event which would cause such Investor to need to sell the Securities, except in accordance with the
terms of this Agreement and in compliance with all applicable federal and state securities Laws.

 

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3.4
Restricted Securities; Transfer Restrictions.

 

(a)
Such Investor affirms that it has been advised
and understands that (i) none of the Securities have been registered under the Securities Act or registered or qualified under
the securities Laws of any other jurisdiction and are being sold in reliance upon an exemption from registration under such Laws,
(ii) such Investor may not Transfer the Securities unless they are subsequently registered and qualified under such Laws or, in
the opinion of counsel reasonably satisfactory to the Company, an exemption from such registration and qualification is available,
(iii) if an exemption from registration or qualification is available, it may be conditioned on various legal, procedural and
other requirements which are outside of the Investor’s control and which the Company has no obligation and may not be able
to satisfy, and (iv) such Investor is familiar with Rule 144 and Rule 144A as presently in effect and recognizes that in the future
the Company may not satisfy the requirements which would permit it to sell the Securities pursuant to Rule 144 or Rule 144A promulgated
under the Securities Act.

 

(b)
Such Investor understands and acknowledges that
only the Company can register the Securities under applicable securities Laws, and that the Company has no obligation to register
or qualify the Securities under the Securities Act or the securities Laws of any other jurisdiction except as set forth in the
Registration Rights Agreement.

 

3.5
Knowledge, Experience, and Financial Capability.

 

(a)
Such Investor has sufficient knowledge and experience
in financial and business matters and investing in companies similar to the Company so that it is capable of evaluating the merits
and risks of the investment contemplated by this Agreement and understands and acknowledges that an investment in the Securities
and the Company involves certain risks. Such Investor recognizes that no public market for the Securities exists and none is expected
to develop and, as result, when considered in relation to the Transfer restrictions identified in Section 3.5 hereof, that an
investment in the Securities may not be liquid and that such Investor must bear the economic risk of the investment indefinitely.
Such Investor is a sophisticated investor and has carefully considered and evaluated the risks and benefits of an investment in
the Securities and the Company and such Investor has taken full cognizance of, understands, and is willing to bear the risks related
to the purchase of the Securities.

 

(b)
Such Investor further represents that it has
adequate means of providing for its current needs and possible contingencies, it can afford to bear the economic risk of holding
the Securities for an indefinite period of time, it has no need for liquidity in its investment in the Securities, and it has
the net worth sufficient to bear the risks of and to sustain a complete loss of such Investor’s entire investment in the
Company. Such Investor has been represented by counsel and other advisors of its choosing.

 

3.6
Accredited Investor; Not a Bad Actor.
Such Investor is: (a) an “accredited investor” as such term is defined in Rule 501(a) promulgated under the Securities
Act, and (b) is not subject to any “bad actor” disqualification as set forth in Rule 506(d) of Regulation D or any
similar disqualification provision that could adversely affect the Company’s reliance on any federal or state securities
registration exemption or that could otherwise adversely affect the offering of the Securities.

 

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3.7
Information Disclosed to Investor.
Such Investor represents, acknowledges and confirms that prior to the sale of the Acquired Shares to such Investor pursuant to
this Agreement, such Investor (a) has been given an the opportunity to ask questions of, and receive answers from, representatives
of the Company concerning Company and the terms and conditions of the sale of the Acquired Shares by the Company to such Investor
and (b) has been given the opportunity to obtain any additional information which such Investor deemed necessary to verify the
accuracy of the information supplied to it. Such Investor confirms that it has been furnished with all such requested information
and all questions asked by such Investor have been answered to its full satisfaction. Such Investor represents that in connection
with its purchase of the Securities, it has not relied on any statement or representation by the Company, or any of its officers
and directors, or any of their attorneys or agents, except as specifically set forth herein or provided pursuant to this Section
3.8. Such Investor confirms that it is aware and understands that no federal or state agency has made any finding or determination
as to the fairness of this offering nor has made any recommendation or endorsement of the Securities. None of the representations
or warranties of the Investor in this Section 3.8 shall limit or modify the representations and warranties of the Company set
forth in Section 2 hereof or the right of the Investors to rely thereon.

 

3.8
No General Solicitation.
Such Investor represents and certifies that such Investor is not acquiring the Securities as a result of any form of “general
solicitation” or “general advertising” as those terms are used in Rule 502(c) of Regulation D promulgated under
the Securities Act.

 

3.9
Reliance on Investor’s Representations.
Such Investor acknowledges and understands that the representations, warranties, and covenants contained in this Section 3 of
the Agreement are being furnished, in part, and will be relied on by the Company in determining whether this offering of the Securities
is exempt from registration under the Securities Act and the securities laws of all other applicable jurisdictions and, accordingly,
confirms that all such statements contained herein are true, complete, and accurate as of the date hereof, and shall be true,
accurate, and complete as of the date that this Agreement is executed and delivered, and shall survive the Closing. If any events
occur or circumstances exist prior to the issuance of the Acquired Shares to such Investor which would make any of the representations,
warranties, agreements, or other information of an Investor set forth herein untrue or inaccurate, such Investor agrees to immediately
notify the Company in writing of such fact specifying which representations, warranties, or covenants are not true, correct, or
accurate, and the reasons therefor.

 

3.10
Investor Source of Funds.

 

(a)
Compliance with International Trade Control
Laws and OFAC Regulations. Such Investor represents and warrants that such Investor is not now nor shall it be at any time
hereafter an individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision
thereof, or any other form of entity with whom a United States citizen, entity organized under the Laws of the United States or
its territories or entity having its principal place of business within the United States or any of its territories (collectively,
a “U.S. Person”), is prohibited from transacting business of the type contemplated by this Agreement,
whether such prohibition arises under United States Law, executive orders and lists published by the Office of Foreign Assets
Control, U.S. Department of the Treasury (“OFAC”) (including those executive orders and lists published
by OFAC with respect to Persons that have been designated by executive order or by the sanction regulations of OFAC as Persons
with whom U.S. Persons may not transact business or must limit their interactions to types approved by OFAC “Specially
Designated Nationals and Blocked Persons”) or otherwise. Neither such Investor nor any Person who owns an interest
in the Investor, if an Entity (collectively, a “Purchaser Party”), is now nor shall be at any time hereafter
a Person with whom a U.S. Person, including a “financial institution” as defined in 31 U.S.C. § 5312(a)(2) (“Financial
Institution”), is prohibited from transacting business of the type contemplated by this Agreement, whether such
prohibition arises under United States Law, regulation, executive orders and lists published by the OFAC (including those executive
orders and lists published by OFAC with respect to Specially Designated Nationals and Blocked Persons) or otherwise.

 

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(b)
Investor’s Funds. Such Investor
represents and warrants that such Investor has taken, and shall continue to take hereafter, such measures as are required by Law
to assure that the funds used to pay to the Company any portion of the Aggregate Purchase Price are derived from: (i) transactions
that do not violate United States Law nor, to the extent such funds originate outside the United States, do not violate the laws
of the jurisdiction in which they originated; and (ii) permissible sources under United States Law and to the extent such funds
originate outside the United States, under the laws of the jurisdiction in which they originated.

 

(c)
Anti-Money Laundering Laws. Such Investor
represents and warrants that neither such Investor nor any Person providing funds to the Investor: (i) is under investigation
by any governmental authority for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist related
activities, any crimes which in the United States would be predicate crimes to money laundering, or any violation of any Anti
Money Laundering Laws; (ii) has been assessed civil or criminal penalties under any Anti-Money Laundering Laws; or (iii) has had
any of its funds seized or forfeited in any action under any Anti Money Laundering Laws.

 

3.11
Foreign Investors.
If such Investor is not a U.S. Person, such Investor hereby represents and warrants that it has satisfied the full observance
of the Laws of its jurisdiction in connection with this Agreement and the other Transaction Documents and the subscription for
the Acquired Shares, including, without limitation, the receipt of any Consents from or actions to be taken by any Governmental
Entity in such jurisdiction required as a condition to the Investment Transaction and the satisfaction of any other applicable
legal requirements within such jurisdiction for the purchase of the Acquired Shares. The subscription and payment by the Investors
for, and the continued beneficial ownership of, the Securities will not violate any applicable securities of other Laws of the
Investor’s jurisdiction.

 

3.12
No Litigation.
There is not now pending or, to the Knowledge of such Investor, threatened, any material litigation, suit, claim, action, or proceeding,
including, without limitation, arbitration proceeding, mediation, or other alternative dispute resolution proceeding, to which
such Investor, is or will be a party or by which its property or assets will or may be bound or affected which (a) challenges
or seeks to question, prevent, enjoin, alter or materially delay any of the transactions contemplated by this Agreement, or (b)
would be reasonably likely to threaten, impede, impair or adversely affect the obligation of such Investor to consummate the transactions
contemplated by the Agreement.

 

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Section
4. Additional Agreements.

 

4.1
Transfer Restrictions.
The Investor hereby agrees that such Investor will not, directly or indirectly, Transfer or offer to Transfer any of the Securities,
or any of its interests therein (or solicit any offers to buy, purchase, or otherwise acquire or take a pledge of the Securities),
except in compliance with this Agreement and the Securities Act, the securities laws of all other applicable jurisdictions, and
the rules and regulations promulgated thereunder.

 

4.2
Legends.
The Investor confers full authority upon the Company to affix, when issued, appropriate legends relating to applicable Transfer
restrictions to the face of the certificate or certificate representing the Securities or on any other document representing the
Securities, including, without limitation, the following:

 

(a) “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED,
OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE SECURITIES
LAWS OF ALL OTHER APPLICABLE JURISDICTIONS UNLESS, IN THE OPINION OF COUNSEL TO THE COMPANY, SUCH REGISTRATION IS NOT
REQUIRED.”

 

(b)
any legend set forth in, or required by, the
Other Transaction Documents and the securities Laws of any other applicable jurisdiction, if any.

 

4.3
Investor’s Indemnification Agreement.
The Investor acknowledges that understands the meaning and legal consequences of the representations, warranties and covenants
contained in Section 3 of this Agreement, especially as it relates to the reliance referenced in Section 3.10 hereof, and agrees
to indemnify and hold harmless the Company and its agents, employees, and representatives from and against any and all losses
(including reasonable attorney’s fees), damage or liabilities due to or arising out of any misrepresentations, misstatements,
or omissions with respect to any of the representations or warranties, or a breach of any of the covenants or agreements, contained
in this Agreement by the Investor.

 

4.4
Reservation of Conversion Shares.
The Company hereby agrees that:

 

(a)
As soon as practicable after bringing its SEC
reporting current, it will make best efforts to have authorized and will reserve and keep available, solely for issuance and delivery
to the holder of the Acquired Shares, that number of shares of its Common Stock (or other securities and property) that may be
required from time to time for issuance and delivery of the upon conversion of the Acquired Shares.

 

(b)
it shall take all necessary steps to ensure that
the Conversion Shares, when issued in accordance with this Agreement, shall be duly and validly issued, shall be fully paid and
nonassessable, free and clear of any Liens of any kind whatsoever, and free from all preemptive rights of any security holders
of the Company.

 

(c)
it shall take all action as may be necessary
to assure that such Conversion Shares (and any other securities and property) may be issued and delivered as provided herein and
as set forth in the Amended Articles without violation of any applicable Law, or of any requirements, of any domestic securities
exchange or inter dealer quotation system upon which the Common Stock may then be listed; provided, however, that the Company
shall not be required to effect a registration under federal or state securities Laws.

 

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4.5
Information Rights.

 

(a)
The Company covenants and agrees with the Investor
that for so long as the Investor continues to own beneficially any shares of Series B Preferred Stock or associated Conversion
Shares (subject to adjustment to reflect stock splits, stock dividends, and other combinations or subdivisions of the Series B
Preferred Stock or the Common Stock), the Company shall (i) permit such Investor to visit and inspect the properties of the Company
and to discuss the Company’s business and finances with officers of the Company, in each case during normal business hours
following reasonable notice, which right may be exercised through any agent or employee of such Investor designated by it or by
a certified public accountant designated by such Investor and (ii) promptly upon request, furnish to such Investor such other
information bearing on the financial condition and operations of the Company as the Investor may from time to time reasonably
request; provided, however, that in each case the Company shall not be obligated pursuant to this Section 4.5(a) to provide
access to any information that the Company reasonably and in good faith considers to be a trade secret or confidential information
(unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would
adversely affect the attorney-client privilege between the Company and its counsel.

 

(b)
The Company covenants and agrees with the Investor
that for so long as the Investor continues to own beneficially or of record any shares of Series B Preferred Stock or associated
Conversion Shares (subject to adjustment to reflect stock splits, stock dividends, and other combinations or subdivisions of the
Series B Preferred Stock or the Common Stock), the Company shall provide to such Investor its public SEC filings and any other
publicly available information, including quarterly and annual reports under Forms 10-Q and 10-K.

 

(i)
a certificate of compliance at the time of delivery
of each monthly and annual statement, executed by the chief financial officer (or other financial manager or controller) in the
case of monthly statements, stating that such officer has caused this Agreement and the terms of the Series B Preferred Stock
to be reviewed and has no knowledge of any default by the Company in the performance or observance of any of the provisions of
this Agreement or the terms of the Series B Preferred Stock or, if such officer has such knowledge, specifying such default and
the nature thereof;

 

(ii)
notice of changes that are reasonably likely
to have a Material Adverse Effect promptly after the Company obtains knowledge thereof;

 

(iii)
promptly after the Company’s Knowledge
thereof, notice of all material any litigation, suit, claim, action, or proceeding, including, without limitation, arbitration
proceeding, mediation, or other alternative dispute resolution proceeding, before any Governmental Entity to which the Company
is a party;

 

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(iv)
such other notices, information and data with
respect to the Company as the Company delivers to the holders of its capital stock at the same time it delivers such items to
such holders; and

 

(c)
Except as otherwise agreed to by the Company,
all information received by such Investor with respect to the Company pursuant to this Section 4.5 shall be subject to, the Investor
shall be bound by, the terms of confidentiality by and between the Company and the Investor to be signed under separate cover
if required.

 

4.6
Books and Records.
The Company shall keep proper books of record and account in which true and complete entries will be made of all transactions
in accordance with GAAP applied on a basis consistent with prior periods.

 

4.7
Further Assurances.
On or after the Closing, each of the parties shall execute and deliver, or cause to be executed and delivered, such further documents,
certificates, and instruments and to perform such further acts as may be reasonably required to issue and convey the Securities
to the Investors, all on terms contained herein, and otherwise to comply with the terms of this Agreement and consummate the transactions
herein provided.

 

Section
5. Conditions to the Obligations of the
Purchaser at the Closing. The obligation of the Investor to
purchase the Acquired Shares at the Closing is subject to the fulfillment, or the waiver by the Investor, of each of the following
conditions on or before the Closing Date.

 

5.1
Accuracy of Representations and Warranties.
Each of the representations and warranties of the Company contained in Section 2 of this Agreement shall be true and correct in
all material respects on and as of the Closing with the same effect as though such representations and warranties had been made
on and as of that date.

 

5.2
Performance.
The Company shall have performed and complied in all material respects with all covenants, agreements and conditions contained
in this Agreement required to be performed or complied with by the Company prior to or at the Closing.

 

5.3
No Litigation.
There shall be no action, suit or proceeding pending, or, to the Knowledge of the Company, threatened, which (a) seeks to restrain,
enjoin, or prevent the consummation of the transactions contemplated by this Agreement or the other Transaction Documents, (b)
challenges the validity of, or seeks to recover damages or to obtain other relief in connection with the transactions contemplated
by this Agreement or the other Transaction Documents, (c) affects adversely the right of the Investor to acquire the Acquired
Shares, or (d) affects adversely the business, assets, properties, operation (financial or otherwise), or prospects of the Company
(and no such injunction, judgment, order, decree, ruling or charge shall be in effect).

 

5.4
No Material Adverse Change.
Since the Balance Sheet Date, there shall have been no change in the financial condition, results of operations, business, business
prospects, personnel, assets, or liabilities (whether contingent or absolute, matured or unmatured, known or otherwise) of the
Company which has or may cause a Material Adverse Effect.

 

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5.5
Compliance Certificate.
The Company shall deliver to the Investor a certificate, executed by the chief executive officer and chief financial officer of
the Company, dated as of the Closing Date, certifying the fulfillment of the conditions specified in Section 5.1 through 5.4 of
this Agreement.

 

5.6
Qualifications.
All material notices, registrations, qualifications, designations, declarations, or filings with, Consents or Permits of, or any
action by any Governmental Entity of the United States or of any other jurisdiction that are required prior to the Closing in
connection with the lawful issuance and sale of the Acquired Shares pursuant to this Agreement shall be duly obtained and effective
as of the Closing.

 

5.7
Amended Articles.
The Company shall have filed the Amended Certificate of Determination or relevant documents for this Offering with the Secretary
of State of the State of California (“State Secretary”) on Closing or as soon as practicable, which
shall continue to be in full force and effect as of the Closing.

 

5.8
Secretary Certificate and Documents.
The Company shall have delivered to the Investor a certificate of the Secretary of the Company, certifying: (a) the Articles of
Incorporation of the Company, as amended and restated by the Amended Articles, certified by the State Secretary, (b) the Bylaws
of the Company as of the Closing, (c) resolutions or written consents of the Board of Directors of the Company evidencing the
taking of all corporate action necessary to authorize and approve the execution and delivery of the Transaction Documents, and
the transactions contemplated under the Transaction Documents, including the consummation of the Investment Transaction, (d) resolutions
or written consents of the stockholders of the Company, if required, approving the Amended Articles, (e) certificates, as of a
recent date, as to the corporate good standing of the Company issued by the State Secretary, and as to the corporate good standing
and qualification as a foreign corporation of the Company issued by the Secretary of State of each jurisdiction in which the nature
of the business transacted by it or the character or location of its properties requires such qualification, and (f) the incumbency
of each individual authorized to sign, in the name and on behalf of the Company, this Agreement and the other Transaction Documents.

 

5.9
Stockholders Agreement.
The Company and each stockholder of the Company listed on a separate stockholders’ agreement shall have executed and delivered
the Stockholders Agreement. As a condition to the Closing, the Stockholders Agreement must be executed by the number of stockholders
of the Company (i) necessary to amend that certain Stockholders’ Agreement, dated May 5, 2019 and (ii) representing at least
80% of the voting power of the Company following the Closing.

 

5.10
Stockholder Rights.
The Company shall have obtained enforceable waivers or shall have fully satisfied (including, without limitation, timely notification)
in respect of any rights of first refusal, preemptive rights, and similar rights directly or indirectly affecting any of its securities.

 

5.11
Proceedings and Documents.
All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments
incident to such transactions shall be reasonably satisfactory in substance and form to the Investor, and the Investor shall have
received all such counterpart originals or certified or other copies of such documents as it may reasonably request.

 

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Section
6. Condition to the Obligations of the
Company. The obligations of the Company to issue, sell, and
deliver the Acquired Shares to the Investor at the Closing are subject to fulfillment, or the waiver by the Company, of each of
the following conditions on or before the Closing Date:

 

6.1
Accuracy of Representations and Warranties.
Each of the representations and warranties of the Investor contained in Section 3 shall be true in all material respects on and
as of the Closing with the same effect as though such representations and warranties had been made on and as of that date.

 

6.2
Performance.
The Investor shall have performed and complied, in all material respects, with all covenants, agreements and conditions contained
in the Agreement required to be performed or complied with by the Investor prior to or at the Closing.

 

6.3
No Litigation.
There shall be no action, suit, investigation or proceeding pending, or to the Knowledge of any of the Investor threatened, which
(a) seeks to restrain, enjoin, or prevent the consummation of the transactions contemplated by this Agreement or the other Transaction
Documents, (b) challenges the validity of, or seeks to recover damages or to obtain other relief in connection with the transactions
contemplated by this Agreement or the other Transaction Documents.

 

6.4
Qualifications.
All material notices, registrations, qualifications, designations, declarations, or filings with, Consents or Permits of, or any
action by any Governmental Entity of the United States or of any other jurisdiction that are required prior to the Closing in
connection with the lawful issuance and sale of the Acquired Shares pursuant to this Agreement shall be duly obtained and effective
as of the Closing.

 

6.5
Stockholders Agreement.
The Investor shall have executed and delivered the Stockholders Agreement.

 

6.6
Registration Rights Agreement.
Not applicable.

 

6.7
Payment of Purchase Price.
Th Investor shall have paid to the Company the Aggregate Purchase Price for the Acquired Shares as set forth in Section 1.3 of
this Agreement.

 

Section
7. General Provisions.

 

7.1
Definitions.

 

(a)
Except as otherwise provided herein, the capitalized
terms set forth below shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, (i) a Person that directly, or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the first-mentioned Person, and (ii) an “associate”
as that term is defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 as in effect on the date of this Agreement.
For purposes of this definition, the term “control” (including the term “controlling,”
“controlled by” and “under common control,” or correlative terms) means the
possession, direct or indirect, of the power to direct the management and policies of a Person, whether as an officer or director,
through the ownership of voting securities, by contract or otherwise.

 

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“Anti-Money
Laundering Laws” shall mean Laws and sanctions, state and federal, criminal and civil, that: (i) limit the use of
and/or seek the forfeiture of proceeds from illegal transactions; (ii) limit commercial transactions with designated countries
or individuals believed to be terrorists, narcotics dealers or otherwise engaged in activities contrary to the interests of the
United States; (iii) require identification and documentation of the parties with whom a Financial Institution conducts business;
or (iv) are designed to disrupt the flow of funds to terrorist organizations. Such laws, regulations and sanctions shall be deemed
to include the USA PATRIOT Act of 2001, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. §§ 5311 et seq., the Trading
with the Enemy Act, 50 U.S.C. App. §§ 1 et seq., the International Emergency Economic Powers Act, 50 U.S.C. §§
1701 et seq., and the sanction regulations promulgated pursuant thereto by the OFAC, as well as laws relating to prevention and
detection of money laundering in 18 U.S.C. §§ 1956 and 1957.

 

“Board
of Directors” or “Board” means the board of directors of the Company.

 

“Business
Day” shall mean any day other than a Saturday, Sunday, or other day on which commercial banks in the State of California
are authorized or required by Law or executive order to close.

 

“Bylaws”
means, unless the context otherwise requires, the bylaws of the Company, as amended through and in effect on the Closing Date.

 

“Consent”
shall mean any consent, order, approval, authorization, clearance, exemption, exception, waiver, ratification, or similar affirmation
by any Person.

 

“Contract”
means any oral or written agreement, contract, debenture, note, bond, mortgage, license, instrument, franchise or other obligation,
commitment, arrangement or understanding.

 

“Employee
Benefit Plan” means employee benefit plan, agreement or arrangement that is a pension, profit-sharing, post-retirement,
supplemental retirement, vacation, sick leave, disability, death benefit, group insurance, hospitalization, medical, dental, life,
Section 125 of the Code “cafeteria” or “flexible” benefit, employee loan, education assistance or fringe
benefit plan, whether written or oral, including, without limitation, any “employee benefit plan” (within the meaning
of Section 3(3) of ERISA, inclusive of any “employee pension benefit plan” as defined in Section 3(2) of ERISA, and
any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), any “multi-employer plan” (as
defined in Section 3(37) of ERISA), or other Contracts or employee benefit plan, whether or not subject to ERISA and whether or
not funded, to which Company is a party, for the benefit of any current or former employee, director, officer, consultant or independent
contractor of the Company have any present or future rights to benefits, or with respect to which Company or any of its ERISA
Affiliates has any current or future liability or which are maintained, contributed to or sponsored by Company.

 

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“Environmental
Laws” means all Laws relating to pollution or protection of human health or the environment (including ambient air,
surface water, ground water, land surface or subsurface strata) and which are administered, interpreted, or enforced by the United
States Environmental Protection Agency and state, local, and foreign agencies with jurisdiction over, and including common law
in respect of, pollution or protection of the environment, including the Comprehensive Environmental Response Compensation and
Liability act, as amended, 42 U.S.C. 9601 et seq., the Resource Conservation and Recovery act, as amended, 42 U.S.C. 6901 et seq.,
and other Laws relating to emissions, discharges, releases, or threatened releases of any Hazardous Material, or otherwise relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of any Hazardous Material.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means any Person that is a member of a “controlled group of corporations” with, or is under
“common control” with, or is a member of the same “affiliated service group” with Seller, as defined in
Section 414 of the Code.

 

“Hazardous
Materials” means (i) any hazardous substance, hazardous material, hazardous waste, regulated substance, or toxic
substance (as those terms are defined by any applicable Environmental Laws) and (ii) any chemicals, pollutants, contaminants,
petroleum, petroleum products, or oil and (specifically shall include asbestos requiring abatement, removal, or encapsulation
pursuant to the requirements of Governmental Entities and any polychlorinated biphenyls).

 

“Immediate
Family Member” means a Person’s spouse, parents, children, siblings, mothers and fathers-in-law, sons and
daughters-in-law, and brothers and sisters-in-law

 

    	21

    	 

    

 

“Intellectual
Property” means all of the following: (i) U.S. and foreign registered and unregistered trademarks, trade dress,
service marks, logos, trade names, corporate names and all registrations and applications to register the same jurisdiction, including
any extension, modification or renewal of any such registration or application (the “Trademarks”); (ii)
issued U.S. and foreign patents and pending patent applications, patent disclosures, and any and all divisions, continuations,
continuations in part, continuing prosecution applications, reissues, reexaminations, and extensions thereof, any counterparts
claiming priority therefrom or from which priority may be claimed, utility models, patents of importation or confirmation, certificates
of invention and like statutory rights (the “Patents”); (iii) U.S. and foreign registered and unregistered
copyrights (including any work of authorship in which copyright does or may subsist under the law of any jurisdiction), rights
of publicity, database rights and moral rights in both published works and unpublished works and all registrations and applications
to register the same (the “Copyrights”); (iv) U.S. and foreign rights in any semiconductor chip product
works or “mask works” as such term is defined in 17 U.S.C. § 901, et seq., and any registrations or applications
therefor (the “Mask Works”); (v) all categories of trade secrets as defined in the Uniform Trade Secrets
Act including, but not limited to, technology, inventions, and business information and other confidential information, and rights
to limit the use or disclosure thereof by a Third party, including such rights in inventions, discoveries and ideas, whether patented,
patentable or not in any jurisdiction; know-how, customer lists, technical information, proprietary information, technologies,
processes and formulae, software, data, plans, drawings and blue prints, whether tangible or intangible and whether stored, compiled,
or memorialized physically, electronically, photographically or otherwise (the “Trade Secrets”); all
licenses and agreements pursuant to which the Company or any of the Company’s Subsidiaries has acquired rights in or to
any Trademarks, Patents, Copyrights or Mask Works, or licenses and agreements pursuant to which the Company has licensed or transferred
the right to use any of the foregoing (the “Licenses”); (vi) all United States and foreign Internet
domain name applications and registrations, social media identifiers, and advertising keyword rights owned or used by the Company
or any of the Company’s Subsidiaries or otherwise used in conjunction with the business of the Company or any of the Company’s
Subsidiaries (the “Domains”); and (vii) any similar intellectual property or proprietary rights similar
to any of the foregoing, licenses, immunities, covenants not to sue and the like relating to the foregoing, and any claims or
causes of action arising out of or related to any infringement, misuse or misappropriation of any of the foregoing.

 

“Knowledge”
means (i) with respect to a Stockholder, the knowledge of the Shareholder that is obtained or would have been obtained after
reasonable investigation, (ii) with respect to the Company, all matters known or that should have been known by the chief executive
officer, chief financial officer, and each of the other executive officers of the Company after reasonable investigation, and
(iii) with respect to the Investor, the actual knowledge of the Investor.

 

“Law”
means any code, law, ordinance, regulation, reporting or licensing requirement, rule, or statute applicable to a Person or its
assets, properties, liabilities, or business, including those promulgated, interpreted, or enforced by any Governmental Entity.

 

“Liens”
shall mean all liens, encumbrances, charges, pledges, claims, security interests, equities, options, warrants, rights to purchase
or acquire, and other defects in title.

 

“Material
Adverse Effect” means any change, effect, event, occurrence, or state of facts (each, an “Event”)
which individually, or together with other changes, effects, events, occurrences, or states of facts, that has, or would be reasonably
expected to, materially and adversely affect: (a) the Company’s ability to consummate Investment Transaction without material
delay, or (b) the financial condition, business, properties, assets, operations, results of operations, or prospects of the Company
and its Subsidiaries, taken as a whole[; provided, however, that none of the following shall be deemed either alone or
in combination to constitute, and none of the following shall be taken into account in determining whether there has been or would
be, a Material Adverse Effect: (i) any Event resulting from general economic or political conditions or generally affecting financial,
credit, foreign exchange, securities or capital markets (including changes in interest rates or exchange rates), including any
disruption thereof, in the United States or elsewhere in the world market, (ii) any Events affecting in the general conditions
in the industry of such Person and its Subsidiaries, taken as a whole, and (iii) any Events resulting from business conditions
in the United States generally or in the geographic regions in which the Company or its Subsidiaries operate.

 

    	22

    	 

    

 

“Owned
Properties” means any property owned, leased, or operated by the Company or in which the Company holds a security
or other interest (including an interest in a fiduciary capacity) and, when required by the context, this term also includes the
owner or operation of such property, but only with respect to such property.

 

“Participation
Facilities” means any facility or property in which the Company participates in the management and, where required
by the context, said term means the owner or operator of such facility or property, but only with respect to such facility or
property.

 

“Permitted
Liens” means (i) Liens or imperfections of title which are not, individually or in the aggregate, material in character,
amount, or extent and which do not materially detract from the value or interfere with the contemplated use of assets subject
thereto or affected thereby, (ii) mechanics’, materialmen’s, carrier’s, warehousemen’s, landlord’s
and similar Liens securing obligations not yet delinquent, and (iii) Liens for current Taxes not yet due and payable.

 

“Permits”
shall mean all permits, licenses, variances, certificates, filings, franchises, notices, rights, and Consents of and from all
Governmental Entities.

 

“Person”
shall mean an individual, corporation, general partnership, limited partnership, joint venture, limited liability company, limited
liability partnership, unincorporated organization, business trust, association, corporations, or other entity.

 

“Subsidiaries”
or “Subsidiary” means all corporations, limited liability companies, limited partnerships, and other
entities in which the entity in question owns or controls 50% or more of the outstanding equity or voting securities or interests
either directly or through an unbroken chain of entities as to each of which 50% or more of the outstanding equity or voting securities
or interests are owned directly or indirectly by such entity in question.

 

“Taxes”
means all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, license, withholding, payroll, employment, excise, stamp, occupation, property, or other taxes, fees, assessments
or other charges imposed by a Governmental Authority, together with any interest and any penalties, additions to tax or additional
amounts with respect thereto, and the term “tax” means any of the foregoing taxes.

 

“Tax
Return” means all reports, estimates, declarations of estimated tax, information statements and returns relating
to, or required to be filed in connection with, any Taxes, including information returns or reports with respect to withholding
and other payments to third parties.

 

“Transfer”
shall be construed broadly and shall include to mean, in the context of a transfer of any of the Securities, any sale, assignment,
participation, gift, bequest, distribution, exchange, pledge, hypothecation, placement of a lien thereon or a grant of a security
interest therein or other encumbrances thereon, judicial attachment, contribution to a trust or other Person, or other transfer
or disposition (voluntarily or involuntarily, by operation of law or otherwise, and whether as security or otherwise) by a holder
of all or a portion of its Securities or any right or interest therein. For purposes of this definition, a “Transfer”
shall include the sale, assignment, participation, gift, bequest, distribution, exchange, pledge, hypothecation, placement of
a lien thereon or a grant of a security interest therein or other encumbrances thereon, judicial attachment, contribution to a
trust or other Person, or other transfer or disposition (voluntarily or involuntarily, by operation of law or otherwise, and whether
as security or otherwise) of a controlling equity interest in any Person which owns of record any of the Securities.

 

    	23

    	 

    

 

“Transaction
Documents” means, collectively, this Agreement, the Amended Articles, and the Stockholders Agreement.

 

(b)
The following terms shall have the meanings ascribed
thereto in the Section set forth opposite such term:

 

	 	Term	Section
	 	 	 
	 	Agreement
    	Preamble
	 	Aggregate
    Purchase Price	1.2
	 	Amended
    Articles	1.1
	 	Acquired
    Shares	1.2
	 	Balance
    Sheet Date	2.7(a)
	 	Bankruptcy
    and Equity Exceptions	2.2
	 	Closing	1.5
	 	Closing
    Date	1.5
	 	Code	2.10
	 	Common
    Stock	2.4(a)
	 	Company	Preamble
	 	Company
    Assets	2.11
	 	Conversion
    Shares	2.5
	 	Disclosure
    Schedule	Section
    2
	 	Entity
    Investor 	3.1
	 	Equity
    Incentive Plan	2.4(d)
	 	Existing
    Stockholders	Preamble
	 	FCPA	2.24
	 	Financial
    Institution	3.11(a)
	 	Financial
    Statements	2.7(a)
	 	Founders	Preamble
	 	GAAP	2.7(b)
	 	Governmental
    Entity	2.3(a)
	 	Investment
    Transaction	Recitals
	 	Investor[s]	Preamble
	 	Non-Competition
    Agreement	2.18(c)
	 	OFAC	3.11(a)
	 	Offering
    Memorandum	2.23(a)
	 	Options	2.4(e)
	 	Outstanding
    Plan Options	2.4(d)
	 	Per
    Share Price	1.2
	 	PIIA
    Agreement	2.18(c)
	 	Preferred
    Stock	2.4(a)

 

    	24

    	 

    

 

	 	Purchaser
    Party	3.11(a)
	 	Registration
    Rights Agreement 	Recitals
	 	Securities	3.4
	 	Securities
    Act	2.3(b)
	 	Series
    A Preferred Stock	2.4(a)
	 	Series
    B Preferred Stock	Recitals
	 	Small
    Business Act	2.27
	 	Specially
    Designated Nationals and Blocked Persons	3.11(a)
	 	State
    Secretary	5.7
	 	Stockholders
    Agreement	Recitals
	 	U.S.
    Person	3.11(a)

 

(c)
Any singular term in this Agreement shall be
deemed to include the plural, and any plural term the singular. Whenever the words “include,” “includes,”
or “including” are used in this Agreement, they shall be deemed followed by the words “without limitation.”

 

7.2
Survival of Representations.
Unless otherwise set forth in this Agreement, the representations, warranties, and covenants of the Company and the Investor contained
in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in
no way be affected by any investigation of the subject matter thereof made by or on behalf of the Company or the Investor. The
representations and warranties in this Agreement and in any certificate delivered pursuant hereto shall survive the Closing.

 

7.3
Expenses.
Except as otherwise provided in this Agreement, whether or not the transactions contemplated herein are consummated, each party
hereto shall bear and pay its own fees, costs and expenses incident to preparing, entering into and carrying out this Agreement
and to consummating the transactions contemplated hereby. Notwithstanding the foregoing, the Company agrees to pay the reasonable
fees and expenses of counsel for the Investor.

 

7.4
No Brokers or Finders.
The Company, and the Investor (a) each represent and warrant to the other party hereto that he or it has neither retained a finder
or broker nor is or will be obligated for any finder’s fees or commissions, in connection with the transactions contemplated
by this Agreement, and (b) each agree that they will indemnify and save the other party harmless from and against any and all
claims, liabilities or obligations with respect to brokerage or finders’ fees or commissions, or consulting fees in connection
with the transactions contemplated by this Agreement asserted by any Person on the basis of any statement or representation alleged
to have been made by such indemnifying party.

 

7.5
Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable Law, the parties agree to renegotiate
such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of this Agreement shall be
interpreted as if such provision were so excluded and (iii) the balance of this Agreement shall be enforceable in accordance with
its terms.

 

    	25

    	 

    

 

7.6
Entire Agreement.
This Agreement, which includes the Disclosure Schedule and exhibits hereto, together with the other Transaction Documents, constitutes
the entire agreement among the parties hereto with respect the subject matter hereof, and supersedes all prior arrangements or
understandings with respect to the subject matter hereof between the parties, both written and oral.

 

7.7
Amendment and Modification.
Except as otherwise expressly set forth in this Agreement, subject to the corporation laws of the State of California, any term
of this Agreement may be amended, modified, or terminated and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and
(a) the holders of at least 80% of the then-outstanding Series B Preferred Stock, or (b) for any amendment, modification, termination
or waiver effected prior to the Closing, Investor obligated to purchase 80% of the Series B Preferred Stock to be issued at such
Closing. Any amendment, modification, termination or waiver effected in accordance with this Section 7.7 shall be binding upon
the Investor, each transferee of the Securities even if they do not execute such consent, and each future holder of the Securities,
and the Company. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

7.8
Successors and Assigns.
This terms and conditions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any party other than
the parties to this Agreement or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement. The Investor’s rights to purchase
the Acquired Shares shall not be assignable except to its Subsidiaries, parent, or Affiliates.

 

7.9
Notices.
All notices or other communications given or made pursuant to this Agreement shall be in writing and shall be (a) delivered by
registered or certified mail, return receipt requested, postage prepaid, (b) by expedited mail or package delivery service guaranteeing
next Business Day delivery, (or, for international deliveries, the earliest Business Day that such delivery service can guarantee
delivery if so requested and paid for), or (c) delivered personally, by hand, to the Persons at the addresses set forth below
(or at such other address as may be provided hereunder):

 

If
to Company:

 

2050
Motors, Inc.

c/o
Registered Agents Inc.

1267
Willis St., Ste. 200

Redding,
CA 96001

 

with
a copy to:

 

Fred
Lehrer P.A.

600
River Birch Court

1015
Clermont, FL 34117

 

    	26

    	 

    

 

If
to Investors:

 

Vikram
Grover

1340
Brook St. Unit M

St
Charles, IL 60174

 

Any
notice or other communications to be given or that may be given pursuant to this Agreement shall be deemed to have been given:
(x) three calendar days after the deposit of such notice or communication in the United States Mail, registered or certified,
return receipt requested, with proper postage affixed thereto; (y) on the first Business Day after depositing such notice of communication
with Federal Express, Express Mail, or other expedited mail or package delivery service guaranteeing delivery no later than the
next Business Day if next Business Day delivery service has been requested and paid for (or on such Business Day as such delivery
service has been requested, guaranteed, and paid for); or (z) upon delivery if hand delivered or telecopied to the appropriate
address and Person as provided hereinabove or to the Person to whose attention the notice is to be given to the other parties
in the manner set forth in this Section 7.9.

 

7.10
Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect
to the choice of law principles thereof that would result in the application of the Laws of any other jurisdiction.

 

7.11
Jurisdiction; Venue.
Any action, litigation, suit or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby
shall be brought solely in federal or state courts of competent jurisdiction in the courts of the State of California located
in a venue to be mutually determined by both parties and/or their counsel(s) or, if it has or can acquire jurisdiction, in the
United States District Court for the Central District, and each of the parties hereto hereby irrevocably consents and submits
to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such action, litigation,
suit or proceeding and waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all
claims in respect of the action, litigation, suit or proceeding shall be heard and determined only in any such court and agrees
not to bring any action or proceeding arising out of or relating to this Agreement or any transaction contemplated hereby in any
other court. Process in any action or proceeding referred to in the first sentence of this Section 7.11 may be served on any party
anywhere in the world.

 

7.12
WAIVER OF JURY TRIAL.
EACH PARTY HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 7.12. EACH PARTY HERETO FURTHER REPRESENTS AND WARRANTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

    	27

    	 

    

 

7.13
Attorney Fees.
If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any Transaction Document,
the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to
any other relief to which such party may be entitled.

 

7.14
No Commitment for Additional Financing.
The Company acknowledges and agrees that the Investor has not
made any representation, warranty, undertaking, commitment or agreement to provide or assist the Company in obtaining any investment,
financing or other capital raising activities other than the purchase of the Acquired Shares pursuant to the terms and conditions
of this Agreement. No obligation, agreement, or obligation to provide or assist the Company in obtaining any investment, financing
or other capital raising activities will created only by a written definitive agreement executed and delivered by the Investor
and the Company, and any such agreement will be binding only on those Investors executing such agreement.

 

7.15
Section Headings.
The section headings are for the convenience of the parties and in no way alter, modify, amend, limit, or restrict the contractual
obligations of the parties.

 

7.16
Counterparts; Electronic Signatures. This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument. A party may deliver this Agreement by transmitting a facsimile or other electronic
signature of this Agreement signed by such party (via PDF, TIFF, JPEG or the like) to the other party, which facsimile or other
electronic signature shall be deemed an original for all purposes.

 

[Remainder
of Page Intentionally Blank. Signatures on Next Page.]

 

    	28

    	 

    

 

IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its respective officer(s) thereunto
duly authorized, all as of the date first written above.

 

	 	2050
    motors, inc.
	 	 
	 	By:	
	 	Name:	Vikram
    Grover
	 	Title:	CEO

 

Signature
Page to

Securities
Purchase Agreement

Page
1 of 2

 

    	 

    	 

    

 

	 	VIKRAM
    GROVER
	 	 
	 	By:	
	 	Name:	Vikram
    Grover
	 	Title:	Investor

 

Signature
Page to

Securities
Purchase Agreement

Page
2 of 2xoma-ex47_58.htm

 

Exhibit 4.7

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

WARRANT TO PURCHASE STOCK

 

Company: XOMA Corporation, a Delaware corporation

Number of Shares:  4,845, subject to adjustment

Type/Series of Stock: Common Stock, $0.0075 par value per share

Warrant Price: $14.708 per Share, subject to adjustment

Issue Date: March 4, 2019

Expiration Date: March 3, 2029See also Section 5.1(b).

Credit Facility:  This Warrant to Purchase Stock (“Warrant”) is issued in connection with that certain First Amendment, of even date herewith, to that certain Loan and Security Agreement dated May 7, 2018, among Silicon Valley Bank, the Company, XOMA Technology Ltd. and XOMA (US) LLC (collectively, and as may be further amended and/or modified and in effect from time to time, the “Loan Agreement”).

 

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”) is entitled to purchase up to such number of fully paid and non-assessable shares (the “Shares”) of the above-stated Type/Series of Stock (the “Class”) of the above-named company (the “Company”), at the above-stated Warrant Price, all as set forth above and subject to the provisions and upon the terms and conditions set forth in this Warrant.  Reference is made to Section 5.4 of this Warrant whereby Silicon Valley Bank shall transfer this Warrant to its parent company, SVB Financial Group.

 

SECTION 1. EXERCISE.

 

1.1Method of Exercise.  Holder may at any time and from time to time exercise this Warrant, in whole or in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased.

 

1.2Cashless Exercise.  On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the value of this Warrant, or portion hereof as to which this Warrant is being exercised.  Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula: 

 

X = Y(A-B)/A

 

where:

X =the number of Shares to be issued to the Holder;

 

	
 
	
Y =
	
the number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);

 

	
 
	
A =
	
the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

 

B =the Warrant Price.

 

 

1.3Fair Market Value.  If shares of the Class are then traded or quoted on a nationally recognized securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”), the fair market value of a Share shall be the closing price or last sale price of a share of the Class reported for the Business Day immediately before the 

1

 

 

date on which Holder delivers this Warrant together with its Notice of Exercise to the Company.  If shares of the Class are not then traded in a Trading Market, the Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment.

 

1.4Delivery of Certificate and New Warrant.  Within a reasonable time after Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise (which certificate may be in the form of an electronic certificate or DTC entry, to the extent used by the Company at the time of such exercise) and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired.

 

1.5Replacement of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor and amount.

 

1.6Treatment of Warrant Upon Acquisition of Company.

 

(a)Acquisition.  For the purpose of this Warrant, “Acquisition” means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization (or, if such Company stockholders beneficially own a majority of the outstanding voting power of the surviving or successor entity as of immediately after such merger, consolidation or reorganization, such surviving or successor entity is not the Company); or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power.

 

(b)Treatment of Warrant at Acquisition.  In the event of an Acquisition in which the consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the fair market value of one Share as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date immediately prior to such Cash/Public Acquisition, and Holder has not exercised this Warrant pursuant to Section 1.1 above as to all Shares, then this Warrant shall automatically be deemed to be Cashless Exercised pursuant to Section 1.2 above as to all Shares effective immediately prior to and contingent upon the consummation of a Cash/Public Acquisition.  In connection with such Cashless Exercise, Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as of the date thereof and the Company shall promptly notify the Holder of the number of Shares (or such other securities) issued upon exercise.  In the event of a Cash/Public Acquisition where the fair market value of one Share as determined in accordance with Section 1.3 above would be less than the Warrant Price in effect immediately prior to such Cash/Public Acquisition, then this Warrant will expire immediately prior to the consummation of such Cash/Public Acquisition.  

 

(c)Upon the closing of any Acquisition other than a Cash/Public Acquisition, the acquiring, surviving or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this Warrant.

 

(d)As used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof is then traded in a Trading Market, and (iii) following the closing of such Acquisition, Holder would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Acquisition.

 

2

 

 

SECTION 2. ADJUSTMENTS TO THE SHARES AND WARRANT PRICE.

 

2.1Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend or distribution on the outstanding shares of the Class payable in additional shares of the Class or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred.  If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased.  If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased.

 

2.2Reclassification, Exchange, Combinations or Substitution.  Upon any event whereby all of the outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.  The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events. 

 

2.3No Fractional Share.  No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share.  If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the then-effective Warrant Price.

 

2.4Notice/Certificate as to Adjustments.  Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based.  The Company shall, upon written request from Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in effect upon the date of such adjustment.

 

SECTION 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

 

3.1Representations and Warranties.  The Company represents and warrants to, and agrees with, the Holder as follows:

 

(a)All Shares which may be issued upon the exercise of this Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws.  

 

(b)The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number of shares of the Class and other securities as will be sufficient to permit the exercise in full of this Warrant. 

 

3.2Notice of Certain Events.  If the Company proposes at any time to:

(a)declare any dividend or distribution upon the outstanding shares of the Class, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; 

(b)offer for subscription or sale pro rata to the holders of the outstanding shares of the Class any additional shares of any class or series of the Company’s stock (other than pursuant to contractual pre-emptive rights); 

(c)effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the Class; or

(d)effect an Acquisition or to liquidate, dissolve or wind up;

3

 

 

then, in connection with each such event, the Company shall give Holder notice thereof at the same time and in the same manner as given to holders of the outstanding shares of the Class.

SECTION 4. REPRESENTATIONS, WARRANTIES OF THE HOLDER.

 

The Holder represents and warrants to the Company as follows:

 

4.1Purchase for Own Account.  Except for the one-time transfer by Silicon Valley Bank to its parent corporation SVB Financial Group described in Section 5.4 below, this Warrant and the Shares to be acquired upon exercise of this Warrant by Holder are being acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act.  Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

4.2Disclosure of Information.  Holder is aware of the Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities.  Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

 

4.3Investment Experience.  Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk.  Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons.

 

4.4Accredited Investor Status.  Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

4.5The Act.  Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein.  Holder understands that this Warrant and the Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification are otherwise available.  Holder is aware of the provisions of Rule 144 promulgated under the Act.

 

4.6No Shareholder Rights.  Without limiting any provision of this Warrant, Holder agrees that as a Holder of this Warrant it will not have any rights (including, but not limited to, voting rights) as a shareholder of the Company with respect to the Shares issuable hereunder unless and until the exercise of this Warrant and then only with respect to the Shares issued on such exercise.

 

SECTION 5. MISCELLANEOUS.

 

5.1Term; Automatic Cashless Exercise Upon Expiration.  

 

(a) Term. Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from time to time on or before 6:00 PM, Pacific time, on the Expiration Date and shall be void thereafter.   

 

 (b)Automatic Cashless Exercise upon Expiration.  In the event that, upon the Expiration Date, the fair market value of one Share as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares for which it shall not previously have been exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares issued upon such exercise to Holder (which certificate may be in the form of an electronic certificate or DTC entry, to the extent used by the Company at the time of such exercise). 

 

4

 

 

5.2Legends.Each certificate evidencing Shares shall be imprinted with a legend in substantially the following form:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO SILICON VALLEY BANK DATED MARCH 4, 2019, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

5.3Compliance with Securities Laws on Transfer.  This Warrant and the Shares issued upon exercise of this Warrant may not be transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company).  The Company shall not require Holder to provide an opinion of counsel if the transfer is to SVB Financial Group (Silicon Valley Bank’s parent company) or any other affiliate of Holder, provided that any such transferee is an “accredited investor” as defined in Regulation D promulgated under the Act.  Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the availability of Rule 144 promulgated under the Act.

 

5.4Transfer Procedure.  After receipt by Silicon Valley Bank of the executed Warrant, Silicon Valley Bank will transfer all of this Warrant to its parent company, SVB Financial Group.  By its acceptance of this Warrant, SVB Financial Group hereby makes to the Company each of the representations and warranties set forth in Section 4 hereof and agrees to be bound by all of the terms and conditions of this Warrant as if the original Holder hereof.  Subject to the provisions of Section 5.3 and upon providing the Company with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this Warrant to any transferee, provided, however, in connection with any such transfer, SVB Financial Group or any subsequent Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any subsequent transferee of this Warrant or of any portion hereof other than SVB Financial Group shall agree in writing with the Company to be bound by all of the terms and conditions of this Warrant.  

 

5.5Notices.  All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this Section 5.5.  All notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:

 

SVB Financial Group

Attn:  Treasury Department

3003 Tasman Drive, HC 215

Santa Clara, CA 95054

Telephone: (408) 654-7400

Facsimile:  (408) 988-8317

Email address:  derivatives@svb.com

 

5

 

 

Notice to the Company shall be addressed as follows until Holder receives notice of a change in address:

XOMA Corporation

Attn: Chief Financial Officer

2200 Powell Street, Suite 310

Emeryville, CA 94608

Telephone: (510) 204-7200

Facsimile: 

Email: 

 

 

With a copy (which shall not constitute notice) to:

Cooley LLP

Attn: Michael E. Tenta

3175 Hanover Street

Palo Alto, CA 94304

Telephone: (650) 843-5636

Facsimile: 

Email: mtenta@cooley.com

 

 

5.6Waiver.  This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

5.7Attorneys’ Fees.  In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees.

 

5.8Counterparts; Facsimile/Electronic Signatures.  This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement.  Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto.

 

5.9Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law.

 

5.10Headings.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.

5.11Business Days.  “Business Day” is any day that is not a Saturday, Sunday or a day on which Silicon Valley Bank is closed.

 

[Remainder of page left blank intentionally]

[Signature page follows]

6

 

 

IN WITNESS WHEREOF, the parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of the Issue Date written above.

 

 

	
	
“COMPANY”

 

XOMA CORPORATION

 

By: /s/ TOM BURNS

Name: Tom Burns

Title: Chief Financial Officer

 

 

 

	
	
“HOLDER”

 

SILICON VALLEY BANK

 

By: /s/ PETER SLETTELAND

Name: Peter Sletteland

Title: Vice President

 

 

 

7

 

 

 

APPENDIX 1

 

 

NOTICE OF EXERCISE

 

 

1.The undersigned Holder hereby exercises its right to purchase ___________ shares of the Common/Series ______ Preferred [circle one] Stock of __________________  (the “Company”) in accordance with the attached Warrant To Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as follows: 

 

	
 
	
[    ]
	
check in the amount of $________ payable to order of the Company enclosed herewith

	
 
	
[    ]
	
Wire transfer of immediately available funds to the Company’s account 

	
 
	
[    ]
	
Cashless Exercise pursuant to Section 1.2 of the Warrant

	
 
	
[    ]
	
Other [Describe] __________________________________________

2.Please issue a certificate or certificates representing the Shares in the name specified below:

___________________________________________

Holder’s Name

 

 

___________________________________________

 

___________________________________________

(Address)

 

3.By its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in Section 4 of the Warrant to Purchase Stock as of the date hereof.

 

HOLDER:

 

_________________________

 

 

By:_________________________

 

Name:________________________

 

Title:_________________________

 

(Date):_______________________

 

Appendix 1

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