Document:

Exhibit 10.1

 

MOTA GROUP, INC.

2016 OMNIBUS EQUITY INCENTIVE PLAN

 

Article
I

PURPOSE

 

The purpose of this Mota Group, Inc. 2016
Omnibus Equity Incentive Plan (the “Plan”) is to benefit Mota Group, Inc., a Delaware corporation (the “Company”)
and its stockholders, by assisting the Company [and its subsidiaries] to attract, retain and provide incentives to key management
employees, directors, and consultants of the Company and its Affiliates, and to align the interests of such service providers with
those of the Company’s stockholders. Accordingly, the Plan provides for the granting of Non-qualified Stock Options, Incentive
Stock Options, Restricted Stock Awards, Restricted Stock Unit Awards, Stock Appreciation Rights, Performance Stock Awards, Performance
Unit Awards, Unrestricted Stock Awards, Distribution Equivalent Rights or any combination of the foregoing.

 

Article
II

DEFINITIONS

 

The following definitions shall be applicable
throughout the Plan unless the context otherwise requires:

 

2.1           “Affiliate”
shall mean any corporation which, with respect to the Company, is a “subsidiary corporation” within the meaning of
Section 424(f) of the Code or other entity in which the Company has a controlling interest in such entity or another entity which
is part of a chain of entities in which the Company or each entity has a controlling interest in another entity in the unbroken
chain of entities ending with the applicable entity.

 

2.2           “Award”
shall mean, individually or collectively, any Option, Restricted Stock Award, Restricted Stock Unit Award, Performance Stock Award,
Performance Unit Award, Stock Appreciation Right, Distribution Equivalent Right or Unrestricted Stock Award.

 

2.3           “Award
Agreement” shall mean a written agreement between the Company and the Holder with respect to an Award, setting forth
the terms and conditions of the Award, as amended.

 

2.4           “Board”
shall mean the Board of Directors of the Company.

 

2.5           “Base
Value” shall have the meaning given to such term in Section 14.2.

 

     

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2.6           “Cause”
shall mean (i) if the Holder is a party to an employment or service agreement with the Company or an Affiliate which agreement
defines “Cause” (or a similar term), “Cause” shall have the same meaning as provided for in such
agreement, or (ii) for a Holder who is not a party to such an agreement, “Cause” shall mean termination by the
Company or an Affiliate of the employment (or other service relationship) of the Holder by reason of the Holder’s (A) intentional
failure to perform reasonably assigned duties, (B) dishonesty or willful misconduct in the performance of the Holder’s duties,
(C) involvement in a transaction which is materially adverse to the Company or an Affiliate, (D) breach of fiduciary duty involving
personal profit, (E) willful violation of any law, rule, regulation or court order (other than misdemeanor traffic violations and
misdemeanors not involving misuse or misappropriation of money or property), (F) commission of an act of fraud or intentional misappropriation
or conversion of any asset or opportunity of the Company or an Affiliate, or (G) material breach of any provision of the Plan or
the Holder’s Award Agreement or any other written agreement between the Holder and the Company or an Affiliate, in each case
as determined in good faith by the Board, the determination of which shall be final, conclusive and binding on all parties.

 

2.7           “Change
of Control” shall mean: (i) for a Holder who is a party to an employment or consulting agreement with the Company
or an Affiliate which agreement defines “Change of Control” (or a similar term), “Change of Control”
shall have the same meaning as provided for in such agreement, or (ii) for a Holder who is not a party to such an agreement, “Change
of Control” shall mean the satisfaction of any one or more of the following conditions (and the “Change of Control”
shall be deemed to have occurred as of the first day that any one or more of the following conditions shall have been satisfied):

 

(a)          Any
person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange Act, hereinafter in this definition, “Person”),
other than the Company or an Affiliate or an employee benefit plan of the Company or an Affiliate, becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company’s then outstanding securities;

 

(b)          The
closing of a merger, consolidation or other business combination (a “Business Combination”) other than a Business
Combination in which holders of the Shares immediately prior to the Business Combination have substantially the same proportionate
ownership of the common stock or ordinary shares, as applicable, of the surviving corporation immediately after the Business Combination
as immediately before;

 

(c)          The
closing of an agreement for the sale or disposition of all or substantially all of the Company’s assets to any entity that
is not an Affiliate;

 

(d)          The
approval by the holders of shares of Shares of a plan of complete liquidation of the Company, other than a merger of the Company
into any subsidiary or a liquidation as a result of which persons who were stockholders of the Company immediately prior to such
liquidation have substantially the same proportionate ownership of shares of common stock or ordinary shares, as applicable, of
the surviving corporation immediately after such liquidation as immediately before; or

 

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(e)          Within
any twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board
of directors of any successor to the Company; provided, however, that any director elected to the Board, or nominated
for election, by a majority of the Incumbent Directors then still in office, shall be deemed to be an Incumbent Director for purposes
of this paragraph (e), but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of an individual, entity or “group” other than the Board (including,
but not limited to, any such assumption that results from paragraphs (a), (b), (c), or (d) of this definition).

 

2.8           “Code”
shall mean the United States of America Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the
Code shall be deemed to include any amendments or successor provisions to any section and any regulation under such section.

 

2.9           “Committee”
shall mean a committee comprised of two (2) or more members of the Board who are selected by the Board as provided in Section 4.1.

 

2.10         
“Company” shall have the meaning given to such term in the introductory paragraph, including any successor thereto.

 

2.11         “Consultant”
shall mean any non-Employee (individual or entity) advisor to the Company or an Affiliate who or which has contracted directly
with the Company or an Affiliate to render bona fide consulting or advisory services thereto.

 

2.12         “Director”
shall mean a member of the Board or a member of the board of directors of an Affiliate, in either case, who is not an Employee.

 

2.13         “Distribution
Equivalent Right” shall mean an Award granted under Article XIII of the Plan which entitles the Holder to receive bookkeeping
credits, cash payments and/or Share distributions equal in amount to the distributions that would have been made to the Holder
had the Holder held a specified number of Shares during the period the Holder held the Distribution Equivalent Right.

 

2.14         “Distribution
Equivalent Right Award Agreement” shall mean a written agreement between the Company and a Holder with respect to a Distribution
Equivalent Right Award.

 

2.15         
“Effective Date” shall mean October 8, 2016.

 

2.16         “Employee”
shall mean any employee, including any officer, of the Company or an Affiliate.

 

2.17         “Exchange
Act” shall mean the United States of America Securities Exchange Act of 1934, as amended.

 

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2.18         “Fair
Market Value” shall mean, as of any specified date, the closing sales price of the Shares for such date (or, in the event
that the Shares are not traded on such date, on the immediately preceding trading date) on the NASDAQ Stock Market (“NASDAQ”),
as reported by NASDAQ, or such other domestic or foreign national securities exchange on which the Shares may be listed. If the
Shares are not listed on NASDAQ or on a national securities exchange, but are quoted on the OTC Bulletin Board or by the National
Quotation Bureau, the Fair Market Value of the Shares shall be the mean of the highest bid and lowest asked prices per Share for
such date. If the Shares are not quoted or listed as set forth above, Fair Market Value shall be determined by the Board in good
faith by any fair and reasonable means (which means may be set forth with greater specificity in the applicable Award Agreement).
The Fair Market Value of property other than Shares shall be determined by the Board in good faith by any fair and reasonable means
consistent with the requirements of applicable law.

 

2.19         “Family
Member” of an individual shall mean any child, stepchild, grandchild, parent, stepparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships,
any person sharing the Holder’s household (other than a tenant or employee of the Holder), a trust in which such persons
have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or the Holder) control the management
of assets, and any other entity in which such persons (or the Holder) own more than fifty percent (50%) of the voting interests.

 

2.20         “Holder”
shall mean an Employee, Director or Consultant who has been granted an Award or any such individual’s beneficiary, estate
or representative, who has acquired such Award in accordance with the terms of the Plan, as applicable.

 

2.21         
“Incentive Stock Option” shall mean an Option which is intended by the Committee to constitute an “incentive
stock option” and conforms to the applicable provisions of Section 422 of the Code.

 

2.22         “Incumbent
Director” shall mean, with respect to any period of time specified under the Plan for purposes of determining whether
or not a Change of Control has occurred, the individuals who were members of the Board at the beginning of such period.

 

2.23         “Non-qualified
Stock Option” shall mean an Option which is not an Incentive Stock Option or which is designated as an Incentive Stock
Option but does not meet the applicable requirements of Section 422 of the Code.

 

2.24         “Option”
shall mean an Award granted under Article VII of the Plan of an option to purchase Shares and shall include both Incentive Stock
Options and Non-qualified Stock Options.

 

2.25         “Option
Agreement” shall mean a written agreement between the Company and a Holder with respect to an Option.

 

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2.26         “Performance
Criteria” shall mean the criteria selected by the Committee for purposes of establishing the Performance Goal(s) for
a Holder for a Performance Period.

 

2.27         “Performance
Goals” shall mean, for a Performance Period, the written goal or goals established by the Committee for the Performance
Period based upon the Performance Criteria, which may be related to the performance of the Holder, the Company or an Affiliate.

 

2.28         “Performance
Period” shall mean one or more periods of time, which may be of varying and overlapping durations, selected by the Committee,
over which the attainment of the Performance Goals shall be measured for purposes of determining a Holder’s right to, and
the payment of, a Qualified Performance-Based Award.

 

2.29         “Performance
Stock Award” or “Performance Stock” shall mean an Award granted under Article XII of the Plan under
which, upon the satisfaction of predetermined Performance Goals, Shares are paid to the Holder.

 

2.30         “Performance
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance Stock
Award.

 

2.31         “Performance
Unit” shall mean a Unit awarded to a Holder pursuant to a Performance Unit Award.

 

2.32         “Performance
Unit Award” shall mean an Award granted under Article XI of the Plan under which, upon the satisfaction of predetermined
Performance Goals, a cash payment shall be made to the Holder, based on the number of Units awarded to the Holder.

 

2.33         “Performance
Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Performance Unit Award.

 

2.34         “Plan”
shall mean this Mota Group, Inc. 2016 Omnibus Equity Incentive Plan, as amended from time to time, together with each of the Award
Agreements utilized hereunder.

 

2.35         “Qualified
Performance-Based Award” shall mean an Award that is intended to qualify as “performance-based” compensation
under Section 162(m) of the Code.

 

2.36         “Restricted
Stock Award” and “Restricted Stock” shall mean an Award granted under Article VIII of the Plan of
Shares, the transferability of which by the Holder is subject to Restrictions.

 

2.37         “Restricted
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Stock Award.

 

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2.38         “Restricted
Stock Unit Award” and “RSUs” shall refer to an Award granted under Article X of the Plan under which,
upon the satisfaction of predetermined individual service-related vesting requirements, a cash payment shall be made to the Holder,
based on the number of Units awarded to the Holder.

 

2.39         “Restricted
Stock Unit Agreement” shall mean a written agreement between the Company and a Holder with respect to a Restricted Stock
Award.

 

2.40         
“Restriction Period” shall mean the period of time for which Shares subject to a Restricted Stock Award shall
be subject to Restrictions, as set forth in the applicable Restricted Stock Agreement.

 

2.41         “Restrictions”
shall mean the forfeiture, transfer and/or other restrictions applicable to Shares awarded to an Employee, Director or Consultant
under the Plan pursuant to a Restricted Stock Award and set forth in a Restricted Stock Agreement.

 

2.42         “Rule
16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act, as such may
be amended from time to time, and any successor rule, regulation or statute fulfilling the same or a substantially similar function.

 

2.43         “Shares”
or “Stock” shall mean the [ordinary] common stock of the Company, par value $[0.0001] per share.

 

2.44         “Stock
Appreciation Right” or “SAR” shall mean an Award granted under Article XIV of the Plan of a right,
granted alone or in connection with a related Option, to receive a payment equal to the increase in value of a specified number
of Shares between the date of Award and the date of exercise.

 

2.45         “Stock
Appreciation Right Agreement” shall mean a written agreement between the Company and a Holder with respect to a Stock
Appreciation Right.

 

2.46         “Tandem
Stock Appreciation Right” shall mean a Stock Appreciation Right granted in connection with a related Option, the exercise
of some or all of which results in termination of the entitlement to purchase some or all of the Shares under the related Option,
all as set forth in Article XIV.

 

2.47         
“Ten Percent Stockholder” shall mean an Employee who, at the time an Option is granted to him or her, owns shares
possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or of any parent
corporation or subsidiary corporation thereof (both as defined in Section 424 of the Code), within the meaning of Section 422(b)(6)
of the Code.

 

2.48         “Termination
of Service” shall mean a termination of a Holder’s employment with, or status as a Director or Consultant of, the
Company or an Affiliate, as applicable, for any reason, including, without limitation, Total and Permanent Disability or death,
except as provided in Section 6.4. In the event Termination of Service shall constitute a payment event with respect to any Award
subject to Code Section 409A, Termination of Service shall only be deemed to occur upon a “separation from service”
as such term is defined under Code Section 409A and applicable authorities.

 

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2.49         “Total
and Permanent Disability” of an individual shall mean the inability of such individual to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than twelve (12) months, within the meaning of Section
22(e)(3) of the Code.

 

2.50         “Unit”
shall mean a bookkeeping unit, which represents such monetary amount as shall be designated by the Committee in each Performance
Unit Agreement, or represents one Share for purposes of each Restricted Stock Unit Award.

 

2.51         “Unrestricted
Stock Award” shall mean an Award granted under Article IX of the Plan of Shares which are not subject to Restrictions.

 

2.52         “Unrestricted
Stock Agreement” shall mean a written agreement between the Company and a Holder with respect to an Unrestricted Stock
Award.

 

Article
III

EFFECTIVE DATE OF PLAN

 

The Plan shall be effective as of the Effective
Date[, provided that the Plan is approved by the stockholders of the Company within twelve (12) months of such date.]1

 

 

 

1 Language
may not work for pink sheet or bulletin board companies. Stockholder approval of the plan within 12
months before or after the plan is adopted is required to grant ISOs. Stockholder approval is also required to exempt performance-based
compensation from the $1 million limit on deductibility of compensation under IRC § 162(m).

 

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Article
IV

ADMINISTRATION

 

4.1           Composition
of Committee. The Plan shall be administered by the

 

Committee, which shall be appointed by the
Board. If necessary, in the Board’s discretion, to comply with Rule 16b-3 under the Exchange Act and Section 162(m) of the
Code, the Committee shall consist solely of two (2) or more Directors who are each (i) “outside directors” within the
meaning of Section 162(m) of the Code (“Outside Directors”), (ii) “non-employee directors” within
the meaning of Rule 16b-3 (“Non-Employee Directors”) and (iii) “independent” for purposes of any
applicable listing requirements; provided, however, that the Board or the Committee may delegate to a committee of
one or more members of the Board who are not (x) Outside Directors, the authority to grant Awards to eligible persons who are not
(A) then “covered employees” within the meaning of Section 162(m) of the Code and are not expected to be “covered
employees” at the time of recognition of income resulting from such Award, or (B) persons with respect to whom the Company
wishes to comply with the requirements of Section 162(m) of the Code, and/or (y) Non-Employee Directors, the authority to grant
Awards to eligible persons who are not then subject to the requirements of Section 16 of the Exchange Act. If a member of the Committee
shall be eligible to receive an Award under the Plan, such Committee member shall have no authority hereunder with respect to his
or her own Award.

 

4.2           Powers.
Subject to the other provisions of the Plan, the Committee shall have the sole authority, in its discretion, to make all determinations
under the Plan, including but not limited to (i) determining which Employees, Directors or Consultants shall receive an Award,
(ii) the time or times when an Award shall be made (the date of grant of an Award shall be the date on which the Award is awarded
by the Committee), (iii) what type of Award shall be granted, (iv) the term of an Award, (v) the date or dates on which an Award
vests, (vi) the form of any payment to be made pursuant to an Award, (vii) the terms and conditions of an Award (including the
forfeiture of the Award, and/or any financial gain, if the Holder of the Award violates any applicable restrictive covenant thereof),
(viii) the Restrictions under a Restricted Stock Award, (ix) the number of Shares which may be issued under an Award, (x) Performance
Goals applicable to any Award and certification of the achievement of such goals, and (xi) the waiver of any Restrictions or Performance
Goals, subject in all cases to compliance with applicable laws. In making such determinations the Committee may take into account
the nature of the services rendered by the respective Employees, Directors and Consultants, their present and potential contribution
to the Company’s (or the Affiliate’s) success and such other factors as the Committee in its discretion may deem relevant.

 

4.3           Additional
Powers. The Committee shall have such additional powers as are delegated to it under the other provisions of the Plan. Subject
to the express provisions of the Plan, the Committee is authorized to construe the Plan and the respective Award Agreements executed
hereunder, to prescribe such rules and regulations relating to the Plan as it may deem advisable to carry out the intent of the
Plan, to determine the terms, restrictions and provisions of each Award and to make all other determinations necessary or advisable
for administering the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in any Award
Agreement in the manner and to the extent the Committee shall deem necessary, appropriate or expedient to carry it into effect.
The determinations of the Committee on the matters referred to in this Article IV shall be conclusive and binding on the Company
and all Holders.

 

4.4           Committee
Action. Subject to compliance with all applicable laws, action by the Committee shall require the consent of a majority of
the members of the Committee, expressed either orally at a meeting of the Committee or in writing in the absence of a meeting.
No member of the Committee shall have any liability for any good faith action, inaction or determination in connection with the
Plan.

 

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Article
V

SHARES SUBJECT TO PLAN AND LIMITATIONS THEREON

 

5.1           Authorized
Shares and Award Limits. The Committee may from time to time grant Awards to one or more Employees, Directors and/or Consultants
determined by it to be eligible for participation in the Plan in accordance with the provisions of Article VI. Subject to
Article XV, the aggregate number of Shares that may be issued under the Plan shall not exceed NINE HUNDRED AND FIFTY THOUSAND 950,000
Shares. Shares shall be deemed to have been issued under the Plan solely to the extent actually issued and delivered pursuant to
an Award. To the extent that an Award lapses, expires, is canceled, is terminated unexercised or ceases to be exercisable for any
reason, or the rights of its Holder terminate, any Shares subject to such Award shall again be available for the grant of a new
Award. Notwithstanding any provision in the Plan to the contrary, the maximum number of Shares that may be subject to Awards of
Options under Article VII and/or Stock Appreciation Rights under Article XIV, in either or both cases granted to any one person
during any calendar year, shall be ONE HUNDRED THOUSAND (100,000) Shares (subject to adjustment in the same manner as provided
in Article XV with respect to Shares subject to Awards then outstanding). The limitation set forth in the preceding sentence shall
be applied in a manner which shall permit compensation generated in connection with the exercise of Options or Stock Appreciation
Rights to constitute “performance-based” compensation for purposes of Section 162(m) of the Code, including, but not
limited to, counting against such maximum number of Shares, to the extent required under Section 162(m) of the Code, any Shares
subject to Options or Stock Appreciation Rights that are canceled or re-priced.

 

5.2           Types
of Shares . The Shares to be issued pursuant to the grant or exercise of an Award may consist of authorized but unissued Shares,
Shares purchased on the open market or Shares previously issued and outstanding and reacquired by the Company.

 

Article
VI

ELIGIBILITY AND TERMINATION OF SERVICE

 

6.1           Eligibility.
Awards made under the Plan may be granted solely to individuals or entities who, at the time of grant, are Employees, Directors
or Consultants. An Award may be granted on more than one occasion to the same Employee, Director or Consultant, and, subject to
the limitations set forth in the Plan, such Award may include, a Non-qualified Stock Option, a Restricted Stock Award, a Restricted
Stock Unit Award, an Unrestricted Stock Award, a Distribution Equivalent Right Award, a Performance Stock Award, a Performance
Unit Award, a Stock Appreciation Right, a Tandem Stock Appreciation Right, or any combination thereof, and solely for Employees,
an Incentive Stock Option.

 

6.2           Termination
of Service. Except to the extent inconsistent with the terms of the applicable Award Agreement and/or the provisions of Section
6.3 or 6.4, the following terms and conditions shall apply with respect to a Holder’s Termination of Service with the Company
or an Affiliate, as applicable:

 

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(a)          The
Holder’s rights, if any, to exercise any then exercisable Options and/or Stock Appreciation Rights shall terminate:

 

(i)          If
such termination is for a reason other than the Holder’s Total and Permanent Disability or death, ninety (90) days after
the date of such Termination of Service;

 

(ii)         If
such termination is on account of the Holder’s Total and Permanent Disability, one (1) year after the date of such Termination
of Service; or

 

(iii)        If
such termination is on account of the Holder’s death, one (1) year after the date of the Holder’s death.

 

Upon such applicable date the Holder (and
such Holder’s estate, designated beneficiary or other legal representative) shall forfeit any rights or interests in or with
respect to any such Options and Stock Appreciation Rights. Notwithstanding the foregoing, the Committee, in its sole discretion,
may provide for a different time period in the Award Agreement, or may extend the time period, following a Termination of Service,
during which the Holder has the right to exercise any vested Non-qualified Stock Option or Stock Appreciation Right, which time
period may not extend beyond the expiration date of the Award term.

 

(b)          In
the event of a Holder’s Termination of Service for any reason prior to the actual or deemed satisfaction and/or lapse of
the Restrictions, vesting requirements, terms and conditions applicable to a Restricted Stock Award and/or Restricted Stock Unit
Award, such Restricted Stock and/or RSUs shall immediately be canceled, and the Holder (and such Holder’s estate, designated
beneficiary or other legal representative) shall forfeit any rights or interests in and with respect to any such Restricted Stock
and/or RSUs. Notwithstanding the immediately preceding sentence, the Committee, in its sole discretion, may determine, prior to
or within thirty (30) days after the date of such Termination of Service that all or a portion of any such Holder’s Restricted
Stock and/or RSUs shall not be so canceled and forfeited.

 

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6.3           Special
Termination Rule. Except to the extent inconsistent with the terms of the applicable Award Agreement, and
notwithstanding anything to the contrary contained in this Article VI, if a Holder’s employment with, or status as a
Director of, the Company or an Affiliate shall terminate, and if, within ninety (90) days of such termination, such Holder
shall become a Consultant, such Holder’s rights with respect to any Award or portion thereof granted thereto prior to
the date of such termination may be preserved, if and to the extent determined by the Committee in its sole discretion, as if
such Holder had been a Consultant for the entire period during which such Award or portion thereof had been outstanding.
Should the Committee effect such determination with respect to such Holder, for all purposes of the Plan, such Holder shall
not be treated as if his or her employment or Director status had terminated until such time as his or her Consultant status
shall terminate, in which case his or her Award, as it may have been reduced in connection with the Holder’s becoming a
Consultant, shall be treated pursuant to the provisions of Section 6.2, provided, however, that any such Award which is
intended to be an Incentive Stock Option shall, upon the Holder’s no longer being an Employee, automatically convert to
a Non-qualified Stock Option. Should a Holder’s status as a Consultant terminate, and if, within ninety (90) days of
such termination, such Holder shall become an Employee or a Director, such Holder’s rights with respect to any Award or
portion thereof granted thereto prior to the date of such termination may be preserved, if and to the extent determined by
the Committee in its sole discretion, as if such Holder had been an Employee or a Director, as applicable, for the entire
period during which such Award or portion thereof had been outstanding, and, should the Committee effect such determination
with respect to such Holder, for all purposes of the Plan, such Holder shall not be treated as if his or her Consultant
status had terminated until such time as his or her employment with the Company or an Affiliate, or his or her
Director status, as applicable, shall terminate, in which case his or her Award shall be treated pursuant to the provisions
of Section 6.2.

 

6.4           Termination
of Service for Cause. Notwithstanding anything in this Article VI or elsewhere in the Plan to the contrary, and unless
a Holder’s Award Agreement specifically provides otherwise, in the event of a Holder’s Termination of Service for Cause,
all of such Holder’s then outstanding Awards shall expire immediately and be forfeited in their entirety upon such Termination
of Service.

 

Article
VII

OPTIONS

 

7.1           Option
Period. The term of each Option shall be as specified in the Option Agreement; provided, however, that except
as set forth in Section 7.3, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant.

 

7.2           Limitations
on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as specified in the
Option Agreement.

 

7.3           Special
Limitations on Incentive Stock Options. To the extent that the aggregate Fair Market Value (determined at the time the respective
Incentive Stock Option is granted) of Shares with respect to which Incentive Stock Options are exercisable for the first time by
an individual during any calendar year under all plans of the Company and any parent corporation or subsidiary corporation thereof
(both as defined in Section 424 of the Code) which provide for the grant of Incentive Stock Options exceeds One Hundred Thousand
Dollars ($100,000) (or such other individual limit as may be in effect under the Code on the date of grant), the portion of such
Incentive Stock Options that exceeds such threshold shall be treated as Non-qualified Stock Options. The Committee shall determine,
in accordance with applicable provisions of the Code, Treasury Regulations and other administrative pronouncements, which of a
Holder’s Options, which were intended by the Committee to be Incentive Stock Options when granted to the Holder, will not
constitute Incentive Stock Options because of such limitation, and shall notify the Holder of such determination as soon as practicable
after such determination. No Incentive Stock Option shall be granted to an Employee if, at the time the Incentive Stock Option
is granted, such Employee is a Ten Percent Stockholder, unless (i) at the time such Incentive Stock Option is granted the Option
price is at least one hundred ten percent (110%) of the Fair Market Value of the Shares subject to the Incentive Stock Option,
and (ii) such Incentive Stock Option by its terms is not exercisable after the expiration of five (5) years from the date of grant.
No Incentive Stock Option shall be granted more than ten (10) years from the earlier of the Effective Date or date on which the
Plan is approved by the Company’s stockholders. The designation by the Committee of an Option as an Incentive Stock Option
shall not guarantee the Holder that the Option will satisfy the applicable requirements for “incentive stock option”
status under Section 422 of the Code.

 

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7.4           Option
Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions not inconsistent
with the other provisions of the Plan as the Committee from time to time shall approve, including, but not limited to, provisions
intended to qualify an Option as an Incentive Stock Option. An Option Agreement may provide for the payment of the Option price,
in whole or in part, by the delivery of a number of Shares (plus cash if necessary) that have been owned by the Holder for at least
six (6) months and having a Fair Market Value equal to such Option price, or such other forms or methods as the Committee may determine
from time to time, in each case, subject to such rules and regulations as may be adopted by the Committee. Each Option Agreement
shall, solely to the extent inconsistent with the provisions of Sections 6.2, 6.3, and 6.4, as applicable, specify the effect of
Termination of Service on the exercisability of the Option. Moreover, without limiting the generality of the foregoing, a Non-qualified
Stock Option Agreement may provide for a “cashless exercise” of the Option, in whole or in part, by (a) establishing
procedures whereby the Holder, by a properly-executed written notice, directs (i) an immediate market sale or margin loan
as to all or a part of Shares to which he is entitled to receive upon exercise of the Option, pursuant to an extension of credit
by the Company to the Holder of the Option price, (ii) the delivery of the Shares from the Company directly to a brokerage
firm and (iii) the delivery of the Option price from sale or margin loan proceeds from the brokerage firm directly to the
Company, or (b) reducing the number of Shares to be issued upon exercise of the Option by the number of such Shares having
an aggregate Fair Market Value equal to the Option price (or portion thereof to be so paid) as of the date of the Option’s
exercise. An Option Agreement may also include provisions relating to: (i) subject to the provisions hereof, accelerated vesting
of Options, including but not limited to, upon the occurrence of a Change of Control, (ii) tax matters (including provisions covering
any applicable Employee wage withholding requirements and requiring additional “gross-up” payments to Holders to meet
any excise taxes or other additional income tax liability imposed as a result of a payment made upon a Change of Control resulting
from the operation of the Plan or of such Option Agreement) and (iii) any other matters not inconsistent with the terms and provisions
of the Plan that the Committee shall in its sole discretion determine. The terms and conditions of the respective Option Agreements
need not be identical.

 

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7.5           Option
Price and Payment. The price at which an Share may be purchased upon exercise of an Option shall be determined by the Committee;
provided, however, that such Option price (i) shall not be less than the Fair Market Value of an Share on the
date such Option is granted (or 110% of Fair Market Value for an Incentive Stock Option held by Ten Percent Stockholder, as provided
in Section 7.3), and (ii) shall be subject to adjustment as provided in Article XV. The Option or portion thereof may be exercised
by delivery of an irrevocable notice of exercise to the Company. The Option price for the Option or portion thereof shall be paid
in full in the manner prescribed by the Committee as set forth in the Plan and the applicable Option Agreement, which manner, with
the consent of the Committee, may include the withholding of Shares otherwise issuable in connection with the exercise of the Option.
Separate share certificates shall be issued by the Company for those Shares acquired pursuant to the exercise of an Incentive Stock
Option and for those Shares acquired pursuant to the exercise of a Non-qualified Stock Option.

 

7.6           Stockholder
Rights and Privileges. The Holder of an Option shall be entitled to all the privileges and rights of a stockholder of the Company
solely with respect to such Shares as have been purchased under the Option and for which share certificates have been registered
in the Holder’s name.

 

7.7           Options
and Rights in Substitution for Stock or Options Granted by Other Corporations. Options may be granted under the Plan from time
to time in substitution for stock options held by individuals employed by entities who become Employees, Directors or Consultants
as a result of a merger or consolidation of the employing entity with the Company or any Affiliate, or the acquisition by the Company
or an Affiliate of the assets of the employing entity, or the acquisition by the Company or an Affiliate of stock or shares of
the employing entity with the result that such employing entity becomes an Affiliate.

 

7.8           Prohibition
Against Re-Pricing. Except to the extent (i) approved in advance by holders of a majority of the shares of the Company
entitled to vote generally in the election of directors, or (ii) as a result of any Change of Control or any adjustment as
provided in Article XV, the Committee shall not have the power or authority to reduce, whether through amendment or otherwise,
the exercise price under any outstanding Option or Stock Appreciation Right, or to grant any new Award or make any payment of cash
in substitution for or upon the cancellation of Options and/or Stock Appreciation Rights previously granted.

 

Article
VIII

RESTRICTED STOCK AWARDS

 

8.1           Award.
A Restricted Stock Award shall constitute an Award of Shares to the Holder as of the date of the Award which are subject to a “substantial
risk of forfeiture” as defined under Section 83 of the Code during the specified Restriction Period. At the time a Restricted
Stock Award is made, the Committee shall establish the Restriction Period applicable to such Award. Each Restricted Stock Award
may have a different Restriction Period, in the discretion of the Committee. The Restriction Period applicable to a particular
Restricted Stock Award shall not be changed except as permitted by Section 8.2.

 

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8.2           Terms
and Conditions. At the time any Award is made under this Article VIII, the Company and the Holder shall enter into a Restricted
Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Company shall cause the Shares to be issued in the name of Holder, either by book-entry registration or issuance
of one or more stock certificates evidencing the Shares, which Shares or certificates shall be held by the Company or the stock
transfer agent or brokerage service selected by the Company to provide services for the Plan. The Shares shall be restricted from
transfer and shall be subject to an appropriate stop-transfer order, and if any certificate is issued, such certificate shall bear
an appropriate legend referring to the restrictions applicable to the Shares. After any Shares vest, the Company shall deliver
the vested Shares, in book-entry or certificated form in the Company’s sole discretion, registered in the name of Holder
or his or her legal representatives, beneficiaries or heirs, as the case may be, less any Shares withheld to pay withholding taxes.
If provided for under the Restricted Stock Agreement, the Holder shall have the right to vote Shares subject thereto and to enjoy
all other stockholder rights, including the entitlement to receive dividends on the Shares during the Restriction Period. At the
time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating
to Restricted Stock Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration
of the Restriction Period. Such additional terms, conditions or restrictions shall, to the extent inconsistent with the provisions
of Sections 6.2, 6.3 and 6.4, as applicable, be set forth in a Restricted Stock Agreement made in conjunction with the Award. Such
Restricted Stock Agreement may also include provisions relating to: (i) subject to the provisions hereof, accelerated vesting
of Awards, including but not limited to accelerated vesting upon the occurrence of a Change of Control, (ii) tax matters (including
provisions covering any applicable Employee wage withholding requirements and requiring additional “gross-up” payments
to Holders to meet any excise taxes or other additional income tax liability imposed as a result of a payment made in connection
with a Change of Control resulting from the operation of the Plan or of such Restricted Stock Agreement) and (iii) any other
matters not inconsistent with the terms and provisions of the Plan that the Committee shall in its sole discretion determine. The
terms and conditions of the respective Restricted Stock Agreements need not be identical. All Shares delivered to a Holder as part
of a Restricted Stock Award shall be delivered and reported by the Company or the Affiliate, as applicable, to the Holder at the
time of vesting.

 

8.3           Payment
for Restricted Stock. The Committee shall determine the amount and form of any payment from a Holder for Shares received pursuant
to a Restricted Stock Award, if any, provided that in the absence of such a determination, a Holder shall not be required to make
any payment for Shares received pursuant to a Restricted Stock Award, except to the extent otherwise required by law.

 

Article
IX

UNRESTRICTED STOCK AWARDS

 

9.1           Award.
Shares may be awarded (or sold) to Employees, Directors or Consultants under the Plan which are not subject to Restrictions of
any kind, in consideration for past services rendered thereby to the Company or an Affiliate or for other valid consideration.

 

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9.2           Terms
and Conditions. At the time any Award is made under this Article IX, the Company and the Holder shall enter into an
Unrestricted Stock Agreement setting forth each of the matters contemplated hereby and such other matters as the Committee
may determine to be appropriate.

 

9.3           Payment
for Unrestricted Stock. The Committee shall determine the amount and form of any payment
from a Holder for Shares received pursuant to an Unrestricted Stock Award, if any, provided that in the absence of such a determination,
a Holder shall not be required to make any payment for Shares received pursuant to an Unrestricted Stock Award, except to the
extent otherwise required by law.

 

Article
X

RESTRICTED STOCK UNIT AWARDS

 

10.1         Award.
A Restricted Stock Unit Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to
the Holder at the end of a specified Restriction Period. At the time a Restricted Stock Unit Award is made, the Committee shall
establish the Restriction Period applicable to such Award. Each Restricted Stock Unit Award may have a different Restriction Period,
in the discretion of the Committee. A Restricted Stock Unit shall not constitute an equity interest in the Company and shall not
entitle the Holder to voting rights, dividends or any other rights associated with ownership of Shares prior to the time the Holder
shall receive a distribution of Shares pursuant to Section 10.3.

 

10.2         Terms
and Conditions. At the time any Award is made under this Article X, the Company and the Holder shall enter into a Restricted
Stock Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine
to be appropriate. The Restricted Stock Unit Agreement shall set forth the individual service-based vesting requirement which the
Holder would be required to satisfy before the Holder would become entitled to distribution pursuant to Section 10.3 and the number
of Units awarded to the Holder. Such conditions shall be sufficient to constitute a “substantial risk of forfeiture”
as such term is defined under Section 409A of the Code. At the time of such Award, the Committee may, in its sole discretion, prescribe
additional terms and conditions or restrictions relating to Restricted Stock Unit Awards in the Restricted Stock Unit Agreement,
including, but not limited to, rules pertaining to the effect of Termination of Service prior to expiration of the applicable vesting
period. The terms and conditions of the respective Restricted Stock Unit Agreements need not be identical.

 

10.3         Distributions
of Shares. The Holder of a Restricted Stock Unit shall be entitled to receive a cash payment equal to the Fair Market Value
of an Share, or one Share, as determined in the sole discretion of the Committee and as set forth in the Restricted Stock Unit
Agreement, for each Restricted Stock Unit subject to such Restricted Stock Unit Award, if the Holder satisfies the applicable vesting
requirement. Such distribution shall be made no later than by the fifteenth (15th) day of the third (3rd)
calendar month next following the end of the calendar year in which the Restricted Stock Unit first becomes vested (i.e., no longer
subject to a “substantial risk of forfeiture”).

 

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Article
XI

PERFORMANCE UNIT AWARDS

 

11.1         Award.
A Performance Unit Award shall constitute an Award under which, upon the satisfaction of predetermined individual and/or Company
(and/or Affiliate) Performance Goals based on selected Performance Criteria, a cash payment shall be made to the Holder, based
on the number of Units awarded to the Holder. At the time a Performance Unit Award is made, the Committee shall establish the Performance
Period and applicable Performance Goals. Each Performance Unit Award may have different Performance Goals, in the discretion of
the Committee. A Performance Unit Award shall not constitute an equity interest in the Company and shall not entitle the Holder
to voting rights, dividends or any other rights associated with ownership of Shares.

 

11.2         Terms
and Conditions. At the time any Award is made under this Article XI, the Company and the Holder shall enter into a Performance
Unit Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Committee shall set forth in the applicable Performance Unit Agreement the Performance Period, Performance
Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become
entitled to payment pursuant to Section 11.3, the number of Units awarded to the Holder and the dollar value or formula assigned
to each such Unit. Such payment shall be subject to a “substantial risk of forfeiture” under Section 409A of the Code.
At the time of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions
relating to Performance Unit Awards, including, but not limited to, rules pertaining to the effect of Termination of Service prior
to expiration of the applicable performance period. The terms and conditions of the respective Performance Unit Agreements need
not be identical.

 

11.3         Payments.
The Holder of a Performance Unit shall be entitled to receive a cash payment equal to the dollar value assigned to such Unit under
the applicable Performance Unit Agreement if the Holder and/or the Company satisfy (or partially satisfy, if applicable under the
applicable Performance Unit Agreement) the Performance Goals set forth in such Performance Unit Agreement. If necessary to satisfy
the requirements of Code Section 162(m), if applicable, the achievement of such Performance Goals shall be certified in writing
by the Committee prior to any payment. All payments shall be made no later than by the fifteenth (15th) day of the third
(3rd) calendar month next following the end of the Company’s fiscal year to which such performance goals and objectives
relate.

 

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Article
XII

PERFORMANCE STOCK AWARDS 

 

12.1         Award.
A Performance Stock Award shall constitute a promise to grant Shares (or cash equal to the Fair Market Value of Shares) to the
Holder at the end of a specified Performance Period subject to achievement of specified Performance Goals. At the time a Performance
Stock Award is made, the Committee shall establish the Performance Period and applicable Performance Goals based on selected Performance
Criteria. Each Performance Stock Award may have different Performance Goals, in the discretion of the Committee. A Performance
Stock Award shall not constitute an equity interest in the Company and shall not entitle the Holder to voting rights, dividends
or any other rights associated with ownership of Shares unless and until the Holder shall receive a distribution of Shares pursuant
to Section 11.3.

 

12.2         Terms
and Conditions. At the time any Award is made under this Article XII, the Company and the Holder shall enter into a Performance
Stock Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may determine to
be appropriate. The Committee shall set forth in the applicable Performance Stock Agreement the Performance Period, selected Performance
Criteria and Performance Goals which the Holder and/or the Company would be required to satisfy before the Holder would become
entitled to the receipt of Shares pursuant to such Holder’s Performance Stock Award and the number of Shares subject to such
Performance Stock Award. Such distribution shall be subject to a “substantial risk of forfeiture” under Section 409A
of the Code. If such Performance Goals are achieved, the distribution of Shares (or the payment of cash, as determined in the sole
discretion of the Committee), shall be made no later than by the fifteenth (15th) day of the third (3rd)
calendar month next following the end of the Company’s fiscal year to which such goals and objectives relate. At the time
of such Award, the Committee may, in its sole discretion, prescribe additional terms and conditions or restrictions relating to
Performance Stock Awards, including, but not limited to, rules pertaining to the effect of the Holder’s Termination of Service
prior to the expiration of the applicable performance period. The terms and conditions of the respective Performance Stock Agreements
need not be identical.

 

12.3         Distributions
of Shares. The Holder of a Performance Stock Award shall be entitled to receive a cash payment equal to the Fair Market Value
of a Share, or one Share, as determined in the sole discretion of the Committee, for each Performance Stock Award subject to such
Performance Stock Agreement, if the Holder satisfies the applicable vesting requirement. If necessary to satisfy the requirements
of Code Section 162(m), if applicable, the achievement of such Performance Goals shall be certified in writing by the Committee
prior to any payment. Such distribution shall be made no later than by the fifteenth (15th) day of the third (3rd)
calendar month next following the end of the Company’s fiscal year to which such performance goals and objectives relate.

 

Article
XIII

DISTRIBUTION EQUIVALENT RIGHTS

 

13.1         Award.
A Distribution Equivalent Right shall entitle the Holder to receive bookkeeping credits, cash payments and/or Share distributions
equal in amount to the distributions that would have been made to the Holder had the Holder held a specified number of Shares during
the specified period of the Award.

 

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13.2         Terms
and Conditions. At the time any Award is made under this Article XIII, the Company and the Holder shall enter into a Distribution
Equivalent Rights Award Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee
may determine to be appropriate. The Committee shall set forth in the applicable Distribution Equivalent Rights Award Agreement
the terms and conditions, if any, including whether the Holder is to receive credits currently in cash, is to have such credits
reinvested (at Fair Market Value determined as of the date of reinvestment) in additional Shares or is to be entitled to choose
among such alternatives. Such receipt shall be subject to a “substantial risk of forfeiture” under Section 409A of
the Code and, if such Award becomes vested, the distribution of such cash or Shares shall be made no later than by the fifteenth
(15th) day of the third (3rd) calendar month next following the end of the Company’s fiscal year in
which the Holder’s interest in the Award vests. Distribution Equivalent Rights Awards may be settled in cash or in Shares,
as set forth in the applicable Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights Award may, but
need not be, awarded in tandem with another Award (other than an Option or a SAR), whereby, if so awarded, such Distribution Equivalent
Rights Award shall expire, terminate or be forfeited by the Holder, as applicable, under the same conditions as under such other
Award.

 

13.3         Interest
Equivalents. The Distribution Equivalent Rights Award Agreement for a Distribution Equivalent Rights Award may provide for
the crediting of interest on a Distribution Rights Award to be settled in cash at a future date (but in no event later than by
the fifteenth (15th) day of the third (3rd) calendar month next following the end of the Company’s
fiscal year in which such interest is credited and vested), at a rate set forth in the applicable Distribution Equivalent Rights
Award Agreement, on the amount of cash payable thereunder.

 

Article
XIV

STOCK APPRECIATION RIGHTS

 

14.1         Award.
A Stock Appreciation Right shall constitute a right, granted alone or in connection with a related Option, to receive a payment
equal to the increase in value of a specified number of Shares between the date of Award and the date of exercise.

 

14.2         Terms
and Conditions. At the time any Award is made under this Article XIV, the Company and the Holder shall enter into a Stock
Appreciation Right Agreement setting forth each of the matters contemplated thereby and such other matters as the Committee may
determine to be appropriate. The Committee shall set forth in the applicable Stock Appreciation Right Agreement the terms and
conditions of the Stock Appreciation Right, including (i) the base value (the “Base Value”) for the Stock Appreciation
Right, which shall be not less than the Fair Market Value of an Share on the date of grant of the Stock Appreciation Right, (ii)
the number of Shares subject to the Stock Appreciation Right, (iii) the period during which the Stock Appreciation Right may be
exercised; provided, however, that no Stock Appreciation Right shall be exercisable after the expiration of ten
(10) years from the date of its grant, and (iv) any other special rules and/or requirements which the Committee imposes upon the
Stock Appreciation Right. Upon the exercise of some or all of the portion of a Stock Appreciation Right, the Holder shall receive
a payment from the Company, in cash or in the form of Shares having an equivalent Fair Market Value or in a combination of both,
as determined in the sole discretion of the Committee, equal to the product of:

 

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(a)          The
excess of (i) the Fair Market Value of an Share on the date of exercise, over (ii) the Base Value, multiplied by,

 

(b)          The
number of Shares with respect to which the Stock Appreciation Right is exercised.

 

14.3         Tandem
Stock Appreciation Rights. If the Committee grants a Stock Appreciation Right which is intended to be a Tandem Stock Appreciation
Right, the Tandem Stock Appreciation Right shall be granted at the same time as the related Option, and the following special rules
shall apply:

 

(a)          The
Base Value shall be equal to or greater than the per Share exercise price under the related Option;

 

(b)          The
Tandem Stock Appreciation Right may be exercised for all or part of the Shares which are subject to the related Option, but solely
upon the surrender by the Holder of the Holder’s right to exercise the equivalent portion of the related Option (and when
a Share is purchased under the related Option, an equivalent portion of the related Tandem Stock Appreciation Right shall be canceled);

 

(c)          The
Tandem Stock Appreciation Right shall expire no later than the date of the expiration of the related Option;

 

(d)          The
value of the payment with respect to the Tandem Stock Appreciation Right may be no more than one hundred percent (100%) of the
difference between the per Share exercise price under the related Option and the Fair Market Value of the Shares subject to the
related Option at the time the Tandem Stock Appreciation Right is exercised, multiplied by the number of the Shares with respect
to which the Tandem Stock Appreciation Right is exercised; and

 

(e)          The
Tandem Stock Appreciation Right may be exercised solely when the Fair Market Value of the Shares subject to the related Option
exceeds the per Share exercise price under the related Option.

 

Article
XV

RECAPITALIZATION OR REORGANIZATION 

 

15.1         Adjustments
to Shares. The shares with respect to which Awards may be granted under the Plan are Shares as presently constituted; provided,
however, that if, and whenever, prior to the expiration or distribution to the Holder of Shares underlying an Award theretofore
granted, the Company shall effect a subdivision or consolidation of the Shares or the payment of an Share dividend on Shares without
receipt of consideration by the Company, the number of Shares with respect to which such Award may thereafter be exercised or satisfied,
as applicable, (i) in the event of an increase in the number of outstanding Shares, shall be proportionately increased, and
the purchase price per Share shall be proportionately reduced, and (ii) in the event of a reduction in the number of outstanding
Shares, shall be proportionately reduced, and the purchase price per Share shall be proportionately increased. Notwithstanding
the foregoing or any other provision of this Article XV, any adjustment made with respect to an Award (x) which is an Incentive
Stock Option, shall comply with the requirements of Section 424(a) of the Code, and in no event shall any adjustment be made which
would render any Incentive Stock Option granted under the Plan to be other than an “incentive stock option” for purposes
of Section 422 of the Code, and (y) which is a Non-qualified Stock Option, shall comply with the requirements of Section 409A of
the Code, and in no event shall any adjustment be made which would render any Non-qualified Stock Option granted under the Plan
to become subject to Section 409A of the Code.

 

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15.2         Recapitalization.
If the Company recapitalizes or otherwise changes its capital structure, thereafter upon any exercise or satisfaction, as applicable,
of a previously granted Award, the Holder shall be entitled to receive (or entitled to purchase, if applicable) under such Award,
in lieu of the number of Shares then covered by such Award, the number and class of shares and securities to which the Holder would
have been entitled pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the Holder had
been the holder of record of the number of Shares then covered by such Award.

 

15.3         Other
Events. In the event of changes to the outstanding Shares by reason of an extraordinary cash dividend, reorganization, merger,
consolidation, combination, split-up, spin-off, exchange or other relevant change in capitalization occurring after the date of
the grant of any Award and not otherwise provided for under this Article XV, any outstanding Awards and any Award Agreements evidencing
such Awards shall be adjusted by the Board in its discretion in such manner as the Board shall deem equitable or appropriate taking
into consideration the applicable accounting and tax consequences, as to the number and price of Shares or other consideration
subject to such Awards. In the event of any adjustment pursuant to Sections 15.1, 15.2 or this Section 15.3, the aggregate number
of Shares available under the Plan pursuant to Section 5.1 (and the Code Section 162(m) limit set forth therein) may be appropriately
adjusted by the Board, the determination of which shall be conclusive. In addition, the Committee may make provision for a cash
payment to a Holder or a person who has an outstanding Award. In addition, the Committee may make provision for a cash payment
to a Holder or a person who has an outstanding Award.

 

15.5         Change
of Control. The Committee may, in its sole discretion, at the time an Award is made or at any time prior to, coincident with
or after the time of a Change of Control, cause any Award either (i) to be canceled in consideration of a payment in cash or other
consideration in amount per share equal to the excess, if any, of the price or implied price per Share in the Change of Control
over the per Share exercise, base or purchase price of such Award, which may be paid immediately or over the vesting schedule of
the Award; (ii) to be assumed, or new rights substituted therefore, by the surviving corporation or a parent or subsidiary of such
surviving corporation following such Change of Control; (iii) accelerate any time periods, or waive any other conditions, relating
to the vesting, exercise, payment or distribution of an Award so that any Award to a Holder whose employment has been terminated
as a result of a Change of Control may be vested, exercised, paid or distributed in full on or before a date fixed by the Committee;
(iv) to be purchased from a Holder whose employment has been terminated as a result of a Change of Control, upon the Holder’s
request, for an amount of cash equal to the amount that could have been obtained upon the exercise, payment or distribution of
such rights had such Award been currently exercisable or payable; or (v) terminate any then outstanding Award or make any other
adjustment to the Awards then outstanding as the Committee deems necessary or appropriate to reflect such transaction or change.
The number of Shares subject to any Award shall be rounded to the nearest whole number.

 

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15.6         Powers
Not Affected. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of
the Board or of the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other
change of the Company’s capital structure or business, any merger or consolidation of the Company, any issue of debt or
equity securities ahead of or affecting Shares or the rights thereof, the dissolution or liquidation of the Company or any sale,
lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

15.7         No
Adjustment for Certain Awards. Except as hereinabove expressly provided, the issuance by the Company of shares of any class
or securities convertible into shares of any class, for cash, property, labor or services, upon direct sale, upon the exercise
of rights or warrants to subscribe therefor or upon conversion of shares or obligations of the Company convertible into such shares
or other securities, and in any case whether or not for fair value, shall not affect previously granted Awards, and no adjustment
by reason thereof shall be made with respect to the number of Shares subject to Awards theretofore granted or the purchase price
per Share, if applicable.

 

Article
XVI

AMENDMENT AND TERMINATION OF PLAN

 

The Plan shall continue in effect, unless
sooner terminated pursuant to this Article XVI, until the tenth (10th) anniversary of the date on which it is adopted
by the Board (except as to Awards outstanding on that date). The Board in its discretion may terminate the Plan at any time with
respect to any shares for which Awards have not theretofore been granted; provided, however, that the Plan’s
termination shall not materially and adversely impair the rights of a Holder with respect to any Award theretofore granted without
the consent of the Holder. The Board shall have the right to alter or amend the Plan or any part hereof from time to time; provided,
however, that without the approval by a majority of the votes cast at a meeting of stockholders at which a quorum representing
a majority of the shares of the Company entitled to vote generally in the election of directors is present in person or by proxy,
no amendment or modification of the Plan may (i) materially increase the benefits accruing to Holders, (ii) except as
otherwise expressly provided in Article XV, materially increase the number of Shares subject to the Plan or the individual Award
Agreements specified in Article V, (iii) materially modify the requirements for participation in the Plan, or (iv) amend,
modify or suspend Section 7.7 (re-pricing prohibitions) or this Article XVI. In addition, no change in any Award theretofore granted
may be made which would materially and adversely impair the rights of a Holder with respect to such Award without the consent of
the Holder (unless such change is required in order to cause the benefits under the Plan to qualify as “performance-based”
compensation within the meaning of Section 162(m) of the Code or to exempt the Plan or any Award from Section 409A of the Code).

 

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Article
XVII

MISCELLANEOUS

 

17.1         No
Right to Award. Neither the adoption of the Plan by the Company nor any action of the Board or the Committee shall be deemed
to give an Employee, Director or Consultant any right to an Award except as may be evidenced by an Award Agreement duly executed
on behalf of the Company, and then solely to the extent and on the terms and conditions expressly set forth therein.

 

17.2         No
Rights Conferred. Nothing contained in the Plan shall (i) confer upon any Employee any right with respect to continuation
of employment with the Company or any Affiliate, (ii) interfere in any way with any right of the Company or any Affiliate
to terminate the employment of an Employee at any time, (iii) confer upon any Director any right with respect to continuation
of such Director’s membership on the Board, (iv) interfere in any way with any right of the Company or an Affiliate
to terminate a Director’s membership on the Board at any time, (v) confer upon any Consultant any right with respect
to continuation of his or her consulting engagement with the Company or any Affiliate, or (vi) interfere in any way with any
right of the Company or an Affiliate to terminate a Consultant’s consulting engagement with the Company or an Affiliate at
any time.

 

17.3         Other
Laws; No Fractional Shares; Withholding. The Company shall not be obligated by virtue of any provision of the Plan to recognize
the exercise of any Award or to otherwise sell or issue Shares in violation of any laws, rules or regulations, and any postponement
of the exercise or settlement of any Award under this provision shall not extend the term of such Award. Neither the Company nor
its directors or officers shall have any obligation or liability to a Holder with respect to any Award (or Shares issuable thereunder)
(i) that shall lapse because of such postponement, or (ii) for any failure to comply with the requirements of any applicable
law, rules or regulations, including but not limited to any failure to comply with the requirements of Section 409A of this Code.
No fractional Shares shall be delivered, nor shall any cash in lieu of fractional Shares be paid. The Company shall have the right
to deduct in cash (whether under this Plan or otherwise) in connection with all Awards any taxes required by law to be withheld
and to require any payments required to enable it to satisfy its withholding obligations. In the case of any Award satisfied in
the form of Shares, no Shares shall be issued unless and until arrangements satisfactory to the Company shall have been made to
satisfy any tax withholding obligations applicable with respect to such Award. Subject to such terms and conditions as the Committee
may impose, the Company shall have the right to retain, or the Committee may, subject to such terms and conditions as it may establish
from time to time, permit Holders to elect to tender, Shares (including Shares issuable in respect of an Award) to satisfy, in
whole or in part, the amount required to be withheld.

 

    22 

    Mota Group, Inc 2016 Omnibus Equity Incentive Plan

    

 

17.4         No
Restriction on Corporate Action. Nothing contained in the Plan shall be construed to prevent the Company or any Affiliate from
taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether
or not such action would have an adverse effect on the Plan or any Award made under the Plan. No Employee, Director, Consultant,
beneficiary or other person shall have any claim against the Company or any Affiliate as a result of any such action.

 

17.5         Restrictions
on Transfer. No Award under the Plan or any Award Agreement and no rights or interests herein or therein, shall or may be assigned,
transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a Holder except (i) by will
or by the laws of descent and distribution, or (ii) where permitted under applicable tax rules, by gift to any Family Member
of the Holder, subject to compliance with applicable laws. An Award may be exercisable during the lifetime of the Holder only by
such Holder or by the Holder’s guardian or legal representative unless it has been transferred by gift to a Family Member
of the Holder, in which case it shall be exercisable solely by such transferee. Notwithstanding any such transfer, the Holder shall
continue to be subject to the withholding requirements provided for under Section 17.3 hereof.

 

17.6         Beneficiary
Designations. Each Holder may, from time to time, name a beneficiary or beneficiaries (who may be contingent or successive
beneficiaries) for purposes of receiving any amount which is payable in connection with an Award under the Plan upon or subsequent
to the Holder’s death. Each such beneficiary designation shall serve to revoke all prior beneficiary designations, be in
a form prescribed by the Company and be effective solely when filed by the Holder in writing with the Company during the Holder’s
lifetime. In the absence of any such written beneficiary designation, for purposes of the Plan, a Holder’s beneficiary shall
be the Holder’s estate.

 

17.7         Rule
16b-3. It is intended that the Plan and any Award made to a person subject to Section 16 of the Exchange Act shall meet all
of the requirements of Rule 16b-3. If any provision of the Plan or of any such Award would disqualify the Plan or such Award
under, or would otherwise not comply with the requirements of, Rule 16b-3, such provision or Award shall be construed or deemed
to have been amended as necessary to conform to the requirements of Rule 16b-3.

 

    23 

    Mota Group, Inc 2016 Omnibus Equity Incentive Plan

    

 

17.8         Section
162(m). The following conditions shall apply if it is intended that the requirements of Section 162(m) of the Code be satisfied
such that Awards under the Plan which are made to Holders who are “covered employees” (as defined in Section 162(m)
of the Code) shall constitute “performance-based” compensation within the meaning of Section 162(m) of the Code: Any
Performance Goal(s) applicable to Qualified Performance-Based Awards shall be objective, shall be established not later than ninety
(90) days after the beginning of any applicable Performance Period (or at such other date as may be required or permitted for “performance-based”
compensation under Section 162(m) of the Code) and shall otherwise meet the requirements of Section 162(m) of the Code, including
the requirement that the outcome of the Performance Goal or Goals be substantially uncertain (as defined in the regulations under
Section 162(m) of the Code) at the time established. The Performance Criteria to be utilized under the Plan to establish Performance
Goals shall consist of objective tests based on one or more of the following: earnings or earnings per share, cash flow or cash
flow per share, operating cash flow or operating cash flow per share revenue growth, product revenue growth, financial return ratios
(such as return on equity, return on investment and/or return on assets), share price performance, stockholder return, equity and/or
value, operating income, operating margins, earnings before interest, taxes, depreciation and amortization, earnings, pre- or post-tax
income, economic value added (or an equivalent metric), profit returns and margins, credit quality, sales growth, market share,
working capital levels, comparisons with various share market indices, year-end cash, debt reduction, assets under management,
operating efficiencies, strategic partnerships or transactions (including co-development, co-marketing, profit sharing, joint venture
or other similar arrangements), and/or financing and other capital raising transaction. Performance criteria may be established
on a Company-wide basis or with respect to one or more Company business units or divisions or subsidiaries; and either in absolute
terms, relative to the performance of one or more similarly situated companies, or relative to the performance of an index covering
a peer group of companies. When establishing Performance Goals for the applicable Performance Period, the Committee may exclude
any or all “extraordinary items” as determined under U.S. generally accepted accounting principles including, without
limitation, the charges or costs associated with restructurings of the Company, discontinued operations, other unusual or non-recurring
items, and the cumulative effects of accounting changes, and as identified in the Company’s financial statements, notes to
the Company’s financial statements or management’s discussion and analysis of financial condition and results of operations
contained in the Company’s most recent annual report filed with the U.S. Securities and Exchange Commission pursuant to the
Exchange Act. Holders who are “covered employees” (as defined in Section 162(m) of the Code) shall be eligible
to receive payment under a Qualified Performance-Based Award which is subject to achievement of a Performance Goal or Goals only
if the applicable Performance Goal or Goals are achieved within the applicable Performance Period, as determined by the Committee.
If any provision of the Plan would disqualify the Plan or would not otherwise permit the Plan to comply with Section 162(m)
of the Code as so intended, such provision shall be construed or deemed amended to conform to the requirements or provisions of
Section 162(m) of the Code. The Committee may postpone the exercising of Awards, the issuance or delivery of Shares under any Award
or any action permitted under the Plan to prevent the Company or any subsidiary from being denied a federal income tax deduction,
provided that such deferral satisfies the requirements of Section 409A of the Code. For purposes of the requirements of Treasury
Regulation Section 1.162-27(e)(4)(i), the maximum aggregate amount that may be paid in cash during any calendar year to any
one person (measured from the date of any payment) with respect to one or more Awards payable in cash shall be One Million Dollars
($1,000,000)].

 

    24 

    Mota Group, Inc 2016 Omnibus Equity Incentive Plan

    

 

17.9         Clawback
Policy. Notwithstanding any contained herein or in any incentive “performance based” Awards under the Plan shall
be subject to reduction, forfeiture or repayment by reason of a correction or restatement of the Company’s financial information
if and to the extent such reduction or repayment is required by any applicable law.

 

17.10         Section
409A. Notwithstanding any other provision of the Plan, the Committee shall have no authority to issue an Award under the Plan
with terms and/or conditions which would cause such Award to constitute non-qualified “deferred compensation” under
Section 409A of the Code unless such Award shall be structured to be exempt from or comply with all requirements of Code Section
409A. The Plan and all Award Agreements are intended to comply with the requirements of Section 409A of the Code (or to be
exempt therefrom) and shall be so interpreted and construed and no amount shall be paid or distributed from the Plan unless and
until such payment complies with all requirements of Code Section 409A. It is the intent of the Company that the provisions of
this Agreement and all other plans and programs sponsored by the Company be interpreted to comply in all respects with Code Section
409A, however, the Company shall have no liability to the Holder, or any successor or beneficiary thereof, in the event taxes,
penalties or excise taxes may ultimately be determined to be applicable to any payment or benefit received by the Holder or any
successor or beneficiary thereof.

 

17.11         Indemnification.
Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred thereby in connection with
or resulting from any claim, action, suit, or proceeding to which such person may be made a party or may be involved by reason
of any action taken or failure to act under the Plan and against and from any and all amounts paid thereby in settlement thereof,
with the Company’s approval, or paid thereby in satisfaction of any judgment in any such action, suit, or proceeding against
such person; provided, however, that such person shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification
shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under
the Company’s Articles of Incorporation or By-laws, by contract, as a matter of law, or otherwise.

 

17.12         Other
Benefit Plans. No Award, payment or amount received hereunder shall be taken into account in computing an Employee’s
salary or compensation for the purposes of determining any benefits under any pension, retirement, life insurance or other benefit
plan of the Company or any Affiliate, unless such other plan specifically provides for the inclusion of such Award, payment or
amount received. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation
to its employees, in cash or property, in a manner which is not expressly authorized under the Plan.

 

17.13         Limits
of Liability. Any liability of the Company with respect to an Award shall be based solely upon the contractual obligations
created under the Plan and the Award Agreement. None of the Company, any member of the Board nor any member of the Committee shall
have any liability to any party for any action taken or not taken, in good faith, in connection with or under the Plan.

 

    25 

    Mota Group, Inc 2016 Omnibus Equity Incentive Plan

    

 

17.14         Governing
Law. Except as otherwise provided herein, the Plan shall be construed in accordance with the laws of the State of Delaware,
without regard to principles of conflicts of law.

 

17.15         Severability
of Provisions. If any provision of the Plan is held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision of the Plan, and the Plan shall be construed and enforced as if such invalid or unenforceable provision
had not been included in the Plan.

 

17.16         No
Funding. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make
any other segregation of funds or assets to ensure the payment of any Award. Prior to receipt of Shares or a cash distribution
pursuant to the terms of an Award, such Award shall represent an unfunded unsecured contractual obligation of the Company and the
Holder shall have no greater claim to the Shares underlying such Award or any other assets of the Company or Affiliate than any
other unsecured general creditor.

 

17.17         Headings.
Headings used throughout the Plan are for convenience only and shall not be given legal significance.

 

    26Exhibit 10.2

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”) is dated as of March 31, 2016 and effective as of October 12, 2016 (the
“Effective Date”), by and between MOTA GROUP, INC., a corporation
organized and existing under the laws of the State of Delaware (the “Company”), and TCA GLOBAL CREDIT MASTER
FUND, LP, a limited partnership organized and existing under the laws of the Cayman Islands (the “Buyer”).

 

WHEREAS,
Buyer desires to purchase from Company, and the Company desires to sell and issue to Buyer, upon the terms and subject to the conditions
contained herein, up to Three Million and No/100 United States Dollars ($3,000,000) of senior secured redeemable debentures (in
the form attached hereto as Exhibit A, the “Debenture(s)”), of which One Million Five Hundred Thousand
and No/100 United States Dollars ($1,500,000) shall be purchased on the date hereof (the “First Closing”) for
the total purchase price of One Million Five Hundred Thousand and No/100 United States Dollars ($1,500,000) (the “Purchase
Price”), and up to One Million Five Hundred Thousand and No/100 United States Dollars ($1,500,000) may be purchased in
additional closings as set forth in Section 4.2 below (the “Additional Closings”) (each of the First
Closing and the Additional Closings are sometimes hereinafter individually referred to as a “Closing” and collectively
as the “Closings”), all subject to the terms and provisions hereinafter set forth;

 

WHEREAS,
the Company, UNorth One LLC, a limited liability company organized and existing under the laws of the State of Nevada, Mota HK
Limited, a limited liability company incorporated under the laws of Hong Kong with company registration number 1962036, and Michael
M. Faro (“Faro”) and Lily Qingsong Ju (“Qingsong Ju”), a married couple residing at 900 Teakwood
Ct, #2, Los Gatos, CA 95032 (together, jointly and severally, the “Guarantors” and together with the Company
and any other person or entity to hereafter become a guarantor or party hereunder, collectively, the “Credit Parties”),
have each agreed to secure all of the Company’s Obligations to Buyer under the Debentures, this Agreement and all other Transaction
Documents by granting to the Buyer an unconditional and continuing security interest in all of the assets and properties of the
Company and the Guarantors, whether now existing or hereafter acquired, pursuant to those certain Security Agreements, each dated
as of the date hereof (in the forms attached hereto as Exhibit B, the “Security Agreements”);

 

WHEREAS,
the Guarantors will receive a substantial benefit from the Buyer’s purchase of the Debenture and, as such, have agreed to
guarantee all of the Obligations of the Buyer under the Debentures, this Agreement and all other Transactions Documents pursuant
to those certain Guaranty Agreements, each dated as of the date hereof (in the form attached hereto as Exhibit C, the “Guaranty
Agreements”); and

 

    1

     

    

 

WHEREAS,
as security for the payment and performance of any and all of the Company’s Obligations to Buyer under the Debentures, this
Agreement and all other Transaction Agreements, Pledgors (as defined herein) have agreed to execute that certain Pledge Agreement
in favor of Buyer, whereby the Pledgors shall each pledge to the Buyer all of their right, title and interest in and to, and provide
a first priority lien and security interest on, certain issued and outstanding shares or membership interests, as applicable, of
the Pledged Companies (as defined herein), each dated as of the date hereof (in the form attached hereto as Exhibit D, the
“Pledge Agreements”).

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants of the parties hereinafter expressed and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending to be legally bound, agree as follows:

 

ARTICLE I

RECITALS, EXHIBITS, SCHEDULES

 

The foregoing
recitals are true and correct and, together with the Schedules and Exhibits referred to hereafter, are hereby incorporated into
this Agreement by this reference.

 

ARTICLE II

DEFINITIONS

 

For purposes
of this Agreement, except as otherwise expressly provided or otherwise defined elsewhere in this Agreement, or unless the context
otherwise requires, the capitalized terms in this Agreement shall have the meanings assigned to them in this Article as follows:

 

2.1           “Affiliate”
means, with respect to a Person, any other Person directly or indirectly controlling, controlled by, or under common control with,
such Person at any time during the period for which the determination of affiliation is being made. For purposes of this definition,
the term “control,” “controlling,” “controlled” and words of similar import,
when used in this context, means, with respect to any Person, the possession, directly or indirectly, of the power to direct, or
cause the direction of, management policies of such Person, whether through the ownership of voting securities, by contract or
otherwise.

 

2.2           “Assets”
means all of the properties and assets of the Person in question, as the context may so require, whether real, personal or mixed,
tangible or intangible, wherever located, whether now owned or hereafter acquired.

 

2.3           “Business
Day” shall mean any day other than a Saturday, Sunday or a legal holiday on which federal banks are authorized or required
to be closed for the conduct of commercial banking business.

 

2.4           “Claims”
means any Proceedings, Judgments, Obligations, threats, losses, damages, deficiencies, settlements, assessments, charges, costs
and expenses of any nature or kind.

 

2.5           “Compliance
Certificate” means that certain compliance certificate executed by an officer of the Company in the form attached hereto
as Exhibit E.

 

    2

     

    

 

2.6           “Consent”
means any consent, approval, order or authorization of, or any declaration, filing or registration with, or any application or
report to, or any waiver by, or any other action (whether similar or dissimilar to any of the foregoing) of, by or with, any Person,
which is necessary in order to take a specified action or actions, in a specified manner and/or to achieve a specific result.

 

2.7           “Contract”
means any written or oral contract, agreement, order or commitment of any nature whatsoever, including, any sales order, purchase
order, lease, sublease, license agreement, services agreement, loan agreement, mortgage, security agreement, guarantee, management
contract, employment agreement, consulting agreement, partnership agreement, shareholders agreement, buy-sell agreement, option,
warrant, debenture, subscription, call or put.

 

2.8           “Collateral”
shall have the meaning given to it in the Security Agreements and the Mortgage.

 

2.9           “Credit
Party(ies)” shall have the meaning given to it in the recitals hereof.

 

2.10         “Debenture(s)”
shall have the meaning given to it in the preamble hereof.

 

2.11         “Effective
Date” means the date so defined in the introductory paragraph of this Agreement.

 

2.12         “Encumbrance”
means any lien, security interest, pledge, mortgage, easement, leasehold, assessment, tax, covenant, restriction, reservation,
conditional sale, prior assignment, or any other encumbrance, claim, burden or charge of any nature whatsoever.

 

2.13         “Environmental
Requirements” means all Laws and requirements relating to human, health, safety or protection of the environment or to
emissions, discharges, releases or threatened releases of pollutants, contaminants, or Hazardous Materials in the environment (including,
without limitation, ambient air, surface water, ground water, land surface or subsurface strata), or otherwise relating to the
treatment, storage, disposal, transport or handling of any Hazardous Materials.

 

2.14         “GAAP”
means generally accepted accounting principles, methods and practices set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants, and statements and pronouncements of the Financial
Accounting Standards Board, or of such other Person as may be approved by a significant segment of the U.S. accounting profession,
in each case as of the date or period at issue, and as applied in the U.S. to U.S. companies.

 

2.15         “Governmental
Authority” means any foreign, federal, state or local government, or any political subdivision thereof, or any court,
agency or other body, organization, group, stock market or exchange exercising any executive, legislative, judicial, quasi-judicial,
regulatory or administrative function of government.

 

2.16         “Guaranty
Agreements” shall have the meaning given to it in the recitals hereof.

 

2.17         “Guarantors”
shall have the meaning given to it in the recitals hereof.

 

    3

     

    

 

2.18         “Hazardous
Materials” means: (i) any chemicals, materials, substances or wastes which are now or hereafter become defined as or
included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic
pollutants” or words of similar import, under any Law; and (iii) any other chemical, material, substance, or waste, exposure
to which is now or hereafter prohibited, limited or regulated by any Governmental Authority.

 

2.19         “Judgment”
means any order, writ, injunction, fine, citation, award, decree, or any other judgment of any nature whatsoever of any Governmental
Authority.

 

2.20         “Law”
means any provision of any law, statute, ordinance, code, constitution, charter, treaty, rule or regulation of any Governmental
Authority.

 

2.21         “Leases”
means all leases for real or personal property.

 

2.22         “Material
Adverse Effect” shall mean: (i) a material adverse change in, or a material adverse effect upon, the Assets, business,
prospects, properties, financial condition or results of operations of the Company; (ii) a material impairment of the ability of
the Company to perform any of its Obligations under any of the Transaction Documents; or (iii) a material adverse effect on: (A)
any material portion of the “Collateral” (as such term is defined in the Security Agreements); (B) the legality, validity,
binding effect or enforceability against the Credit Parties of any of the Transaction Documents; (C) the perfection or priority
of any Encumbrance granted to Buyer under any Transaction Documents; or (D) the rights or remedies of the Buyer under any of the
Transaction Documents. For purposes of determining whether any of the foregoing changes, effects, impairments, or other events
have occurred, such determination shall be made by Buyer, in its sole, but reasonably exercised, discretion.

 

2.23         “Material
Contract” shall mean any Contract to which the Company is a party or by which the Company or any of its Assets
are bound and which: (i) must be disclosed to any Governmental Authority or any other laws, rules or regulations of any Governmental
Authority; (ii) involves aggregate payments of Seventy-Five Thousand Dollars ($75,000) or more to or from the Company; (iii) involves
delivery, purchase, licensing or provision, by or to the Company, of any goods, services, assets or other items having a value
(or potential value) over the term of such Contract of Seventy-Five Thousand Dollars ($75,000) or more or is otherwise material
to the conduct of the Company’s business as now conducted and as contemplated to be conducted in the future; (iv) involves
a Company Lease; v) imposes any guaranty, surety or indemnification obligations on the Company; or (vi) prohibits the Company from
engaging in any business or competing anywhere in the world.

 

2.24         “Membership
Interests” shall mean the membership interests in the Company.

 

2.25         “Obligation”
means, now existing or in the future, any debt, liability or obligation of any nature whatsoever (including any required performance
of any covenants or agreements), whether secured, unsecured, recourse, nonrecourse, liquidated, unliquidated, accrued, voluntary
or involuntary, direct or indirect, absolute, fixed, contingent, ascertained, unascertained, known, unknown, whether or not jointly
owed with others, whether or not from time to time decreased or extinguished and later decreased, created or incurred, or obligations
existing or incurred under this Agreement, the Debentures or any other Transaction Documents, or any other agreement between any
of the Credit Parties and the Buyer, as such obligations may be amended, supplemented, converted, extended or modified from time
to time.

 

    4

     

    

 

2.26         “Ordinary
Course of Business” means the ordinary course of business of the Person in question, consistent with past custom
and practice (including with respect to quantity, quality and frequency).

 

2.27         “Permit”
means any license, permit, approval, waiver, order, authorization, right or privilege of any nature whatsoever, granted, issued,
approved or allowed by any Governmental Authority.

 

2.28         “Person”
means any individual, sole proprietorship, joint venture, partnership, company, corporation, association, cooperation, trust,
estate, Governmental Authority, or any other entity of any nature whatsoever.

 

2.29         “Pledge
Agreements” shall have the meaning given to it in the recitals hereof.

 

2.30         “Pledged
Companies” shall mean the Company, UNorth One, LLC, and Mota HK Limited.

 

2.31         “Pledgors”
shall mean the Company, Michael M. Faro and Lily Qingsong Ju.

 

2.32         “Proceeding”
means any demand, claim, suit, action, litigation, investigation, audit, study, arbitration, administrative hearing, or any
other proceeding of any nature whatsoever.

 

2.33         “Real
Property” means any real estate, land, building, structure, improvement, fixture or other real property of any
nature whatsoever, including, but not limited to, fee and leasehold interests.

 

2.34         “SEC”
shall mean the United States Securities and Exchange Commission.

 

2.35         “Securities”
means the Debentures.

 

2.36         “Securities
Act” shall mean the Securities Act of 1933, as amended.

 

2.37         “Security
Agreements” shall have the meaning given to it in the recitals hereof.

 

2.38         “Tax”
means (i) any foreign, federal, state or local income, profits, gross receipts, franchise, sales, use, occupancy, general property,
real property, personal property, intangible property, transfer, fuel, excise, accumulated earnings, personal holding company,
unemployment compensation, social security, withholding taxes, payroll taxes, or any other tax of any nature whatsoever, (ii) any
foreign, federal, state or local organization fee, qualification fee, annual report fee, filing fee, occupation fee, assessment,
rent, or any other fee or charge of any nature whatsoever, or (iii) any deficiency, interest or penalty imposed with respect to
any of the foregoing.

 

    5

     

    

 

2.39         “Tax
Return” means any tax return, filing, declaration, information statement or other form or document required to be filed
in connection with or with respect to any Tax.

 

2.40         “Transaction
Documents” means this Agreement any and all documents or instruments executed or to be executed by any Credit Party in
connection with this Agreement, including the Debentures, the Security Agreements, the Guaranty Agreements, the Use of Proceeds
Confirmation, the Pledge Agreements, the Use Of Proceeds Confirmation and the Validity Certificates, together with all modifications,
amendments, extensions, future advances, renewals, and substitutions thereof.

 

2.41         “Use
of Proceeds Confirmation” means that certain use of proceeds confirmation executed by an officer of the Company in the
form attached hereto as Exhibit F.

 

2.42         “Validity
Certificate(s)” shall mean those certain validity certificates executed by such officers and directors of the Company
as the Buyer shall require, in the Buyer’s sole discretion, the form of which is attached hereto as Exhibit G.

 

ARTICLE III

INTERPRETATION

 

In this
Agreement, unless the express context otherwise requires: (i) the words “herein,” “hereof” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) references
to the words “Article” or “Section” refer to the respective Articles and Sections of this Agreement, and
references to “Exhibit” or “Schedule” refer to the respective Exhibits and Schedules annexed hereto; (iii)
references to a “party” mean a party to this Agreement and include references to such party’s permitted successors
and permitted assigns; (iv) references to a “third party” mean a Person not a party to this Agreement; (v) references
to the words “share” or “shareholder”, if in reference to the Company, shall refer to “units”
or “unitholder” respectively and (v) the terms “dollars” and “$” means U.S. dollars; (vi) wherever
the word “include,” “includes” or “including” is used in this Agreement, it will be deemed
to be followed by the words “without limitation”.

 

ARTICLE IV

PURCHASE AND SALE OF DEBENTURES

 

4.1           Purchase
and Sale of Debentures. Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement, Buyer agrees
to purchase, at each Closing, and Company agrees to sell and issue to Buyer, at each Closing, Debentures in the amount of the purchase
price applicable to each Closing as more specifically set forth below.

 

4.2           Closing
Dates. The First Closing of the purchase and sale of the Debentures shall be for One Million Five Hundred Thousand and No/100
United States Dollars ($1,500,000), and shall take place on the Effective Date, subject to satisfaction of the conditions to the
First Closing set forth in this Agreement (the “First Closing Date”). Additional Closings of the purchase and
sale of the Debentures shall be at such times and for such amounts as determined in accordance with Section 4.4 below, subject
to satisfaction of the conditions to the Additional Closings set forth in this Agreement (the “Additional Closing Dates”)
(collectively referred to as the “Closing Dates”). The Closings shall occur on the respective Closing Dates
through the use of overnight mails and subject to customary escrow instructions from Buyer and its counsel, or in such other manner
as is mutually agreed to by the Company and the Buyer.

 

    6

     

    

 

 

4.3           Form
of Payment. Subject to the satisfaction of the terms and conditions of this Agreement, on each Closing Date: (i) the Buyer
shall deliver to the Company, to a Company account designated by the Company, the aggregate proceeds for the Debentures to be issued
and sold to Buyer at each such Closing, minus the fees to be paid directly from the proceeds of each such Closing as set forth
in this Agreement, in the form of wire transfers of immediately available U.S. dollars; and (ii) the Company shall deliver to Buyer
the Securities which Buyer is purchasing hereunder at each Closing, duly executed on behalf of the Company, together with any other
documents required to be delivered pursuant to this Agreement.

 

4.4           Additional
Closings. At any time after the First Closing but prior to the maturity date of any of the Debentures issued in the First Closing,
the Company may request that Buyer purchase additional Debentures hereunder in Additional Closings by written notice to Buyer,
and, subject to the conditions below, Buyer shall purchase such additional Debentures in such amounts and at such times as Buyer
and the Company may mutually agree, so long as the following conditions have been satisfied, in Buyer’s sole and absolute
discretion: (i) no default or “Event of Default” (as such term is defined in any of the Transaction Documents) shall
have occurred or be continuing under this Agreement or any other Transaction Documents, and no event shall have occurred that,
with the passage of time, the giving of notice, or both, would constitute a default or an Event of Default hereunder or thereunder;
and (ii) any additional purchase of Debentures beyond the purchase of Debentures at the First Closing shall have been approved
by Buyer, which approval may be given or withheld in Buyer’s sole and absolute discretion.

 

ARTICLE V

BUYER’S REPRESENTATIONS
AND WARRANTIES

 

Buyer represents and warrants
to the Company, that:

 

5.1           Investment
Purpose. Buyer is acquiring the Securities for its own account for investment only and not with a view towards, or for resale
in connection with, the public sale or distribution thereof.

 

5.2           Accredited
Buyer Status. Buyer is an “accredited investor” as that term is defined in Rule 501 of Regulation D, as promulgated
under the Securities Act of 1933.

 

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

 

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5.4           Information.
Buyer and its advisors, if any, have been furnished with all materials they have requested relating to the business, finances and
operations of the Company and information Buyer deemed material to making an informed investment decision regarding its purchase
of the Securities. Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management.
Neither such inquiries, nor any materials provided to Buyer, nor any other due diligence investigations conducted by Buyer or its
advisors, if any, or its representatives, shall modify, amend or affect Buyer’s right to fully rely on the Company’s
representations and warranties contained in Article VI below. Buyer understands that its investment in the Securities involves
a high degree of risk. Buyer is in a position regarding the Company, which, based upon economic bargaining power, enabled and enables
Buyer to obtain information from the Company in order to evaluate the merits and risks of this investment. Buyer has sought such
accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition
of the Securities.

 

5.5           No
Governmental Review. Buyer understands that no United States federal or state Governmental Authority has passed on or made
any recommendation or endorsement of the Securities, or the fairness or suitability of the investment in the Securities, nor have
such Governmental Authorities passed upon or endorsed the merits of the offering of the Securities.

 

5.6           Authorization,
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of Buyer and is a valid
and binding agreement of Buyer, enforceable in accordance with its terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

 

To induce
the Buyer to purchase the Securities, the Credit Parties, as applicable make the following representations and warranties to Buyer,
each of which shall be true and correct in all respects as of the date of the execution and delivery of this Agreement and as of
the date of each Closing hereunder (except for representations and warranties that speak as of a specific date), and which shall
survive the execution and delivery of this Agreement:

 

6.1           Subsidiaries.
A list of all of the Company’s Subsidiaries, direct and indirect, is set forth in Schedule 6.1 hereto. 

 

6.2           Organization.
Each Credit Party, other than Faro and Qingsong Ju, is a corporation, limited liability company, or other form of legally recognized
entity, as applicable, duly organized, validly existing
and in good standing under the Laws of the jurisdiction in which it is incorporated or formed, and has the full power and authority
and all necessary certificates, licenses, approvals and Permits to: (i) enter into and execute this Agreement and the Transaction
Documents and to perform all of its Obligations hereunder and thereunder; and (ii) own and operate its Assets and properties and
to conduct and carry on its business as and to the extent now conducted. Each Credit Party, other than Faro and Qingsong Ju, is
duly qualified to transact business and is in good standing as a foreign corporation in each jurisdiction where the character
of its business or the ownership or use and operation of its Assets or properties requires such qualification. The exact legal
name of the Credit Parties is as set forth in the preamble to this Agreement, and the Credit Parties do not currently conduct,
nor have the Credit Parties, during the last five (5) years, conducted business under any other name or trade name, except for
the Company. 

 

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6.3           Authority
and Approval of Agreement; Binding Effect. The execution and delivery by Credit Parties of this Agreement and the Transaction
Documents, and the performance by each Credit Party of all of its Obligations hereunder and thereunder, including the issuance
of the Securities, have been duly and validly authorized and approved by each Credit Party and its board of directors, stockholders,
members, managers, partners pursuant to all applicable Laws and no other action or Consent on the part of any Credit Party, its
board of directors, managers, stockholders members, partners or any other Person is necessary or required by the Credit Parties
to execute this Agreement and the Transaction Documents, consummate the transactions contemplated herein and therein, perform all
of its Obligations hereunder and thereunder, or to issue the Securities. This Agreement and each of the Transaction Documents have
been duly and validly executed by Credit Parties (and the officer executing this Agreement and all such other Transaction Documents
is duly authorized to act and execute same on behalf of each Credit Party) and constitute the valid and legally binding agreements
of the Credit Parties, enforceable against each Credit Party in accordance with their respective terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

6.4           Capitalization.
The authorized capital stock or other capitalization of each Credit Party, as applicable, is set forth in Schedule 6.4 attached
hereto. All of such outstanding shares or other securities of each Credit Party are validly
issued, fully paid and non-assessable and have been issued in compliance with all foreign, federal and state securities laws and
none of such outstanding shares or other securities were issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities. As of the Effective Date, no shares of capital stock or other securities of any Credit Party are subject
to preemptive rights or any other similar rights or any Claims or Encumbrances suffered or permitted by any Credit Party. Except
for the Securities to be issued pursuant to this Agreement, as of the date hereof: (i) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its Subsidiaries, or Contracts, commitments, understandings 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, or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries; (ii)
there are no outstanding debt securities, notes, credit agreements, credit facilities or other Contracts or instruments evidencing
indebtedness of the Company or any of its Subsidiaries, or by which the Company or any of its Subsidiaries is or may become bound;
(iii) there are no outstanding registration statements with respect to any Credit Party or any of its securities; (iv) there are
no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their
securities under the Securities Act (except pursuant to this Agreement); (v) there are no financing statements securing obligations
filed in connection with the Company or any of its Assets; (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by this Agreement or any related agreement or the consummation of the transactions
described herein or therein; and (vii) there are no outstanding securities or instruments of the Company which contain any redemption
or similar provisions, and there are no Contracts by which the Company is or may become bound to redeem a security of the Company.
The Company has furnished to the Buyer true, complete and correct copies of: each Credit Party’s respective articles of incorporation
(including any certificates of designation, is applicable), bylaws, operating agreement, partnership agreement, certificate of
organization or similar organizational and governing documents (the “Organizational
Documents”). Except for the Organizational Documents or as disclosed in the Public Documents, there are no other shareholder
agreements, voting agreements or other Contracts of any nature or kind that restrict, limit or in any manner impose Obligations
on the governance of any Credit Party.

 

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6.5           No
Conflicts; Consents and Approvals. The execution, delivery and performance of this Agreement and the Transaction Documents,
and the consummation of the transactions contemplated hereby and thereby, including the issuance of any of the Securities, will
not: (i) constitute a violation of or conflict with the Organizational Documents of the Credit Parties; (ii) constitute a violation
of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both), or conflicts with, or gives to
any other Person any rights of termination, amendment, acceleration or cancellation of, any provision of any Contract to which
any Credit Party is a party or by which any of its Assets or properties may be bound; (iii) constitute a violation of, or a default
or breach under (either immediately, upon notice, upon lapse of time, or both), or conflicts with, any Judgment; (iv) constitute
a violation of, or conflict with, any Law (including United States federal and state securities Laws); or (v) result in the loss
or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to, any Permit granted or
issued to, or otherwise held by or for the use of, any Credit Party or any of its Assets. The Credit Parties are not in violation
of any Credit Parties’ Organizational Documents and the Credit Parties are not in default or breach (and no event has occurred
which with notice or lapse of time or both could put any Credit Party in default or breach) under, and the Credit Parties have
not taken any action or failed to take any action that would give to any other Person any rights of termination, amendment, acceleration
or cancellation of, any Contract to which any Credit Party is a party or by which any property or Assets of the Credit Parties
are bound or affected. The businesses of the Credit Parties are not being conducted, and shall not be conducted so long as Buyer
owns any of the Securities, in violation of any Law. Except as specifically contemplated by this Agreement, no Credit Party is
required to obtain any Consent of, from, or with any Governmental Authority, or any other Person, in order for it to execute, deliver
or perform any of its Obligations under this Agreement or the Transaction Documents in accordance with the terms hereof or thereof,
or to issue and sell the Securities in accordance with the terms hereof. All Consents which any Credit Party is required to obtain
pursuant to the immediately preceding sentence have been obtained or effected on or prior to the date hereof. The Credit Parties
are not aware of any facts or circumstances which might give rise to any of the foregoing.

 

6.6           Issuance
of Securities. The Securities are duly authorized and, upon issuance in accordance with the terms hereof, shall be duly issued,
fully paid and non-assessable, and free from all Encumbrances with respect to the issue thereof, and will be issued in compliance
with all applicable United States federal and state securities Laws. 

 

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6.7           Financial
Statements. The Company has delivered to the Buyer an unaudited consolidated Balance Sheet and Statement of Income for the
fiscal year ending June 30, 2016, and an unaudited consolidated Balance Sheet and Statement of Income as of July 31, 2016 (collectively,
the “Financial Statements”). The Financial Statements have been prepared in accordance with GAAP, consistently
applied, during the periods involved (except: (i) as may be otherwise indicated in such Financial Statements or the notes thereto;
or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements),
and fairly and accurately present in all material respects the consolidated financial position of the Company and its Subsidiaries
as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments). To the best knowledge of the Company, no other information
provided by or on behalf of the Company and its Subsidiaries to the Buyer, either as a disclosure schedule to this Agreement, or
otherwise in connection with Buyer’s due diligence investigation of the Company and its Subsidiaries, contains any untrue
statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light
of the circumstance under which they are or were made, not misleading.

 

6.8           Absence
of Certain Changes. Since the date of the most recent of the Financial Statements, none of the following have occurred:

 

(a)          There
has been no event or circumstance of any nature whatsoever that has resulted in, or could reasonably be expected to result in,
a Material Adverse Effect; or

 

(b)          Any
transaction, event, action, development, payment, or any other matter of any nature whatsoever entered into by the Credit Parties
other than in the Credit Parties’ Ordinary Course of Business.

 

6.9           Absence
of Litigation or Adverse Matters. No condition, circumstance, event, agreement, document, instrument, restriction, litigation
or Proceeding (or threatened litigation or Proceeding or basis therefor) exists which: (i) could adversely affect the validity
or priority of the Encumbrances granted to the Buyer under the Transaction Documents; (ii) could adversely affect the ability of
the Company to perform its Obligations under the Transaction Documents; (iii) would constitute a default under any of the Transaction
Documents; (iv) would constitute such a default with the giving of notice or lapse of time or both; or (v) would constitute or
give rise to a Material Adverse Effect. In addition: (vi) there is no Proceeding before or by any Governmental Authority or any
other Person, pending, or the best of Company’s knowledge, threatened or contemplated by, against or affecting the Company,
its business or Assets; (vii) there is no outstanding Judgments against or affecting the Company, its business or Assets; (viii)
the Company is not in breach or violation of any Contract; and (ix) the Company has not received any material complaint from any
customer, supplier, vendor or employee.

 

6.10         Liabilities
and Indebtedness of the Company. The Credit Parties do not have any Obligations of any nature whatsoever, except: (i) as disclosed
in the Financial Statements; or (ii) Obligations incurred in the Ordinary Course of Business since the date of the most recent
Financial Statements which do not or would not, individually or in the aggregate, exceed Fifty Thousand Dollars ($50,000) or otherwise
have a Material Adverse Effect; or (iii) Obligations owed to the Buyer.

 

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6.11         Title
to Assets. The Company has good and marketable title to, or a valid leasehold interest in, all of its Assets which are material
to the business and operations of the Company as presently conducted, free and clear of all Encumbrances or restrictions on the
transfer or use of same, except for Encumbrances authorized under the Transaction Documents. Except as would not have a Material
Adverse Effect, the Company’s Assets are in good operating condition and repair, ordinary wear and tear excepted, and are
free of any latent or patent defects which might impair their usefulness, and are suitable for the purposes for which they are
currently used and for the purposes for which they are proposed to be used.

 

6.12        Real
Estate.

 

(a)          Real
Property Ownership. Except for the Company Leases and as set forth on Schedule 6.12, the Credit Parties do not own any
Real Property. 

 

(b)          Real
Property Leases. Except for ordinary office Leases disclosed to the Buyer in writing prior to the date hereof (the “Credit
Party Leases”), the Credit Parties do not lease any other Real Property. With respect to each of the Credit Party
Leases: (i) the Credit Parties have been in peaceful possession of the property leased thereunder and neither the Credit Parties
nor the landlord is in default thereunder; (ii) no waiver, indulgence or postponement of any of the Obligations thereunder has
been granted by the Credit Parties or landlord thereunder; and (iii) there exists no event, occurrence, condition or act known
to the officers or directors of Credit Parties which, upon notice or lapse of time or both, would be or could become a default
thereunder or which could result in the termination of the Credit Party Leases, or any of them, or have a Material Adverse Effect
on the business of any Credit Party , its Assets or its operations or financial results. The Credit Parties have not violated nor
breached any provision of any such Credit Party Leases, and all Obligations required to be performed by the Credit Parties under
any of such Credit Party Leases have been fully, timely and properly performed. The Credit Parties have delivered to the Buyer
true, correct and complete copies of all Credit Party Leases, including all modifications and amendments thereto, whether in writing
or otherwise. The Credit Parties have not received any written or oral notice to the effect that any of the Credit Party Leases
will not be renewed at the termination of the term of such Credit Party Leases, or that any of such Credit Party Leases will be
renewed only at higher rents.

 

6.13         Material
Contracts. An accurate, current and complete copy of each of the Material Contracts has been furnished to Buyer, and each of
the Material Contracts constitutes the entire agreement of the respective parties thereto relating to the subject matter thereof.
There are no outstanding offers, bids, proposals or quotations made by any Credit Party which, if accepted, would create a Material
Contract with any Credit Party. Each of the Material Contracts is in full force and effect and is a valid and binding Obligation
of the parties thereto in accordance with the terms and conditions thereof. To the knowledge of each Credit Party and its officers,
all Obligations required to be performed under the terms of each of the Material Contracts by any party thereto have been fully
performed by all parties thereto, and no party to any Material Contracts is in default with respect to any term or condition thereof,
nor has any event occurred which , through the passage of time or the giving of notice, or both, would constitute a default thereunder
or would cause the acceleration or modification of any Obligation of any party thereto or the creation of any Encumbrance upon
any of the Assets of the Credit Parties. Further, no Credit Party has received notice, nor does any Credit Party have any knowledge,
of any pending or contemplated termination of any of the Material Contracts and, no such termination is proposed or has been threatened,
whether in writing or orally.

 

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6.14         Compliance
with Laws. To the knowledge of each Credit Party and its officers, each Credit Party is and at all times has been in full compliance
with all Laws. No Credit Party has received any notice that it is in violation of, has violated, or is under investigation with
respect to, or has been threatened to be charged with, any violation of any Law.

 

6.15         Intellectual
Property. The Credit Parties own or possess adequate and legally enforceable rights or licenses to use all trademarks, trade
names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and all other intellectual property rights necessary to conduct its business as now
conducted (collectively, the “IP Rights”). All IP Rights, and any federal, state, local or foreign patent and
trademark office, or functional equivalent thereof where any such IP Rights may be filed or registered, is set forth in Schedule
6.15. All of the IP Rights are owned by the Credit Parties, except for IP Rights licensed by the Credit Parties, which licensed
IP Rights are specifically outlined and described in Schedule 6.15. If any IP Rights are licensed by any Credit Party, the
underlying license agreement or other agreement pursuant to which such IP Rights are licensed (collectively, the “License
Agreements”), permits Lender to encumber such License Agreements without any further consent or approval of any other
Person, including the underlying owner of such IP Rights, such that if there was an Event of Default and Lender foreclosed on all
Collateral, Lender would have the right to use such IP Rights under the License Agreements, subject only to Lender’s obligation
to comply with the terms of such License Agreements. The Credit Parties do not have any knowledge of any infringement by any Credit
Party of any IP Rights of others, and, to the knowledge of the Credit Parties, there is no claim, demand or Proceeding, or other
demand of any nature being made or brought against, or to any Credit Party’s knowledge, being threatened against, any Credit
Party regarding IP Rights or other intellectual property infringement; and the Credit Parties are not aware of any facts or circumstances
which might give rise to any of the foregoing.

 

6.16         Labor
and Employment Matters. The Credit Parties are not involved in any labor dispute or, to the knowledge of each Credit Party,
is any such dispute threatened. To the knowledge of each Credit Party and its officers, none of the employees of any Credit Party
is a member of a union and each Credit Party believes that its relations with its employees are good. To the knowledge of each
Credit Party and its officers, the Credit Parties have complied in all material respects with all Laws relating to employment matters,
civil rights and equal employment opportunities.

 

6.17         Employee
Benefit Plans. Except as disclosed to the Buyer in writing prior to the date hereof, the Credit Parties do not have and have
not ever maintained, and have no Obligations with respect to any employee benefit plans or arrangements, including employee pension
benefit plans, as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
multiemployer plans, as defined in Section 3(37) of ERISA, employee welfare benefit plans, as defined in Section 3(1) of ERISA,
deferred compensation plans, stock option plans, bonus plans, stock purchase plans, hospitalization, disability and other insurance
plans, severance or termination pay plans and policies, whether or not described in Section 3(3) of ERISA, in which employees,
their spouses or dependents of the Credit Parties participate (collectively, the “Employee Benefit Plans”).
To each Credit Party’s knowledge, all Employee Benefit Plans meet the minimum funding standards of Section 302 of ERISA,
where applicable, and each such Employee Benefit Plan that is intended to be qualified within the meaning of Section 401 of the
Internal Revenue Code of 1986 is qualified. No withdrawal liability has been incurred under any such Employee Benefit Plans and
no “Reportable Event” or “Prohibited Transaction” (as such terms are defined in ERISA), has occurred with
respect to any such Employee Benefit Plans, unless approved by the appropriate Governmental Authority. To each Credit Party’s
knowledge, the Credit Parties have promptly paid and discharged all Obligations arising under ERISA of a character which if unpaid
or unperformed might result in the imposition of an Encumbrance against any of its Assets or otherwise have a Material Adverse
Effect.

 

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6.18         Tax
Matters. The Company and each Guarantor has made and timely filed all Tax Returns required by any jurisdiction to which it
is subject, and each such Tax Return has been prepared in compliance with all applicable Laws, and all such Tax Returns are true
and accurate in all respects. Except and only to the extent that the Company and each Guarantor has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported Taxes, each Credit Party has timely paid all Taxes shown or determined
to be due on such Tax Returns, except those being contested in good faith, and each Credit Party has set aside on its books provision
reasonably adequate for the payment of all Taxes for periods subsequent to the periods to which such Tax Returns 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 each
Credit Party know of no basis for any such claim. The Credit Parties have withheld and paid all Taxes to the appropriate Governmental
Authority required to have been withheld and paid in connection with amounts paid or owing to any Person. There is no Proceeding
or Claim for refund now in progress, pending or threatened against or with respect to any Credit Party regarding Taxes.

 

6.19         Insurance.
The Credit Parties are each covered by valid, outstanding and enforceable policies of insurance which were issued to it by reputable
insurers of recognized financial responsibility, covering its properties, Assets and businesses against losses and risks normally
insured against by other corporations or entities in the same or similar lines of businesses as the Credit Parties are engaged
and in coverage amounts which are prudent and typically and reasonably carried by such other corporations or entities (the “Insurance
Policies”). Such Insurance Policies are in full force and effect, and all premiums due thereon have been paid.
None of the Insurance Policies will lapse or terminate as a result of the transactions contemplated by this Agreement. The Credit
Parties have complied with the provisions of such Insurance Policies. The Credit Parties have not been refused any insurance coverage
sought or applied for and the Credit Parties do not have any reason to believe that it will not be able to renew its existing Insurance
Policies as and when such Insurance Policies expire or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings,
business or operations of the Credit Parties.

 

6.20         Permits.
The Credit Parties possess all Permits necessary to conduct its business, and no Credit Party has received any notice of, or is
otherwise involved in any Proceedings relating to, the revocation or modification of any such Permits. All such Permits are valid
and in full force and effect and the Credit Parties are in full compliance with the respective requirements of all such Permits.

 

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6.21         Bank
Accounts; Business Location. Schedule 6.21 sets forth, with respect to each account of the Credit Parties with
any bank, broker or other depository institution: (i) the name and account number of such account; (ii) the name and address of
the institution where such account is held; (iii) the name of any Person(s) holding a power of attorney with respect to such account,
if any; and (iv) the names of all authorized signatories and other Persons authorized to withdraw funds from each such account.
The Credit Parties have no office or place of business other than as identified on Schedule 6.21 and each of the
Credit Party’s principal places of business and chief executive offices are indicated on Schedule 6.21. All
books and records of the Credit Parties and other material Assets of the Credit Parties are held or located at the principal offices
of the Credit Parties indicated on Schedule 6.21. 

 

6.22         Environmental
Laws. Except as are used in such amounts as are customary in the Ordinary
Course of Business of the Credit Parties and in compliance with all applicable Environmental Laws, each Credit Party represents
and warrants to Buyer that: (i) no Credit Party has generated, used, stored, treated, transported, manufactured, handled, produced
or disposed of any Hazardous Materials, on or off any of the premises of the Credit Parties (whether or not owned by the Credit
Parties) in any manner which at any time violates any Environmental Law or any Permit, certificate, approval or similar authorization
thereunder; (ii) the operations of the Credit Parties comply in all material respects with all Environmental Laws and all Permits
certificates, approvals and similar authorizations thereunder; (iii) there has been no investigation, Proceeding, complaint, order,
directive, Claim, citation or notice by any Governmental Authority or any other Person, nor is any pending or, to the each Credit
Party’s knowledge, threatened; and (iv) the Credit Parties do not have any liability, contingent or otherwise, in connection
with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous Material.

 

6.23         Illegal
Payments. Neither the Credit Parties, nor any director, officer, agent, employee or other Person acting on behalf of the Credit
Parties has, in the course of his actions for, or on behalf of, the Credit Parties: (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any bribe, rebate, payoff, influence payment,
kickback or other unlawful payment to any foreign or domestic government official or employee.

 

6.24         Related
Party Transactions. Except for arm’s length transactions pursuant to which the Credit Parties make payments in the Ordinary
Course of Business upon terms no less favorable than the Credit Parties could obtain from third parties, none of the officers,
directors or employees of the Credit Parties, nor any stockholders who own, legally or beneficially, five percent (5%) or more
of the ownership interests of the Credit Parties (each a “Material Shareholder”), is presently a party
to any transaction with the Credit Parties (other than for services as employees, officers and directors), including any Contract
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 Material Shareholder or, to the best knowledge of the Credit Parties,
any other Person in which any officer, director, or any such employee or Material Shareholder has a substantial or material interest
in or of which any officer, director or employee of the Credit Parties or Material Shareholder is an officer, director, trustee
or partner. There are no Claims or disputes of any nature or kind between the Credit Parties and any officer, director or employee
of the Credit Parties or any Material Shareholder, or between any of them, relating to each Credit Party and its business.

 

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6.25         Internal
Accounting Controls. Each Credit Party maintains a system of internal accounting controls sufficient 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 GAAP 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.

 

6.26         Acknowledgment
Regarding Buyer’s Purchase of the Securities. Each Credit Party acknowledges and agrees that Buyer is acting solely in
the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company
and each Guarantor further acknowledges that Buyer is not acting as a financial advisor or fiduciary of the Credit Parties (or
in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by Buyer
or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental
to Buyer’s purchase of the Securities. The Credit Parties further represent to Buyer that the Company’s and each Guarantor’s
decision to enter into this Agreement has been based solely on the independent evaluation by the Company, each Guarantor and its
representatives.

 

6.27         Seniority.
No indebtedness or other equity or security of the Credit Parties is senior to the Debentures in right of payment, whether with
respect to interest or upon liquidation or dissolution, or otherwise, except only purchase money security interests (which are
senior only as to underlying Assets covered thereby).

 

6.28         Brokerage
Fees. There is no Person acting on behalf of the Credit Parties who is entitled to or has any claim for any brokerage or finder’s
fee or commission in connection with the execution of this Agreement or the consummation of the transactions contemplated hereby.

 

6.29         No
General Solicitation. Neither the Credit Parties, nor any of its Affiliates, nor any Person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or issuance of the Securities.

 

6.30         No
Integrated Offering. Neither the Credit Parties, nor any of its Affiliates, nor any Person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of the Securities under the Securities Act or cause this offering of such securities to be integrated
with prior offerings by the Credit Parties for purposes of the Securities Act.

 

6.31         Private
Placement. No registration under the Securities Act or the laws, rules or regulation of any other governmental authority is
required for the issuance of the Securities.

 

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6.32         Full
Disclosure. All the representations and warranties made by the Credit Parties herein or in the Schedules hereto, and all of
the financial statements, schedules, certificates, confirmations, agreements, contracts, and other materials submitted to the Buyer
in connection with or in furtherance of this Agreement or pertaining to the transaction contemplated herein, whether made or given
by the Credit Parties, its agents or representatives, are complete and accurate, and do not omit any information required to make
the statements and information provided, in light of the transaction contemplated herein and in light of the circumstances under
which they were made, not misleading, accurate and meaningful.

 

ARTICLE VII

COVENANTS

 

7.1           Negative
Covenants.

 

(a)          Indebtedness. So
long as Buyer owns, legally or beneficially, any of the Debentures, the Credit Parties shall not, either directly or
indirectly, create, assume, incur or have outstanding any indebtedness for borrowed money of any nature or kind (including
purchase money indebtedness), or become liable, whether as endorser, guarantor, surety or otherwise, for any Obligation of
any other Person, except for: (i) the Debentures; (ii) Obligations disclosed in the financial statements provided to the
Buyer as of the Effective Date; and (iii) Obligations for accounts payable, other than for money borrowed, incurred in the
Ordinary Course of Business of the Credit Parties; provided that, any management or similar fees payable by the Credit
Parties shall be fully subordinated in right of payment to the prior payment in full of the Debentures.

 

(b)          Encumbrances. So
long as Buyer owns, legally or beneficially, any of the Debentures, the Credit Parties shall not, either directly or
indirectly, create, assume, incur or suffer or permit to exist any Encumbrance upon any Asset of the Credit Parties, whether
owned at the date hereof or hereafter acquired.

 

(c)          Investments. So
long as Buyer owns, legally or beneficially, any of the Debentures, the Credit Parties shall not, either directly or
indirectly, make or have outstanding any new investments (whether through purchase of stocks, obligations or otherwise) in,
or loans or advances to, any other Person, or acquire all or any substantial part of the assets, business, stock or other
evidence of beneficial ownership of any other Person, except the following: (i) investments in direct obligations of the
United States or any state in the United States; (ii) trade credit extended by any Credit Party in its Ordinary Course of
Business; (iii) investments existing on the Effective Date and set forth in the financial statements provided to the Buyer;
and (iv) capital expenditures first approved by the Buyer in writing, which approval shall not be unreasonably
withheld.

 

(d)          Issuances.
So long as Buyer owns, legally or beneficially, any of the Debentures, the Credit Parties shall not, either directly or indirectly,
issue any equity, debt or convertible or derivative instruments or securities whatsoever, except upon obtaining Buyer’s prior
written consent, which consent may be withheld in Buyer’s sole discretion.

 

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(e)          Transfer;
Merger. So long as Buyer owns, legally or beneficially, any of the Debentures, the Credit Parties shall not, either directly
or indirectly, permit or enter into any transaction involving a “Change of Control” (as hereinafter defined), or any
other merger, consolidation, sale, transfer, license, Lease, Encumbrance or other disposition of all or substantially all of its
properties or business or all or substantially all of its Assets without the prior written consent of the Buyer, which shall not
be unreasonably withheld, except for the sale, lease or licensing of property or Assets of the Credit Parties in the Ordinary Course
of Business of the Credit Parties. For purposes of this Agreement, the term “Change of Control” shall mean any
sale, conveyance, assignment or other transfer, directly or indirectly, of any ownership interest of the Credit Parties which results
in any change in the identity of the individuals or entities previously having the power to direct, or cause the direction of,
the management and policies of the Credit Parties, or the grant of a security interest in any ownership interest of any Person
directly or indirectly controlling the Credit Parties, which could result in a change in the identity of the individuals or entities
previously having the power to direct, or cause the direction of, the management and policies of the Credit Parties. The Buyer
acknowledges that the Company will undertake an initial public offering of its capital stock (the “IPO”) following
the Effective Date and, in connection therewith, the Company will issue certain shares of the Company’s capital stock to
certain third party investors.  In the event that a Change of Control occurs or will occur due to the issuance of shares of
the Company’s capital stock in connection with the IPO, all outstanding Obligations shall automatically become due and payable
and shall be paid immediately from the proceeds of the closing of the IPO. The Company hereby authorizes Joseph Gunnar & Co.,
LLC to make payment from the IPO proceeds directly to the Buyer without further notice to or consent of the Company.  The
Company’s failure to satisfy all Obligations immediately from of the proceeds of the closing of the IPO shall result in an
immediate Event of Default under this Agreement and all other Transaction Documents.

 

(f)          Distributions;
Restricted Payments; Change in Management. So long as Buyer owns, legally or beneficially, any of the Debentures, the Credit
Parties shall not, either directly or indirectly: (i) purchase or redeem any shares of its capital stock; (ii) declare or pay any
dividends or distributions, whether in cash or otherwise, or set aside any funds for any such purpose; (iii) make any distribution
to its shareholders, make any distribution of its property or Assets or make any loans, advances or extensions of credit to, or
investments in, any Person, including, without limitation, any Affiliates of the Credit Parties, or the Credit Parties’ officers,
directors, employees or Material Shareholder; (iv) pay any outstanding indebtedness of the Credit Parties, except for indebtedness
and other Obligations permitted hereunder; (v) increase the annual salary paid to any officers or directors of the Credit Parties
as of the Effective Date, unless any such increase is part of a written employment contract with any such officers entered into
prior to the Effective Date, a copy of which has been delivered to and approved by the Buyer; or (vi) replace or remove any officers
or other senior management positions of the Credit Parties from the officers and other senior management positions existing as
of the Effective Date, unless first approved by Buyer in writing, which approval may not be unreasonably withheld; provided
that the Credit Parties may replace or remove any such officer or other senior manager of the Credit Parties, after written notice
to the Buyer, in the event of fraud, malfeasance or other criminal conduct on the part of such officer or senior manager, as reasonably
determined by the board of directors or board of managers (as applicable) of the relevant Credit Party. The Credit Parties shall
not pay any brokerage or finder’s fee or commission in connection with the execution of this Agreement or the consummation
of the transactions contemplated hereby.

 

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(g)          Use
of Proceeds. The Credit Parties shall not use any portion of the proceeds of the Debentures, either directly or indirectly,
for any of the following purposes: (i) to make any payment towards any indebtedness or other Obligations of the Credit Parties;
(ii) to pay any Taxes of any nature or kind that may be due by the Credit Parties; or (iii) to pay any Obligations of any nature
or kind due or owing to any officers, directors, employees, or Material Shareholders of the Credit Parties, other than salaries
payable in the Ordinary Course of Business of the Credit Parties. Each Credit Party covenants and agrees to only use any portion
of the proceeds of the purchase and sale of the Debentures for the purposes set forth in the Use of Proceeds Confirmation to be
executed by the Company on the Effective Date, unless the Company obtains the prior written consent of the Buyer to use such proceeds
for any other purpose, which consent may be granted or withheld or conditioned by Buyer in its sole and absolute discretion.

 

(h)          Business
Activities; Change of Legal Status and Organizational Documents. The Credit Parties shall not: (i) engage in any line of business
other than the businesses engaged in as of the Effective Date and business reasonably related thereto; (ii) change its name, organizational
identification number (if applicable), its type of organization, its jurisdiction of organization or other legal structure; or
(iii) permit its Certificate of Incorporation, Bylaws or other organizational documents to be amended or modified in any way which
could reasonably be expected to have a Material Adverse Effect.

 

(i)          Transactions
with Affiliates. The Credit Parties shall not enter into any transaction with any of its Affiliates, officers, directors, employees,
Material Shareholders or other insiders, except in the Ordinary Course of Business of the Credit Parties and upon fair and reasonable
terms that are no less favorable to the Credit Parties than it would obtain in a comparable arm’s length transaction with
a Person not an Affiliate of the Credit Parties.

 

(j)          Bank
Accounts. The Credit Parties shall not maintain any bank, deposit, credit card payment processing accounts, or other accounts
with any financial institution, or any other Person, other than the Credit Parties’ accounts listed in the attached Schedule
6.21. Specifically, the Credit Parties may not change, modify, close or otherwise affect any of the accounts listed
in Schedule 6.21 without Buyer’s prior written approval, which approval may be withheld or conditioned in Buyer’s
sole and absolute discretion.

 

7.2           Affirmative
Covenants.

 

(a)          Corporate
Existence. The Credit Parties shall at all times preserve and maintain its: (i) existence and good standing in the jurisdiction
of its organization; and (ii) its qualification to do business and good standing in each jurisdiction where the nature of its business
makes such qualification necessary, and shall at all times continue as a going concern in the business which the Credit Parties
are presently conducting.

 

(b)          Tax
Liabilities. The Credit Parties shall at all times pay and discharge all Taxes upon, and all Claims (including claims for labor,
materials and supplies) against any Credit Party or any of its properties or Assets, before the same shall become delinquent and
before penalties accrue thereon, unless and to the extent that the same are being contested in good faith by appropriate proceedings
and for which adequate reserves in accordance with GAAP are being maintained.

 

(c)          Notice
of Proceedings. The Credit Parties shall, promptly, but not more than five (5) Business Days after knowledge thereof shall
have come to the attention of any officer of the Credit Parties, give written notice to the Buyer of all threatened or pending
material Proceedings before any Governmental Authority or otherwise affecting the Credit Parties or any of its Assets.

 

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(d)          Material
Adverse Effect. The Credit Parties shall, promptly, but not more than five (5) Business Days after knowledge thereof shall
have come to the attention of any officer of the Credit Parties, give written notice to the Buyer of any event, circumstance, fact
or other matter that could in any way have or be reasonably expected to have a Material Adverse Effect.

 

(e)          Notice
of Default. The Credit Parties shall, promptly, but not more than five (5) Business Days after the commencement thereof, give
notice to the Buyer in writing of the occurrence of any “Event of Default” (as such term is defined in any of the Transaction
Documents) or of any event which, with the lapse of time, the giving of notice or both, would constitute an Event of Default hereunder
or under any other Transaction Documents.

 

(f)          Maintain
Property. The Credit Parties shall at all times maintain, preserve and keep all of its Assets in good repair, working order
and condition, normal wear and tear excepted, and shall from time to time, as the Credit Parties deem appropriate in its reasonable
judgment, make all needful and proper repairs, renewals, replacements, and additions thereto so that at all times the efficiency
thereof shall be fully preserved and maintained. The Credit Parties shall permit Buyer to examine and inspect such Assets at all
reasonable times upon reasonable notice during business hours up to a maximum of two (2) per calendar year. During the continuance
of any Event of Default hereunder or under any Transaction Documents, the Buyer shall, at the Company’s expense, have the
right to make additional inspections without providing advance notice.

 

(g)          Maintain
Insurance. The Credit Parties shall at all times insure and keep insured with insurance companies acceptable to Buyer, all
insurable property owned by the Credit Parties which is of a character usually insured by companies similarly situated and operating
like properties, against loss or damage from environmental, fire and such other hazards or risks as are customarily insured against
by companies similarly situated and operating like properties; and shall similarly insure employers’ public and professional
liability risks. Prior to the Effective Date, the Credit Parties shall deliver to the Buyer a certificate setting forth in summary
form the nature and extent of the insurance maintained pursuant to this Section. All such policies of insurance must be satisfactory
to Buyer in relation to the amount and term of the Debentures and type and value of the Assets of the Credit Parties, shall identify
Buyer as sole/lender’s loss payee and as an additional insured. In the event the Credit Parties fail to provide Buyer with
evidence of the insurance coverage required by this Section or at any time hereafter shall fail to obtain or maintain any of the
policies of insurance required above, or to pay any premium in whole or in part relating thereto, then the Buyer, without waiving
or releasing any obligation or default by the Credit Parties hereunder, may at any time (but shall be under no obligation to so
act), obtain and maintain such policies of insurance and pay such premium and take any other action with respect thereto, which
Buyer deems advisable. This insurance coverage: (i) may, but need not, protect the Credit Parties’ interest in such property;
and (ii) may not pay any claim made by, or against, the Credit Parties in connection with such property. The Credit Parties may
later request that the Buyer cancel any such insurance purchased by Buyer, but only after providing Buyer with evidence that the
insurance coverage required by this Section is in force. The costs of such insurance obtained by Buyer, through and including the
effective date such insurance coverage is canceled or expires, shall be payable on demand by the Credit Parties to Buyer, together
with interest at the highest non-usurious rate permitted by law on such amounts until repaid and any other charges by Buyer in
connection with the placement of such insurance. The costs of such insurance, which may be greater than the cost of insurance which
the Credit Parties may be able to obtain on its own, together with interest thereon at the highest non-usurious rate permitted
by Law and any other charges incurred by Buyer in connection with the placement of such insurance may be added to the total Obligations
due and owing by the Credit Parties hereunder and under the Debentures to the extent not paid by the Credit Parties.

 

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(h)          ERISA
Liabilities; Employee Plans. The Credit Parties shall: (i) keep in full force and effect any and all Employee Plans which are
presently in existence or may, from time to time, come into existence under ERISA, and not withdraw from any such Employee Plans,
unless such withdrawal can be effected or such Employee Plans can be terminated without liability to the Credit Parties; (ii) make
contributions to all of such Employee Plans in a timely manner and in a sufficient amount to comply with the standards of ERISA,
including the minimum funding standards of ERISA; (iii) comply with all material requirements of ERISA which relate to such Employee
Plans; (iv) notify Buyer immediately upon receipt by the Credit Parties of any notice concerning the imposition of any withdrawal
liability or of the institution of any Proceeding or other action which may result in the termination of any such Employee Plans
or the appointment of a trustee to administer such Employee Plans; (v) promptly advise Buyer of the occurrence of any “Reportable
Event” or “Prohibited Transaction” (as such terms are defined in ERISA), with respect to any such Employee Plans;
and (vi) amend any Employee Plan that is intended to be qualified within the meaning of Section 401 of the Internal Revenue Code
of 1986 to the extent necessary to keep the Employee Plan qualified, and to cause the Employee Plan to be administered and operated
in a manner that does not cause the Employee Plan to lose its qualified status.

 

(i)          Continued
Due Diligence/Field Audits. The Company acknowledges that during the term of this Agreement, Buyer and its agents and representatives
undertake ongoing and continuing due diligence reviews of the Credit Parties and its business and operations. Such ongoing due
diligence reviews may include, and the Credit Parties do hereby agree to allow Buyer, to conduct site visits and field examinations
of the office locations of the Credit Parties at all reasonable times upon reasonable notice during business hours, and the Assets
and records of each of them, the results of which must be satisfactory to Buyer in Buyer’s reasonable discretion. In this
regard, in order to cover Buyer’s expenses of the ongoing due diligence reviews and any site visits or field examinations
which Buyer may undertake from time to time while this Agreement is in effect, the Company shall pay to Buyer, within five (5)
Business Days after receipt of an invoice or demand therefor from Buyer, a fee of up to $5,000 per year (based on a maximum of
two (2) field audits and ongoing due diligence of $2,500 per visit or audit) to cover such ongoing expenses. Failure to pay such
fee as and when required shall be deemed an Event of Default under this Agreement and all other Transaction Documents. The foregoing
notwithstanding, from and after the occurrence of an Event of Default or any event which with notice, lapse of time or both, would
become an Event of Default, Buyer may conduct site visits, field examinations and other ongoing reviews of the Credit Parties’
records, Assets and operations at any time, in its sole discretion, without any limitations in terms of number of site visits or
examinations and without being limited to the fee hereby contemplated, all at the sole expense of the Company.

 

7.3           Reporting
Requirements. The Credit Parties agree as follows:

 

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(a)          Financial
Statements. The Credit Parties shall at all times maintain a system of accounting capable of producing its individual and consolidated
(if applicable) financial statements in compliance with GAAP (provided that monthly financial statements shall not be required
to have footnote disclosure, are subject to normal year-end adjustments and need not be consolidated), and shall furnish to the
Buyer or its authorized representatives such information regarding the business affairs, operations and financial condition of
the Credit Parties as Buyer may from time to time request or require, including:

 

(i)          As
soon as available, and in any event, within ninety (90) days after the close of each fiscal year, a copy of the annual audited
financial statements of the Company, including balance sheet, statement of income and retained earnings, statement of cash flows
for the fiscal year then ended, in reasonable detail, prepared and reviewed by an independent certified public accountant reasonably
acceptable to Buyer, containing an unqualified opinion of such accountant;

 

(ii)         as
soon as available, and in any event, within sixty (60) days after the close of each fiscal quarter, a copy of the quarterly financial
statements of the Company, including balance sheet, statement of income and retained earnings, statement of cash flows for the
fiscal year then ended, in reasonable detail, prepared and certified as accurate in all material respects by the CEO or CFO of
the Company;

 

(iii)        as
soon as available, and in any event, within thirty (30) days following the end of each calendar month, a copy of the financial
statements of the Company regarding such month, including balance sheet, statement of income and retained earnings, statement of
cash flows for the month then ended, in reasonable detail, prepared and certified as accurate in all material respects by the CEO
or CFO of the Company.

 

No change
with respect to the accounting principles shall be made by the Credit Parties without giving prior notification to Buyer. The Credit
Parties represent and warrant to Buyer that the financial statements delivered to Buyer at or prior to the execution and delivery
of this Agreement and to be delivered at all times thereafter accurately reflect and will accurately reflect the financial condition
of the Credit Parties in all material respects. Buyer shall have the right at all times (and on reasonable notice so long as there
then does not exist any Event of Default) during business hours to inspect the books and records of the Credit Parties and make
extracts therefrom.

 

(b)          Additional
Reporting Requirements. The Company shall provide the following reports and statements to Buyer as follows:

 

(i)          Income
Projections; Variance. On the Effective Date, the Company shall provide to Buyer an income statement projection showing, in
reasonable detail, the Company’s income statement projections for the twelve (12) calendar months following the Effective
Date (the “Income Projections”). In addition, on the first (1st) day of every calendar month
after the Effective Date, the Company shall provide to Buyer a report comparing the Income Projections to actual results. Any variance
in the Income Projections to actual results that is more than ten percent (10%) (either above or below) will require the Company
to submit to Buyer written explanations as to the nature and circumstances for the variance.

 

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(ii)         Use
of Proceeds; Variance. On the first (1st) day of every calendar month after the Effective Date, the Company shall provide to
Buyer a report comparing the use of the proceeds from the sale of Debentures set forth in the Use of Proceeds Confirmation, with
the actual use of such proceeds. Any variance in the actual use of such proceeds from the amounts set forth in the approved Use
of Proceeds Confirmation will require the Company to submit to Buyer written explanations as to the nature and circumstances for
the variance.

 

(iii)        Bank
Statements. The Company shall submit to Buyer true and correct copies of all bank statements received by the Credit Parties
within five (5) days after the Credit Parties’ receipt thereof from its bank.

 

(iv)        Interim
Reports. Promptly upon receipt thereof, the Company shall provide to Buyer copies of interim and supplemental reports, if
any, submitted to the Company by independent accountants in connection with any interim audit or review of the books of the
Credit Parties.

 

(v)         Aged
Accounts/Payables Schedules. The Company shall, on the first (1st) day of each and every calendar month, deliver to
Buyer an aged schedule of the accounts receivable of the Credit Parties, listing the name and amount due from each Person and
showing the aggregate amounts due from: (i) 0-30 days; (ii) 31-60 days; (iii) 61-90 days; (iv) 91-120 days; and (v) more than
120 days, and certified as accurate by the CEO or CFO of the Company. The Company shall, on the first (1st) day of
each and every calendar month, deliver to Buyer an aged schedule of the accounts payable of the Credit Parties, listing the
name and amount due to each creditor and showing the aggregate amounts due from: (v) 0-30 days; (w) 31-60 days; (x) 61-90
days; (y) 91-120 days; and (z) more than 120 days, and certified as accurate by the CEO or CFO of the Company.

 

(c)          Failure
to Provide Reports. So long as Buyer owns, legally or beneficially, any of the Securities, if the Company shall fail to timely
provide any reports required to be provided by the Company and/or Guarantors to the Buyer under this Agreement or any other Transaction
Document, in addition to all other rights and remedies that Buyer may have under this Agreement and the other Transaction Documents,
Buyer shall have the right to require, at each instance of any such failure, upon written notice to the Company, that the Company
redeem 2.5% of the aggregate amount of the Advisory Fee then outstanding, which cash redemption payment shall be due and payable
by wire transfer of Dollars to an account designated by Buyer within five (5) Business Days from the date the Buyer delivers such
redemption notice to the Company.

 

(d)          Covenant
Compliance. The Company shall, within thirty (30) days after the end of each calendar month, deliver to Buyer a Compliance
Certificate, confirming compliance by the Company with the covenants therein, and certified as accurate by an officer of
the Company.

 

(e)          View
Only Access. On or prior to the Effective Date, the Credit Parties shall provide the Buyer view only access to any and all
accounts listed on the attached Schedule 6.21 In the event the Credit Parties, with the Buyer’s prior written consent,
opens any new bank, deposit, credit card payment processing accounts, or other accounts with any financial institution, and/or
the Buyer discovers an account of the Credit Parties that is in existence prior to the Effective Date but is not listed on Schedule
6.21, the Credit Parties shall provide the Buyer view only access to such account(s) within one (1) Business Day following
the opening or discovery of such account(s).

 

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7.4           Fees
and Expenses.

 

(a)          Transaction
Fees. The Company agrees to pay to Buyer a transaction advisory fee equal to two percent (2%) of the amount of the Debentures
purchased by Buyer at the First Closing, which fee shall be due and payable on the Effective Date and withheld from the gross purchase
price paid by Buyer for the Debentures. In the event of any Additional Closings, the Company shall pay to Buyer a transaction advisory
fee equal to one percent (1%) of the amount of the Debentures purchased by Buyer at any such Additional Closings, which fee shall
be due and payable upon such Additional Closing and withheld from the gross purchase price paid by Buyer for the Debentures at
such Additional Closing.

 

(b)          Due
Diligence Fees. The Company agrees to pay to the Buyer a due diligence fee equal to Eight Thousand Five Hundred and No/100
United States Dollars ($8,500.00), which shall be due and payable in full on the Effective Date, or any remaining portion thereof
shall be due and payable on the Effective Date if a portion of such fee was paid upon the execution of any term sheet related to
this Agreement.

 

(c)          Document
Review and Legal Fees. The Company agrees to pay to the Buyer or its counsel a document review and legal fee equal to Twenty
Thousand and No/100 United States Dollars ($20,000.00), which shall be due and payable in full on the Effective Date, or any remaining
portion thereof shall be due and payable on the Effective Date if a portion of such fee was paid upon the execution of any term
sheet related to this Agreement. The Company also agrees to be responsible for the prompt payment of all legal fees and expenses
of the Company and its own counsel and other professionals incurred by the Company in connection with the negotiation and execution
of this Agreement and the Transaction Documents.

 

(d)          Other
Fees. The Company also agrees to pay to the Buyer (or any designee of the Buyer), upon demand, or to otherwise be responsible
for the payment of, any and all other costs, fees and expenses, including the reasonable fees, costs, expenses and disbursements
of counsel for the Buyer and of any experts and agents, which the Buyer may incur or which may otherwise be due and payable in
connection with: (i) the preparation, negotiation, execution, delivery, recordation, administration, amendment, subordination,
waiver or other modification or termination of this Agreement or any other Transaction Documents; (ii) any documentary stamp taxes,
intangibles taxes, recording fees, filing fees, or other similar taxes, fees or charges imposed by or due to any Governmental Authority
in connection with this Agreement or any other Transaction Documents; (iii) the exercise or enforcement of any of the rights of
the Buyer under this Agreement or the Transaction Documents; or (iv) the failure by the Credit Parties to perform or observe any
of the provisions of this Agreement or any of the Transaction Documents. Included in the foregoing shall be the amount of all expenses
paid or incurred by Buyer in consulting with counsel concerning any of its rights under this Agreement or any other Transaction
Document or under applicable law. To the extent any such costs, fees, charges, taxes or expenses are incurred prior to the funding
of proceeds from the Closing, same shall be paid directly from the proceeds of the Closing. All such costs and expenses, if not
so immediately paid when due or upon demand thereof, shall bear interest from the date of outlay until paid, at the highest rate
set forth in the Debenture, or if none is so stated, the highest rate allowed by law. All of such costs and expenses shall be additional
Obligations of the Credit Parties to Buyer secured under the Transaction Documents. The provisions of this Subsection shall survive
the termination of this Agreement.

 

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7.5           Advisory
Fee. 

 

(a)          Payments.
The Company hereby acknowledges that it has obligations to the Buyer for advisory services provided by the Buyer to the Company
prior to the Effective Date in the amount of Three Hundred Thousand Two and No/100 United States Dollars (US$300,000.00) (the “Advisory
Fee”). In this regard, the Company shall pay the Advisory Fee obligations in three (3) equal installments, each in the
amount of One Hundred Thousand and No/100 United States Dollars (US$100,000), each of such installments to be paid by Company in
dollars by wire transfer to an account designated by the Buyer, the first installment due on a date that is five (5) months from
the Effective Date, the second installment due on a date that is eight (8) months from the Effective Date, and the third installment
due on a date that is twelve (12) months from the Effective Date without further claim, notice or demand from the Buyer. The obligation
to redeem the Advisory Fee obligations contemplated by this Section 7.5 shall be an Obligation hereunder, secured by all Transaction
Documents, and failure by the Company to timely make any of such payments when due as hereby provided shall be an immediate Event
of Default hereunder and under the other Transaction Documents. The Advisory Fees contemplated by this Section 7.5 have been fully
earned by Buyer prior to the date hereof, and the Company’s obligation to pay such Advisory Fee obligations as hereby provided
shall be applicable and effective regardless of the amount or number of Debentures purchased hereunder.  In the event the
Buyer elects to purchase any additional Debentures as permitted hereunder, the Company agrees to pay additional advisory service
fees to the Buyer in an amount to be mutually agreed upon between Buyer and the Company. Notwithstanding anything which may be
contained herein to the contrary, in the event that the Company satisfies all of the Obligations (including, but not limited to,
payment of the Advisory Fee) on or before that date which is six (6) months following the Effective Date, than the Buyer shall
reimburse the Company an amount equal to One Hundred Twenty Thousand and No/100 United States Dollars (US$120,000) (which such
amount the Company and the Buyer hereby agree may be offset from the Advisory Fee amount to be paid by the Company). 

 

(b)          Surviving
Obligations. The Company agrees and acknowledges that notwithstanding the termination of this Agreement, or the payment in
full of all of the Debentures or other obligations hereunder or under any other Transaction Documents, the Company’s obligations
and liability under this Agreement and the other Transaction Documents, and the Buyer’s lien and security interest on all
Collateral, shall remain valid and effective and shall not be released or terminated, until the Company has fully redeemed all
Advisory Fee obligations in accordance with the terms hereof, together with all other Obligations. All of the Company’s obligations
under this Section 7.5 shall survive termination of this Agreement.

 

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7.6           Subsidiaries.
Any Subsidiary which is formed or acquired or otherwise becomes a Subsidiary of any Credit Party, as applicable, following the
date hereof, within ten (10) Business Days of such event, shall become an additional party hereto and guarantor of the Company’s
Obligation hereunder, and the Company shall take any and all actions necessary or advisable to cause said Subsidiary to execute
a counterpart to this Agreement and any and all other documents which the Buyer shall require. “Subsidiary”
shall mean, respectively, each and all such corporations, partnerships, limited partnerships, limited liability companies, limited
liability partnerships or other entities of which or in which a Person owns, directly or indirectly, fifty percent (50%) or more
of: (i) the combined voting power of all classes of stock/units having general voting power under ordinary circumstances to elect
a majority of the board of directors of such entity if a corporation; (ii) the management authority and capital interest or profits
interest of such entity, if a partnership, limited partnership, limited liability company, limited liability partnership, joint
venture or similar entity; or (iii) the beneficial interest of such entity, if a trust, association or other unincorporated organization.

 

ARTICLE VIII

CONDITIONS PRECEDENT TO THE
COMPANY’S OBLIGATIONS TO SELL

 

The obligation
of the Company hereunder to issue and sell the Securities to the Buyer at the Closings is subject to the satisfaction, at or before
the respective Closing Dates, of each of the following conditions, 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:

 

8.1           Buyer
shall have executed the Transaction Documents and delivered them to the Company.

 

8.2           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 Dates 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 Dates.

 

8.3           The
Company shall have received such certificates, confirmations, resolutions, acknowledgements or other documentation necessary or
advisable from all applicable Governmental Authorities, including, but not limited to, those located in the State of Delaware,
as the Company may require in order to evidence such Governmental Authorities’ approval of this Agreement, the Transaction
Documents and the purchase of the Debentures contemplated hereby.

 

ARTICLE IX

CONDITIONS
PRECEDENT TO THE BUYER’S OBLIGATIONS TO PURCHASE

 

The obligation
of the Buyer hereunder to purchase the Debentures at the Closings is subject to the satisfaction, at or before each applicable
Closing Date, of each of the following conditions (in addition to any other conditions precedent elsewhere in this Agreement),
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:

 

9.1           First
Closing. The obligation of the Buyer hereunder to purchase the Debentures at the First Closing is subject to the satisfaction,
at or before the First Closing Date, of each of the following conditions (in addition to any other conditions precedent elsewhere
in this Agreement), 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:

 

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(a)          The
Company and each Guarantor (as applicable) shall have executed and delivered the Transaction Documents applicable to the First
Closing and delivered the same to the Buyer.

 

(b)          The
representations and warranties of the Credit Parties shall be true and correct in all material respects (except to the extent that
any of such representations and warranties are already qualified as to materiality in Article VI above, in which case, such representations
and warranties shall be true and correct in all respects without further qualification) as of the date when made and as of the
First Closing Date as though made at that time (except for representations and warranties that speak as of a specific date) and
the Credit Parties 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 Credit Parties at or prior to the First Closing Date.

 

(c)          The
Buyer shall have received an opinion of counsel from counsel to the Credit Parties in a form satisfactory to the Buyer and its
counsel.

 

(d)          The
Credit Parties shall have executed and delivered to Buyer a closing certificate, certified as true, complete and correct by an
officer of the Credit Parties, in substance and form required by Buyer, which closing certificate shall include and attach as exhibits:
(i) a true copy of a certificate of good standing evidencing the formation and good standing of the Credit Parties from the secretary
of state (or comparable office) from the jurisdiction in which the each Credit Party is formed; (ii) the Credit Parties’
Organizational Documents; (iii) copies of the resolutions of the board of directors of the Credit Parties as adopted by the Credit
Parties’ board of directors or managers, in a form acceptable to Buyer; and (iv) copies of the resolutions adopted by the
shareholders or members of the Credit Parties, as applicable, as in a form acceptable to Buyer.

 

(e) No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect.

 

(f) The
Buyer shall have received copies of UCC search reports, issued by the Secretary of State of the state of incorporation or residency,
as applicable, of the Credit Parties, dated such a date as is reasonably acceptable to Buyer, listing all effective financing statements
which name the Credit Parties, under their present name and any previous names, as debtors, together with copies of such financing
statements.

 

(g) The
Credit Parties shall have executed such other agreements, certificates, confirmations or resolutions as the Buyer may reasonably
require to consummate the transactions contemplated by this Agreement and the Transaction Documents, including a closing statement
and joint disbursement instructions as may be required by Buyer.

 

9.2           Additional
Closing. Provided the Buyer is to purchase additional Debentures in accordance with Section 4.4 at an Additional Closing,
the obligation of the Buyer hereunder to accept and purchase the Debentures at any Additional Closing is subject to the satisfaction,
at or before the Additional Closing Date, of each of the following conditions:

 

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(a)          The
Credit Parties shall have executed the Transaction Documents applicable to the Additional Closing and delivered the same to the
Buyer.

 

(b)          The
representations and warranties of the Credit Parties shall be true and correct in all material respects (except to the extent that
any of such representations and warranties are already qualified as to materiality in Article VI above, in which case, such representations
and warranties shall be true and correct in all respects without further qualification) as of the date when made and as of the
Additional Closing Date as though made at that time (except for representations and warranties that speak as of a specific date)
and the Credit Parties 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 Credit Parties at or prior to the Additional
Closing Date.

 

(c)          No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect.

 

(d)          The
Buyer shall have received an opinion of counsel from counsel to the Company in a form satisfactory to the Buyer and its counsel.

 

(e)          No
default or Event of Default shall have occurred and be continuing under this Agreement or any other Transaction Documents, and
no event shall have occurred that, with the passage of time, the giving of notice, or both, would constitute a default or an Event
of Default under this Agreement or any other Transaction Documents.

 

(f)          The
Credit Parties shall have executed such other agreements, certificates, confirmations or resolutions as the Buyer may reasonably
require to consummate the transactions contemplated by this Agreement and the Transaction Documents, including a closing statement
and joint disbursement instructions as may be required by Buyer.

 

ARTICLE X

INDEMNIFICATION 

 

10.1         Company’s
and the Guarantors’ Obligation to Indemnify. 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 and the Guarantors’ other obligations
under this Agreement, the Company and each Guarantor hereby agrees to defend and indemnify Buyer and its Affiliates and subsidiaries
and their respective directors, officers, employees, agents and representatives, and the successors and assigns of each of them
(collectively, the “Buyer Indemnified Parties”) and Company and each Guarantor does hereby agree to hold
the Buyer Indemnified Parties forever harmless, from and against any and all Claims made, brought or asserted against the Buyer
Indemnified Parties, or any one of them, and Company and each Guarantor hereby agrees to pay or reimburse the Buyer Indemnified
Parties for any and all Claims payable by any of the Buyer Indemnified Parties to any Person, including reasonable attorneys’
and paralegals’ fees and expenses, court costs, settlement amounts, costs of investigation and interest thereon from the
time such amounts are due at the highest non-usurious rate of interest permitted by applicable Law, through all negotiations, mediations,
arbitrations, trial and appellate levels, as a result of, or arising out of, or relating to: (i) any misrepresentation or breach
of any representation or warranty made by the Company and the Guarantors in this Agreement, the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby; (ii) any breach of any covenant, agreement or Obligation of
the Company and the Guarantors contained in this Agreement, the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby; or (iii) any Claims brought or made against the Buyer Indemnified Parties, or any one of them,
by a third party and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement, the
Transaction Documents or any other instrument, document or agreement executed pursuant hereto or thereto, any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Debentures, or the status
of the Buyer or holder of any of the Securities, as a buyer and holder of such Securities in the Company, except to the extent
that any such Claim is the result of the gross negligence or willful misconduct of any of the Buyer Indemnified Parties. To the
extent that the foregoing undertaking by the Company and the Guarantors may be unenforceable for any reason, the Company and the
Guarantors shall make the maximum contribution to the payment and satisfaction of each of the Claims covered hereby, which is permissible
under applicable Law.

 

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ARTICLE XI

MISCELLANEOUS

 

11.1         Notices.
All notices of request, demand and other communications hereunder shall be addressed to the parties as follows:

 

	If to the Company:	Mota Group, Inc.
	 	PO BOX 1116
	 	Campbell CA 95009
	 	Attention:  Michael Faro
	 	E-Mail: mfaro@mota.com
	 	 
	With a copy to:	Loeb & Loeb
	(which shall not constitute notice)	345 Park Avenue
	 	New York, NY 10154
	 	Attn: Giovanni Caruso, Esq.
	 	E-mail: gcaruso@loeb.com
	 	 
	If to the Buyer:	TCA Global Credit Master Fund, LP 
	 	3960 Howard Hughes Parkway, Suite 500
	 	Las Vegas, NV 89169
	 	Attn: Mr. Robert Press
	 	E-Mail:  bpress@tcaglobalfund.com
	 	 
	With a copy to:	Lucosky Brookman LLP
	(which shall not constitute notice)	101 Wood Avenue South, 5th Floor 
	 	Woodbridge, NJ 08830
	 	Attn: Seth A. Brookman, Esq. 
	 	E-Mail:  sbrookman@lucbro.com

 

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unless the
address is changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed delivered:
(i) if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below, then three
(3) business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal Express, UPS
or other nationally recognized overnight courier service, next business morning delivery, then one (1) business day after deposit
of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand delivered, then upon hand delivery thereof
to the address indicated on or prior to 5:00 p.m., EST, on a business day. Any notice hand delivered after 5:00 p.m., EST, shall
be deemed delivered on the following business day. Notwithstanding the foregoing, notice, consents, waivers or other communications
referred to in this Agreement may be sent by facsimile, e-mail, or other method of delivery, but shall be deemed to have been delivered
only when the sending party has confirmed (by reply e-mail or some other form of written confirmation from the receiving party)
that the notice has been received by the other party.

 

11.2         Obligations
Absolute. None of the following shall affect the Obligations of the Company and the Guarantors to Buyer under this Agreement,
Buyer’s rights with respect to the Collateral or any other Transaction Documents:

 

(a)          acceptance
or retention by Buyer of other property or any interest in property as security for the Obligations;

 

(b)          release
by Buyer of all or any part of the Collateral or of any party liable with respect to the Obligations (other than Company and the
Guarantors);

 

(c)          release,
extension, renewal, modification or substitution by Buyer of the debentures or any other Transaction Documents; or

 

(d)          failure
of Buyer to resort to any other security or to pursue the Company or any other obligor liable for any of the Obligations of the
Company and the Guarantors hereunder before resorting to remedies against the Collateral.

 

11.3         Entire
Agreement. This Agreement and the other Transaction Documents: (i) are valid, binding and enforceable against the Company,
the Guarantors and Buyer in accordance with its provisions and no conditions exist as to their legal effectiveness; (ii) constitute
the entire agreement between the parties; and (iii) are the final expression of the intentions of the Company, the Guarantors and
Buyer. No promises, either expressed or implied, exist between the Company, the Guarantors and Buyer, unless contained herein or
in the Transaction Documents. This Agreement and the Transaction Documents supersede all negotiations, representations, warranties,
commitments, offers, contracts (of any kind or nature, whether oral or written) prior to or contemporaneous with the execution
hereof.

 

11.4         Amendments;
Waivers. No amendment, modification, termination, discharge or waiver of any provision of this Agreement or of the Transaction
Documents, or consent to any departure by the Company or the Guarantors therefrom, shall in any event be effective unless the same
shall be in writing and signed by Buyer, and then such waiver or consent shall be effective only for the specific purpose for which
given.

 

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11.5         WAIVER
OF JURY TRIAL. BUYER, THE COMPANY AND THE GUARANTORS, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES, IRREVOCABLY, THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY TRANSACTION DOCUMENT OR ANY OF THE OBLIGATIONS
HEREUNDER, THE COLLATERAL, OR ANY OTHER AGREEMENT EXECUTED OR CONTEMPLATED TO BE EXECUTED IN CONJUNCTION WITH THIS AGREEMENT, OR
ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH BUYER AND THE COMPANY AND/OR THE GUARNATORS ARE ADVERSE PARTIES. THIS PROVISION
IS A MATERIAL INDUCEMENT FOR BUYER PURCHASING THE DEBENTURES.

 

11.6         MANDATORY
FORUM SELECTION. TO INDUCE BUYER TO PURCHASE THE DEBENTURES, THE COMPANY AND GUARANTORS IRREVOCABLY AGREE THAT ANY DISPUTE
ARISING UNDER, RELATING TO, OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THIS AGREEMENT OR RELATED TO ANY MATTER WHICH IS THE
SUBJECT OF OR INCIDENTAL TO THIS AGREEMENT ANY OTHER TRANSACTION DOCUMENT (WHETHER OR NOT SUCH CLAIM IS BASED UPON BREACH OF CONTRACT
OR TORT) SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN BROWARD COUNTY,
FLORIDA; PROVIDED, HOWEVER, BUYER MAY, AT BUYER’S SOLE OPTION, ELECT TO BRING ANY ACTION IN ANY OTHER JURISDICTION. THIS
PROVISION IS INTENDED TO BE A “MANDATORY” FORUM SELECTION CLAUSE AND GOVERNED BY AND INTERPRETED CONSISTENT WITH FLORIDA
LAW. EACH CREDIT PARTY HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT HAVING ITS SITUS IN
SAID COUNTY, AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS. EACH CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND
ALL PROCESS AND CONSENT THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE
COMPANY AND GUARANTORS AS SET FORTH HEREIN IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT OR OTHERWISE.

 

11.7         Assignability.
Buyer may at any time, upon written notice to the Credit Parties, assign Buyer’s rights in this Agreement, the Debentures,
any Transaction Document, or any part thereof and transfer Buyer’s rights in any or all of the Collateral, and Buyer thereafter
shall be relieved from all liability with respect to such Collateral. In addition, Buyer may at any time sell one or more participations
in the Debentures. The Company and the Guarantors may not sell or assign this Agreement, any Transaction Document or any other
agreement with Buyer, or any portion thereof, either voluntarily or by operation of law, nor delegate any of its duties of obligations
hereunder or thereunder, without the prior written consent of Buyer, which consent may be withheld or conditioned in Buyer’s
sole and absolute discretion. This Agreement shall be binding upon Buyer, the Guarantors and the Company and their respective legal
representatives, successors and permitted assigns. All references herein to a Company or the Guarantor shall be deemed to include
any successors, whether immediate or remote. In the case of a joint venture or partnership, the term “Company”, or
“Guarantor” shall be deemed to include all joint venturers or partners thereof, who shall be jointly and severally
liable hereunder.

 

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11.8         Publicity.
Buyer shall have the right to approve, before issuance, any press release or any other public statement with respect to the transactions
contemplated hereby made by the Company; provided, however, that the Company shall be entitled, without the prior approval of Buyer,
to issue any press release or other public disclosure with respect to such transactions required under applicable securities or
other laws or regulations. Notwithstanding the foregoing, the Company shall use its best efforts to consult Buyer in connection
with any such press release or other public disclosure prior to its release and Buyer shall be provided with a copy thereof upon
release thereof. Buyer shall have the right to make any press release with respect to the transactions contemplated hereby without
Company’s approval. In addition, with respect to any press release to be made by Buyer, the Company hereby authorizes and
grants blanket permission to Buyer to include the Company’s stock symbol, if any, in any press releases. The Company shall,
promptly upon request, execute any additional documents of authority or permission as may be requested by Buyer in connection with
any such press releases.

 

11.9         Binding
Effect. This Agreement shall become effective upon execution by the Company, the Guarantors and Buyer.

 

11.10         Governing
Law. Except in the case of the Mandatory Forum Selection Clause in Section 11.6 above, which clause shall be governed
and interpreted in accordance with Florida law, this Agreement and all other Transaction Documents shall be delivered and accepted
in and shall be deemed to be contracts made under and governed by the internal laws of the State of Nevada, and for all purposes
shall be construed in accordance with the laws of such State, without giving effect to the choice of law provisions of such State.

 

11.11         Enforceability.
Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by, unenforceable or invalid under any jurisdiction, such provision
shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

11.12         Survival
of Company’s and the Guarantors’ Representations. All covenants, agreements, representations and warranties made
by the Company and the Guarantors herein shall, notwithstanding any investigation by Buyer, be deemed material and relied upon
by Buyer and shall survive the making and execution of this Agreement and the Transaction Documents and the sale and purchase of
the Debentures, and shall be deemed to be continuing representations and warranties until such time as the Company and the Guarantors
have fulfilled all of its Obligations to Buyer hereunder and under all other Transaction Documents, and Buyer has been indefeasibly
paid in full.

 

11.13         Time
of Essence. Time is of the essence in making payments of all amounts due Buyer under this Agreement and the other Transaction
Documents and in the performance and observance by the Company and the Guarantors of each covenant, agreement, provision and term
of this Agreement and the other Transaction Documents. The parties agree that in the event that any date on which performance is
to occur falls on a day other than a Business Day, then the time for such performance shall be extended until the next Business
Day thereafter occurring.

 

    32

     

    

 

11.14         Release.
In consideration of the mutual promises and covenants made herein, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound hereby, the Company and the Guarantors hereby agree to fully,
finally and forever release and forever discharge and covenant not to sue Buyer, and/or any other Buyer Indemnified Parties from
any and all Claims, debts, fees, attorneys’ fees, liens, costs, expenses, damages, sums of money, accounts, bonds, bills,
covenants, promises, judgments, charges, demands, causes of action, suits, Proceedings, liabilities, expenses, Obligations or Contracts
of any kind whatsoever, whether in law or in equity, whether asserted or unasserted, whether known or unknown, fixed or contingent,
under statute or otherwise, from the beginning of time through the Effective Date, including, without limiting the generality of
the foregoing, any and all Claims relating to or arising out of any financing transactions, credit facilities, debentures, security
agreements, and other agreements including each of the Transaction Documents, entered into by the Company and the Guarantors with
Buyer and any and all Claims that the Company and the Guarantors do not know or suspect to exist, whether through ignorance, oversight,
error, negligence, or otherwise, and which, if known, would materially affect their decision to enter into this Agreement or the
related Transaction Documents.

 

11.15         Interpretation.
If any provision in this Agreement requires judicial or similar interpretation, the judicial or other such body interpreting or
construing such provision shall not apply the assumption that the terms hereof shall be more strictly construed against one party
because of the rule that an instrument must be construed more strictly against the party which itself or through its agents prepared
the same. The parties hereby agree that all parties and their agents have participated in the preparation hereof equally.

 

11.16         Compliance
with Federal Law. The Company shall: (i) ensure that no Person who owns a controlling interest in or otherwise controls the
Company is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by
the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury, included in any Executive Orders
or any other similar lists from any Governmental Authority, foreign or national; (ii) not use or permit the use of the proceeds
of the Debentures to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating
thereto, or any other similar national or foreign governmental regulations; and (iii) comply with all applicable Lender Secrecy
Act laws and regulations, as amended. As required by federal law and Buyer’s policies and practices, Buyer may need to obtain,
verify and record certain customer identification information and documentation in connection with opening or maintaining accounts
or establishing or continuing to provide services.

 

11.17         Termination.
Upon payment in full of all outstanding Debentures purchased hereunder, together with all other charges, fees and costs due and
payable under this Agreement or under any of the Transaction Documents, the Company shall have the right to terminate this Agreement
upon written notice to the Buyer, provided, however, that if such termination occurs within the ninety (90) days after the First
Closing Date, then the Company shall pay to Buyer as liquidated damages and compensation for the costs of being prepared to make
funds available hereunder, an amount equal to five percent (5.0%) of the amount of Debentures purchased hereunder. The parties
agree that the amount payable pursuant to this Section 11.17 is a reasonable calculation of Buyer’s lost profits in
view of the difficulties and impracticality of determining actual damages resulting from an early termination of this Agreement.

 

    33

     

    

 

11.18         Gender
and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

11.19         Execution.
This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered one and
the same Agreement, and same shall become effective when counterparts have been signed by each party and each party has delivered
its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf’ format file or other similar format file, such signature shall be deemed an original for all purposes
and shall create a valid and binding obligation of the party executing same with the same force and effect as if such facsimile
or “.pdf’ signature page was an original thereof.

 

11.20         Headings.
The article and section headings contained in this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of the Agreement.

 

11.21         Further
Assurances. The Company and the Guarantors will execute and deliver such further instruments and do such further acts and things
as may be reasonably required by Buyer to carry out the intent and purposes of this Agreement.

 

11.22         No
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.

 

[signature pages follow]

 

    34

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed as of the date and year set forth above.

 

	COMPANY:	 
	 	 
	MOTA GROUP, INC.	 
	 	 	 
	By:  	 	 
	Name: Michael Faro	 
	Title:
    President	 

 

	STATE OF 	 	)
	 	 	)  SS.
	COUNTY OF 	 	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that Michael Faro, the Chief Executive Officer
of Mota Group, Inc., a Delaware corporation, who is personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the uses and purposes therein
set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

    35

     

    

 

BUYER:

 

	TCA GLOBAL CREDIT MASTER FUND, LP	 
	 	 	 
	By:	TCA Global Credit Master Fund GP, Ltd. 	 
	Its:	General Partner	 
	 	 	 
	By:	 	 
	Name: 	Robert Press	 
	Title:	Managing Director	 

 

    36

     

    

 

CONSENT AND AGREEMENT

 

The undersigned, referred to in the foregoing
securities purchase agreement as a guarantor, hereby consents and agrees to said securities purchase agreement and to the payment
of the amounts contemplated therein, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by it pursuant to or in connection with said securities purchase agreement to the
same extent as if the undersigned were a party to said securities purchase agreement.

 

	GUARANTOR:	 
	 	 
	UNORTH ONE LLC	 
	 	 	 
	By:	 	 
	Name: Maryam Rowghani	 
	Title: Manager	 

 

	STATE OF 	 	)
	 	 	)  SS.
	COUNTY OF 	 	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that Maryam Rowghani, the Manager of UNorth
One LLC, a Nevada limited liability company, who is personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the uses and purposes therein
set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

    37

     

    

 

CONSENT AND AGREEMENT

 

The undersigned, referred to in the foregoing
securities purchase agreement as a guarantor, hereby consents and agrees to said securities purchase agreement and to the payment
of the amounts contemplated therein, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by it pursuant to or in connection with said securities purchase agreement to the
same extent as if the undersigned were a party to said securities purchase agreement.

 

	GUARANTOR:	 
	 	 
	MOTA HK LIMITED	 
	 	 	 
	By:	 	 
	Name:	 
	Title:	 

 

	STATE OF 	 	)
	 	 	)  SS.
	COUNTY OF 	 	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that ____________________, the ___________________of
Mota HK Limited, a _______________________, who is personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the uses and purposes therein
set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

    38

     

    

 

 

CONSENT AND AGREEMENT

 

The undersigned, referred to in the foregoing
securities purchase agreement as a guarantor, hereby consents and agrees to said securities purchase agreement and to the payment
of the amounts contemplated therein, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by it pursuant to or in connection with said securities purchase agreement to the
same extent as if the undersigned were a party to said securities purchase agreement.

 

	GUARANTOR: 	 
	 	 
	 	 
	MICHAEL M. FARO	 

 

	STATE OF 	 	)
	 	 	)  SS.
	COUNTY OF 	 	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that Michael M. Faro, who is personally known
to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged
that he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of
said corporation, for the uses and purposes therein set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

    39

     

    

 

 

CONSENT AND AGREEMENT

 

The undersigned, referred to in the foregoing
securities purchase agreement as a guarantor, hereby consents and agrees to said securities purchase agreement and to the payment
of the amounts contemplated therein, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by it pursuant to or in connection with said securities purchase agreement to the
same extent as if the undersigned were a party to said securities purchase agreement.

 

	GUARANTOR: 	 
	 	 
	 	 
	LILY QINGSONG JU	 

 

	STATE OF 	 	)
	 	 	)  SS.
	COUNTY OF 	 	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DOES HEREBY CERTIFY that Lily Qingsong Ju, who is personally
known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and
acknowledged that he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary
act of said corporation, for the uses and purposes therein set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

    40

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00263-of-00352.parquet"}]]