Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of December 6, 2019, by and among DropCar, Inc., a Delaware
corporation, with headquarters located at 1412 Broadway, Suite 2105, New York, New York 10018 (the “Company”),
and the investors listed on the Schedule of Purchasers attached hereto (each, a “Purchaser” and collectively,
the “Purchasers”).

 

WHEREAS:

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to each Purchaser, (i) shares of the Company’s Series H-5 Convertible Preferred Stock, par value
$0.0001 per share (the “Series H-5 Preferred Stock”), which will be convertible into shares of the Company’s
common stock, par value $0.0001 per share (the “Common Stock”) (the shares of Common Stock issuable upon conversion
of the Series H-5 Preferred Stock, collectively, the “Common Shares”) and (ii) warrants (the “Warrants”)
which will be exercisable to purchase shares of Common Stock (as exercised, collectively, the “Warrant Shares”)
in accordance with the terms of the Warrants.

 

B.           In
accordance with the terms of the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “1933 Act”), and applicable state securities laws.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Purchasers hereby agree as follows:

 

1.          Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

a.           “Additional
Effective Date” means the date the Additional Registration Statement is declared effective by the SEC.

 

b.           “Additional
Effectiveness Deadline” means the date which is the earlier of (x) (i) in the event that the Additional Registration
Statement is not subject to a review by the SEC, twenty (20) calendar days after the earlier of the Additional Filing Date and
the Additional Filing Deadline or (ii) in the event that the Additional Registration Statement is subject to a review by the SEC,
seventy-five (75) calendar days after the earlier of the Additional Filing Date and the Additional Filing Deadline and (y) the
fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the
SEC that such Additional Registration Statement will not be reviewed or will not be subject to further review; provided, however,
that if the Additional Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the
Additional Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

c.           “Additional
Filing Date” means the date on which the Additional Registration Statement is filed with the SEC.

 

d.           “Additional
Filing Deadline” means if Cutback Shares are required to be included in any Additional Registration Statement, thirty
(30) calendar days after the date substantially all of the Registrable Securities registered under the immediately preceding Registration
Statement are sold.

 

e.           “Additional
Registrable Securities” means, (i) any Cutback Shares not previously included on a Registration Statement and (ii)
any capital stock of the Company issued or issuable with respect to the Common Shares, the Warrants, the Warrant Shares, or
the Cutback Shares, as applicable, as a result of any stock split, stock dividend, recapitalization, exchange or similar
event or otherwise without regard to any limitations on exercise of the warrants.

 

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f.            “Additional
Registration Statement” means a registration statement or registration statements of the Company filed under the 1933
Act covering the resale of any Additional Registrable Securities.

 

g.           “Additional
Required Registration Amount” means (I) any Cutback Shares not previously included on a Registration Statement, all subject
to adjustment as provided in Section 2(f) or (II) such other amount as may be permitted by the staff of the SEC pursuant to Rule
415, without regard to any limitations on exercise of the Warrants.

 

h.           “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are
authorized or required by law to remain closed.

 

i.            “Change
in Control” shall have the meaning set forth in the Securities Purchase Agreement. 

  

j.            “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

k.           “Cutback
Shares” means any of the Initial Required Registration Amount or the Additional Required Registration Amount (without
regard to clause (II) in the definition thereof) of Registrable Securities not included in all Registration Statements previously
declared effective as contemplated hereunder as a result of a limitation on the maximum number of shares of Common Stock of the
Company permitted to be registered by the staff of the SEC pursuant to Rule 415. For the purpose of determining the Cutback Shares,
in order to determine any applicable Required Registration Amount, unless an Investor gives written notice to the Company to the
contrary with respect to the allocation of its Cutback Shares, first the Warrant Shares shall be excluded on a pro rata basis among
the Investors until all of the Warrant Shares have been excluded, and second the Common Shares shall be excluded on a pro rata
basis among the Investors until all of the Common Shares have been excluded.

 

l.            “Effective
Date” means the Initial Effective Date and the Additional Effective Date, as applicable.

 

m.           “Effectiveness
Deadline” means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

 

n.           “Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., the NYSE American, The Nasdaq Capital Market,
The Nasdaq Global Select Market, or The Nasdaq Global Market.

 

o.           “Filing
Deadline” means the Initial Filing Deadline and the Additional Filing Deadline, as applicable.

 

p.           “Initial
Effective Date” means the date that the Initial Registration Statement has been declared effective by the SEC.

 

q.           “Initial
Effectiveness Deadline” means the date which is the earlier of (x) (i) in the event that the Initial Registration Statement
is not subject to a review by the SEC, sixty (60) calendar days after the Initial Filing Date or (ii) in the event that the Initial
Registration Statement is subject to a review by the SEC, one hundred (100) calendar days after the Initial Filing Date and (y)
the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by
the SEC that such Initial Registration Statement will not be reviewed or will not be subject to further review; provided, however,
that if the Initial Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Initial
Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

 

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r.           “Initial
Filing Date” means the date on which the Initial Registration Statement is filed with the SEC.

 

s.            “Initial
Filing Deadline” means the earlier of (i) the 120th day after the date of this Agreement or (ii) the
45th day following a Change in Control.

 

t.          “Initial
Registrable Securities” means a number of shares of Common stock equal to 125% of (i) the Common Shares issued or issuable
upon full conversion of the Series H-5 Preferred Stock issued pursuant to the terms of the Securities Purchase Agreement, (ii)
the Warrant Shares issued or issuable upon exercise of the Warrants and (iii) any capital stock of the Company issued or issuable
with respect to the Common Shares, the Series H-5 Preferred Stock, the Warrant Shares or the Warrants as a result of any stock
split, stock dividend, recapitalization, exchange or similar event or otherwise without regard to any limitations on conversion
of the Series H-5 Preferred Stock or exercise of the Warrants.

 

u.            “Initial
Registration Statement” means a registration statement or registration statements of the Company filed under the 1933
Act covering the resale of the Initial Registrable Securities.

 

v.           “Initial
Required Registration Amount” means (I) the sum of (i) the number of Common Shares and (ii) the maximum number of Warrant
Shares issued and issuable pursuant to the Warrants, without regard to any limitations on exercise of the Warrants or (II) such
other amount as may be permitted by the staff of the SEC pursuant to Rule 415.

 

w.           “Investor”
means a Purchaser or any transferee or assignee thereof to whom a Purchaser assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom
a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement
in accordance with Section 9.

 

x.          “Lead
Investor” means Alpha Capital Anstalt.

 

y.         “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
and a government or any department or agency thereof.

 

z.         “Principal
Market” means The Nasdaq Capital Market.

 

aa.         “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415, and the declaration
or ordering of effectiveness of such Registration Statement(s) by the SEC.

 

bb.         “Registrable
Securities” means the Initial Registrable Securities and the Additional Registrable Securities.

 

cc.         “Registration
Statement” means the Initial Registration Statement and the Additional Registration Statement, as applicable.

 

dd.         “Required
Holders” means holders of at least a majority of the Registrable Securities.

 

ee.         “Required
Registration Amount” means either the Initial Required Registration Amount or the Additional Required Registration Amount,
as applicable.

 

ff.           “Rule
415” means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous
or delayed basis.

 

gg.         “SEC”
means the United States Securities and Exchange Commission.

 

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hh.         “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

2.          Registration.

 

(a)          Initial
Mandatory Registration. Promptly following the Closing Date, the Company shall prepare, and, as soon as practicable but in
no event later than the Initial Filing Deadline, file with the SEC the Initial Registration Statement on Form S-3 covering the
resale of all of the Initial Registrable Securities. In the event that Form S-3 is unavailable for such a registration, the Company
shall use Form S-1 or such other form as is available for such a registration on another appropriate form reasonably acceptable
to the Required Holders, subject to the provisions of Section 2(e). The Initial Registration Statement prepared pursuant hereto
shall register for resale at least the number of shares of Common Stock equal to the Initial Required Registration Amount determined
as of the date the Initial Registration Statement is initially filed with the SEC, subject to adjustment as provided in Section
2(f). The Initial Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Plan
of Distribution” and “Selling Shareholders” sections in substantially the form attached hereto as Exhibit
B, with such modifications as may be required by law. The Company shall use its commercially reasonable efforts to have the
Initial Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Initial Effectiveness
Deadline. By 9:30 a.m. New York time on the Business Day following the Initial Effective Date, the Company shall file with the
SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Initial
Registration Statement.

 

(b)          Additional
Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing
Deadline, file with the SEC an Additional Registration Statement on Form S-3 covering the resale of all of the Additional Registrable
Securities not previously registered on an Additional Registration Statement hereunder. To the extent the staff of the SEC does
not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement, the Company shall
file Additional Registration Statements successively trying to register on each such Additional Registration Statement the maximum
number of remaining Additional Registrable Securities until the Additional Required Registration Amount has been registered with
the SEC; provided that after two rejections by the SEC of Additional Registration Statements, the Company shall not be required
to file Additional Registration Statements more frequently than once per sixty day period commencing subsequent to the second rejection.
In the event that Form S-3 is unavailable for such a registration, the Company shall use Form S-1 or such other form as is available
for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of
Section 2(e). Each Additional Registration Statement prepared pursuant hereto shall register for resale at least that number of
shares of Common Stock equal to the Additional Required Registration Amount determined as of the date such Additional Registration
Statement is initially filed with the SEC, subject to adjustment as provided in Section 2(f). Each Additional
Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Plan of Distribution”
and “Selling Shareholders” sections in substantially the form attached hereto as Exhibit B, with
such modifications as may be required by law. The Company shall use its commercially reasonable efforts to have each Additional
Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Additional Effectiveness
Deadline. By 9:30 a.m. New York time on the Business Day following the Additional Effective Date, the Company shall file with the
SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Additional
Registration Statement.

 

(c)          Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any
increase or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors
based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such
initial number of Registrable Securities or increase or decrease thereof is declared effective by the SEC. In the event that
an Investor sells or otherwise transfers any of such Investor’s Registrable Securities, each transferee shall be
allocated a pro rata portion of the then remaining number of Registrable Securities included in such Registration Statement
for such transferor. Any shares of Common Stock included in a Registration Statement and which remain allocated to any Person
which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining
Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered by such
Registration Statement. In no event shall the Company include any securities other than Registrable Securities on any
Registration Statement without the prior written consent of the Required Holders.

 

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(d)          Legal
Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 (“Legal Counsel”), which shall be Ellenoff Grossman & Schole
LLP, or such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably cooperate
with each other in performing the Company’s obligations under this Agreement.

 

(e)          Ineligibility
for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder,
the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form reasonably acceptable
to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as any
such Registration Statement on Form S-3 filed by the Company covering the Registrable Securities has been declared effective by
the SEC.

 

(f)          Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to Section
2(a) or Section 2(b) is insufficient to cover the Required Registration Amount of Registrable Securities required to be covered
by such Registration Statement or an Investor’s allocated portion of the Registrable Securities pursuant to Section 2(c),
the Company shall amend the applicable Registration Statement, or file a new Registration Statement (on the short form available
therefor, if applicable), or both, so as to cover at least the Required Registration Amount as of the Trading Day immediately preceding
the date of the filing of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event
not later than fifteen (15) calendar days after the necessity therefor arises. The Company shall use its commercially reasonable
efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing
thereof. For purposes of the foregoing provision, the number of shares available under a Registration Statement shall be deemed
“insufficient to cover all of the Registrable Securities” if at any time the number of shares of Common Stock available
for resale under the Registration Statement is less than the Required Registration Amount. The calculation set forth in the foregoing
sentence shall be made without regard to any limitations on the exercise of the Warrants and such calculation shall assume the
Warrants are then exercisable in full into shares of Common Stock at the then prevailing Exercise Price (as defined in the Warrants).

 

(g)          Effect
of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) the Initial Registration
Statement when declared effective fails to register the Initial Required Registration Amount of Initial Registrable
Securities (a “Registration Failure”), (ii) a Registration Statement covering all of the Registrable
Securities required to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed
with the SEC on or before the applicable Filing Deadline (a “Filing Failure”) or (B) not declared
effective by the SEC on or before the applicable Effectiveness Deadline, (an “Effectiveness Failure”) or
(iii) on any day after the applicable Effective Date, sales of all of the Registrable Securities required to be included on
such Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r)))
pursuant to such Registration Statement or otherwise (including, without limitation, because of the suspension of trading or
any other limitation imposed by an Eligible Market, a failure to keep such Registration Statement effective, a failure to
disclose such information as is necessary for sales to be made pursuant to such Registration Statement, a failure to register
a sufficient number of shares of Common Stock or a failure to maintain the listing of the Common Stock) (a
“Maintenance Failure” and collectively with a Registration Failure, a Filing Failure, and an
Effectiveness Failure, the “Failures” and each a “Failure”), then, as the sole and
exclusive remedy for the damages to any holder by reason of any such delay in or reduction of its ability to sell the
applicable Registrable Securities, the Company shall pay to each holder of Registrable Securities relating to such
Registration Statement an amount in cash equal to one percent (1.0%) of the aggregate Subscription Amount (as defined in the
Securities Purchase Agreement) of such Investor’s Registrable Securities whether or not included in such Registration
Statement, on each of the following dates: (i) the day of a Registration Failure, (ii) the day of a Filing Failure; (iii) the
day of an Effectiveness Failure; (iv) the initial day of a Maintenance Failure; (v) on the thirtieth day after the date of a
Registration Failure and every thirtieth day thereafter (pro-rated for periods totaling less than thirty days) until such
Registration Failure is cured; (vi) on the thirtieth day after the date of a Filing Failure and every thirtieth day
thereafter (pro-rated for periods totaling less than thirty days) until such Filing Failure is cured; (vii) on the thirtieth
day after the date of an Effectiveness Failure and every thirtieth day thereafter (pro-rated for periods totaling less than
thirty days) until such Effectiveness Failure is cured; and (viii) on the thirtieth day after the initial date of a
Maintenance Failure and every thirtieth day thereafter (pro-rated for periods totaling less than thirty days) until such
Maintenance Failure is cured; provided however, in the event that there shall be more than one Failure occurring
simultaneously, the 1.0% shall apply in the aggregate (e.g., during any single or multiple Failure, 1% shall be due, however
1% shall not be due “per Failure” if the Failures are simultaneous and for so long as such Failures are
simultaneous). The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as
“Registration Delay Payments.” Registration Delay Payments shall be paid on the earlier of (I) the dates
set forth above and (II) the third Business Day after the event or failure giving rise to the Registration Delay Payments is
cured. In the event the Company fails to make Registration Delay Payments in a timely manner, such Registration Delay
Payments shall bear interest at the rate of one percent (1%) per month (prorated for partial months) until paid in full.
Notwithstanding anything to the contrary contained herein, Registration Delay Payments shall (i) not, in the aggregate,
exceed five percent (5.0%) of the aggregate Purchase Price, (ii) cease to accrue when all of the Registrable Securities may
be sold pursuant to Rule 144 without any restrictions or limitations and (iii) cease to accrue upon the termination of the
Registration Period (as defined below).

 

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(h)          Limitation
on Other Registration Statements. The Company shall not file another registration statement under the 1933 Act prior to the
earlier of (i) date that the Initial Registration Statement is declared effective by the SEC and (ii) the end of the
Registration Period (as defined in Section 3(a); provided that, this Section 2(h) shall not prevent the Company from
filing a registration statement on Form S-4 or Form S-8 with the SEC at any time.

 

3.          Related
Obligations.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its
commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the intended method
of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)          The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use
its commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities to become effective
as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep each Registration
Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date that is two (2) years and six (6) months
after the Closing Date or (ii) the date on which the Investors shall have sold all of the Registrable Securities required to be
covered by such Registration Statement (the “Registration Period”). The Company shall ensure that each Registration
Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein
(in the case of prospectuses, in the light of the circumstances in which they were made) not misleading. The term “commercially
reasonable efforts” shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days
after the later of the date that (i) the Company learns that no review of a particular Registration Statement will be made by the
staff of the SEC or that the staff has no further comments on a particular Registration Statement, as the case may be, and (ii)
the approval of Legal Counsel pursuant to Section 3(c) (which approval is promptly sought), a request for acceleration of effectiveness
of such Registration Statement to a time and date not later than two (2) Business Days after the submission of such request. The
Company shall respond in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but
in no event later than fifteen (15) calendar days after the receipt of comments by or notice from the SEC that an amendment is
required in order for a Registration Statement to be declared effective.

 

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(b)          The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be
filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective
at all times during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect
to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all
of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a
Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by
reason of the Company filing a report on Form 10-K, Form 10-Q, Form 8-K or any analogous report under the Securities Exchange
Act of 1934, as amended (the “1934 Act”), the Company shall have incorporated such report by reference
into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on
which the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration
Statement.

 

(c)          The
Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least two (2) Business Days prior
to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for those filed by reason
of the Company filing Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar
or successor reports) within a reasonable number of days prior to their filing with the SEC, (B) permit each Investor to review
and comment on the “Plan of Distribution” and “Selling Shareholders” sections of the Registration Statement
and all amendments and supplements to the Registration Statement to the extent any changes are made to those sections, and (C)
not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects; provided
however, that if the delay in filing the Registration Statement is due to Legal Counsel’s or an Investor’s unreasonable
objections (and unreasonable refusal to allow the Company to file the Registration Statement) then in such event, no Registration
Failure (or similar event that triggers a Registration Delay Payment) shall be deemed to have occurred with such delay arising
from Legal Counsel’s unreasonable objections, or solely with respect to an Investor, arising from such Investor’s unreasonable
objections. The Company shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment
or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld; provided however,
that if the delay in filing the effectiveness of the Registration Statement is due to Legal Counsel’s unreasonable objections
(and unreasonable refusal to allow the Registration Statement to become effective) then in such event, no Effectiveness Failure
(or similar event that triggers a Registration Delay Payment) shall be deemed to have occurred. The Company shall furnish to Legal
Counsel, without charge, copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives
relating to any Registration Statement. The Company shall reasonably cooperate with Legal Counsel in performing the Company’s
obligations pursuant to this Section 3.

 

(d)          Intentionally
Omitted.

 

(e)          The
Company shall use its commercially reasonable efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities
or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however,
that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction
where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal
Counsel of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of
any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United
States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

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(f)          The
Company shall notify Legal Counsel in writing of the happening of any event, as promptly as practicable but not later than
the first Business Day after becoming aware of such event, (i) as a result of which the prospectus included in a Registration
Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), or (ii) that
results in the lack of effectiveness of any Registration Statement, and, subject to Section 3(r), promptly prepare a
supplement or amendment to such Registration Statement to correct such untrue statement or omission, or lack of effectiveness
of any Registration Statement. The Company shall also promptly notify Legal Counsel in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel by facsimile or email
on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments or supplements to
a Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable
determination that a post-effective amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City
time on the date following the date any post-effective amendment has become effective, the Company shall file with the SEC in
accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such
Registration Statement.

 

(g)          The
Company shall use its commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness
of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify Legal Counsel of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

(h)          If
any Investor is required by the SEC to be described in the Registration Statement as an underwriter or the Company and an Investor
agree that it should be identified as an underwriter of Registrable Securities in the Registration Statement and the Registration
Statement is so modified, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration Statement
and thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of
counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given
in an underwritten public offering, addressed to the Investors.

 

(i)          If
any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or the
Company and an Investor agrees that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall
make available for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained
by the Investors (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent
corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed
necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any
Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict
confidence and shall not make any disclosure (except to an Investor) or use of any Record or other information which the Company
determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required
under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court
or government body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public
other than by disclosure in violation of this Agreement. Each Investor agrees that it shall, upon learning that disclosure of such
Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to
the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any
Investor) shall be deemed to limit the Investors’ ability to sell Registrable Securities in a manner which is otherwise consistent
with applicable laws and regulations.

 

    	 	8	 

     

    

 

(j)          The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or
governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other
than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning
that disclosure of such information concerning an Investor is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor a reasonable period
of time, at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.

 

(k)          The
Company shall use its commercially reasonable efforts either to (i) cause all of the Registrable Securities covered by a Registration
Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure
the inclusion for quotation of all of the Registrable Securities on the Principal Market or (iii) if, despite the Company’s
commercially reasonable efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the inclusion
for quotation on another Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing,
to use its commercially reasonable efforts to arrange for at least two market makers to register with the Financial Industry Regulatory
Authority, Inc. (“FINRA”) as such with respect to such Registrable Securities. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section 3(k).

 

(l)          The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(m)          If
reasonably requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration
Statement if reasonably requested by an Investor holding any Registrable Securities.

 

(n)          The
Company shall use its commercially reasonable efforts to cause the Registrable Securities covered by a Registration Statement to
be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

(o)          Intentionally
Omitted.

 

(p)          The
Company shall otherwise use its commercially reasonable efforts to comply in all material respects with all applicable rules and
regulations of the SEC in connection with any registration hereunder.

 

(q)          Within
two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

    	 	9	 

     

    

 

(r)          Notwithstanding
anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material,
non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the
Board of Directors of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to the
Company, otherwise required (a “Grace Period”); provided, that the Company shall promptly (i) notify the
Investors in writing of the existence of material, non-public information giving rise to a Grace Period (provided that in
each notice the Company will not disclose the content of such material, non-public information to the Investors) and the date
on which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the Grace Period ends;
and, provided further, that no Grace Period shall exceed ten (10) consecutive Trading Days and during any three hundred sixty
five (365) day period such Grace Periods shall not exceed an aggregate of twenty (20) Trading Days and the first day of any
Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period (each, an
“Allowable Grace Period”). For purposes of determining the length of a Grace Period above, the Grace
Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and
include the later of the date the Investors receive the notice referred to in clause (ii) and the date referred to in such
notice. The provisions of Section 3(g) hereof shall not be applicable during the period of any Allowable Grace Period. Upon
expiration of the Grace Period, the Company shall again be bound by the first sentence of Section 3(f) with respect to the
information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding
anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a
transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale
of Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the
Investor’s receipt of the notice of a Grace Period and for which the Investor has not yet settled.

 

(s)          Except
as required by applicable law, neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter
in any public disclosure or filing with the SEC, the Principal Market or any Eligible Market and any Purchaser being deemed an
underwriter by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction Document
(as defined in the Securities Purchase Agreement); provided, however, that the foregoing shall not prohibit
the Company from including the disclosure found in the “Plan of Distribution” section attached hereto as Exhibit
B in the Registration Statement. If the Company is required by law to identify any Investor as an underwriter in any public
disclosure or filing with the SEC, the Principal Market or any Eligible Market, prior to so identifying any such Investor, the
Company shall promptly notify each such Investor of the legal requirement and give each such Investor a reasonable opportunity
to persuade the applicable regulator that said disclosure is not required. If the applicable Investors are unable to eliminate
the legal requirement to be identified as an underwriter, the applicable Investor shall have five (5) Business Days, or such shorter
time as required by the applicable regulator or applicable law, to consent to such disclosure or to agree to withdraw as a selling
shareholder under the Registration Statement. If an Investor agrees to withdraw as a selling shareholder under the Registration
Statement, the Company shall not be responsible for any such Failures with respect to any such Investor.

 

(t)          Neither
the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on
or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of preventing
the Company from performing its obligations hereunder.

 

4.          Obligations
of the Investors.

 

(a)          At
least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify each
Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such
Investor’s Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations
of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities of a particular
Investor that such Investor shall timely furnish to the Company such information regarding itself, the Registrable Securities held
by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required by the Company
to effect and maintain the effectiveness of the registration of such Registrable Securities and shall timely execute such documents
in connection with such registration as the Company may reasonably request.

 

(b)          Each
Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

    	 	10	 

     

    

 

(c)          Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of 3(f) (a “No Sale Notice”), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable
Securities until such Investor’s receipt of copies of the supplemented or amended prospectus as contemplated by Section
3(g) or the first sentence of 3(f) or receipt of notice that no supplement or amendment is required. Notwithstanding anything
to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of
an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a
notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of 3(f) and
for which the Investor has not yet settled.

 

(d)          Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.          Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company shall be paid by the Company.

 

6.          Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor,
the directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any
Investor within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”), against any
losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts
paid in settlement or expenses, joint or several (collectively, “Claims”), incurred in investigating,
preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or
before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of
them may reasonably become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of
the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities
are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to
be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue
statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or
supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the statements therein were made, not misleading, (iii)
any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses
(i) through (iv) being, collectively, “Violations”). Subject to Section 6(c), the Company shall
reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for reasonable legal fees
or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply
to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished to the Company by such Indemnified Person for such Indemnified Person expressly for use in
connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto; and (ii)
shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent
of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9.

 

    	 	11	 

     

    

 

(b)          In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs
in reliance upon and in conformity with information furnished to the Company by such Investor expressly for use in connection with
such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse the Indemnified Party for any legal or
other expenses reasonably incurred by an Indemnified Party in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of
such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall
be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9.

 

(c)          Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires and has acknowledged its indemnification obligations hereunder in writing, jointly with any other
indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying
party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that
an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses of not more
than one counsel for all such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable
opinion of counsel retained by the Indemnified Person or Indemnified Party, as applicable, the representation by such counsel of
the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to differing interests between
such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. In the case of
an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall be selected by the Investors holding
at least a majority in interest of the Registrable Securities included in the Registration Statement to which the Claim relates.
The Indemnified Party or Indemnified Person shall reasonably cooperate with the indemnifying party in connection with any negotiation
or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably
available to the Indemnified Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep
the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations
with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without
its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such Claim or litigation and such settlement shall not include any admission as to fault on the part of the Indemnified
Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified
Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of
any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under
this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

    	 	12	 

     

    

 

(d)          Intentionally
Omitted.

 

(e)          The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

7.          Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved
in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller
of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement.

 

8.          Reports
Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees to:

  

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)          file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

(c)          furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, a written statement by the Company,
if true, that it has complied with the reporting requirements of the 1933 Act and the 1934 Act and that it has satisfied the current
public information provisions set forth in Rule 144.

 

9.          Assignment
of Registration Rights.

 

The rights under this
Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor’s Registrable
Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b)
the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act
or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained
herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement.

 

10.         Amendment
of Registration Rights.

 

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the Required Holders; provided that any
such amendment or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the
rights and obligations of any Investor relative to the comparable rights and obligations of the other Investors shall require
the prior written consent of such adversely affected Investor. Any amendment or waiver effected in accordance with this
Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that it
applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any
Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration
(other than the reimbursement of legal fees) also is offered to all of the parties to this Agreement.

 

    	 	13	 

     

    

 

11.         Miscellaneous.

 

(a)          A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (iii) when sent, if sent by electronic mail; or (iv) one Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and email
addresses for such communications shall be:

 

	 	If to the Company:  	 
	 	 	 
	 	DropCar, Inc.	 
	 	1412 Broadway, Suite 2105	 
	 	New York, New York 10018	 
	 	Attn: Joshua Silverman, Chairman of the Board	 
	 	Email: jsilverman@parkfieldfund.com	 
	 	 	 
	 	With a copy (for informational purposes only) to:	 
	 	 	 
	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.	 
	 	Chrysler Center	 
	 	666 3rd Avenue	 
	 	New York, NY 10017	 
	 	Attn: Kenneth R. Koch, Esq.	 
	 	Facsimile: (212) 983-3115	 
	 	 	 
	 	If to the Transfer Agent:	 
	 	 	 
	 	Direct Transfer LLC (formerly known as Interwest Transfer Company, Inc.)	 
	 	1981 Murray Holladay Road, Suite 100	 
	 	Salt Lake City, UT 84117	 
	 	Fax: (801) 277-3147	 
	 	 	 
	 	If to Legal Counsel:	 
	 	 	 
	 	Ellenoff Grossman & Schole LLP	 
	 	1345 Avenue of the Americas	 
	 	New York, NY 10105	 
	 	Attn: Joseph A. Smith	 
	 	Email: jsmith@egsllp.com	 

 

If to a Purchaser, to its address,
facsimile number and/or email address set forth on the Schedule of Purchasers attached hereto or on the signature pages of
the Securities Purchase Agreement, with copies to such Purchaser’s representatives as set forth on the Schedule of
Purchasers, or to such other address, facsimile number and/or email address to the attention of such other Person as the
recipient party has specified by written notice given to each other party five (5) calendar days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the sender’s facsimile machine or email containing the
time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a courier or
overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	 	14	 

     

    

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e)          If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)          This
Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement,
the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

(g)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

(h)          The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

    	 	15	 

     

    

 

(i)          This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(j)          Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)          All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if the outstanding Warrants then held by Investors have been
exercised for Registrable Securities without regard to any limitations on exercise of the Warrants.

 

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

 

(m)          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.

 

(n)          The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of
this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated herein.

 

(o)          Legal
Counsel may resign as Legal Counsel on five (5) calendar days’ prior notice to the Company and the Lead Investor. Legal Counsel
may rely on instructions from the Lead Investor.

 

* * * * * *

 

[Signature Page Follows]

 

    	 	16	 

     

    

 

IN WITNESS WHEREOF, the
parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	DROPCAR, INC.
	 	 	 
	 	By:	 /s/ Joshua Silverman
	 	 	Name: Joshua Silverman
	 	 	Title: Chairman of the Board

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	 	17	 

     

    

 

[SIGNATURE
PAGE OF PURCHASERS TO

DROPCAR,
INC. RRA]

 

Name of Purchaser: Alpha Capital Anstalt

 

Signature of Authorized Signatory of
Purchaser: /s/ Konrad Ackermann

 

Name of Authorized Signatory: Konrad
Ackermann

 

Title of Authorized Signatory: Director

 

 

Email Address of Authorized Signatory:
info@alphacapital.li

 

Facsimile Number of Authorized Signatory:
212-586-8244

 

Address for Notice to Purchaser:

 

Lettstrasse 32, 9490 Vaduz

Principality of Liechtenstein

 

 

[SIGNATURE PAGES CONTINUE]

 

    	 	18	 

     

    

 

 

[SIGNATURE
PAGE OF PURCHASERS TO

DROPCAR,
INC. RRA]

 

Name of Purchaser: Brio Capital Master
Fund Ltd.

 

Signature of Authorized Signatory of
Purchaser: /s/ Shaye Hirsch

 

Name of Authorized Signatory: Shaye
Hirsch

 

Title of Authorized Signatory: Director

 

 

Email Address of Authorized Signatory:
shaye@briocapital.com

 

Facsimile Number of Authorized Signatory:
646-390-2158

 

Address for Notice to Purchaser:

 

c/o Brio Capital Management LLC

100 Merrick Road, Suite 401W

Rockville Centre, NY 11570

 

 

[SIGNATURE PAGES CONTINUE]

 

    	 	19	 

     

    

 

 

[SIGNATURE
PAGE OF PURCHASERS TO

DROPCAR,
INC. RRA]

 

Name of Purchaser: Iroquois Capital
Investment Group

 

Signature of Authorized Signatory of
Purchaser: /s/ Richard Abbe

 

Name of Authorized Signatory: Richard
Abbe

 

Title of Authorized Signatory: Managing
Member 

 

 

Email Address of Authorized Signatory:
rabbe@icfund.com

 

Facsimile Number of Authorized Signatory:

 

Address for Notice to Purchaser:

 

125 Park Avenue, 25th Floor

New York, New York 10017

 

 

[SIGNATURE PAGES CONTINUE]

 

    	 	20	 

     

    

 

 

[SIGNATURE
PAGE OF PURCHASERS TO

DROPCAR,
INC. RRA]

 

Name of Purchaser: Iroquois Master Fund
Ltd. 

 

Signature of Authorized Signatory of
Purchaser: /s/ Kimberly Page

 

Name of Authorized Signatory: Kimberly
Page

 

Title of Authorized Signatory: Managing
Member of its Investment Manager, Director and General Partner

 

 

Email Address of Authorized Signatory:
kpage@icfund.com

 

Facsimile Number of Authorized Signatory:

 

Address for Notice to Purchaser:

 

c/o Iroquois Capital Management, LLC

125 Park Avenue, 25th Floor

New York, New York 10017

 

 

[SIGNATURE PAGES CONTINUE]

  

    	 	21	 

     

    

 

SCHEDULE OF PURCHASERS

 

Alpha Capital Anstalt

c/o LH Financial Services Corp.

510 Madison Avenue, 1400

New York, NY 10022

Attn: Konrad Ackermann, Director

Fax: 212-586-8244

Email: info@alphacapital.li

 

Brio Capital Master Fund

c/o Brio Capital Management LLC

100 Merrick Road, Suite 401W

Rockville Centre, NY 11570-4800

Attn: Shaye Hirsch

Fax: 646-390-2158

Email: shaye@briocapital.com

 

Iroquois Capital Investment Group LLC

125 Park Avenue, 25th Floor

New York, NY 10017

Attn: Richard Abbe

Email: rabbe@icfund.com

 

Iroquois Master Fund LTD.

125 Park Avenue, 25th Floor

New York, NY 10017

Attn: Kimberly Page

Email: kpage@icfund.com

  

    	 	22	 

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Direct Transfer LLC (formerly known as Interwest Transfer Company,
Inc.)

1981 Murray Holladay Road, Suite 100

Salt Lake City, UT 84117

Fax: (801) 277-3147

 

	 	Re:	DropCar, Inc.

 

Ladies and Gentlemen:

 

We have been requested
by DropCar, Inc., a Delaware corporation (the “Company”), to confirm the effectiveness of the Company’s
Registration Statement on Form S-3 (No. 333-_____) (the “Registration Statement”) filed with the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities
Act”), on ________, with respect to the offer and sale of shares of the Company’s common stock that have been registered
thereunder (the “Shares”).

 

In connection therewith,
we have examined the notice of effectiveness published by the Commission on its website with respect to the Registration Statement
and [received a voicemail message / exchanged telephone communications] on _________, [from / with] a staff member of the Commission
with respect to the same.

 

Based upon the foregoing,
we can confirm to you that the Registration Statement became effective under the Securities Act on _________.

 

We understand that
the transfer of the Shares is restricted on the Company’s stock records, and the certificates for the Shares bear legends
restricting such transfer otherwise than pursuant to registration or an exemption from registration under the Securities Act. Note
that the Company has not authorized you to remove the Securities Act restrictive legend from the certificate for the Shares, and
that such authorization shall be provided by the Company on a case-by-case basis only upon a sale of the Shares.

 

	 	Yours truly,

 

    	 	23	 

     

    

 

EXHIBIT B

 

SELLING SHAREHOLDERS

 

The shares of Common
Stock being offered by the selling stockholders are those issued upon conversion of the Series H-5 Preferred Stock and exercise
of Warrants that were issued to the selling stockholders pursuant to the Securities Purchase Agreement dated as of December 6,
2019 (the “Securities Purchase Agreement”), by and among the Company and the investors named therein, and upon exercise
of the Warrants. We are registering the shares of Common Stock in order to permit the selling stockholders to offer the shares
for resale from time to time. Except for the ownership of the shares of common stock and the warrants issued pursuant to the Securities
Purchase Agreement, the selling shareholders have not had any material relationship with us within the past three years.

 

 The table below
lists the selling stockholders and other information regarding the beneficial ownership of the shares of Common Stock by each of
the selling stockholders. The second column lists the number of shares of Common Stock beneficially owned by each selling stockholder,
based on its ownership of the Series H-5 Preferred Stock and the Warrants, as of _________, 2019, assuming exercise of all Warrants
held by the selling stockholder on that date, without regard to any limitations on exercise.

 

The third column lists
the shares of Common Stock being offered by this prospectus by the selling stockholders and does not take in account any limitations
on (i) conversion of the Series H-5 Preferred Stock or issuance of Common Stock or (ii) exercise of the Warrants.

 

 In accordance
with the terms of a registration rights agreement with the selling stockholders (the “Registration Rights Agreement”),
this prospectus generally covers the resale of at least the sum of (i) the number of shares of Common Stock issued upon conversion
of the Series H-5 Preferred Stock issued pursuant to the Securities Purchase Agreement as of the trading day immediately preceding
the date the registration statement is initially filed with the SEC, and (ii) the maximum number of shares of common stock issued
and issuable upon exercise of the related Warrants as of the trading day immediately preceding the date the registration statement
is initially filed with the SEC. The fourth column assumes the sale of all of the shares offered by the selling stockholders pursuant
to this prospectus.

 

Under the terms of
the Series H-5 Preferred Stock, a selling stockholder may not convert the Series H-5 Preferred Stock to the extent such exercise
would cause such selling stockholder, together with its affiliates, to beneficially own a number of shares of Common Stock which
would exceed 9.99% of our then outstanding shares of Common Stock following such exercise. Under the terms of the Warrants, a selling
stockholder may not exercise the Warrants to the extent such exercise would cause such selling stockholder, together with its affiliates,
to beneficially own a number of shares of common stock which would exceed 9.99% of our then outstanding shares of common stock
following such exercise, excluding for purposes of such determination shares of common stock issuable upon exercise of the Warrants
which have not been exercised. The number of shares in the second column does not reflect these limitations. The selling stockholders
may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

	Name of Selling Shareholder	 	Number of Shares of

Common Stock

Owned Prior to

Offering	 	 	Maximum Number

of Shares of

Common Stock to be

Sold Pursuant to this

Prospectus	 	 	Number of Shares

of Common Stock

Owned After

Offering	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

PLAN OF DISTRIBUTION

 

We are
registering the shares of Common Stock that may be issued upon conversion of the Series H-5 Preferred Stock issued pursuant
to the Securities Purchase Agreement and upon exercise of the Warrants issued pursuant to the terms of the Securities
Purchase Agreement to permit the resale of these shares of Common Stock by the holders of such shares and Warrants from time
to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders
of the shares of Common Stock. We will bear all fees and expenses incident to our obligation to register the shares of Common
Stock.

 

    	 	24	 

     

    

 

The selling stockholders
may sell all or a portion of the shares of Common Stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of Common Stock are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The shares
of Common Stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at
varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may
involve crosses or block transactions, pursuant to one or more of the following methods:

 

	 	·	on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	·	in the over-the-counter market;
	 	·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	·	through the writing of options, whether such options are listed on an options exchange or otherwise;
	 	·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
	 	·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	·	an exchange distribution in accordance with the rules of the applicable exchange;
	 	·	privately negotiated transactions;
	 	·	short sales;
	 	·	sales pursuant to Rule 144;
	 	·	broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share;
	 	·	a combination of any such methods of sale; and
	 	·	any other method permitted pursuant to applicable law.

 

If the selling stockholders
effect such transactions by selling shares of Common Stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders
or commissions from purchasers of the shares of Common Stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of Common Stock or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of
Common Stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of Common Stock short
and deliver shares of Common Stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge shares of Common Stock to broker-dealers that in turn may
sell such shares.

 

The selling stockholders
may pledge or grant a security interest in some or all of the shares of Common Stock, Series H-5 Preferred Stock or Warrants owned
by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell
the shares of Common Stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders
also may transfer and donate the shares of Common Stock in other circumstances in which case the transferees, donees, pledgees
or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling
stockholders and any broker-dealer participating in the distribution of the shares of Common Stock may be deemed to be
“underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions
allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the
time a particular offering of the shares of Common Stock is made, a prospectus supplement, if required, will be distributed
which will set forth the aggregate amount of shares of Common Stock being offered and the terms of the offering, including
the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from
the selling stockholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.

 

    	 	25	 

     

    

 

Under the securities
laws of some states, the shares of Common Stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of Common Stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling stockholder will sell any or all of the shares of Common Stock registered pursuant to the registration statement,
of which this prospectus forms a part.

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules
and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases
and sales of any of the shares of Common Stock by the selling stockholders and any other participating person. Regulation M may
also restrict the ability of any person engaged in the distribution of the shares of Common Stock to engage in market-making activities
with respect to the shares of Common Stock. All of the foregoing may affect the marketability of the shares of Common Stock and
the ability of any person or entity to engage in market-making activities with respect to the shares of Common Stock.

 

We will pay all expenses
of the registration of the shares of Common Stock pursuant to the Registration Rights Agreement, estimated to be $[ ] in total,
including, without limitation, SEC filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however,
that a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders
against liabilities, including some liabilities under the Securities Act, in accordance with the Registration Rights Agreement,
or the selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities,
including liabilities under the Securities Act, that may arise from any written information furnished to us by the selling stockholder
specifically for use in this prospectus, in accordance with the Registration Rights Agreement, or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the shares of Common Stock will be freely tradable in the hands
of persons other than our affiliates.

 

    	 	26Exhibit
10.1

 

STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT (the “Agreement”) is made this 4th day of December, 2019, by and among
Canbiola, Inc. a Florida corporation (“CANB”), on one hand, and Iconic Brands, Inc., a Nevada corporation (the
“ICNB”) and Green Grow Farms, Inc., a New York corporation (“GGFI”) on the other hand. CANB,
ICNB, and GGFI are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

BACKGROUND

 

A.
ICNB is a publicly held company quoted on OTC Market’s OTCQB under the symbol “ICNB,” and Canbiola, Inc. is
a publicly held company quoted on OTC Market’s OTCQB under the symbol “CANB”;

 

B.
ICNB currently owns and holds fifty-one percent (51%) of the issued and outstanding equity interests (the “Shares”)
of GGFI;

 

C.
Upon the terms and subject to the conditions set forth herein, CANB desires to purchase the Shares from ICNB, and ICNB desires
to sell the Shares to CANB (the “Stock Purchase”) with the specific intent of GGFI becoming a majority-owned
subsidiary of CANB; and

 

D.
The Parties desire to make certain representations, warranties, covenants and agreements in connection with the Stock Purchase
and also to prescribe various conditions to the Stock Purchase.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the adequacy of which are hereby acknowledged, the parties agree as follows:

 

Article
I

definitions

 

I.1
Definitions. For purposes of this Agreement, and in addition to other terms defined elsewhere
in this Agreement, the following terms have the meaning assigned to them below:

 

(a)
an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such first person;

 

(b)
“material adverse change” or “material adverse effect” means, when used in connection with GGFI,
ICNB or CANB, any change or effect that either individually or in the aggregate with all other such changes or effects is materially
adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its
subsidiaries taken as a whole (after giving effect in the case of CANB to the consummation of the Stock Purchase);

 

(c)
“ordinary course of business” means the ordinary course of business consistent with past custom and practice
(including with respect to quantity and frequency);

 

    	 	1 of 28	 

     

    

 

(d)
“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization
or other entity; 

 

(e)
“subsidiary” of any person means another person, an amount of the voting securities, other voting ownership
or voting partnership interests, of which is sufficient to elect at least a majority of its board of directors or other governing
body (or, if there are no such voting interests, more than fifty percent (50%) of the equity interests of which) that is owned,
directly or indirectly, by such first person; and

 

(f)
“security interest” means any mortgage, pledge, lien, encumbrance, deed of trust, lease, charge, right of first
refusal, easement, servitude, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement
or any other security interest, other than (i) mechanic’s, materialmen’s, and similar liens, (ii) statutory liens
for taxes not yet due and payable, (c) purchase money liens and liens securing rental payments under capital lease arrangements,
(iii) pledges or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment
insurance or other similar social security legislation; and (iv) encumbrances, security deposits or reserves required by law or
by any Governmental Entity.

 

(g)
“Trading Market” means any of the following markets or exchanges on which the Purchase Shares is listed or
quoted for trading on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global
Select Market, the New York Stock Exchange, or any market or quotation service of the OTC Markets Group (or any successors to
any of the foregoing).

 

(h)
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if
the Purchase Shares is then listed or quoted on a Trading Market, the daily volume weighted average price of the Purchase Shares
for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported
by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB
or OTCQX is not a Trading Market, the volume weighted average price of the Purchase Shares for such date (or the nearest preceding
date) on OTCQB or OTCQX as applicable, (c) if the Purchase Shares is not then listed or quoted for trading on OTCQB or OTCQX and
if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Purchase Shares
so reported, or (d) in all other cases, the fair market value of a share of the Purchase Shares as determined by an independent
appraiser selected in good faith by the Parties, the fees and expenses of which shall be paid by CANB.

 

Article
II

Purchase and Sale

 

II.1
Purchase and Sale. Upon the terms and subject to the conditions set forth in this Agreement,
at the Closing (as hereinafter defined), ICNB will sell, convey, assign, and transfer the Shares to CANB. The Shares transferred
to CANB at the Closing shall constitute 100% of the issued and outstanding equity interests of GGFI held by ICNB and 51% of the
total issued and outstanding equity interests of GGFI.

 

    	 	2 of 28	 

     

    

 

II.2
Consideration. Upon the terms and subject to the satisfaction of the conditions contained
in this Agreement, at the Closing, CANB will issue and deliver to ICNB an aggregate of 37,500,000 shares of CANB’s common
stock, nil par value per share (“Purchase Shares”) in consideration and exchange
for the Shares, subject to the following conditions: 

 

(a)
Adjustment.
On June 30, 2020 (“Valuation Date”) a valuation of the Purchase Shares shall
be performed for the purpose of determining whether an adjustment of the number of Purchase Shares issued to ICNB is to be made,
based upon the following: 

 

(i)
If the Market Price Per Purchase Share (as defined) on the Valuation Date is less than $1,000,000, CANB shall issue to ICNB such
a number of additional shares (“Additional Purchase Shares”) so that the aggregate value of aggregate shares issued
to ICNB for the purchase of the Shares (taking into account the Purchase Shares and the Additional Purchase Shares) equals $1,000,000.
For purposes of the valuation, Market Price Per Purchase Share shall be determined based upon the 10-day average VWAP for the
10-day period ending on June 30, 2020.

 

(b)
Registration.
In the event that ICNB determines to make a distribution of the Purchase Shares to its shareholders, whether by way of dividend
or otherwise, CANB agrees to cooperate in the filing of a registration statement (the “Registration Statement”)
with the United States Securities and Exchange Commission (the “SEC”) covering
the Shares (the “Registrable Shares”), if requested by ICNB. CANB further
agrees to use commercially reasonable efforts to ensure that any such Registration Statement is declared effective by the SEC.
ICNB shall be responsible for directly paying all expenses relating to such registration, including, but not limited to, filing
fees, CANB counsel legal fees, blue sky filing fees and audit fees. 

 

II.3
Closing. Unless earlier terminated according to the terms hereof, the closing of the
Stock Purchase (the “Closing”) will take place at the New York offices of Sheppard, Mullin, Richter & Hampton,
LLP within ten (10) days of the date that the contingencies set forth in Articles VI are satisfied, including, without limitation,
the delivery of the audited financial statements of GGFI (as indicated by the officer certificates to be issued by CANB and ICNB
pursuant to Article VI) (the “Closing Date”), unless another date, time or
place is agreed to in writing by ICNB and CANB. Unless otherwise agreed in writing by the parties hereto, the Closing shall occur
no later than December 31, 2019. In the event that the conditions in Article VI have not been satisfied prior to December 31,
2019, either party may terminate this Agreement by providing written notice to non-terminating party. 

 

II.4
Closing Deliveries. On or prior to the Closing Date:

 

(a)
ICNB shall deliver or cause to be delivered to CANB the following: (i) the Shares and executed Stock Power(s) or other documents
satisfactory to CANB permitting the transfer from ICNB to CANB of the Shares; (ii) all items and equipment, inventory, and assets
required to operate GGFI’s business as currently conducted (the “Business”)
that are in the possession of ICNB, including the Required Assets (defined below); (iii) all keys for GGFI’s property that
are in the possession of ICNB; (iv) all books, ledgers and records of ICNB and GGFI, including but not limited to minute books,
financial records and statements, bank statements, account information, tax records and certificates of payments, executed contracts,
stock certificates, stock powers and assignments, terminations and resignations of all officers and directors, payroll and employee
records, vendor lists, customer lists and records, analytical data, and licenses or permits issued to operate the Business or
otherwise that are in the possession of ICNB; and (v) such other closing documents as may be reasonably requested by CANB.

 

    	 	3 of 28	 

     

    

 

(b)
CANB shall deliver or cause to be delivered to ICNB (i) a certificate representing the Purchase Shares, registered in the name
of ICNB or its assign(s) and (ii) such other closing documents as may be reasonably requested by ICNB.

 

Article
III

REPRESENTATIONS AND WARRANTIES OF ICNB

 

III.1.
Representations and Warranties of ICNB. ICNB hereby represents and warrants to CANB as
follows, which representations and warranties shall be true and correct as of Closing

 

(a)
Organization. Standing and Power. ICNB and GGFI is duly organized, validly existing and in good standing under the laws
of the state in which it was organized and has the requisite power and authority and all government licenses, authorizations,
permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted.
ICNB and GGFI are duly qualified or licensed to do business and are in good standing in each jurisdiction in which the nature
of their business or the ownership or leasing of their properties makes such qualification or licensing necessary, other than
in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material
adverse effect on either Party.

 

(b)
Corporate Authority. Non-contravention. ICNB has all requisite power and authority to enter into this Agreement and to
consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by ICNB and the consummation
by them of the transactions contemplated hereby have been duly authorized by all necessary action on the part of ICNB. This Agreement
has been duly executed and when delivered by ICNB shall constitute a valid and binding obligation of ICNB, enforceable against
ICNB in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting
the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement
do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will
not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under,
or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation
or to a loss of a material benefit under, or result in the creation of any security interest upon any of the properties or assets
of ICNB under, (i) their respective certificates or articles of incorporation, bylaws or other organizational or charter documents,
(ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession,
franchise or license applicable to ICNB, their properties or assets, or (iii) subject to the governmental filings and other matters
referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award
applicable to ICNB their properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches,
violations, defaults, rights, losses or security interests that individually or in the aggregate could not have a material adverse
effect with respect to ICNB or could not prevent, hinder or materially delay the ability of ICNB to consummate the transactions
contemplated by this Agreement.

 

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(c)
Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with,
or notice to, any United States federal or state court, administrative agency or commission, or other federal, state or local
government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by
or with respect to ICNB in connection with the execution and delivery of this Agreement by ICNB or the consummation by ICNB of
the transactions contemplated hereby.

 

(d)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by ICNB to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated
by this Agreement.

 

(e)
Ownership of Shares. ICNB is the record owner, and has good and valid title to, the Shares, free and clear of any charge,
mortgage, pledge, security interest, lien, or encumbrance, other than restrictions on transfer imposed by applicable securities
laws. ICNB is not a party to any option, warrant, right, contract, call, put or other agreement or commitment providing for the
disposition or acquisition of any such Shares, nor is ICNB a party to any voting trust, proxy or other contract, agreement or
understanding with respect to the voting of any such Shares. Upon delivery to CANB at the Closing of stock certificates representing
the Shares, good and valid title to the Shares will pass to CANB, free and clear of any charge, mortgage, pledge, security interest,
lien, or encumbrance, other than restrictions on transfer imposed by applicable securities laws.

 

(f)
Litigation. There is no suit, action or proceeding or investigation pending or, to the knowledge of ICNB and GGFI, threatened
against or affecting GGFI, ICNB or any of their respective officers, directors, or key employees or any basis for any such suit,
action, proceeding or investigation that, individually or in the aggregate, which could reasonably be expected to have a material
adverse effect with respect to ICNB or GGFI or prevent, hinder or materially delay the ability of ICNB and GGFI to consummate
the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental
Entity or arbitrator outstanding against ICNB or GGFI having, or which, insofar as reasonably could be foreseen by ICNB and GGFI,
in the future could have, any such effect.

 

(g)
Liabilities of GGFI. To the best of the knowledge of ICNB, except as may be disclosed on Schedule 4.1(m) or in the financial
statements of GGFI, there are not any liabilities or obligations explicitly and directly taken on or known by ICNB related to
the Business or GGFI.

 

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III.1
Representations and Warranties of GGFI. GGFI hereby represents and warrants to CANB as
follows, which representations and warranties shall be true and correct as of Closing:

 

(a)
Organization, Standing and Power. GGFI is duly organized, validly existing and in good standing under the laws of the state
in which it was organized and has the requisite power and authority and all government licenses, authorizations, permits, consents
and approvals required to own, lease and operate its properties and carry on its business as now being conducted. GGFI is duly
qualified or licensed to do business and are in good standing in each jurisdiction in which the nature of their business or the
ownership or leasing of their properties makes such qualification or licensing necessary, other than in such jurisdictions where
the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect on either
Party. 

 

(b)
Subsidiaries. GGFI does not own, directly or indirectly, any equity or other ownership interest in any company, corporation,
partnership, joint venture or otherwise, other than such equity and ownership interest as are set forth on Schedule 4.1(b).

 

(c)
Capital Structure. The number of shares and type of all authorized, issued and outstanding capital stock of GGFI, and all
shares of capital stock reserved for issuance under GGFI’s various option and incentive plans, on a fully diluted basis,
is specified on Schedule 4.1(c). Except as set forth in Schedule 4.1(c), no shares of capital stock or other equity securities
of GGFI are issued, reserved for issuance or outstanding. All outstanding shares of capital stock of GGFI are duly authorized,
validly issued, fully paid and nonassessable and not subject to preemptive rights and, upon transfer of the Shares to CANB, the
Shares shall remain duly authorized, validly issued, fully paid and nonassessable and not subject to preemptive rights. There
are no outstanding bonds, debentures, notes or other indebtedness or other securities of GGFI having the right to vote (or convertible
into, or exchangeable for, securities having the right to vote) on any matters. Except as set forth in Schedule 4.1(c), there
are no outstanding securities, options, warrants, calls, rights, commitments, agreements, arrangements or undertakings of any
kind to which GGFI is a party or by which they are bound obligating GGFI to issue, deliver or sell, or cause to be issued, delivered
or sold, additional shares of capital stock or other equity or voting securities of GGFI or obligating GGFI to issue, grant, extend
or enter into any such security, option, warrant, call, right, commitment, agreement, arrangement or undertaking. There are no
outstanding contractual obligations, commitments, understandings or arrangements of GGFI to repurchase, redeem or otherwise acquire
or make any payment in respect of any shares of capital stock of GGFI.

 

(d)
Corporate Authority; Non-contravention. GGFI has all requisite power and authority to enter into this Agreement and to
consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by GGFI and the consummation
by them of the transactions contemplated hereby have been duly authorized by all necessary action on the part of GGFI. This Agreement
has been duly executed and when delivered by GGFI shall constitute a valid and binding obligation of GGFI, enforceable against
GGFI, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other
similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution
and delivery of this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance
with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put”
right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any security interest
upon any of the properties or assets of GGFI under, (i) their respective certificates or articles of incorporation, bylaws or
other organizational or charter documents, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other
agreement, instrument, permit, concession, franchise or license applicable to GGFI, its properties or assets, or (iii) subject
to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law,
ordinance, rule, regulation or arbitration award applicable to GGFI, its properties or assets, other than, in the case of clauses
(ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or security interests that individually or
in the aggregate could not have a material adverse effect with respect to GGFI or could not prevent, hinder or materially delay
the ability of GGFI to consummate the transactions contemplated by this Agreement.

 

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(e)
Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with,
or notice to, any United States federal or state court, administrative agency or commission, or other federal, state or local
government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required
by or with respect to ICNB or GGFI in connection with the execution and delivery of this Agreement by GGFI or the consummation
by ICNB of the transactions contemplated hereby.

 

(f)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by GGFI to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated
by this Agreement.

 

(g)
Litigation. There is no suit, action or proceeding or investigation pending or, to the knowledge of GGFI, threatened against
or affecting GGFI, ICNB or any of their respective officers, directors, or key employees or any basis for any such suit, action,
proceeding or investigation that, individually or in the aggregate, which could reasonably be expected to have a material adverse
effect with respect to ICNB or GGFI or prevent, hinder or materially delay the ability of ICNB and GGFI to consummate the transactions
contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator
outstanding against ICNB or GGFI having, or which, insofar as reasonably could be foreseen by ICNB and GGFI, in the future could
have, any such effect.

 

(h)
Building Codes. GGFI has no knowledge that any leasehold improvements at GGFI’s property violates any provisions
of any applicable building codes, fire regulations, building restrictions, or other ordinances, orders, or regulations.

 

(i)
Compliance with Laws and License Requirements. The conduct of the businesses of GGFI complies, and at all times has complied,
with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto,
excepting the federal Controlled Substances Act, as amended. All licenses and permits necessary to operate the Business, including
but not limited to all licenses and permits required for the legal purchase, sale, cultivation, manufacturing, and/or distribution
of hemp, hemp derivatives, and hemp-related products, as applicable (collectively, “GGFI Licenses”), have been
validly issued, have not expired or been revoked or otherwise terminated, and will each continue in full force and effect following
Closing. Further, GGFI is now, and at times since issuance of any license , been in compliance with the rules and regulations
applicable to them by virtue of the such GGFI Licenses. No further GGFI Licenses are required to operate the Business as currently
conducted. There are no known pending or contemplated actions or investigations against ICNB, GGFI, or any of their respective
officers or directors by any Governmental Entity as they relate to the GGFI Licenses or the Business.

 

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(j)
Employment Matters

 

(i)
GGFI is not a party or otherwise subject to any collective bargaining or other agreement governing the wages, hours, or terms
of employment of its employees.

 

(ii)
There is no (a) unfair labor practice complaint against GGFI pending before the National Labor Relations Board or any other governmental
authority; (b) labor strike, slowdown, or work stoppage actually occurring or, to the best knowledge of GGFI, threatened against
GGFI; (c) representation petition regarding GGFI’s employees pending before the National Labor Relations Board; or (iv)
grievance or any arbitration proceeding pending arising out of or under collective bargaining agreements applicable to GGFI.

 

(iii)
GGFI has not experienced any primary work stoppage or other organized work stoppage involving its employees in the past two years.

 

(iv)
No claim is pending or, to the knowledge of GGFI, threatened by or on behalf of any of GGFI’s employees under any federal,
state, or local labor or employment laws or regulations.

 

(v)
There are no pension, retirement, profit-sharing, deferred compensation, bonus, commission, incentive, life insurance, health
and disability insurance, hospitalization, and all other employee benefit plans or arrangements (including, without limitation,
any contracts or agreements with trustees, insurance companies, or others relating to any such employee benefit plans or arrangements)
established or maintained by GGFI for its employees and agents.

 

(vi)
Each of GGFI’s employees is an “at-will” employee and no written employment, commission, or compensation agreement
of any kind exists between the Seller and any of its employees, except as set for in Schedule 4.1(j). Schedule 4.1(j) further
lists all of the Seller’s employment or supervisory manuals, employment or supervisory policies, and written information
generally provided to employees (such as applications or notices), and true and complete copies of those manuals, policies, and
written information have been provided to the CANB. GGFI does not have any agreements or understandings with its employees except
as reflected in the items listed on Schedule 4.1(j).

 

(vii)
Schedule 4.1(j) contains a complete and accurate list of all officers, employees, and consultants of GGFI, specifying their names
and job designations, the total amount paid or payable as compensation to each of them, and the basis of such compensation, whether
fixed or commission or a combination thereof, and benefits accrued by them through the date of this Agreement.

 

(viii)
GGFI has no severance pay plan, policy, practice, or agreement with any of its employees.

 

(k)
Properties and Tangible Assets.

 

(i)
GGFI has valid land use rights for all real property that is material to its business and good, clear and marketable title to
all its tangible properties and tangible assets disclosed as being owned by GGFI, free and clear of all material security interests,
encumbrances, claims, security interest, options and restrictions of any nature whatsoever.

 

    	 	8 of 28	 

     

    

 

(ii)
GGFI has good and marketable title to, or in the case of leased property, a valid leasehold interest in, the office space, computers,
equipment and other material tangible assets which are material to its business. Each such tangible asset is in all material respects
in good operating condition and repair (subject to normal wear and tear), is suitable for the purposes for which it presently
is used, and, except as to leased assets, free and clear of any and all security interests. GGFI does not have any knowledge of
any dispute or claim made by any other person concerning such right, title and interest in such tangible assets.

 

(l)
Intellectual Property.

 

(i)
As used in this Agreement, “Intellectual Property” means all right, title and interest in or relating to all
intellectual property, whether protected, created or arising under the laws of the United States, New York, or any other jurisdiction
or under any international convention, including, but not limited to the following: (a) service marks, trademarks, trade names,
trade dress, logos and corporate names (and any derivations, modifications or adaptations thereof), Internet domain names and
Internet websites (and content thereof), together with the goodwill associated with any of the foregoing, and all applications,
registrations, renewals and extensions thereof (collectively, “Marks”); (b) patents and patent applications,
including all continuations, divisionals, continuations-in-part and provisionals and patents issuing thereon, and all reissues,
reexaminations, substitutions, renewals and extensions thereof (collectively, “Patents”); (c) copyrights, works
of authorship and moral rights, and all registrations, applications, renewals, extensions and reversions thereof (collectively,
“Copyrights”); (d) confidential and proprietary information, trade secrets and non-public discoveries, concepts,
ideas, research and development, technology, know-how, formulae, inventions (whether or not patentable and whether or not reduced
to practice), compositions, processes, techniques, technical data and information, procedures, designs, drawings, specifications,
databases, customer lists, supplier lists, pricing and cost information, and business and marketing plans and proposals, in each
case excluding any rights in respect of any of the foregoing that comprise or are protected by Patents (collectively, “Trade
Secrets”); and (e) Technology. For purposes of this Agreement, “Technology” means all Software, information,
designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development, technical data, programs,
subroutines, tools, materials, specifications, processes, inventions (whether or not patentable and whether or not reduced to
practice), apparatus, creations, improvements and other similar materials, and all recordings, graphs, drawings, reports, analyses,
and other writings, and other embodiments of any of the foregoing, in any form or media whether or not specifically listed herein.
Further, for purposes of this Agreement, “Software” means any and all computer programs, whether in source
code or object code; databases and compilations, whether machine readable or otherwise; descriptions, flow-charts and other work
product used to design, plan, organize and develop any of the foregoing; and all documentation, including user manuals and other
training documentation, related to any of the foregoing.

 

(ii)
Schedule 4.1(l) sets forth a list and description of the Intellectual Property required for GGFI to operate, or used or held for
use by GGFI, in the operation of its business, including, but not limited to (a) all issued Patents and pending Patent applications,
registered Marks, pending applications for registration of Marks, unregistered Marks, registered Copyrights of GGFI and the record
owner, registration or application date, serial or registration number, and jurisdiction of such registration or application of
each such item of Intellectual Property, (b) all Software developed by or for GGFI and (c) any Software not exclusively owned
by GGFI and incorporated, embedded or bundled with any Software listed in clause (b) above (except for commercially available
software and so-called “shrink wrap” software licensed to GGFI on reasonable terms through commercial distributors
or in consumer retail stores for a license fee of no more than $1,000.00).

 

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(iii)
GGFI is the exclusive owner of or has a valid and enforceable right to use all Intellectual Property listed for GGFI in Schedule
4.1(l) (and any other Intellectual Property required to be listed in Schedule 4.1(l)) as the same are used, sold, licensed and
otherwise commercially exploited by GGFI, free and clear of all security interests, and no such Intellectual Property has been
abandoned. The Intellectual Property owned by GGFI and the Intellectual Property licensed to it pursuant to valid and enforceable
written license agreements include all of the Intellectual Property necessary and sufficient to enable GGFI to conduct its business
in the manner in which such business is currently being conducted. The Intellectual Property owned by GGFI and its rights in and
to such Intellectual Property are valid and enforceable.

 

(iv)
GGFI not has received, and is not aware of, any written or oral notice of any reasonable basis for an allegation against GGFI
of any infringement, misappropriation, or violation by GGFI of any rights of any third party with respect to any Intellectual
Property, and GGFI is not aware of any reasonable basis for any claim challenging the ownership, use, validity or enforceability
of any Intellectual Property owned, used or held for use by GGFI. GGFI does not have any knowledge (a) of any third-party use
of any Intellectual Property owned by or exclusively licensed to GGFI, (b) that any third-party has a right to use any such Intellectual
Property, or (c) that any third party is infringing, misappropriating, or otherwise violating (or has infringed, misappropriated
or violated) any such Intellectual Property.

 

(v)
GGFI has not infringed, misappropriated or otherwise violated any Intellectual Property rights of any third parties, and GGFI
is not aware of any infringement, misappropriation or violation of any third party rights which will occur as a result of the
continued operation of GGFI as presently operated and/or the consummation of the transaction contemplated by this Agreement.

 

(vi)
GGFI has taken adequate security measures to protect the confidentiality and value of GGFI’s Trade Secrets (and any confidential
information owned by a third party to whom GGFI has a confidentiality obligation).

 

(vii)
The consummation of the transactions contemplated by this Agreement will not adversely affect the right of GGFI to own or use
any Intellectual Property owned, used or held for use by it.

 

(viii)
All necessary registration, maintenance, renewal and other relevant filing fees in connection with any of the Intellectual Property
owned by GGFI and listed (or required to be listed) on Schedule 4.1(l) have been timely paid and all necessary registrations,
documents, certificates and other relevant filings in connection with such Intellectual Property have been timely filed with the
relevant governmental authorities in the United States or foreign jurisdictions, as the case may be, for the purpose of maintaining
such Intellectual Property and all issuances, registrations and applications therefor. There are no annuities, payments, fees,
responses to office actions or other filings necessary to be made and having a due date with respect to any such Intellectual
Property within ninety (90) days after the date of this Agreement.

 

(m)
Liabilities. GGFI has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known
or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations disclosed in the financial
statements of GGFI or as may otherwise set forth on Schedule 4.1(m).

 

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(n)
Intentionally Omitted.

 

(o)
Ownership of Stock. ICNB owns all of the Shares free and clear of all liens, stops, holds, and other encumbrances and has
the full right to transfer the same to CANB as contemplated by this Agreement.

 

(p)
Material Agreements.

 

(i)
Schedule 4.1(p) contains a complete and accurate list of each contract, agreement, instrument, lease, and commitment (including
license agreements) (i) to which GGFI is a party and (ii) to which ICNB is a party as it related to the Business of GGFI (collectively,
the “Contracts”). GGFI has delivered a copy of each Contract to CANB. Except as otherwise set forth on Schedule
4.1(p):

 

(ii)
Neither ICNB or GGFI is in default under any Contract, nor, to their best knowledge, does there exist any event that, with notice
or the passage of time or both, would constitute a default or event of default by ICNB or GGFI under any Contract.

 

(iii)
No power of attorney or similar authorization given by GGFI is currently in effect or outstanding. No Contract limits the freedom
of GGFI to compete in any line of business or with any person.

 

(iv)
Each of the Contracts is valid, binding, and enforceable by GGFI, as applicable, in accordance with its terms and is in full force
and effect. There is no pending or threatened proceeding that would interfere with the quiet enjoyment of any leasehold of which
GGFI is the lessee or sublessee. All other parties to the Contracts have consented or, before the Closing, will have consented
(when such consent is necessary) to the consummation of the transactions contemplated by this Agreement without requiring modification
of GGFI’s rights or obligations under any Contract.

 

(v)
ICNB and GGFI are not aware of any default by any other party to any Contract or of any event that (whether with or without notice,
lapse of time, or both) would constitute a default by any other party with respect to obligations of that party under any Contract,
and, to the knowledge of ICNB and GGFI, there are no facts that exist indicating that any of the Contracts may be totally or partially
terminated or suspended by the other parties.

 

(vi)
To ICNB and GGFI’s knowledge, no Contract will result in any loss to GGFI on the performance thereof (including any liability
for penalties or damages, whether liquidated, direct, indirect, incidental, or consequential).

 

(vii)
GGFI is not a party to any Contract where GGFI is obligated to hold harmless or indemnify any other third-party.

 

(viii)
GGFI is not a party to any credit facility or loan Contracts whereby GGFI is obligated to any third-party to either fund or make
payments on any loan or amounts due and owing. 

 

(ix)
Except as set forth on Schedule 4.1(p), GGFI is not a party to any Contract that involves liability to GGFI of more than
$10,000.00 in aggregate or annual payments of more than $100,000.00.

 

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(q)
Tax Returns and Tax Payments.

 

(i)
GGFI has timely filed with the appropriate taxing authorities all tax returns required to be filed by them (taking into account
all applicable extensions). All such tax returns are true, correct and complete in all respects and have been provided to CANB.
All taxes due and owing by GGFI have been paid (whether or not shown on any tax return and whether or not any tax return was required).
GGFI shall provide CANB with all tax returns for GGFI for the past seven (7) years.

 

(ii)
No liability for unpaid taxes has been made or become a security interest against the property of GGFI or is being asserted against
GGFI, and no extension of the statute of limitations on the assessment of any taxes has been granted to GGFI and is currently
in effect.

 

(iii)
There are no audits, reviews or examinations of GGFI’s tax returns being conducted by the I.R.S. or any state or local taxing
authority.

 

(iv)
As used herein, “taxes” shall mean all taxes of any kind, including, without limitation, those on or measured
by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees,
assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts
imposed by any governmental authority, domestic or foreign. As used herein, “tax return” shall mean any return,
report or statement required to be filed with any governmental authority with respect to taxes.

 

(r)
Environmental Matters

 

(i)
“Environmental Law” means any federal, state, or local statute, ordinance, or regulation pertaining to the
protection of the environment and any applicable orders, judgments, decrees, permits, licenses, or other authorizations or mandates
under such statutes, ordinances, or regulations; and

 

(ii)
“Hazardous Substance” means any hazardous, toxic, radioactive, or infectious substance, material, or waste
as defined, listed, or regulated under any Environmental Law.

 

(iii)
Except as disclosed on Schedule 4.1(r), GGFI, the Business, and its assets are in compliance with all Environmental Laws and GGFI
has all permits required under Environmental Laws in connection with the construction, ownership, or operation of GGFI’s
assets and the Business. ICNB and GGFI are not aware of and have not received notice of any past, present, or anticipated future
events, conditions, activities, investigation, studies, plans, or proposals that (a) would interfere with or prevent compliance
by GGFI, the Business, or GGFI’s assets with any Environmental Law or (b) may give rise to any common-law or other liability,
or otherwise form the basis of a claim, action, suit, proceeding, hearing, or investigation, involving GGFI, the Business, or
GGFI’s assets and related in any way to Hazardous Substances or Environmental Laws.

 

(iv)
No Hazardous Substance has been disposed of, spilled, leaked, or otherwise released on, in, under, or from, or otherwise come
to be located in the soil or water (including surface water and groundwater) on or under, the Business or any other business owned,
leased, or occupied by GGFI in connection with GGFI’s business now or in the past.

 

(v)
All wastes generated in connection with the Business are and have been transported to and disposed of at an authorized waste disposal
facility in compliance with all Environmental Laws.

 

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(vi)
GGFI is not liable under any Environmental Law for investigation, remedial, removal, or other response costs, natural resources
damages, or other claims (including administrative orders) arising out of the release or threatened release of any Hazardous Substance
at the Business or any other facility, and no basis exists for any such liability.

 

(vii)
There are no underground storage tanks on any real property owned, leased, or managed by GGFI (whether or not regulated and whether
or not out of service, closed, or decommissioned).

 

(viii)
GGFI has disclosed and made available to the CANB true, complete, and correct copies or results of any reports, studies, analyses,
tests, monitoring, correspondence with governmental agencies, or other documents in the possession of or initiated by GGFI or
otherwise known to GGFI and pertaining to the existence of Hazardous Substances, to compliance with Environmental Laws, or to
any other environmental concern relating to GGFI’s business.

 

(s)
Compliance with Anti-Corruption Laws. Neither GGFI nor to the knowledge of ICNB and GGFI, any director, officer, shareholder,
agent, employee or other person acting on behalf of GGFI has, in the course of its actions for, or on behalf of, GGFI (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) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee, or (iv) committed any act which would be reasonably likely to jeopardize GGFI’s ability
to acquire or maintain any GGFI Licenses.

 

(t)
Receivables. Each of GGFI’s receivables (including accounts receivable, loans receivable, and advances) that are
reflected in the financial statements provided to CANB, and each of the receivables that has arisen since that date, has arisen
only from bona fide transactions in the ordinary course of GGFI’s business and will be fully collected when due, without
resort to litigation and without offset or counterclaim.

 

(u)
OFAC. Neither GGFI, nor to the knowledge of GGFI, any director, officer, agent, Shareholder, employee, affiliate or person
acting on behalf of GGFI, is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department.

 

(v)
Lease. A valid and complete copy of all leases for the Business, including all amendments, has been provided to CANB. There
are no subleases relating to the Business and no party other than GGFI has any right to occupy or use the real property where
the Business is located.

 

(w)
Financial Information. All financial information of GGFI provided to CANB (the “Financials”) fairly
presents the financial position of GGFI as of the date provided. Except as contemplated by or permitted under this Agreement,
there are no adjustments to the Financials that would, individually or in the aggregate, have a material adverse effect on GGFI’s
financial condition or results of operations as reported in the Financials. All financial information for GGFI’s past two
fiscal years of operations until the Closing Date have been provided to CANB. GGFI’s Financials are capable of being audited
in accordance with GAAP.

 

    	 	13 of 28	 

     

    

 

(x)
Full Disclosure. All of the representations and warranties made by ICNB and GGFI in this Agreement, and all statements
set forth in the certificates delivered by ICNB and GGFI, as applicable, at the Closing pursuant to this Agreement, are true,
correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which
they were made, misleading. The copies of all documents furnished by ICNB and GGFI pursuant to the terms of this Agreement are
complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information,
whether furnished in written or electronic form, to CANB or its representatives by or on behalf of any of GGFI or its respective
affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material
misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

III.2
Representations and Warranties of CANB. CANB represents and warrants to ICNB and GGFI
as follows:

 

(a)
Organization, Standing and Corporate Power. CANB is duly organized, validly existing and in good standing under the laws
of the State of Florida and has the requisite corporate power and authority and all government licenses, authorizations, permits,
consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. CANB
is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business
or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions
where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with
respect to CANB. 

 

(b)
Subsidiaries. CANB does not own, directly or indirectly, any equity or other ownership interest in any company, corporation,
partnership, joint venture or otherwise, other than such equity and ownership interest as are set forth on Schedule 4.2(b).

 

(c)
Corporate Authority; Noncontravention. CANB has all requisite corporate and other power and authority to enter into this
Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by CANB
and the consummation by CANB of the transactions contemplated hereby have been (or will have been by Closing) duly authorized
by all necessary corporate action on the part of CANB. This Agreement has been duly executed and when delivered by CANB shall
constitute a valid and binding obligation of CANB, enforceable against CANB in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally
or by general principles of equity. The execution, delivery and performance of each of this Agreement by CANB, and the consummation
by CANB of the transactions contemplated hereby and thereby including issuance and sale of the Purchase Shares in accordance with
this Agreement will not (i) result in a violation of the Certificate of Incorporation or the Bylaws (or equivalent constitutive
document) of CANB or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an
event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which CANB is a party, except for those which would
not reasonably be expected to have a material adverse effect, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including U.S. federal and state securities laws and regulations) applicable to CANB or by which any property
or asset of CANB is bound or affected, except for those which would not reasonably be expected to have a material adverse effect.
CANB is not in violation of or in default under, any provision of its Certificate of Incorporation or Bylaws. CANB is not in
violation of any term of or in default under any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to CANB, which violation or breach has had or would reasonably be
expected to have a material adverse effect

 

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(d)
Capitalization and Voting Rights. The authorized, issued and outstanding capital stock of CANB is as set forth in Schedule
4.2(d) hereto and all issued and outstanding shares of capital stock of CANB are validly issued, fully paid and nonassessable.
Except as set forth in Schedule 4.2(d) hereto, (i) there are no outstanding securities of CANB or any of its Subsidiaries which
contain any preemptive, redemption or similar provisions, nor is any holder of securities of CANB or any Subsidiary entitled to
preemptive or similar rights arising out of any agreement or understanding with CANB or any Subsidiary by virtue of any of the
Transaction Documents, and there are no contracts, commitments, understandings or arrangements by which CANB or any of its Subsidiaries
is or may become bound to redeem a security of CANB or any of its Subsidiaries; (ii) neither CANB nor any Subsidiary has any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (iii) except as set
forth in Schedule 4.2(d) there are no outstanding options, warrants, agreements, convertible securities, preemptive rights or
other rights to subscribe for or to purchase or acquire, any shares of capital stock of CANB or any Subsidiary or contracts, commitments,
understandings, or arrangements by which CANB or any Subsidiary is or may become bound to issue any shares of capital stock of
CANB or any Subsidiary, or securities or rights convertible or exchangeable into shares of capital stock of CANB or any Subsidiary.
Except as set forth in Schedule 4.2(d) and as otherwise required by law, there are no restrictions upon the voting or transfer
of any of the shares of capital stock of CANB pursuant to CANB’s Charter Documents (as defined below) or other governing
documents or any agreement or other instruments to which CANB is a party or by which CANB is bound. All of the issued and outstanding
shares of capital stock of CANB are validly issued, fully paid and nonassessable (collectively, “Encumbrances”). Except
as set forth in Schedule 4.2(c), all of such outstanding capital stock has been issued in compliance with applicable federal and
state securities laws. Except as set forth on Schedule 4.2(d), the issuance of Purchase Shares, as contemplated hereby will not
obligate CANB to issue shares of Common Stock or other securities to any other person (other than the Subscriber) and except as
set forth in Schedule 4.2(c) will not result in the adjustment of the exercise, conversion, exchange or reset price of any outstanding
security. CANB does not have outstanding stockholder purchase rights or “poison pill” or any similar arrangement in
effect giving any person the right to purchase any equity interest in CANB upon the occurrence of certain events.

 

(e)
Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with,
or notice to, any Governmental Entity, is required by or with respect to CANB in connection with the execution and delivery of
this Agreement by CANB, or the consummation by CANB of the transactions contemplated hereby, except, with respect to GGFI’s
business, any approval required by any local, city or state Governmental Entity as it relates to change of ownership of GGFI.

 

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(f)
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by CANB to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated
by this Agreement.

 

(g)
Litigation; Labor Matters; Compliance with Laws. There is no suit, action or proceeding or investigation pending or, to
the knowledge of CANB, threatened against or affecting CANB or any basis for any such suit, action, proceeding or investigation
that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to CANB or
prevent, hinder or materially delay the ability of CANB to consummate the transactions contemplated by this Agreement, nor is
there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against CANB having,
or which, insofar as reasonably could be foreseen by CANB, in the future could have, any such effect.

 

(h)
Issuance of Purchase Shares. The Purchase Shares that are being issued to ICNB hereunder, when issued, sold and delivered
in accordance with the terms and for the consideration set forth in this Agreement, will be duly and validly issued, fully paid
and nonassessable, and free of restrictions on transfer other than restrictions on transfer under the Transaction Documents, applicable
state and federal securities laws and liens or encumbrances created by or imposed by ICNB.

 

(i)
SEC Reports; Financial Statements. CANB has filed all reports required to be filed by it under the Securities Act and Securities
Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the
twenty-four (24) months preceding the date hereof (or such shorter period as CANB was required by law to file such reports) (the
foregoing materials being collectively referred to herein as the “SEC Reports” and, together with the Schedules to
this Agreement (if any), the “Disclosure Materials”) on a timely basis or has timely filed a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates,
the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules
and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. The financial statements of CANB included in
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved,
except as may be otherwise specified in such financial statements or the footnotes thereto, and fairly present in all material
respects the financial position of CANB and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

(j)
Licenses. Except as otherwise set forth in the SEC Reports, CANB and its Subsidiaries have sufficient licenses, permits
and other governmental authorizations currently required for the conduct of its businesses or ownership of properties and is in
all material respects in compliance therewith.

 

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(k)
Compliance. Except as set forth in SEC Reports or on Schedule 4.2(k), neither CANB nor any Subsidiary: (i) is in default
under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would
result in a default by CANB or any Subsidiary under), nor has CANB or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which
it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii)
is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been
in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign,
federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and
safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material
Adverse Effect.

 

(l)
Regulatory Permits. Except as set forth in Schedule 4.2(l), CANB and the Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective
businesses, except where the failure to possess such permits could not reasonably be expected to result in a material adverse
effect (“Material Permits”), and neither CANB nor any Subsidiary has received any notice of proceedings relating to
the revocation or modification of any Material Permit.

 

(m)
Full Disclosure. All of the representations and warranties made by CANB in this Agreement, and all statements set forth
in the certificates delivered by CANB at the Closing pursuant to this Agreement, are true, correct and complete in all material
respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make
such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies
of all documents furnished by CANB pursuant to the terms of this Agreement are complete and accurate copies of the original documents.
The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form,
to ICNB or its representatives by or on behalf of CANB and CANB’s stockholders in connection with the negotiation of this
Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material
fact or any fact necessary to make the statements contained therein not misleading.

 

Article
IV

COVENANTS RELATING TO CONDUCT OF BUSINESS PRIOR TO EXCHANGE

 

IV.1
Negative Covenants. From the date of this Agreement and until the Closing Date, or until
the prior termination of this Agreement, GGFI shall not, unless agreed to by CANB in writing: 

 

(a)
engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any security interest
upon any of its assets or which will not be discharged in full prior to the closing;

 

(b)
sell, assign or otherwise transfer any of its assets, or cancel or compromise any debts or claims relating to their assets, other
than for fair value, in the ordinary course of business, and consistent with past practice; 

 

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(c)
fail to use reasonable efforts to preserve intact its present business organization, keep available the services of its employees
and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, such that its
goodwill and ongoing business not be impaired prior to the Closing;

 

(d)
issue any equity interests, including shares of capital stock, or make other changes to GGFI’s capital structure; 

 

(e)
hire, retain, fire or change the terms of compensation for or with any director, officer, employee, contractor, vendor or customer;

 

(f)
permit any material adverse change to occur with respect to GGFI or its Business or assets; or 

 

(g)
make any material change with respect to its Business in accounting or bookkeeping methods, principles or practices.

 

IV.2
Affirmative Covenants. From the date of this Agreement and until the Closing Date, or
until the prior termination of this Agreement, GGFI and ICNB shall, unless otherwise agreed to by CANB in writing: 

 

(a)
obtain all consents and approvals necessary to effectuate the Stock Purchase and the change of ownership with any applicable Governmental
Entity as it relates to the Business;

 

(b)
fully cooperate with CANB, upon reasonable request by CANB, in its due diligence investigations of GGFI and in preparing and submitting
proper disclosures and fees to any applicable city and state Governmental Entity relating to the Stock Purchase and renewal of
the GGFI Licenses;

 

(c)
comply with all laws and regulations applicable to it, including, but not limited to, those relating to the legal purchase, sale,
cultivation, manufacturing, and/or distribution of hemp, hemp derivatives, and hemp-related products (the “Industry”);

 

(d)
use best efforts to preserve intact its present business organizations, keep available the services of its employees and preserve
its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good
will and ongoing business not be impaired prior to the Closing; and

 

(e)
GGFI will pay all expenses and debt that becomes due and payable (it being understood and agreed that ICNB is not responsible
for and GGFI expenses and debts not explicitly and directly taken on or known by ICNB related to the Business or GGFI).

 

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IV.3
Additional Covenants. GGFI and ICNB hereby jointly and severally covenant to CANB that,
at the time of Closing: 

 

(a)
ICNB
shall not have transferred, pledged or hypothecated any of its interests in GGFI; and

 

(b)
GGFI shall own, hold, and have full interest and title in and to the assets listed on Exhibit B hereto (the “Required
Assets”).

 

Article
V

ADDITIONAL AGREEMENTS

 

V.1
Access to Information; Confidentiality

 

(a)
Access to Information. ICNB and GGFI shall, and shall cause their respective officers, employees, counsel, financial advisors
and other representatives to, afford to CANB and its representatives reasonable access during normal business hours during the
Due Diligence Period to GGFI’s properties, books, contracts, commitments, personnel and records and, during such period.
ICNB and GGFI shall, and shall cause their respective officers, employees and representatives to, furnish promptly to CANB all
information concerning GGFI’s Business, properties, financial condition, operations and personnel as such CANB may from
time to time reasonably request. Without limiting the generality of the foregoing, and notwithstanding anything to the contrary
contained herein this Agreement, ICNB and GGFI shall, within five (5) days from full execution of this Agreement, provide CANB
with all documents and information requested on the “Initial Due Diligence List” contained in Exhibit C hereto.

 

(b)
Confidentiality. All information furnished by either Party hereto will be treated as the sole property of the Party furnishing
the information (the “Disclosing Party”) until consummation of the transactions contemplated herein, and if
such transactions do not occur, each Party shall return to the Disclosing Party all documents or other material containing or
reflecting or referring to such information and all copies thereof. Other than as required by law (i) the Parties will keep confidential
all information contained herein or produced by the Parties in connection with the transactions referenced herein, and will not
directly or indirectly use such information for any competitive or other commercial purpose; and (ii) no press release or public
announcement of this letter of intent will be made without the prior written consent of both CANB and ICNB, except for such disclosures
as may be required by law.

 

(c)
Effect on Representations. No investigation pursuant to this Section 5.01 shall affect any representations or warranties
of the parties herein or the conditions to the obligations of the Parties hereto.

 

V.2
Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement,
each Party agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other Parties in doing, all things necessary, proper or advisable to consummate and make effective, in
the most expeditious manner practicable, the Stock Purchase and the other transactions contemplated by this Agreement, including
but not limited to preparing and filing all necessary notifications, and seeking to obtain all necessary consents and approvals
from Governmental Entities and other third parties, and complying with all other legal or contractual requirements for or preconditions
to the transactions contemplated by this Agreement, in each case in a form required for compliance with the same. The Parties
shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Stock Purchase.

 

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V.3
Public Announcements. The Parties will not issue any press release or other public statements
with respect to the transactions contemplated by this Agreement, except as may be required by applicable law or court process
or approved by the other Parties. 

 

V.4
Expenses. All costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the Party incurring such expenses.

 

V.5
Resignations; Employment Agreements. On or prior to Closing, CANB shall have received
written resignations from all officers, directors, and principal employees of GGFI and all agreements and contracts with such
persons shall be considered null and void upon Closing. Officers, directors, and certain key employees of GGFI, as determined
by CANB in its sole discretion, will execute new employment agreements in a form consistent with CANB’s standard employment
contracts entered into during its ordinary course of business (each, an “Employment Agreement”).
Nothing in the foregoing sentence shall obligate CANB to enter into an Employment Agreement with any person and CANB shall have
sole discretion in deciding who to offer an Employment Agreement to and the terms of such Employment Agreement. It is specifically
understood and agreed that the Employment Agreements will contain, inter alia, confidentiality, non-disclosure, non-circumvention
and non-competition provisions.

 

V.6
No Solicitation, Competition or Disclosure. Prior to Closing, ICNB and each officer,
director, and key employee (collectively, “Key Persons”) shall enter into
a non-competition, non-disclosure and non-solicitation agreement with CANB, in the form satisfactory to CANB, whereby the Key
Persons agree not to disclose any of CANB’s or GGFI’s confidential information or use GGFI’s proprietary information
or trade secrets, and, for a period of two (2) years following Closing, in any capacity, directly or indirectly, (i) compete with
GGFI’s Business; (ii) hire or attempt to hire or otherwise solicit any employees or GGFI or CANB in employment in or services
to any undertaking with which it is associated; or (iii) solicit any customers or clients of GGFI or CANB. 

 

V.7
GGFI Licenses. The Parties acknowledge that each of the GGFI Licenses has an expiration
date (each an “Application Deadline”), and that GGFI must submit applications
for each GGFI License prior to its Application Deadline. ICNB and GGFI agree to complete and submit a renewal application for
each GGFI License prior to its Application Deadline if such Application Deadline occurs before the Closing Date. CANB shall have
the right, but not the obligation, to review, make changes to and approve each application prior to submission to the applicable
Governmental Entity. Shareholders agree to work with CANB post-Closing throughout the entire application process and to provide
CANB with all documents and information requested by the applicable Governmental Entity until the application for the GGFI Licenses
are ultimately denied or approved. The Parties further agree to work together in order for GGFI to submit all information and
documents required by any Governmental Entity to approve the change of ownership of GGFI to CANB prior to Closing. 

 

V.8
Transition. ICNB shall assist and consult with CANB in the transition of ownership of
GGFI and operation of the Business for a period of not less than ninety (90) days from the Closing Date. In addition, during such
ninety (90) day period, ICNB shall take all steps necessary and provide all documents and information needed to assist CANB in
maintaining the GGFI Licenses. 

 

V.9
Intentionally Omitted. 

 

V.10
Releases. (a) ICNB and the minority interest holders of GGFI shall sign releases releasing
CANB from any liabilities relating to the Stock Purchase and Business of GGFI prior to Closing. In addition, the minority interest
holders of GGFI shall sign releases releasing ICNB from any liabilities relating to the Stock Purchase and Business of GGFI prior
to Closing. The foregoing notwithstanding, ICNB does not (i) release CANB from any liabilities relating to the representations
and warranties made pursuant to Section 3.2 hereof, the covenants made pursuant to Article 5 hereof or the indemnity agreements
made in Article 8 hereof, or (ii) release or surrender any of the rights they may have in the future as shareholders of CANB.

 

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(b)
CANB shall sign a release releasing ICNB from any liabilities relating to the Stock Purchase prior to Closing. The foregoing notwithstanding,
CANB does not (i) release ICNB from any liabilities relating to the representations and warranties made pursuant to Section 3.1
hereof, the covenants made pursuant to Article 5 hereof or the indemnity agreements made in Article 8 hereof.

 

V.11
Audit. Upon execution of this Agreement, ICNB and GGFI shall take all steps necessary
to have GGFI’s Financials from January 2017 to current audited under GAAP standards and shall timely cooperate with all
requests made by the auditors. CANB shall pay for the reasonable costs of such audit. The audit must be conducted as expediently
as possible. 

 

V.12
Intentionally Omitted. 

 

Article
VI

 

CONDITIONS
PRECEDENT

 

VI.1
Conditions to Each Party’s Obligation to Effect the Stock Purchase. The obligation
of each Party to effect the Stock Purchase and otherwise consummate the transactions contemplated by this Agreement is subject
to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

(a)
No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation
of the Stock Purchase shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction
and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the
Stock Purchase that makes consummation of the Stock Purchase illegal.

 

VI.2
Conditions Precedent to Obligations of CANB. The obligation of CANB to effect the Stock
Purchase and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior
to the Closing, of each of the following conditions:

 

(a)
Representations, Warranties and Covenants. The representations and warranties of ICNB and GGFI in this Agreement shall
be true and correct in all material respects (except for such representations and warranties that are qualified by their terms
by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and
correct in all respects) both when made and on and as of the Closing, and (ii) ICNB and GGFI shall each have performed and complied
in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied
with by each of them prior to the Closing.

 

(b)
Consents. CANB shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits,
consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary
in connection with the transactions contemplated hereby have been obtained.

 

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(c)
Officer’s Certificates. CANB shall have received officer’s certificates executed on behalf of ICNB and GGFI
by an executive officer of ICNB and GGFI, as applicable, confirming that the conditions set forth in Sections 6.01 and 6.02 have
been satisfied.

 

(d)
No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise),
results of operations or assets (including intangible assets) and properties of GGFI that, individually or in the aggregate, could
reasonably be expected to have a material adverse effect on GGFI.

 

(e)
Representation Letter. CANB shall have received from GGFI a valid opinion of counsel from an attorney licensed to practice
law in each jurisdiction where GGFI does business that that the GGFI Licenses are valid under applicable state and city laws and
regulations and entitle GGFI to operate the Business as it is currently conducted.

 

(f)
Secretary’s Certificates.

 

(i)
CANB shall have received a certificate, dated as of the Closing Date, from the Secretary of ICNB, certifying (i) as to the incumbency
and signatures of the officers of ICNB, who shall execute this Agreement and documents at the Closing and (ii) that attached thereto
is a true and complete copy of resolutions of the Board of Directors of ICNB and its shareholders authorizing the execution, delivery
and performance of this Agreement by ICNB.

 

(ii)
Further, CANB shall have received a certificate, dated as of the Closing Date, from the Secretary of GGFI, certifying (i) as to
the incumbency and signatures of the officers of GGFI, who shall execute this Agreement and related documents at the Closing and
(ii) that attached thereto is a true and complete copy of (A) the articles or certificate of incorporation of GGFI and all amendments
thereto, (B) the bylaws of GGFI and all amendments thereto, and (C) resolutions of the Board of Directors of GGFI and its shareholders
authorizing the execution, delivery and performance of this Agreement by GGFI.

 

(c)
Lock-Up; Leak-Out. ICNB shall have executed and delivered to CANB a lock-up/leak-out agreement in the form annexed hereto
as Exhibit D.

 

(g)
Assignability of Contracts. CANB shall have received confirmation from all third parties who have Contracts with GGFI and/or
ICNB, as applicable, that the transactions contemplated by this Agreement and the assignment of applicable Contracts from ICNB
to CANB shall not in any way negatively impact or invalidate such Contracts. Furthermore, ICNB shall have provided to CANB one
or more assignments, in a form reasonably acceptable to CANB, assigning all of ICNB’s rights under the Contracts to CANB.

 

(h)
Landlord Consent. To the extent required by any applicable Contract, the landlord for the real property(ies) where the
Business is located shall have approved the transfer of Shares to CANB.

 

(i)
Due Diligence. CANB shall be satisfied with its due diligence investigations during the Due Diligence Period.

 

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(j)
Licenses. All applicable Governmental Entities shall have approved the change of ownership of GGFI as it relates to the
GGFI Licenses. Further, GGFI shall have submitted applications for all GGFI Licenses with Application Deadlines prior to the Closing
Date, had each application deemed complete by the applicable Governmental Entity, and been granted an extension on the expiration
of such GGFI Licenses.

 

(k)
Releases. CANB shall have received the releases contemplated by Section 5.10.

 

(l)
Financial Statements. The financial statements of GGFI shall have undergone and completed an approved audit as contemplated
by Section 5.11.

 

(m)
Schedules and Agreement. ICNB and GGFI shall have provided CANB with all schedules and agreements, duly executed, required
by this Agreement.

 

VI.3
Conditions Precedent to Obligation of ICNB. The obligation of ICNB to effect the Stock
Purchase and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior
to the Closing, of each of the following conditions:

 

(a)
Representations, Warranties and Covenants. The representations and warranties of CANB in this Agreement shall be true and
correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference
to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all
respects) both when made and on and as of the Closing, and (ii) CANB shall have performed and complied in all material respects
with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the
Closing.

 

(b)
Officer’s Certificate of CANB. ICNB shall have received a certificate executed on behalf of CANB by an executive
officer of CANB, confirming that the conditions set forth in Sections 6.01 and 6.03 have been satisfied.

 

(c)
Board Resolutions. ICNB shall have received resolutions duly adopted by CANB’s Board of Directors approving the execution,
delivery and performance of the Agreement and the transactions contemplated by the Agreement.

 

(d)
Releases. ICNB shall have received the releases contemplated by Section 5.10.

 

(e)
Lock-Up; Leak-Out. New York Farms Group, Inc., the holder of the shares of ICNB and holder of forty-nine percent (49%)
of the issued and outstanding equity interests of GGFI, shall have executed and delivered to ICNB a lock-up/leak-out agreement
in the form annexed hereto as Exhibit E.

 

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Article
VII

TERMINATION, AMENDMENT AND WAIVER

 

VII.1
Termination. This Agreement may be terminated and abandoned at any time prior to the
Closing Date:

 

(a)
by mutual written consent of CANB and ICNB; 

 

(b)
by either CANB or ICNB if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently
enjoining, restraining or otherwise prohibiting the Stock Purchase and such order, decree, ruling or other action shall have become
final and nonappealable; 

 

(c)
by CANB for any reason during the period from full execution of this Agreement until the date thirty (30) days therefrom (the
“Due Diligence Period”); 

 

(d)
by CANB, if a material adverse change shall have occurred relative to GGFI before Closing and is not cured within five (5) days
after CANB tenders notice of the breach to ICNB and GGFI; 

 

(e)
by CANB, if ICNB or GGFI fails to perform in any material respect any of its material obligations under this Agreement after being
given written notice and a ten (10) day period to cure; or 

 

(f)
by ICNB, if CANB fails to perform in any material respect any of its obligations under this Agreement after being given written
notice and a ten (10) day period to cure. 

 

VII.2
Effect of Termination. In the event of termination of this Agreement by either ICNB or
CANB as provided in Section 7.01, this Agreement shall forthwith become void and have no effect, without any liability or obligation
on the part of CANB, GGFI or ICNB. Nothing contained in this Section shall relieve any Party for any breach of the representations,
warranties, covenants or agreements set forth in this Agreement.

 

VII.3
Amendment. This Agreement may not be amended except by an instrument in writing signed
on behalf of each of the parties. 

 

VII.4
Extension; Waiver. Any agreement on the part of a Party to an extension or waiver of
another Party’s obligations hereunder shall be valid only if set forth in an instrument in writing signed on behalf of such
Party. The failure of any Party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute
a waiver of such rights. 

 

VII.5
Return of Documents. In the event of termination of this Agreement for any reason, CANB,
GGFI and ICNB will return to the other Party all of the other Party’s documents, work papers, and other materials (including
copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement.
CANB, GGFI and ICNB will not use any information so obtained from the other Party for any purpose and will take all reasonable
steps to have such other Party’s information kept confidential.

 

Article
VIII

INDEMNIFICATION AND RELATED MATTERS

 

VIII.1
Survival of Representations and Warranties. The indemnification provisions of this Article
VIII and the representations and warranties contained in this Agreement or in any instrument delivered pursuant to this Agreement
shall survive the Closing or earlier termination of this Agreement. 

 

    	 	24 of 28	 

     

    

 

VIII.2
Indemnification. ICNB agrees to defend, indemnify and hold CANB (as well as its officers,
directors, members, employees and agents) harmless against and in respect of any and all actions, suits, proceedings, demands,
liabilities, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) (collectively,
“Losses”) relating to: (a) ICNB’s breach of any covenants, warranties or agreements set forth herein; (b) any
unrecorded, off balance sheet, or unaudited obligations explicitly and directly taken on or known by ICNB related to the Business
or GGFI that are not disclosed to CANB (whether on the financial statements of GGFI or in the Schedules to this Agreement); (c)
any debts or expenses explicitly and directly taken on or known by ICNB related to the Business or GGFI that are not disclosed
to CANB (whether on the financial statements of GGFI or in the Schedules to this Agreement) , and (d) any and all actions, suits,
proceedings, demands, assessments, judgments, costs and expenses (including, but not limited to, court costs and actual and reasonable
attorneys’ fees) incident to any of the foregoing, provided the amount of any indemnification shall not exceed an amount
equal to the value of the Shares as of the Closing.

 

In
addition, GGFI agrees to defend, indemnify and hold CANB (as well as its officers, directors, members, employees and agents) harmless
against and in respect of any and all actions, suits, proceedings, demands, liabilities, judgments, costs and expenses (including,
but not limited to, reasonable attorneys’ fees and court costs) (collectively, “Losses”)
relating to: (a) all liabilities and obligations of, or claims against, GGFI that are not specifically assumed by CANB hereunder
(the “Excluded Liabilities”) or disclosed to CANB (whether on the financial
statements of GGFI or in the Schedules to this Agreement) and are known to GGFI; (b) any and all liabilities, obligations or claims
arising out of or resulting from GGFI’s operation of its Business or its assets prior to the Closing as well as any post-Closing
claims related to the infringement or alleged infringement of a third parties’ Intellectual Property Rights or proprietary
rights prior to the Closing; (c) GGFI’s breach of any covenants, warranties or agreements set forth herein; and (d) any
and all actions, suits, proceedings, demands, assessments, judgments, costs and expenses (including, but not limited to, court
costs and actual and reasonable attorneys’ fees) incident to any of the foregoing.

 

VIII.3
Indemnification. CANB agrees to defend, indemnify and hold ICNB (as well as its officers,
directors, members, employees and agents) harmless against and in respect of any and Losses relating to: (a) any and all liabilities,
obligations or claims arising out of or resulting from GGFI’s operation of its Business or its assets after the Closing;
(b) CANB’s breach of any covenants, warranties or agreements set forth herein; and (c) any and all actions, suits, proceedings,
demands, assessments, judgments, costs and expenses (including, but not limited to, court costs and actual and reasonable attorneys’
fees) incident to any of the foregoing, provided the amount of any indemnification shall not exceed an amount equal to the value
of the Shares as of the Closing.

 

VIII.4
Notice of Indemnification

 

Promptly
after the receipt by any indemnified party (the “Indemnitee”) of notice of the commencement of any action or
proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying
party (the “Indemnifying Party”) pursuant to this Article VIII, give such Indemnifying Party written notice
of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all
legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its
indemnification obligations contained in this Article VIII, except where, and solely to the extent that, such failure actually
and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty
(30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend,
at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability
of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may
materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such
Indemnifying Party under this Article VIII or if a conflict of interest exists between Indemnitee and the Indemnifying Party,
the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement
or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld,
be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying
Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where
the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such
asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate
in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may
be, obligated under this Article VIII to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with
a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or decree, the
terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment
or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying
Party of any of its indemnification obligations contained in this Article VIII, except where, and solely to the extent that, such
failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim
as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee.

 

    	 	25 of 28	 

     

    

 

Article
IX

GENERAL PROVISIONS

 

IX.1
Notices. All notices or other communications required or permitted hereunder shall be
in writing shall be deemed duly given (i) if by personal delivery, when so delivered, (ii) if mailed, three (3) business days
after having been sent by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended
recipient, (iii) if sent through an overnight delivery service in circumstances to which such service guarantees next day delivery,
the following day, or (iv) when sent by facsimile with telephonic confirmation or electronic mail with confirmation of transmission
by the transmitting equipment, the same day, in each case to the addresses, facsimile numbers, or electronic mail addresses designated
in writing by each Party hereto to the other Parties. Any Party may change the address, facsimile number, or electronic mail address
to which notices and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein
set forth.

 

IX.2
Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule,
such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings
contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.”

 

IX.3
Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements
and documents referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both
written and oral, among the Parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer
upon any person other than the Parties any rights or remedies.

 

IX.4
Governing Law; Venue. This Agreement shall be governed and construed in accordance with
the laws of the State of New York without giving effect to principles of conflicts or choice of laws thereof. Notwithstanding,
the Parties agree that the venue for any action shall be brought in the state of California and the Parties waive any claim for
forum non conveniens. 

 

    	 	26 of 28	 

     

    

 

IX.5
Assignment. Neither this Agreement nor any of the rights, interests or obligations under
this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior
written consent of the other parties. Any assignment in contradiction of the above shall be null and void. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective
successors and assigns. Notwithstanding the foregoing, CANB may assign its rights under this Agreement to any subsidiaries designated
by CANB in a writing delivered to ICNB.

 

IX.6
Severability. Whenever possible, each provision or portion of any provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction,
and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision or portion of any provision had never been contained herein.

 

IX.7
Counterparts. This Agreement may be executed simultaneously in two or more counterparts,
any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute
one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such
delivery, an “Electronic Delivery”), shall be treated in all manner and respects
as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original
forms hereof and deliver them in person to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver
a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic
Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent
such defense related to lack of authenticity.

 

IX.8
Attorneys’ Fees. In the event any suit or other legal proceeding is brought for
the enforcement of any of the provisions of this Agreement, the parties hereto agree that the prevailing party or parties shall
be entitled to recover from the other party or parties upon final judgment on the merits reasonable attorneys’ fees, including
attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding.

 

IX.9
Further Assurances. From time to time, whether at or following the Closing, each Party
shall make reasonable commercial efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things
reasonably necessary, proper or advisable, including as required by applicable laws, to consummate and make effective as promptly
as practicable the transactions contemplated by this Agreement.

 

[Signature
Page Follows]

 

    	 	27 of 28	 

     

    

 

IN
WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Stock Purchase Agreement as of the
date first above written.

 

	 	CANB:
	 	 
	 	Canbiola,
    Inc.
	 	 	 
	 	By:	 
	 	Name:	Marco
    Alfonsi,
	 	Title:	CEO
	 	 	 
	 	ICNB:
	 	 
	 	Iconic
    Brands, Inc.
	 	 	 
	 	By:	 
	 	Name:	Richard
    DeCicco,
	 	Title:	President
	 	 	 
	 	GGFI:	 
	 	 	 
	 	Green
    Grow Farms, Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	28 of 28	 

     

    

 

EXHIBIT
A

 

Share
Assignment

 

    	 	 	 

     

    

 

EXHIBIT
B

 

Required
Assets

 

	1.	Joint
    Venture with grower Fox Trot Farms, in Tennessee.
	2.	Current
    grows located in New York (whether harvested, in process, in cultivation, or in any other form).
	3.	NY
    State Hemp Grow License #HEMP-G-000373.
	4.	Dry
    flower product being prepped for sale.
	5.	All
    interest in Green Grow Texas, Inc.
	6.	All
    production, extraction, processing, harvesting and related equipment including plans, designs, and relationships with vendors.
	7.	Contracts
    and agreements with suppliers and customers related to Green Grow.
	8.	Accounts
    receivable of Green Grow from any and all sources on the books of ICNB and GGFI.
	9.	Distributor,
    commercial, and residential accounts related to Green Grow.
	10.	Customer
    lists and inquiries related to Green Grow.
	11.	Goodwill
    related to Green Grow.
	12.	Networking
    lists or potential suppliers and customers related to Green Grow.
	13.	Trademarks,
    tradenames, and other intellectual property related to Green Grow.
	14.	Vehicles,
    office equipment, lands (whether owned or leased), and other items related to Green Grow as detailed on the Balance Sheet
    of ICNB and/or GGIF

 

    	 	 	 

     

    

 

EXHIBIT
C

 

Initial
Due Diligence List

 

1.
Copies of last twelve (12) months bank statements.

2.
Listing of equipment, cost, and evidence of ownership.

3.
Listing of all intellectual property, including but not limited to trademarks, copyrights, trade secrets, and patents.

4.
Copies of local, city and state business license(s): including but not limited to those pertaining to hemp, hemp derivatives,
and hemp-related products.

5.
Copies of any and all communications with any state or local governmental office or agency, including but not limited to permits,
applications, approvals (conditional or otherwise), denials, warnings, violations, or other correspondence.

6.
Copies of any existing agreements: (examples include employment agreements, consulting agreements, sales agreements, joint venture
or partnership agreements with customers or vendors).

7.
List of outstanding litigation or claims, if any.

8.
List of any liens on business or equipment.

9.
Copies of any Uniform Commercial Code financing statements filed by or against GGFI.

10.
Detail of each liability, including the payroll liabilities, amounts, payee, and copy of any agreement and correspondence related
to payoff or settlement (i.e. with IRS or CA).

11.
Copies of any payroll filings with IRS or any state.

12.
Copies of all income and property tax returns and certifications of payment.

13.
Copies of any correspondence to or from the IRS or any other taxing authority for the last three years (including any agreements
to waive or extend the period for assessment or collection of taxes)

14.
List of all accounts payable and aging.

15.
Copy of notes payable owed to all parties, including to owners and relatives.

16.
Copies of all corporate records, including, but not limited to articles of incorporation, as amended, bylaws, as amended, minutes
and resolutions, and shareholder agreements.

17.
Copies of all financial reports and statements generated on behalf of GGFI.

18.
Copies of all sales tax returns and corresponding money order receipts.

19.
Copies of all local cannabis tax returns and corresponding money order receipts.

20.
Complete list and value of current inventory.

21.
A letter of confirmation from each vender used stating the outstanding balance due the vender.

22.
Copies of all monthly sales reports from the point of sale systems.

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