Document:

Exhibit 10.1

 

SRC/PDC MERGER

PERFORMANCE SHARE AGREEMENT

 

This SRC/PDC Merger
Performance Share Agreement (hereinafter referred to as this "Agreement") dated January 13, 2020 is by and between
SRC Energy Inc., a Colorado corporation (hereinafter referred to as the "Company") and [•] (hereinafter referred
to as "Executive").

 

Article
1

 

MERGER; PURPOSE
OF AGREEMENT

 

1.1           Merger.
The Company and PDC Energy, Inc. (“PDC”) have entered into that certain Agreement and Plan of Merger, dated
as of August 25, 2019 (the “Merger Agreement”), pursuant to which the Company will merge with and into PDC,
with PDC being the surviving company (the “Merger”). Pursuant to the Merger Agreement, the Company is to make
a performance share award to Executive under the Company's 2015 Equity Incentive Plan, as amended (hereinafter referred to as
the "Plan"), and the Plan and the award set forth in this Agreement will be assumed by PDC upon consummation
of the Merger.

 

1.2           Grant. In furtherance of same, and subject to the Plan and the additional terms and conditions herein set forth,
the Company and Executive hereby enter into this Agreement pursuant to which the Executive may earn performance shares (the “Performance
Shares”). Each Performance Share will initially represent the value of one share of $0.001 par value common stock of
the Company, and upon consummation of the Merger each Performance Share will be adjusted to represent the value of a number of
shares of $0.01 par value common stock of PDC (the “PDC Shares”) based on the “Exchange Ratio” set
forth in the Merger Agreement, as set forth in Section 2.2, below. Upon the achievement of pre-determined objectives for the specified
performance period set forth below (hereinafter referred to as the "Performance Period"), PDC will distribute
to the Executive a number of PDC Shares equal to the number of Performance Shares earned by the Executive for the Performance Period,
or a cash payment equal to the Fair Market Value of such number of PDC Shares.

 

1.3           Merger not Consummated. In the event the Merger Agreement is terminated for any reason without consummation of the
Merger, this Agreement shall terminate immediately, and Executive shall have no further rights hereunder.

 

1.4           Administrator Authority. The Plan is administered by the Administrator. Under the Plan, the Administrator has, among
its other powers, the authority to determine the final payout under this Agreement. Notwithstanding the foregoing, for avoidance
of doubt, the Performance Metrics (defined below) under this Agreement are intended to be the same as, and will be administered
the same as, the performance metrics applicable to the performance share awards granted by PDC to its executive officers on February
20, 2019.

 

     

     

    

 

Article
2

 

PERFORMANCE CONDITIONS

 

2.1           Performance Period. Pursuant to this Agreement, the Performance Period will be the three-year period beginning January
1, 2019 and ending on December 31, 2021, subject to Section 2.10(b).

 

2.2           Performance
Award. Executive has a pre-Merger target of [•] Performance Shares, which pre-Merger target shall be adjusted upon consummation
of the Merger in accordance with the Merger Agreement so that the award applies to PDC Shares, with the result being that Executive
will have a post-Merger target of [•] Performance Shares (with each Performance Share applying post-Merger to PDC Shares).
The target number of Performance Shares, as adjusted to apply to PDC Shares following the Merger, is hereinafter referred to as
the "Target Award." The range of Performance Shares which may be earned by the Executive is 0% to 200% of the
Target Award.

 

2.3           Performance Metric. Except as otherwise provided in this Agreement, Awards of Performance Shares will be paid out
to the Executive, if at all, following the close of the Performance Period based generally upon Total Shareholder Return ("TSR")
of PDC relative to TSR for the Peer Companies (defined below) for such Performance Period (the "Performance Metric").

 

2.4           Total
Shareholder Return (TSR). For purposes of the Performance Metric, except as otherwise provided in this Agreement, TSR for
a company, including PDC, will be a percentage equal to (x) the “Performance Period Value Change” (as defined below)
divided by (y) the “Beginning Value” (as defined below).

 

(a)           “Performance
Period Value Change” shall mean:

 

(i)               Average Share Price for the last twenty (20) business days of the Performance Period,

 

minus

 

(ii)             
Beginning Value,

 

plus 

 

(iii)             Dividends (cash or stock based on ex-dividend date) paid per share of company common stock over the Performance Period.

 

(b)           “Beginning
Value” shall mean the Average Share Price for the twenty (20) business days preceding the beginning of the Performance
Period.

 

2.5           Average
Share Price. For purposes of determining the TSR used in the Performance Metric, the "Average Share Price"
means the average daily closing price of the shares on the NASDAQ Global Select Market (or if the company is not listed on the
NASDAQ Global Select Market, then on the principal securities exchange on which such shares are tracked) as published by a reputable
source over the relevant measuring period.

 

    	 	2	 

     

    

 

2.6           Peer Companies. For purposes of the Performance Metric for the relevant Performance Period, "Peer Companies"
means the companies listed on Schedule A. In the event a Peer Company ceases to be publicly traded at any point during the
Performance Period, the Administrator shall have full discretion to take any action it deems necessary or advisable in its sole
and absolute discretion in order to preserve the integrity of the Performance Metric and the incentive intended by this Agreement,
including, but not limited to, determining whether the Peer Company will be replaced with a new Peer Company, dropping such Peer
Company from the list of Peer Companies and calculating the Performance Metric without designating a replacement, treating the
Peer Company as being ranked in last place on the TSR list for the Performance Period (e.g. for bankrupt or other delisted companies),
or determining an alternate method of calculating TSR for such Peer Company (e.g. by calculating TSR through the date of acquisition
of such Peer Company, and then assuming TSR for the remainder of the period is determined based on an index). The Administrator
need not take the same action with respect to all Peer Companies that cease to be publicly traded during the Performance
Period.

 

2.7           Award
Determination.

 

(a)           General. At the end of the Performance Period, the Peer Companies and PDC shall be ranked together based on their
TSR for the Performance Period with the highest TSR being number 1 and the lowest TSR being the number of Peer Companies, including
PDC, remaining in the group at the end of the Performance Period. Based on PDC’s relative TSR rank among the Peer Companies
for the Performance Period, Executive will have earned Performance Shares as determined by PDC’s rank as follows:

 

		·	If PDC is ranked at or above the 90th percentile of the Peer Companies, including PDC, 200% of the Target Award

 

		·	If PDC is ranked at the 50th percentile or median of the Peer Companies, including PDC, 100% of the Target Award

 

		·	If PDC is ranked at the 25th percentile of the Peer Companies, including PDC, 50% of the Target Award

 

		·	If PDC is ranked below the 25th percentile of the Peer Companies, including PDC, no award will be paid

 

If PDC is ranked between
any of these payout levels, the percentage multiple of the Target Award will be interpolated based on the actual percentile ranking
of PDC (rounded to the nearest whole percentile) in relation to the payout levels.

 

(b)           Cap
if TSR is Negative. Notwithstanding Section 2.7(a), if PDC’s overall TSR is negative for the Performance Period, then
the number of Performance Shares earned will be the lesser of (i) one hundred percent (100%) of the Target Award, or (ii) the
number of Performance Shares determined in accordance with Section 2.7(a) based on PDC’s relative TSR rank during the Performance
Period.

 

    	 	3	 

     

    

 

(c)            Floor if TSR Meets Minimum Level. Notwithstanding Section 2.7(a), if PDC’s TSR over the Performance Period
is at least 52.0875% (i.e. 15% annualized), then the number of Performance Shares earned will be the greater of (i) 50% of the
Target Award, or (ii) the number of Performance Shares determined in accordance with Section 2.7(a) based on PDC’s relative
TSR rank during the Performance Period.

 

2.8           Termination
of Continuous Employment Prior to End of Performance Period.

 

(a)           General. If Executive’s continuous employment terminates for any reason other than for “Cause”
(as defined in the Executive’s employment agreement or severance compensation agreement with the Company, as applicable),
then the Target Award and the right to earn Performance Shares hereunder shall remain outstanding and unaffected by such termination
of continuous employment. At the end of the Performance Period, the Company shall determine the number of Performance Shares earned
based on achievement of the Performance Metric (without proration) and shall make payment to Executive pursuant to Section 2.9,
below, or if earlier, pursuant to Section 2.10(b) below. The Administrator shall determine in its reasonable discretion whether
and when Executive’s continuous employment with the Company or a Subsidiary (PDC and its Subsidiaries, post-Merger) has ended
(including as a result of any leave of absence).

 

(b)           Termination for Cause. If Executive’s continuous employment is terminated for Cause, then Executive shall immediately
forfeit any and all rights under this Agreement and shall not be entitled to receive any PDC Shares or any other payment hereunder.

 

2.9           Payment of Performance Shares.

 

(a)            Determination
of Results. Performance Shares earned for the Performance Period will be paid to the Executive only following the Administrator's
formal review and certification of the actual TSR performance results for the Performance Period, which formal review and certification
shall occur in time for payout to occur at the times set forth below.

 

(b)           Timing. Performance Shares payable to Executive pursuant to Section 2.3 or, except as otherwise provided for in Section
2.10(b) below, Section 2.8(a), will be paid in a lump sum to the Executive between January 1, 2022 and March 15, 2022.

 

(c)            Form
of Settlement. Payment in respect of earned Performance Shares pursuant to this Section 2.9 shall be made by distributing
a number of PDC Shares equal to the number of Performance Shares earned, or through payment of cash equal to the Fair Market Value
of such number of PDC Shares determined as of the last day of the Performance Period, or any combination thereof, as determined
by the Administrator in its sole discretion.

 

2.10         Change
in Control.

 

(a)            Merger not a Change in Control. The Merger shall not be deemed to be a Change in Control under the Plan and shall
not affect in any way the earning, vesting, or payout of the Performance Shares.

 

    	 	4	 

     

    

 

(b)           PDC Change in Control. In the event of a “PDC Change in Control” (which shall mean a “Change
in Control” as defined in the PDC Energy, Inc. 2018 Equity Incentive Plan, as may be amended from time to time, that also
qualifies as a “change in control event” pursuant to Treasury Regulation 1.409A-3(i)(5)) prior to the end of the Performance
Period, the Performance Period shall be deemed to have ended on the date of the PDC Change in Control, and the Administrator shall
determine the number of Performance Shares to which Executive is entitled based on actual results through the date of the PDC Change
in Control, with the Performance Metric calculated by reference to the Average Share Price for the twenty (20) business days prior
to the PDC Change in Control (the number of Performance Shares determined pursuant to the foregoing being the “CIC Calculated
Shares”). The CIC Calculated Shares shall be paid within seventy-four (74) days following the date of the PDC Change
in Control, by distributing to the Executive a number of PDC Shares equal to the number of CIC Calculated Shares, or through payment
of cash equal to the Fair Market Value of the CIC Calculated Shares determined as of the date of the PDC Change in Control, or
any combination thereof, as determined by the Administrator in its sole discretion. Notwithstanding anything herein to the contrary,
in the event the PDC Shares cease to be outstanding or publicly traded as a result of a PDC Change in Control, the Administrator
shall make such adjustments as it deems necessary or appropriate in its sole and absolute discretion in order to preserve the incentive
intended under this Agreement, including, but not limited to, providing that payments of the CIC Calculated Shares shall be made
solely in cash or property (or any combination thereof) and that such payout shall be determined by reference to any of the following:
(i) the Fair Market Value of PDC Shares as of the date of the consummation of the PDC Change in Control, (ii) the consideration
received in the PDC Change in Control, (iii) securities of the acquirer or any parent or affiliate thereof, or (iv) such other
metric as the Administrator may determine in its discretion.

 

2.11         Tax Withholding. Executive shall make arrangements with PDC to satisfy all applicable income and employment tax withholdings
that may result from the issuance of PDC Shares or the payment of cash hereunder, which withholdings may, if payment under Section
2.9 or 2.10 is made all or in part through the issuance of PDC Shares, be satisfied (at the election of Executive made prior to
the payment date): (i) by Executive paying to PDC directly in cash the amount of such withholdings, (ii) by having PDC withhold
from PDC Shares paid to Executive a number of PDC Shares necessary to satisfy such tax withholding obligations, or (iii) by a combination
of the foregoing methods; provided, however, that in the absence of an affirmative election by Executive prior to the payment date,
PDC shall satisfy such tax obligations pursuant to subsection (ii), above. In addition, to the extent provided by the Plan, the
Executive may elect to have PDC perform additional voluntary tax withholding through the withholding of PDC Shares up to the maximum
statutory tax rates in the Executive’s applicable jurisdictions.

 

2.12         Dividend Equivalents. Executive shall be entitled to a cash payment with respect to each Performance Share earned
and payable under this Agreement in an amount equal to the ordinary cash dividends that would have been payable to Executive had
Executive been the owner of an actual PDC Share of stock (as opposed to a Performance Share) from the first day of the Performance
Period through the date the Performance Share is paid. Such cash payment shall be made in a single lump sum on the date on which
payment is made in respect of the related Performance Share.

 

    	 	5	 

     

    

 

2.13         Stockholder Rights. An Executive will not have any voting or other stockholder rights with respect to any Performance
Shares. Executive shall have full stockholder rights with respect to any PDC Shares issued as payment for Performance Shares.

 

2.14         Fractional
Shares. PDC will not be required to issue any fractional PDC Shares pursuant to this Agreement. The Administrator may provide
for the elimination of fractions or for the settlement of fractions in cash.

 

Article
3

 

GENERAL

 

3.1           Capitalized
Terms. All capitalized terms shall have the meaning ascribed to them under this Agreement or, if not otherwise defined in
this Agreement, then such capitalized terms will have the meaning ascribed to them under the Plan.

 

3.2           Construction.
The provisions of this Agreement will be construed in a manner consistent with the Plan. In the event of any inconsistency between
the terms of this Agreement and the terms of the Plan, the terms of the Plan will control.

 

3.3           Compliance
with Section 409A of the Internal Revenue Code. Notwithstanding anything herein to the contrary, this Agreement, the Performance
Shares and all payments made hereunder are intended to comply with or be exempt from the requirements and provisions of Section
409A of the Code and the regulations promulgated thereunder and shall be construed and interpreted in a manner consistent with
such intent. Notwithstanding the foregoing, the Company does not guarantee that any payment under this Agreement complies with
or is exempt from Section 409A of the Code and the regulations promulgated thereunder, and neither the Company, its Subsidiaries
or affiliates, nor their respective executives, members, partners, directors, officer, or affiliates shall have any liability
with respect to any failure of any payments or benefits under this Agreement to comply with or be exempt from Section 409A of
the Code and the regulations promulgated thereunder. Notwithstanding anything in this Agreement to the contrary, if any provision
of this Agreement would result in the imposition of taxes under Section 409A of the Code and the regulations promulgated thereunder,
that provision may be reformed unilaterally by the Administrator, to the extent permissible under Section 409A of the Code and
the regulations promulgated thereunder, to avoid the imposition of the additional tax, and no such action shall be deemed to adversely
affect Executive’s rights with respect to the Performance Shares granted hereunder; provided, however that the Administrator
has no affirmative obligation to make any such reformation. In no event may Executive, directly or indirectly, designate the calendar
year of any payment made under this Agreement which constitutes a “deferral of compensation” within the meaning of
Section 409A of the Code and the regulations promulgated thereunder. Executive is solely responsible and liable for the satisfaction
of all taxes and penalties that may be imposed on or in respect of Executive in connection with the Performance Shares granted
hereunder (including any taxes or penalties under Section 409A of the Code).

 

    	 	6	 

     

    

 

3.4           Consent
Relating to Personal Data. Executive voluntarily acknowledges and consents to the collection, use, processing and transfer
of personal data as described in this Section even though Executive is not obliged to consent to such collection, use, processing
and transfer of personal data. The Company and its subsidiaries (PDC and its subsidiaries, post-Merger) hold, for the purpose
of managing and administering the Plan, certain personal information about Executive, including Executive’s name, home address
and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job
title, any shares or directorships held in the Company (or PDC, post-Merger), details of all equity awards or any other entitlement
to shares awarded, canceled, purchased, vested, unvested or outstanding in Executive’s favor (“Data”).
The Company and/or its subsidiaries (PDC and its subsidiaries, post-Merger) will transfer Data among themselves as necessary for
the purpose of implementation, administration and management of Executive’s participation in the Plan and the Company and/or
any of its subsidiaries (PDC and its subsidiaries, post-Merger) may each further transfer Data to any third parties assisting
in the implementation, administration and management of the Plan. These recipients may be located throughout the world, including
the United States. Executive authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other form,
for the purposes of implementing, administering and managing Executive’s participation in the Plan, including any requisite
transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of PDC Shares on Executive’s
behalf to a broker or other third party with whom Executive may elect to deposit any PDC Shares acquired pursuant to the Plan.
Executive may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by
contacting the Company (or PDC, post-Merger).

 

3.5           Other Employee Benefits. Except as specifically provided otherwise in any relevant employee benefit plan, program,
or arrangement, any amounts payable hereunder are not part of normal or expected compensation for purposes of calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

 

3.6           Electronic Delivery. EXECUTIVE HEREBY CONSENTS TO ELECTRONIC DELIVERY OF THE PLAN, AND ANY DISCLOSURE OR OTHER DOCUMENTS
RELATED TO THE PLAN, INCLUDING FUTURE GRANT DOCUMENTS (COLLECTIVELY, THE “PLAN DOCUMENTS”). THE COMPANY (OR
PDC, POST-MERGER) WILL DELIVER THE PLAN DOCUMENTS ELECTRONICALLY TO EXECUTIVE BY E-MAIL, BY POSTING SUCH DOCUMENTS ON ITS INTRANET
WEBSITE OR BY ANOTHER MODE OF ELECTRONIC DELIVERY AS DETERMINED BY THE COMPANY (OR PDC, POST-MERGER) IN ITS SOLE DISCRETION. EXECUTIVE
ACKNOWLEDGES THAT HE OR SHE IS ABLE TO ACCESS, VIEW AND RETAIN AN E-MAIL ANNOUNCEMENT INFORMING EXECUTIVE THAT THE PLAN DOCUMENTS
ARE AVAILABLE IN EITHER HTML, PDF OR SUCH OTHER FORMAT AS THE COMPANY (OR PDC, POST-MERGER) DETERMINES IN ITS SOLE DISCRETION.

 

3.7           Notices. Any notice required or permitted to be given hereunder shall be in writing and shall be given by hand delivery,
by e-mail, by facsimile, or by first class registered or certified mail, postage prepaid, addressed, if to the Company (or PDC,
post-Merger), to its Corporate Secretary, and if to Executive, to Executive’s address now on file with the Company (or with
PDC, post-Merger), or to such other address as either may designate in writing. Any notice shall be deemed to be duly given as
of the date delivered in the case of personal delivery, e-mail, or facsimile, or as of the second day after enclosed in a properly
sealed envelope and deposited, postage prepaid, in a United States post office, in the case of mailed notice.

 

    	 	7	 

     

    

 

3.8           Amendment. This Agreement may be amended by the Administrator at any time without Executive’s consent if such
amendment does not reduce the benefits to which Executive was entitled. In all other cases, this Agreement may not be amended or
otherwise modified unless evidenced in writing and signed by the Company (or PDC, post-Merger) and Executive.

 

3.9           Construction;
Severability. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning
or interpretation of this Agreement. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision hereof, and each other provision hereof shall be severable and enforceable to
the extent permitted by law.

 

3.10         Waiver. Any provision contained in this Agreement may be waived, either generally or in any particular instance,
by the Administrator appointed under the Plan, but only to the extent permitted under the Plan.

 

3.11         Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company (and to PDC, post-Merger)
and to Executive and their respective heirs, executors, administrators, legal representatives, successors and assigns.

 

3.12         Rights to Employment. Nothing contained in this Agreement shall be construed as giving Executive any right to be
retained in the employ of the Company (or PDC, post-Merger) and this Agreement is limited solely to governing the parties’
rights and obligations with respect to the Performance Shares.

 

3.13         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without regard
to the choice of law principles thereof.

 

3.14         PDC
Policies to Apply. The sale of any PDC Shares received as payment hereunder is subject to PDC’s policies regulating
securities trading by employees, all relevant federal and state securities laws and the listing requirements of any stock exchange
on which the shares of the PDC’s common stock are then traded. In addition, Executive’s participation in the Plan
and receipt of remuneration as a result of the Performance Shares is subject in all respects to any relevant compensation clawback
policies that may be in effect from time to time.

 

3.15         
Non-Compete1. As consideration
for the Performance Share award granted hereunder, the Executive hereby acknowledges and agrees that Executive shall not, either
during the term of Executive’s employment by the Company (or PDC, post-Merger) or for a period of two (2) year thereafter,
engage in any Competitive Business (as defined below) within any county or parish in which the Company or an affiliate owns an
interest (whether by ownership, leasehold or otherwise) in any oil or natural gas properties or other properties utilized by the
Company in the operation of its business, or in any oil and gas property that is adjacent to or overlapping with any such county
or parish, in each case determined as of the closing of the Merger; provided, however, that the ownership of less than five percent
(5%) of the outstanding capital stock of a corporation whose shares are traded on a national securities exchange or on the over-the-counter
market shall not be deemed engaging in a Competitive Business. “Competitive Business” shall mean the acquisition,
development or production of crude oil and/or natural gas, or any other business activities that are the same as or similar to
the Company’s or an affiliate’s business operations as their business exists as of the closing of the Merger.

 

 

1
To be included in award agreement for Named Executive Officers.

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
the Company and Executive hereby execute this Agreement to be effective as of the day and year first above written.

 

 

	 	SRC ENERGY INC.
	 	 
	 	 
	 	By:	 
	 	 
	 	 
	 	Date:	 
	 	 
	 	 
	 	EXECUTIVE
	 	 
	 	 
	 	Signature	 
	 	 
	 	 
	 	Date:	 

 

    	 	9	 

     

    

 

SCHEDULE A

 

PEER COMPANIES

 

The following 14 companies
compromise the Peer Companies for the 2019 – 2021 Performance Period:

 

		·	Callon Petroleum Company (CPE)

		·	Carrizo Oil & Gas Inc. (CRZO)

		·	Centennial Resource Development Inc. (CDEV)

		·	Cimarex Energy Co. (XEC)

		·	Extraction Oil and Gas, Inc. (XOG)

		·	Jagged Peak Energy Inc. (JAG)

		·	Laredo Petroleum Holdings, Inc. (LPI)

		·	Matador Resources Company (MTDR)

		·	Oasis Petroleum Inc. (OAS)

		·	Parsley Energy, Inc. (PE)

		·	QEP Resources, Inc. (QEP)

		·	SM Energy Company (SM)

		·	SRC Energy Inc. (SRCI)

		·	WPX Energy, Inc. (WPX)Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of January 3, 2020, by and between CANBIOLA, INC.,
a Florida corporation, with headquarters located at 960 South Broadway, Suite 120, Hicksville, NY 11801 (the “Company”),
and FIRSTFIRE GLOBAL OPPORTUNITIES FUND, LLC, a Delaware limited liability company, with its address at 1040 First Avenue,
Suite 190, New York, NY 10022 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”);

 

B.
Buyer desires to purchase from the Company, and the Company desires to issue and sell to the Buyer, upon the terms and conditions
set forth in this Agreement, a Senior Secured Convertible Promissory Note of the Company, in the aggregate principal amount of
$550,000.00 (as the principal amount thereof may be increased pursuant to the terms thereof, and together with any note(s) issued
in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, in the
form attached hereto as Exhibit A, the “Note”), convertible into shares of common stock, nil par value per
share, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth
in such Note;

 

C.
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of the Note as is
set forth immediately below its name on the signature pages hereto.

 

D.
The Company wishes to issue the Commitment Shares (as defined below) and Returnable Shares (as defined below) to the Buyer as
additional consideration as further provided herein.

 

NOW
THEREFORE, in consideration of the foregoing and of the agreements and covenants herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as
follows:

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer, and the Buyer
agrees to purchase from the Company, the Note, as further provided herein. In connection with the funding of the Note, the Company
shall issue to Buyer on the Closing Date, as a commitment fee, 6,000,000 shares of the Company’s common stock (the “Commitment
Shares”). The Commitment Shares shall be deemed earned in full as of the Closing Date. In connection with the funding of
the Note, the Company shall issue to Buyer on the Closing Date, as a commitment fee, 29,852,143 shares of the Company’s
common stock (the “Returnable Shares”) as further provided in the Note. The Returnable Shares must be returned by
the Buyer to the Company’s treasury (with the understanding that the Company shall pay all costs associated with the return
the Returnable Shares to the Company’s treasury) if the Note is fully repaid and satisfied within one hundred eighty (180)
calendar days following the Issue Date (as defined in the Note), subject further to the terms and conditions of this Note.

 

b.
Form of Payment. On the Closing Date: (i) the Buyer shall pay the purchase price of $500,000.00 (the “Purchase Price”)
for the Note, to be issued and sold to it at the Closing (as defined below), by wire transfer of immediately available funds to
the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note, and (ii) the Company
shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

c.
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section
7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be 4:00 PM, Eastern Time on the date first written above, or such other mutually agreed upon time.

 

    	-1-

    	 

    

 

d.
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the
Closing Date at such location as may be agreed to by the parties (including via exchange of electronic signatures).

 

1A. Commitment
Shares and Returnable Shares. On or before the Closing Date, the Company shall issue the Commitment Shares and Returnable
Shares to the Buyer.

 

2.
Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company as of the Closing Date that:

 

a.
Investment Purpose. As of the Closing Date, the Buyer is purchasing the Note and the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note and such additional shares of Common Stock, if any, as are issuable on account
of interest on the Note pursuant to this Agreement, such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, Commitment Shares, and Returnable Shares, the “Securities”) for its
own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or
exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the
Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of
the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D (an “Accredited Investor”).

 

c.
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

d.
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remains outstanding will continue to be, afforded the opportunity to ask questions of the
Company regarding its business and affairs. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material
nonpublic information regarding the Company or otherwise and will not disclose such information unless such information is disclosed
to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence
investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to
rely on the Company’s representations and warranties contained in Section 3 below.

 

e.
Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.
Transfer or Re-sale. The Buyer understands that (i) the sale or resale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to
the Company, at the cost of the Company, an opinion of counsel (which may be the Legal Counsel Opinion (as defined below)) that
shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities
to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted
by the Company, (c) the Securities are sold pursuant to Rule 144 or other applicable exemption, or (d) the Securities are sold
pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered
to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in
reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any
re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation
to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any
exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities
may be pledged in connection with a bona fide margin account or other lending arrangement secured by the Securities, and
such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and the Buyer
in effecting such pledge of Securities shall be not required to provide the Company with any notice thereof or otherwise make
any delivery to the Company pursuant to this Agreement or otherwise.

 

    	-2-

    	 

    

 

g.
Legends. The Buyer understands that until such time as the Note, and, upon conversion of the Note in accordance with its
respective terms, the Conversion Shares, have been registered under the 1933 Act or may be sold pursuant to Rule 144, Rule 144A
under the 1933 Act, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a
particular date that can then be immediately sold, the Securities may bear a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE]
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A,
REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall issue a certificate for the applicable shares of Common Stock without
such legend to the holder of any Security upon which it is stamped or (as requested by such holder) issue the applicable shares
of Common Stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository
Trust Company (“DTC”), if, unless otherwise required by applicable state securities laws, (a) such Security
is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to
Rule 144, Rule 144A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of
a particular date that can then be immediately sold, or (b) the Company or the Buyer provides the Legal Counsel Opinion (as contemplated
by and in accordance with Section 4(m) hereof) to the effect that a public sale or transfer of such Security may be made without
registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The
Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. The Buyer
agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance
with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel
provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144,
Rule 144A, Regulation S, or other applicable exemption at the Deadline (as defined in the Note), it will be considered an Event
of Default pursuant to Section 3.2 of the Note.

 

h.
Authorization; Enforcement. This Agreement has been duly and validly authorized by the Buyer and has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and except as may be limited by the
exercise of judicial discretion in applying principles of equity.

 

    	-3-

    	 

    

 

i.
Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature
pages hereto.

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Buyer as of the Closing Date
that:

 

a.
Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power
and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now
owned, leased, used, operated and conducted. Schedule 3(a), if attached hereto, sets forth a list of all of the Subsidiaries of
the Company and the jurisdiction in which each is incorporated. The Company and each of its Subsidiaries is duly qualified as
a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership or use of property or
the nature of the business conducted by it makes such qualification necessary except where the failure to be so qualified or in
good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect
on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole,
or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries”
means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly,
any equity or other ownership interest.

 

b.
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note, and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note, and the Conversion Shares by the
Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance
of the Note, as well as the issuance and reservation for issuance of the Conversion Shares issuable upon conversion of the Note)
have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its
Board of Directors, its shareholders, or its debt holders is required, (iii) this Agreement and the Note (together with any other
instruments executed in connection herewith or therewith) have been duly executed and delivered by the Company by its authorized
representative, and such authorized representative is the true and official representative with authority to sign this Agreement,
the Note and the other instruments documents executed in connection herewith or therewith and bind the Company accordingly, and
(iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute,
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with their terms.

 

c.
Capitalization; Governing Documents. As of January 3, 2020, the authorized capital stock of the Company consists of: 1,500,000,000
authorized shares of Common Stock, of which 726,320,658 shares were issued and outstanding, and 5,000,000 authorized shares of
preferred stock, of which 20 Series A and 0 Series B were issued and outstanding. All of such outstanding shares of capital stock
of the Company and the Conversion Shares, are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.
No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of
the Company or any liens or encumbrances imposed through the actions or failure to act of the Company. As of the effective date
of this Agreement, other than as publicly announced prior to such date and reflected in the SEC filings of the Company (i) there
are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings,
claims or other commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable
for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its
Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii)
there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of
any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained
in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the
issuance of any of the Securities. The Company has furnished to the Buyer true and correct copies of the Company’s Certificate
of Incorporation as in effect on the date hereof (“Certificate of Incorporation”), the Company’s By-laws, as
in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for
Common Stock of the Company and the material rights of the holders thereof in respect thereto.

 

    	-4-

    	 

    

 

d.
Issuance of Conversion Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion
of the Note in accordance with its terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e.
[Intentionally Omitted].

 

f.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect of the Conversion
Shares to the Common Stock upon the conversion of the Note. The Company further acknowledges that its obligation to issue, upon
conversion of the Note, the Conversion Shares, in accordance with this Agreement, and the Note are absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

g.
Ranking; No Conflicts. The Note shall be a senior debt obligation of the Company, with priority in payment and performance
over all existing and future indebtedness of the Company except indebtedness owed to Arena Investors, LP (“Arena”)incurred
prior to or within sixty (60) days from issuance of the Note, which indebtedness shall be senior to the Note and the Company’s
obligations thereunder. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate
of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, note, evidence of indebtedness, indenture, patent, patent license or
instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities is subject) applicable to the Company or any of its Subsidiaries or by which
any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse
Effect), or (iv) trigger any anti-dilution and/or ratchet provision contained in any other contract in which the Company is a
party thereto or any security issued by the Company. Neither the Company nor any of its Subsidiaries is in violation of its Certificate
of Incorporation, By-laws or other organizational documents and neither the Company nor any of its Subsidiaries is in default
(and no event has occurred which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default)
under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to
others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is a party or by which any property or assets of the Company or any of its Subsidiaries
is bound or affected, except for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect.
The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the
Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity. Except as specifically
contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency,
regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver or perform
any of its obligations under this Agreement and the Note in accordance with the terms hereof or thereof or to issue and sell the
Note in accordance with the terms hereof and, upon conversion of the Note, issue Conversion Shares. All consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof. If the Company is listed on the Over-the-Counter Bulletin Board, the OTCQB Market,
any principal market operated by OTC Markets Group, Inc. or any successor to such markets (collectively, the “Principal
Market”), the Company is not in violation of the listing requirements of the Principal Market and does not reasonably anticipate
that the Common Stock will be delisted by the Principal Market in the foreseeable future. The Company and its Subsidiaries are
unaware of any facts or circumstances which might give rise to any of the foregoing.

 

    	-5-

    	 

    

 

h. SEC
Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as
amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein
and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by
reference therein, being hereinafter referred to herein as the “SEC Documents”). As of their respective dates,
the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of
the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under
applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As
of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect
thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated
financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of
their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments). Except as set forth in the financial statements of the Company included in the SEC Documents, the Company
has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of
business subsequent to September 30, 2019, and (ii) obligations under contracts and commitments incurred in the ordinary
course of business and not required under generally accepted accounting principles to be reflected in such financial
statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the
Company. The Company is subject to the reporting requirements of the 1934 Act. The Company has never been a “shell
company” as described in Rule 144(i)(1)(i). 

 

i.
Absence of Certain Changes. Since September 30, 2019, there has been no undisclosed material adverse change and no undisclosed
material adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operations,
prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

j.
Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. The SEC Documents contain a complete list and summary description of any pending or,
to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard
to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

k.
Intellectual Property. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use
all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service
marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business
as now operated (and, as presently contemplated to be operated in the future); there is no claim or action by any person pertaining
to, or proceeding pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary
with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated
to be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current
and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person;
and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and each of
its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual
Property.

 

l.
No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

    	-6-

    	 

    

 

m.
Tax Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other
tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that
the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid
and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside
on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with
respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax. None
of the Company’s tax returns is presently being audited by any taxing authority.

 

n.
Transactions with Affiliates. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries
makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could
obtain from third parties and other than the grant of stock options described in the SEC Documents, none of the officers, directors,
or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for
services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from
any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity
in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

o.
Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby
is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein, in light of the circumstances under which they were made, not misleading. No event
or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties,
prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s
reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the
1933 Act).

 

p.
Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting
solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby.
The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of
its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice
or a recommendation and is merely incidental to the Buyer’s purchase of the Securities. The Company further represents to
the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of
the Company and its representatives.

 

q.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

    	-7-

    	 

    

 

r.
No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions,
transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

s.
Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and
operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of
the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect. Since September 30, 2019, neither the Company nor any of its Subsidiaries
has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices
relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse
Effect.

 

t.
Environmental Matters.

 

(i)
There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the
Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment,
actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common
law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of
1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice
with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection
with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)
Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained
on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials
were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during
the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the
Company’s or any of its Subsidiaries’ business.

 

(iii)
There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

u.
Title to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and
good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(u), if attached
hereto, or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by the Company
and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a
Material Adverse Effect.

 

v.
Insurance. The Company does not maintain officers and directors or errors and omissions insurance. 

 

    	-8-

    	 

    

 

w.
Internal Accounting Controls. Other than disclosed in the Company’s SEC filings, the Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide
reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Accounting deficiencies are acknowledged in the Company’s
filings with the SEC.

 

x.
Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the
Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any
bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or
employee.

 

y.
Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e.,
its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as
they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that
the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it
intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as
such debts mature. The Company’s financial statements for its most recent fiscal year end and interim financial statements
have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business.

 

z.
No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

aa.
No Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any
of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in
its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

bb. No
Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the
Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term
is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an
“Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule
506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”), except for a Disqualification Event
covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event.

 

cc.
Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or
indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold,
bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any person any compensation for soliciting another to purchase any other securities of the Company.

 

dd.
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of
1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five
percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total
equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any
of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any entity that
is subject to the BHCA and to regulation by the Federal Reserve.

 

    	-9-

    	 

    

 

ee.
Illegal or Unauthorized Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the
Company’s knowledge, any of the officers, directors, employees, agents or other representatives of the Company or any of
its Subsidiaries or any other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated
or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services,
whether or not in contravention of applicable law, (i) as a kickback or bribe to any person or (ii) to any political organization,
or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving
the direct or indirect use of funds of the Company or any of its Subsidiaries.

 

ff.
Breach of Representations and Warranties by the Company. The Company agrees that if the Company breaches any of the representations
or warranties set forth in this Section 3 and in addition to any other remedies available to the Buyer pursuant to this Agreement,
it will be considered an Event of Default under Section 3.4 of the Note.

 

4.
ADDITIONAL COVENANTS, AGREEMENTS AND ACKNOWLEDGEMENTS. 

 

a.
Best Efforts. The parties shall use their best efforts to satisfy timely each of the conditions described in Section 6
and 7 of this Agreement.

 

b.
Form D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take
such action as the Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable
closing pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States
(or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer within
fifteen (15) days from the Closing Date.

 

c.
Use of Proceeds. The Company shall use the proceeds for business development, and not for the repayment of any indebtedness
owed to officers, directors or employees of the Company or their affiliates or in violation or contravention of any applicable
law, rule or regulation.

 

d.
Right of Participation in Subsequent Offerings.

 

i.
From the date first written above until the earlier to occur of (A) Maturity Date and (B) that date that the Note (including
all principal, interest, fees and expenses related thereto) is earlier fully repaid or converted, the Company will not, (i)
directly or indirectly, offer, sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale,
grant or any option to purchase or other disposition of) any of its or its Subsidiaries' debt, equity or equity equivalent
securities, including without limitation any debt, preferred shares or other instrument or security that is, at any time
during its life and under any circumstances, convertible into or exchangeable or exercisable for Common Stock (any such
offer, sale, grant, disposition or announcement being referred to as a “Subsequent Placement”) or (ii) enter into
any definitive agreement with regard to the foregoing, in each case unless the Company shall have first complied with this
Section 4(d).

 

ii.
The Company shall deliver to the Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or
intended issuance or sale or exchange (the “Offer”) of the securities being offered (the “Offered
Securities”) in a Subsequent Placement, which Offer Notice shall (w) identify and describe the Offered Securities, (x)
describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the
Offered Securities to be issued, sold or exchanged, (y) identify the persons or entities (if known) to which or with which
the Offered Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to or exchange with the
Buyer at least $550,000.00 of the Offered Securities (the “Subscription Amount”).

 

    	-10-

    	 

    

 

iii.
The foregoing subsections (d)(i) and (d)(ii) shall not apply to any transactions involving only the sale of the
Company’s common stock (without any debt component) which are consummated through, brokered or underwritten by H.C.
Wainwright & Co.

 

e.
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any action or proceeding that may be brought by the Buyer in order to enforce
any right or remedy under this Agreement, the Note and any document, agreement or instrument contemplated thereby. Notwithstanding
any provision to the contrary contained in this Agreement, the Note and any document, agreement or instrument contemplated thereby,
it is expressly agreed and provided that the total liability of the Company under this Agreement, the Note or any document, agreement
or instrument contemplated thereby for payments which under applicable law are in the nature of interest shall not exceed the
maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in
no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums which under applicable
law in the nature of interest that the Company may be obligated to pay under this Agreement, the Note and any document, agreement
or instrument contemplated thereby exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed
by law applicable to this Agreement, the Note and any document, agreement or instrument contemplated thereby is increased or decreased
by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed
by law will be the Maximum Rate applicable to this Agreement, the Note and any document, agreement or instrument contemplated
thereby from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances
whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Buyer with respect to indebtedness evidenced
by this Agreement, the Note and any document, agreement or instrument contemplated thereby, such excess shall be applied by the
Buyer to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess
to be at the Buyer’s election.

 

f.
Restriction on Activities. Commencing as of the date first above written, and until the earlier of payment of the Note
in full or full conversion of the Note, the Company shall not, directly or indirectly, without the Buyer’s prior written
consent, which consent shall not be unreasonably withheld: (a) change the nature of its business; (b) sell, divest, acquire, change
the structure of any material assets other than in the ordinary course of business; or (c) enter into any Variable Rate Transaction
(as defined herein) in the amount of less than $500,000.00, whether a transaction similar to the one contemplated hereby or any
other investment.

 

g.
Listing. The Company will, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common
Stock on the Principal Market or any equivalent replacement exchange or electronic quotation system (including but not limited
to the Pink Sheets electronic quotation system) and will comply in all respects with the Company’s reporting, filing and
other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges,
as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the Principal Market and
any other exchanges or electronic quotation systems on which the Common Stock is then traded regarding the continued eligibility
of the Common Stock for listing on such exchanges and quotation systems.

 

h.
Corporate Existence. The Company will, so long as the Buyer beneficially owns any of the Securities, maintain its corporate
existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation
or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction
(i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading or quotation on the Principal Market, any tier
of the NASDAQ Stock Market, the New York Stock Exchange or the NYSE MKT.

 

i.
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

    	-11-

    	 

    

 

j.
Breach of Covenants. The Company acknowledges and agrees that if the Company materially breaches any of the covenants set
forth in this Section 4, in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of Default under Section 3.4 of the Note.

 

k.
Compliance with 1934 Act; Public Information Failures. For so long as the Buyer beneficially owns the Note, or any Conversion
Shares, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject
to the reporting requirements of the 1934 Act.

 

l.
Acknowledgement Regarding Buyer’s Trading Activity. The Company acknowledges and agrees that the Buyer has not been
asked to agree, nor has the Buyer agreed, to desist from purchasing or selling securities of the Company, or “derivative”
securities based on securities issued by the Company or to hold the Securities for any specified term, and (ii) the Buyer shall
not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative”
transaction. Buyer may not engage in short sales with respect to the Common Stock while the Note is outstanding.

 

m.
Disclosure of Transactions and Other Material Information. By 9:00 a.m., New York time, on the date four (4) business days
following the date this Agreement has been fully executed, the Company shall file a Current Report on Form 8-K describing the
terms of the transactions contemplated by this Agreement in the form required by the 1934 Act and attaching this Agreement, the
form of Note (the “8-K Filing”). From and after the filing of the 8-K Filing with the SEC, the Buyer shall not be
in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or any of their respective
officers, directors, employees or agents that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the
8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether
written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees
or agents, on the one hand, and the Buyer or any of its affiliates, on the other hand, shall terminate.

 

n.
Legal Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at its cost)
for promptly supplying to the Company’s transfer agent and the Buyer a customary legal opinion letter of its counsel (the
“Legal Counsel Opinion”) to the effect that the resale of the Conversion Shares by the Buyer or its affiliates, successors
and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule
144 are satisfied and provided the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective
registration statement) or other applicable exemption (provided the requirements of such other applicable exemption are satisfied).
Should the Company’s legal counsel fail for any reason to issue the Legal Counsel Opinion, the Buyer may (at the Company’s
cost) secure another legal counsel to issue the Legal Counsel Opinion, and the Company will instruct its transfer agent to accept
such opinion. The Company hereby agrees that it may never take the position that it is a “shell company” in connection
with its obligations under this Agreement or otherwise.

 

o.
Subsequent Variable Rate Transactions. From the date hereof until such time as the Buyer no longer holds the Note, the
Company shall be prohibited from effecting or entering into an agreement involving a Variable Rate Transaction. “Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion
price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations
for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company
or the market for the Common Stock which results in net proceeds to the Company of less than $500,000.00 at the closing of such
transaction or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may
issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

    	-12-

    	 

    

 

p.
Non-Public Information. The Company covenants and agrees that neither it, nor any other person acting on its behalf will
provide the Buyer or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes,
material non-public information, unless prior thereto the Buyer shall have consented to the receipt of such information and agreed
with the Company to keep such information confidential. The Company understands and confirms that the Buyer shall be relying on
the foregoing covenant in effecting transactions in securities of the Company. To the extent that any notice provided, information
provided, or any other communications made by the Company, to the Buyer, constitutes or contains material non-public information
regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice or other material information with
the SEC pursuant to a Current Report on Form 8-K.

 

5.
Transfer Agent Instructions. The Company shall issue irrevocable instructions to the Company’s transfer agent to
issue certificates, registered in the name of the Buyer or its nominee, upon conversion of the Note, the Conversion Shares, in
such amounts as specified from time to time by the Buyer to the Company in accordance with the terms thereof (the “Irrevocable
Transfer Agent Instructions”). In the event that the Company proposes to replace its transfer agent, the Company shall provide,
prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially
delivered pursuant to this Agreement (including but not limited to the provision to irrevocably reserved shares of Common Stock
in the Reserved Amount (as defined in the Note)) signed by the successor transfer agent to the Company and the Company. The Company
warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5 will be
given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to
transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form)
any certificate for Securities to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required
by the Note and this Agreement; (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays,
and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any certificate for any Securities issued to the Buyer upon conversion of or otherwise pursuant to the Note as and
when required by the Note and this Agreement and (iv) it will provide any required corporate resolutions and issuance approvals
to its transfer agent within two (2) business day of each conversion of the Note. If the Buyer provides the Company, at the cost
of the Company, with an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to
the effect that a public sale or transfer of such Securities may be made without registration under the 1933 Act the Company shall
permit the transfer, and, in the case of the Securities, promptly instruct its transfer agent to issue one or more certificates,
free from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the
transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security
being required.

 

6.
Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note
to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions
thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time
in its sole discretion:

 

a.
The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.
The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.
The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and
as of the Closing Date, as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

    	-13-

    	 

    

 

d.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

7.
Conditions to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note, on
the Closing Date, is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided
that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a.
The Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.
The Company shall have delivered to the Buyer the duly executed Note in such denominations as the Buyer shall request and in accordance
with Section 1(b) above.

 

c.
The Company shall have delivered the Commitment Shares and Returnable Shares to the Buyer.

 

d.
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and
acknowledged in writing by the Company’s Transfer Agent.

 

e.
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of Closing Date, as though made at such time (except for representations and warranties that speak as of a specific date)
and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

f.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

g.
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but
not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934
Act reporting obligations.

 

h.
Trading in the Common Stock on the Principal Market shall not have been suspended by the SEC, FINRA or the Principal Market.

 

i.
The Company shall have delivered to the Buyer resolutions adopted by the Company’s Board of Directors at a duly called meeting
or by unanimous written consent authorizing this Agreement and all other documents, instruments and transactions contemplated
hereby.

 

    	-14-

    	 

    

 

8.
Governing Law; Miscellaneous.

 

a. Governing
Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to principles of conflicts of laws. Any action brought by either party against the other concerning
the transactions contemplated by this Agreement, the Note, or any other agreement, certificate, instrument or document
contemplated hereby shall be brought only in the state courts of New York or in the federal courts located in New York. The
parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder
and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS CONTEMPLATED HEREBY. The
prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement, the Note, or any other agreement, certificate, instrument or document contemplated hereby
or thereby by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to
such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law.

 

b.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. A facsimile or .pdf signature shall be considered due execution and shall be binding upon
the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or .pdf signature.
Delivery of a counterpart signature hereto by facsimile or email/.pdf transmission shall be deemed validly delivery thereof.

 

c.
Construction; Headings. This Agreement shall be deemed to be jointly drafted by the Company and the Buyer and shall not
be construed against any person as the drafter hereof. The headings of this Agreement are for convenience of reference only and
shall not form part of, or affect the interpretation of, this Agreement.

 

d.
Severability. In the event that any provision of this Agreement, the Note, or any other agreement or instrument delivered
in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of this Agreement, the Note, or any other agreement, certificate, instrument or document contemplated hereby
or thereby.

 

e.
Entire Agreement; Amendments. This Agreement, the Note, and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement or any agreement or instrument contemplated hereby may be waived or amended other than by an instrument
in writing signed by the Buyer.

 

f.
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

If
to the Company, to:

 

CANBIOLA,
INC.

960
South Broadway, Suite 120

Hicksville,
NY 11801

Attention:
Marco Alfonsi

e-mail:
info@canbiola.com

 

    	-15-

    	 

    

 

With
a copy by e-mail only to (which copy shall not constitute notice):

 

Austin
Legal group, APC

3990
Old Town Ave., Suite A-101

San
Diego, CA 92110

Attn:
Arden Anderson, Esq.

e-mail:
arden@austinlegalgroup.com

 

If
to the Buyer:

 

FIRSTFIRE
GLOBAL OPPORTUNITIES FUND, LLC

1040
First Avenue, Suite 190

New
York, NY 10022

Attn:
Eli Fireman

e-mail:
eli@firstfirecapital.com

 

With
a copy by e-mail only to (which copy shall not constitute notice):

 

ANTHONY
L.G., PLLC

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

Attn:
Chad Friend, Esq., LL.M.

e-mail:
CFriend@AnthonyPLLC.com

 

g.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder
to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as
that term is defined under the 1934 Act, without the consent of the Company.

 

h.
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

j.
Publicity. The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any
press releases, SEC, Principal Market or FINRA filings, or any other public statements with respect to the transactions contemplated
hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make
any press release or SEC, Principal Market (or other applicable trading market) or FINRA filings with respect to such transactions
as is required by applicable law and regulations (although the Buyer shall be consulted by the Company in connection with any
such press release prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon).

 

k.
Expense Reimbursement; Further Assurances. At the Closing to occur as of the Closing Date, the Company shall pay on behalf
of the Buyer or reimburse the Buyer for its legal fees and expenses incurred in connection with this Agreement, pursuant to the
disbursement authorization signed by the Company of even date. At the Closing, the Company shall pay US$5,000.00 to FirstFire
Capital Management, LLC to cover the Buyer’s due diligence and monitoring costs incurred for services rendered in connection
herewith (the “Transaction Expense Amount”). The Transaction Expense Amount shall be offset against the proceeds of
the Note. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    	-16-

    	 

    

 

l.
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

m.
Indemnification. In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the Securities
hereunder, and in addition to all of the Company’s other obligations under this Agreement or the Note, the Company shall
defend, protect, indemnify and hold harmless the Buyer and its stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any material misrepresentation or material breach
of any representation or warranty made by the Company in this Agreement, the Note or any other agreement, certificate, instrument
or document contemplated hereby or thereby, (b) any material breach of any covenant, agreement or obligation of the Company contained
in this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby or (c)
any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative
action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement
of this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (ii) any
transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities,
or (iii) the status of the Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated
by this Agreement. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible
under applicable law.

 

n.
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Agreement or the Note will be inadequate and agrees, in the event of
a breach or threatened breach by the Company of the provisions of this Agreement or the Note, that the Buyer shall be entitled,
in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction
or injunctions restraining, preventing or curing any breach of this Agreement or the Note and to enforce specifically the terms
and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

 

o.
Payment Set Aside. To the extent that the Company makes a payment or payments to the Buyer hereunder or pursuant to the
Note, or the Buyer enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver
or any other person or entity under any law (including, without limitation, any bankruptcy law, foreign, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred.

 

p.
Failure or Indulgence Not Waiver. No failure or delay on the part of the Buyer in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privileges. All rights and remedies of the Buyer existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

[Signature
Page Follows]

 

    	-17-

    	 

    

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

CANBIOLA,
INC.

 

	By:	 	 
	Name:	MARCO ALFONSI	 
	Title:	 CHIEF EXECUTIVE OFFICER	 

 

FIRSTFIRE
GLOBAL OPPORTUNITIES FUND, LLC

 

By:
FirstFire Capital Management LLC, its manager

 

	By:	 	 
	 	ELI
    FIREMAN	 

 

SUBSCRIPTION
AMOUNT:

 

Principal
Amount of Note: $550,000.00

Actual
Amount of Purchase Price of Note: $500,000.00*

 

    	-18-

    	 

    

 

EXHIBIT
A

 

FORM
OF NOTE

 

[attached
hereto]

 

    	-19-

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