Document:

Exhibit 10.1

 

BUZZFEED, INC.

 

CHANGE IN CONTROL AND SEVERANCE PLAN

 

February 4, 2022

 

ELIGIBILITY

 

Executive officers for purposes of Section
16 of the Exchange Act of 1934, as amended, other Executive Vice Presidents and other employees designated by the Board or the Compensation
Committee of the Board of Buzzfeed, Inc. (the “Company”) are eligible to participate in this Change in Control and
Severance Plan (this “Plan”, and a participant hereunder, “Participant”), to be effective as of
the date set forth above (the “Effective Date”).

 

BENEFITS

 

Qualifying Termination. Under this
Plan, if Participant is subject to a Qualifying Termination (as defined below) and contingent upon Participant’s execution and non-revocation
of a binding separation and release agreement within sixty (60) days following the Qualifying Termination in a form acceptable to the
Company and compliance with all terms and conditions of this Plan, then Participant will be entitled to the following benefits only if,
and to the extent, so provided under Participant’s Participation Agreement:

 

(a)       Severance
Payment. The Company shall pay Participant the sum of (i) that number of months equal to the Severance Multiplier of his or her monthly
base salary, and (ii) the greater of (A) an amount equal to Participant’s annual target bonus opportunity, times a fraction, the
numerator of which is the number of calendar days worked prior to the date of Separation, and the denominator is the number of calendar
days in the calendar year of Separation, and (B) that percentage equal to the Bonus Percentage of Participant’s annual target bonus
opportunity, in each case, as set forth in the Participation Agreement and at the rate in effect at the time of the Separation, provided,
that, in the case of a Qualifying Termination due to Good Reason, such rate shall be that in effect immediately prior to the actions that
resulted in the Qualifying Termination. The Participant will receive his or her severance payment, if any, in a cash lump-sum in accordance
with the Company’s standard payroll procedures, which payment will be made no later than the first regular payroll date occurring
after the sixtieth (60th) day following the Separation.

 

     

     

    

 

(b)       Continued
Employee Benefits. If Participant timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act, as amended
(“COBRA”), the Company shall pay the full amount of Participant’s COBRA premiums on behalf of Participant for
Participant’s continued coverage under the Company’s health, dental and vision plans, including coverage for Participant’s
eligible dependents, for the period following Participant’s Separation equal to that number of months equal to the COBRA Continuation
Period, as set forth in the Participation Agreement, or, if earlier, until Participant is eligible to be covered under another substantially
equivalent medical insurance plan by a subsequent employer. Notwithstanding the foregoing, if the Company, in its sole discretion, determines
that it cannot provide the foregoing subsidy of COBRA coverage without potentially violating or causing the Company to incur additional
expense as a result of noncompliance with applicable law (including, without limitation, Section 2716 of the Public Health Service Act),
the Company instead shall provide to Participant a taxable monthly payment in an amount equal to the monthly COBRA premium that Participant
would be required to pay to continue the group health coverage in effect on the date of the Separation (which amount shall be based on
the premium for the first month of COBRA coverage) which payments shall be made regardless of whether Participant elects COBRA continuation
coverage and shall commence on the later of (i) the first day of the month following the month in which Participant experiences a Separation
and (ii) the effective date of the Company’s determination of violation of applicable law, and shall end on the earlier of (x) the
effective date on which Participant becomes covered by a health, dental or vision insurance plan of a subsequent employer, and (y) the
last day of the period following Participant’s Separation equal to the COBRA Continuation Period, provided that, any taxable payments
hereunder will not be paid before the first business day occurring after the sixtieth (60th) day following the Separation and, once they
commence, will include any unpaid amounts accrued from the date of Participant’s Separation (to the extent not otherwise satisfied
with continuation coverage). However, if the period comprising the sum of the sixty (60)-day period described in the preceding sentence
and the ten (10)-day period described the definition of “Good Reason” (defined below) spans two calendar years, then the payments
which constitute deferred compensation subject to Section 409A will not in any case be paid in the first calendar year. Participant shall
have no right to an additional gross-up payment to account for the fact that such COBRA premium amounts are paid on an after-tax basis.

 

CIC Qualifying Termination. Under
this Plan, if Participant is subject to a CIC Qualifying Termination (as defined below) and contingent upon Participant’s execution
and non-revocation of a binding separation and release agreement within sixty (60) days following the CIC Qualifying Termination in a
form acceptable to the Company and compliance with all terms and conditions of this Plan, then Participant will be entitled to the following
benefits only if, and to the extent, so provided under Participant’s Participation Agreement:

 

(a)       Severance
Payment. The Company or its successor shall pay Participant the sum of (i) that number of months equal to the CIC Severance Multiplier
of his or her monthly base salary, (ii) an amount equal to Participant’s annual target bonus opportunity, times a fraction, the
numerator of which is the number of calendar days worked prior to the date of Separation, and the denominator is the number of calendar
days in the calendar year of Separation, and (iii) that percentage equal to the Bonus Percentage of Participant’s annual target
bonus opportunity, in each case, as set forth in the Participation Agreement, and at the rate in effect at the time of the Separation,
provided, that, in the case of a CIC Qualifying Termination due to Good Reason, such rate shall be that in effect immediately prior to
the actions that resulted in the CIC Qualifying Termination. The Participant will receive his or her severance payment in a cash lump-sum
in accordance with the Company’s standard payroll procedures, which payment will be made no later than the first regular payroll
date occurring after the sixtieth (60th) day following the Separation.

 

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(b)       Continued
Employee Benefits. Continuation of COBRA or a cash benefit, in both cases on the same terms as set forth in subsection (b) of “Qualifying
Termination” above, for the period following Participant’s Separation equal to that number of months equal to the CIC COBRA
Continuation Period, as set forth in the Participation Agreement or, if earlier, until Participant is eligible to be covered under another
substantially equivalent medical insurance plan by a subsequent employer.

 

(c)       Equity.
Participant’s then outstanding Equity Awards, including awards that would otherwise vest only upon satisfaction of performance criteria,
shall accelerate and become vested and exercisable as to that percentage of the then unvested shares equal to the CIC Equity Award Percentage.
Equity Awards that vest upon satisfaction of performance criteria for which those criteria have not yet been satisfied or cannot be determined
as of the date of the CIC Qualifying Termination shall be measured as if all applicable performance criteria were achieved at target levels;
except to the extent otherwise provided in the award agreement evidencing such award. Subject to Participant’s execution and non-revocation
of a binding separation and release agreement within sixty (60) days following the Qualifying Termination in a form acceptable to the
Company and compliance with all terms and conditions of this Plan, the accelerated vesting described above shall be effective as of the
Separation.

 

DEFINITIONS

 

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

 

“Cause” means (i) engaging
in theft, fraud and/or dishonesty which, in the judgement of the Board, could be harmful to the Company, (ii) gross negligence or willful
misconduct in the performance of the assigned duties of Participant, (iii) gross neglect or willful refusal to attend to the material
responsibilities assigned to Participant, (iv) Participant’s material breach of his or her offer letter or employment agreement
with the Company, the Confidentiality Agreement, or any non-competition agreement between Participant and the Company, (v) conviction
(or a plea of no contest or similar plea or the entry of an order or judgement that requires a determination of guilt or responsibility)
of a felony or for any crime involving moral turpitude or dishonesty; (vi) knowingly providing or making untruthful or misleading statement
to the Company, whether by commission or omission; (vii) any willful failure to carry out a specific written directive of the Board; or
(viii) an intentional violation of any of the Company’s material policies or procedures, including without limitation, any equal
employment opportunity or anti-harassment policies.

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Change in Control”
means the occurrence of any of the following events: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then
outstanding voting securities; or (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s
assets; or (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after
such merger or consolidation; provided that such event in (i) through (iii) (including any series of such events) also qualifies as a
 “change in control event” under Code Section 409A.

 

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“Change in Control Period”
means the period commencing on the consummation date of a Change in Control and ending twelve (12) months following a Change in Control.

 

“CIC Qualifying Termination”
means a Separation within a Change in Control Period resulting from (A) the Company terminating Participant’s employment for any
reason other than Cause, or (B) Participant voluntarily resigning his or her employment for Good Reason. A termination or resignation
due to Participant’s death or disability shall not constitute a CIC Qualifying Termination.

 

“Equity Awards” means
all options to purchase shares of Company common stock as well as any and all other stock-based awards granted to Participant, including
but not limited to stock bonus awards, restricted stock, restricted stock units or stock appreciation rights.

 

“Good Reason” means,
without Participant’s consent, any of the following actions: (i) a material reduction in the level of responsibility and/or scope
of authority of Participant in a manner that disproportionately adversely affects Participant, as compared to all other Company officers;
provided, however that the unilateral change, by a surviving or acquiring entity (or its parent) in Participant’s title and duties
to a position that is comparable in salary with respect to the acquired or surviving entity or a division or unit thereof created out
of the Company or its assets (whether it becomes a subsidiary, unit or division) to Participant’s current position shall not constitute
 “Good Reason,” (ii) a reduction by more than 10% in Participant’s base salary (other than a reduction generally applicable
to executive officers of the Company and in generally the same proportion as for Participant), or (iii) relocation of Participant’s
principal workplace by more than thirty-five (35) miles from Participant’s then current place of employment. For Participant to
receive any separation benefits under this Plan, all of the following requirements must be satisfied: (1) Participant must provide written
notice to the Company of his or her intent to assert Good Reason within sixty (60) days of the initial existence of one or more of the
conditions set forth in subclauses (i) through (iii); (2) the Company will have thirty (30) days (the “Company Cure Period”)
from the date of such written notice to remedy the condition and, if it does so, Participant may withdraw his or her resignation or may
resign with no benefits; and (3) any termination of employment under this provision must occur within ten (10) days of the earlier of
expiration of the Company Cure Period or written notice from the Company that it will not undertake to cure the condition set forth in
subclauses (i) through (iii).

 

“Plan Administrator”
means the person or persons appointed from time to time by the Board which appointment may be revoked at any time by the Board. If no
Plan Administrator has been appointed by the Board (or if the Plan Administrator has been removed by the Board and no new Plan Administrator
has been appointed by the Board), the Compensation Committee of the Board shall be the Plan Administrator.

 

“Qualifying Termination”
means a Separation that is not a CIC Qualifying Termination, but which results from (A) the Company terminating Participant’s employment
for any reason other than Cause, or (B) Participant voluntarily resigning his or her employment for Good Reason. A termination or resignation
due to Participant’s death or disability shall not constitute a Qualifying Termination.

 

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“Separation” means
a “separation from service,” as defined in the regulations under Section 409A of the Code.

 

PLAN ADMINISTRATION

 

The Plan Administrator shall administer
this Plan and shall have the full, discretionary authority to (i) designate Participants, (ii) construe and interpret this Plan, (iii)
adopt amendments to the Plan which are deemed necessary or desirable to bring this Plan in compliance with all applicable laws and regulations,
including without limitation, section 409A of the Code and the regulations thereunder, (iv) prescribe, amend and rescind rules and regulations
necessary or desirable for the proper and effective administration of this Plan, (v) prescribe, amend, modify and waive the various forms
and documents to be used in connection with the operation of this Plan and also the times for giving any notice required by this Plan,
(vi) settle and determine any controversies and disputes as to rights and benefits under this Plan, (vii) decide any questions of fact
arising under this Plan and (viii) make all other determinations necessary or advisable for the administration of this Plan, subject to
all of the provisions of this Plan.

 

PLAN TERMINATION

 

This Plan may be amended or terminated
by the Board at any time; provided, however, that, any termination or material modification of this Plan shall be void and of no force
and effect if such action is taken during the Change in Control Period and is not required by law.

 

EXCLUSIVE BENEFIT ELECTION

 

Participant’s acceptance of a Participation
Agreement and agreement to participate in this Plan shall constitute a waiver of any existing severance arrangement that would be triggered
by Participant’s termination or a Change in Control or similar transaction.

 

This Plan and Participant’s Participation
Agreement supersedes any and all cash severance arrangements and vesting acceleration arrangements under any agreement governing Equity
Awards, severance and salary continuation arrangements, programs and plans which were previously offered, or may be offered on the Effective
Date or thereafter, by the Company to Participant, including change in control severance arrangements and vesting acceleration arrangements
pursuant to an agreement governing Equity Awards, employment agreement or offer letter, and Participant hereby waives Participant’s
rights to such other benefits. In no event shall any individual receive cash severance benefits under both this Plan and any other vesting
acceleration arrangement, severance pay or salary continuation program, plan or other arrangement with the Company. For the avoidance
of doubt, in no event shall Participant receive payment under both “Qualifying Termination” and “CIC Qualifying Termination”
with respect to Participant’s Separation. Notwithstanding the foregoing, or any provision of this Plan or any Participation Agreement
to the contrary, the Board may accelerate, in full or in part, the vesting of the Equity Awards in its sole discretion, including, without
limitation, upon termination of Participant’s employment or upon a Change in Control.

 

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280G BEST-OF PROVISION

 

If the benefits described in this Plan
or any Participation Agreement constitute “parachute payments” within the meaning of the Code and would be subject to the
excise tax imposed by Section 4999 of the Code, then at Participant’s discretion, the benefits will be payable either (i) in full,
or (ii) as to such lesser amount which would result in no portion of such benefits being subject to the excise tax under Section 4999
of the Code, whichever of the foregoing amounts (taking into consideration applicable taxes, including the excise tax under Section 4999)
would result in the receipt by Participant on an after-tax basis of the greatest amount of benefits (even if some of such benefits are
taxable under Section 4999).

 

RESTRICTIVE COVENANTS

 

The Participant agrees and acknowledges
that Participant is bound by the Proprietary Information and Inventions Agreement entered into by and between Participant and the Company
(the “Confidentiality Agreement”), including but not limited to Participant’s confidentiality, non-competition
and non-solicitation obligations, if any, thereunder.

 

Participant further agrees that, during
the six (6) month period following his or her cessation of employment, he or she shall not in any way or by any means disparage the Company,
the members of the Company’s Board or the Company’s officers and employees. Notwithstanding the foregoing, Participant is
not prohibited from cooperating with a government agency or testifying truthfully in any government inquiry or other proceeding or in
which Participant is required to testify pursuant to subpoena or other valid legal process.

 

Miscellaneous
Provisions

 

(a)       Section
409A. To the extent (i) any payments to which Participant becomes entitled under this Plan, or any agreement or plan referenced herein,
in connection with Participant’s termination of employment with the Company constitute deferred compensation subject to Section
409A of the Code and (ii) Participant is deemed at the time of such termination of employment to be a “specified” employee
under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of
the six (6)-month period measured from Participant’s Separation; or (ii) the date of Participant’s death following such Separation;
provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Participant, including
(without limitation) the additional twenty percent (20%) tax for which Participant would otherwise be liable under Section 409A(a)(1)(B)
of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise
been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to Participant
or Participant’s beneficiary in one lump sum (without interest). Except as otherwise expressly provided herein, to the extent any
expense reimbursement or the provision of any in-kind benefit under this Plan (or otherwise referenced herein) is determined to be subject
to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any
in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any
other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year
in which Participant incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit
be subject to liquidation or exchange for another benefit. To the extent that any provision of this Plan or any Participation Agreement
is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder
are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those
payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Plan or any Participation Agreement
may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term
deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to
this Plan or any Participation Agreement (or referenced herein or therein) are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the regulations under Section 409A.

 

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(b)       Successors.

 

Company’s
Successors. The Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation,
liquidation or otherwise) to all or substantially all of the Company’s business and/or assets, by an agreement in substance and
form satisfactory to Participant, to assume this Plan and any Participation Agreements entered into hereunder and to agree expressly to
perform this Plan and such Participation Agreements in the same manner and to the same extent as the Company would be required to perform
it in the absence of a succession. For all purposes under this Plan, the term “Company” shall include any successor to the
Company’s business and/or assets or which becomes bound by this Plan, a Participation Agreement by operation of law.

 

Participant’s
Successors. This Plan and all rights of any Participant hereunder or under a Participation Agreement shall inure to the benefit of,
and be enforceable by, Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

 

(c)       Dispute
Resolution. To ensure rapid and economical resolution of any and all disputes that might arise in connection with this Plan or any
Participation Agreement, Participant and the Company agree that any and all disputes, claims, and causes of action, in law or equity,
arising from or relating to this Plan or its enforcement, performance, breach, or interpretation, will be resolved solely and exclusively
by final, binding, and confidential arbitration, by a single arbitrator, in New York County, and conducted by Judicial Arbitration &
Mediation Services, Inc. (“JAMS”) under its then-existing employment rules and procedures. Nothing in this section,
however, is intended to prevent either party from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion
of any such arbitration. Each party to an arbitration or litigation hereunder shall be responsible for the payment of its own attorneys’
fees.

 

(d)       Notice.
Notices and all other communications contemplated by this Plan or any Participation Agreement shall be in writing and shall be deemed
to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage
prepaid or deposited with Federal Express Corporation, with shipping charges prepaid. In the case of Participant, mailed notices shall
be addressed to him or her at the home address which he most recently communicated to the Company in writing. In the case of the Company,
mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.

 

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(e)       Waiver.
No provision of this Plan or any Participation Agreement shall be modified, waived or discharged unless the modification, waiver
or discharge is agreed to in writing and signed by Participant and by an authorized officer of the Company (other than Participant).
No waiver by either party of any breach of, or of compliance with, any condition or provision of this Plan or any Participation Agreement
by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another
time.

 

(f)       Withholding
Taxes. All payments made under this Plan or any Participation Agreement shall be subject to reduction to reflect taxes or other charges
required to be withheld by law.

 

(g)       Severability.
The invalidity or unenforceability of any provision or provisions of this Plan or any Participation Agreement shall not affect the validity
or enforceability of any other provision hereof, which shall remain in full force and effect.

 

(h)       No
Retention Rights. Nothing in this Plan or any Participation Agreement shall confer upon Participant any right to continue in service
for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any subsidiary of
the Company or of Participant, which rights are hereby expressly reserved by each, to terminate his or her service at any time and for
any reason, with or without Cause.

 

(i)       Choice
of Law. The validity, interpretation, construction and performance of this Plan and any Participation Agreement shall be governed
by the laws of the State of New York (other than its choice-of-law provisions).

 

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PARTICIPATON AGREEMENT UNDER THE

 

CHANGE IN CONTROL AND SEVERANCE PLAN

 

This Participation Agreement by and between [___________]
(the “Participant”) and Buzzfeed, Inc., a Delaware corporation (the “Company”) incorporates and
is governed by the Change in Control and Severance Plan (the “Plan”). Collectively, these documents are referred to
as the “Agreement”.

 

QUALIFYING TERMINATION OTHER THAN DURING
A CHANGE IN CONTROL PERIOD

 

Severance Multiple 

 

As used in the Plan, the “Severance Multiple”
shall mean: [__] months of Participant’s base salary at the rate in effect when the Qualifying Termination occurred.

 

[Tier 1: 12 months; Tier
2: 9 months; Tier 3: 9 months; Tier 4: 6 months]

 

As used in the Plan, the “Bonus Percentage”
shall mean: [__] of Participant’s annual target bonus opportunity at the rate in effect when the Qualifying Termination occurred.

 

[Tier 1: 100%; Tier 2:
75%; Tier 3: 75%; Tier 4: 50%]

 

COBRA Continuation Period 

 

As used in the Plan, the “COBRA Continuation
Period” shall mean: [__] months.

 

[Tier 1: 12 months; Tier
2: 9 months; Tier 3: 9 months; Tier 4: 6 months]

 

QUALIFYING TERMINATION DURING A CHANGE IN
CONTROL PERIOD

 

CIC Severance Multiple 

 

As used in the Plan, the “CIC Severance
Multiple” shall mean: [__] months of Participant’s base salary at the rate in effect when the CIC Qualifying Termination
occurred or when the Change in Control occurred, whichever is greater.

 

[Tier 1: 24 months; Tier
2: 12 months; Tier 3: 12 months; Tier 4: 9 months]

 

As used in the Plan, the “CIC Bonus Percentage”
shall mean: [___] of Participant’s annual target bonus opportunity at the rate in effect when the CIC Qualifying Termination occurred
or when the Change in Control occurred, whichever is greater.

 

[Tier 1: 200%; Tier 2:
100%; Tier 3: 100%; Tier 4: 75%]

 

CIC COBRA Continuation Period 

 

As used in the Plan, the “CIC COBRA Continuation
Period” shall mean: [__] months.

 

[Tier 1: 24 months; Tier
2: 12 months; Tier 3: 12 months; Tier 4: 9 months]

 

CIC Equity Award Percentage

 

As used in the Plan, the “CIC Equity
Award Percentage” shall mean: 100 %.

 

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, each of the parties has executed
this Participation Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

PARTICIPANT

 

[_____________]

 

 

	By:	_________________________________

 

 

 

COMPANY

 

Buzzfeed,
Inc.

 

	By:	_______________________________
	Name:	_______________________________
	Title:	_______________________________

 

 

 

 

[Signature
Page to the Participation Agreement under the 

 

Change
in Control and Severance Plan]

 

    10Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT (this
“Agreement”), dated as of February 4, 2022, is between DALRADA FINANCIAL COPORATION, a company incorporated
under the laws of the State of Wyoming, with principal executive offices located at 600 La Terraza Blvd., Escondido, California 92025
(the “Company”), and each of the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer”
and collectively the “Buyers”).

 

WITNESSETH

 

WHEREAS, the Company
and each Buyer desire to enter into this transaction for the Company to sell and the Buyers to purchase the Convertible Debentures (as
defined below) pursuant to an exemption from registration pursuant to Section 4(2) and/or Rule 506 of Regulation D (“Regulation
D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of
1933, as amended (the “Securities Act”);

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s), as provided
herein, and the Buyer(s) shall purchase convertible debentures in the form attached hereto as “Exhibit A” (the “Convertible
Debentures”) in the principal amount of up to $3,000,000 (the “Subscription Amount”), which shall be convertible
into shares of the Company’s common stock, par value $0.005 per share (the “Common Stock”) (as converted, the
“Conversion Shares”), of which $2,000,000 shall be purchased upon the signing this Agreement (the “First Closing”),
and $1,000,000 shall be purchased upon the filing of a registration statement with the U.S. Securities and Exchange Commission registering
the resale of the Conversion Shares by the Buyers (the “Second Closing”) (individually referred to as a “Closing,”
a collectively along with the First Closing referred to as the “Closings”), at a purchase price equal to 96% of the
Subscription Amount (the “Purchase Price”) in the respective amounts set forth opposite each Buyer(s) name on Schedule
I;

 

WHEREAS, at the First
Closing the Company shall issue to the Buyer(s) warrants in the form attached hereto as “Exhibit B” (collectively,
the “Warrants”) which shall exercisable into an aggregate of 983,499 shares of Common Stock (the “Warrant
Shares”) in the respective amounts set forth opposite each Buyer(s) name on Schedule I;

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement (the
“Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration rights under
the Securities Act and the rules and regulations promulgated there under, and applicable state securities laws;

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the Company is delivering Irrevocable Transfer Agent Instructions (the “Irrevocable
Transfer Agent Instructions”) to its transfer agent; and

 

WHEREAS, the Convertible
Debentures the Conversion Shares, the Warrants, and the Warrant Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

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

 

		1.	PURCHASE AND SALE OF CONVERTIBLE DEBENTURES AND WARRANTS.

 

(a)                  
Purchase of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below,
the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company at each
Closing Convertible Debentures with principal amount corresponding to the Subscription Amount set forth opposite each Buyer’s name
on Schedule of Buyers attached as Schedule I hereto and at the First Closing Warrants in the amount set forth opposite each Buyer’s
name on the Schedule of Buyers attached as Schedule I hereto.

 

 

 

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(b)                 
Closing Dates. Each Closing shall occur at the offices Yorkville Advisors Global, LP, 1012 Springfield Avenue, Mountainside, NJ
07092. The date and time of each Closing shall be as follows: (i) the First Closing shall be 10:00 a.m., New York time, on the first Business
Day on which the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually
agreed to by the Company and each Buyer) (the “First Closing Date”), and (ii) the Second Closing shall be 10:00 a.m., New
York time, on the first Business Day after the date on which the Registration Statement is filed by the Company with the SEC as set forth
in the Registration Rights Agreement, provided the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived
(or such other date as is mutually agreed to by the Company and each Buyer) (the “Second Closing Date,” and along with the
First Closing Date, collectively referred to as the “Closing Dates”). As used herein “Business Day” means any
day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain
closed.

 

(c)                 
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on each Closing Date,
(i) the Buyers shall deliver to the Company the Purchase Price for the Convertible Debentures to be issued and sold to such Buyer at such
Closing, minus any fees or expenses to be paid directly from the proceeds of such Closing as set forth herein, and (ii) the Company
shall deliver to each Buyer, Convertible Debentures which such Buyer is purchasing at such Closing with a principal amount corresponding
with the Subscription Amount set forth opposite each Buyer’s name on Schedule of Buyers attached as Schedule I hereto, duly executed
on behalf of the Company, and in respect of the First Closing, Warrants in the amount set forth opposite each Buyer’s name on the
Schedule of Buyers attached as Schedule I hereto, duly executed on behalf of the Company.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally and
not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of each Closing Date:

 

(a)                  
Investment Purpose. The Buyer is acquiring the Securities for its own account for investment purposes and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under or exempt from the
registration requirements of the Securities Act; provided, however, that by making the representations herein, such Buyer does not agree,
or make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with, or pursuant to, a registration statement covering such Securities or an available
exemption under the Securities Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any
Person to distribute any of the Securities.

 

(b)                 
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation
D.

 

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

 

(d)                 
Information. The Buyer and its advisors (and its counsel), if any, have been furnished with all materials relating to the business,
finances and operations of the Company and information he deemed material to making an informed investment decision regarding his purchase
of the Securities, which have been requested by such Buyer. The Buyer and its advisors, if any, have been afforded the opportunity to
ask questions of the Company and its management. Neither such inquiries nor any other due diligence investigations conducted by such Buyer
or its advisors, if any, or its representatives shall modify, amend or affect such Buyer’s right to rely on the Company’s
representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a high
degree of risk. The Buyer has sought such accounting, legal and tax advice, as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

 

 

 

    	 	2	 

     

    

 

(e)                  
Transfer or Resale. The Buyer understands that: (i) the Securities have not been registered under the Securities Act or any state
securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such
Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Securities to
be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements, or
(C) such Buyer provides the Company with reasonable assurances (in the form of seller and broker representation letters) that such Securities
can be sold, assigned or transferred pursuant to Rule 144 promulgated under the Securities Act, as amended (or a successor rule thereto)
(collectively, “Rule 144”), in each case following the applicable holding period set forth therein; and (ii) any sale of the
Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable,
any resale of the Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities
Act or the rules and regulations of the SEC thereunder.

 

(f)                   
Legends. The Buyer agrees to the imprinting, so long as its required by this Section 2(f), of a restrictive legend on the Securities
in substantially the following form:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
[AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS

 

Certificates evidencing the Conversion Shares
or the Warrant Shares shall not contain any legend (including the legend set forth above), (i) while a registration statement covering
the resale of such security is effective under the Securities Act, (ii) following any sale of such Conversion Shares or Warrant Shares
pursuant to Rule 144, (iii) if such Conversion Shares or Warrant Shares are eligible for sale under Rule 144, or (iv) if such legend is
not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the SEC). The Buyer agrees that the removal of restrictive legend from certificates representing Securities as set forth in this
Section 3(f) is predicated upon the Company’s reliance that the Buyer will sell any Securities pursuant to either the registration
requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if
Securities are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein.

 

(g)                 
Organization; Authority. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated
by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

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

 

(i)                   
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the
transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, (ii) conflict with,
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 such Buyer is a party or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
to such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which could not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its
obligations hereunder.

 

 

 

    	 	3	 

     

    

 

(j)                   
Certain Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any
understanding with the Buyer, engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales
(as defined below) involving the Company's securities) during the period commencing as of the time that the Buyer first contacted the
Company or the Company's agents regarding the specific investment in the Company contemplated by this Agreement and ending immediately
prior to the execution of this Agreement by such Buyer.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth under
the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify any representation
or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and warranties set forth
below to each Buyer:

 

(a)            
Organization and Qualification. The Company and each of its Subsidiaries are entities duly formed, validly existing and in good
standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their properties
and to carry on their business as now being conducted and as presently proposed to be conducted. The Company and each of its Subsidiaries
is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property
or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified
or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this Agreement,
“Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations
(including results thereof), condition (financial or otherwise) or prospects of the Company and its Subsidiaries, taken as a whole, (ii)
the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments to be entered
into by the Company in connection herewith or therewith or (iii) the authority or ability of the Company to perform any of its obligations
under any of the Transaction Documents (as defined below). “Subsidiaries” means any Person in which the Company, directly
or indirectly, owns a majority of the outstanding capital stock having voting power or holds a majority of the equity or similar interest
of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary”.

 

(b)            
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its
obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and
thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible Debentures, the reservation
for issuance and issuance of the Conversion Shares issuable upon conversion of the Convertible Debentures), have been duly authorized
by the Company's board of directors and no further filing, consent or authorization is required by the Company, its board of directors
or its stockholders or other governmental body. This Agreement has been, and the other Transaction Documents to which the Company is a
party will be prior to the Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations
of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to indemnification and to
contribution may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement,
the Registration Rights Agreement, the Convertible Debentures, the Irrevocable Transfer Agent Instructions, and each of the other agreements
and instruments entered into by the Company or delivered by the Company in connection with the transactions contemplated hereby and thereby,
as may be amended from time to time.

 

(c)            
Issuance of Securities. The issuance of the Securities are duly authorized and, upon issuance and payment in accordance with the
terms of the Transaction Documents the Securities shall be validly issued, fully paid and nonassessable and free from all preemptive or
similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests
and other encumbrances (collectively “Liens”) with respect to the issuance thereof. As of each Closing Date, the Company shall
have reserved from its duly authorized capital stock not less than (i) 300% of the maximum number of shares of Common Stock issuable upon
conversion of all Convertible Debentures (assuming for purposes hereof that (x) such Convertible Debentures are convertible at the Conversion
Price (as defined therein) as of the date of determination, (y) any such conversion shall not take into account any limitations on the
conversion of the Convertible Debentures set forth therein), and (ii) all Warrant Shares. Upon issuance or conversion in accordance with
the Convertible Debentures, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all
preemptive or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock.

 

 

 

    	 	4	 

     

    

 

(d)            
 No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible Debentures,
the Conversion Shares, the Warrants, the Warrant Shares, and the reservation for issuance of the Conversion Shares and Warrant Shares)
will not (i) result in a violation of the Articles of Incorporation (as defined below), Bylaws (as defined below), certificate of formation,
memorandum of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries,
or any capital stock or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including, without limitation, U.S. federal and state securities laws and regulations, the securities laws of the jurisdictions of the
Company's incorporation or in which it or its subsidiaries operate and the rules and regulations of the OTC QB (the “Principal Market”)
and including all applicable laws, rules and regulations of the State of incorporation of the Company) applicable to the Company or any
of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case
of (ii) and (iii) for any conflict, default, right or violation that would not reasonably be expected to result in a Material Adverse
Effect.

 

(e)            
Consents. The Company is not required to obtain any material consent from, authorization or order of, or make any filing or registration
with (other than any filings as may be required by any federal or state securities agencies and any filings as may be required by the
Principal Market), any Governmental Entity (as defined below) or any regulatory or selfregulatory agency or any other Person in order
for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case, in accordance
with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary
is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to each Closing Date, and
neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its
Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents. The
Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could
reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. The Company has notified the Principal Market
of the issuance of all of the Securities hereunder, which does not require obtaining the approval of the stockholders of the Company or
any other Person or Governmental Entity, and the Principal Market has completed its review of the related Listing of Additional Share
form. “Governmental Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction
of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasigovernmental authority of any nature
(including any governmental agency, branch, department, official, or entity and any court or other tribunal), multinational organization
or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or
taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled
by a government or a public international organization or any of the foregoing.

 

(f)             
Acknowledgment Regarding Buyer's Purchase of Securities. The Company acknowledges and agrees that each Buyer is acting solely in
the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby
and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) to its knowledge, an "affiliate"
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”)) of the Company
or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares of Common Stock
(as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges that no Buyer (nor any affiliate of any Buyer)
is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the
Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives
or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such
Buyer's purchase of the Securities. The Company further represents to each Buyer that the Company's decision to enter into the Transaction
Documents to which it is a party has been based solely on the independent evaluation by the Company and its representatives.

 

(g)            
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would cause this offering of the Securities to require approval of stockholders of the Company under any applicable stockholder approval
provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any
of the securities of the Company are listed or designated for quotation. None of the Company, its Subsidiaries, their affiliates nor any
Person acting on their behalf will take any action or steps that would cause the offering of any of the Securities to be integrated with
other offerings of securities of the Company.

 

 

    	 	5	 

     

    

 

(h)            
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares and Warrant Shares will increase
in certain circumstances. The Company further acknowledges its obligation to issue the Conversion Shares upon conversion of the Convertible
Debentures or Warrant Shares upon exercise of the Warrants in accordance with the terms thereof is, absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

(i)             
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement), stockholder rights plan or other similar antitakeover provision under
the Articles of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without limitation,
the Company's issuance of the Securities and any Buyer's ownership of the Securities.

 

(j)             
 SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all
reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the
date hereof and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated
by reference therein being hereinafter referred to as the “SEC Documents”). The Company has delivered or has made available
to the Buyers or their respective representatives true, correct and complete copies of each of the SEC Documents not available on the
EDGAR system. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act
and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the
time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect
as of the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”),
consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes
thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary
statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results
of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal yearend audit adjustments
which will not be material, either individually or in the aggregate). The reserves, if any, established by the Company or the lack of
reserves, if applicable, are reasonable based upon facts and circumstances known by the Company on the date hereof and there are no loss
contingencies that are required to be accrued by the Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards
Board which are not provided for by the Company in its financial statements or otherwise. No other information provided by or on behalf
of the Company to any of the Buyers which is not included in the SEC Documents (including, without limitation, information in the disclosure
schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary in order to
make the statements therein not misleading, in the light of the circumstance under which they are or were made. The Company is not currently
contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any letter of the independent
accountants of the Company with respect thereto) included in the SEC Documents (the “Financial Statements”), nor is the Company
currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each
case, in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC. The Company
has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements
or that there is any need for the Company to amend or restate any of the Financial Statements.

 

(k)            
Absence of Certain Changes. Since the date of the Company's most recent audited financial statements contained in a Form 10-K,
there has been no Material Adverse Effect, nor any event or occurrence specifically affecting the Company or its Subsidiaries that would
be reasonably expected to result in a Material Adverse Effect. Since the date of the Company's most recent audited financial statements
contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any material
assets, individually or in the aggregate, outside of the ordinary course of business or (iii) made any material capital expenditures,
individually or in the aggregate, outside of the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken
any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation
or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend
to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so.

 

 

 

    	 	6	 

     

    

 

(l)             
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has occurred
or exists, or is reasonably expected to exist or occur specific to the Company, any of its Subsidiaries or any of their respective businesses,
properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that has not been publicly
disclosed and would reasonably be expected to have a Material Adverse Effect.

 

(m)         
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term under
its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of preferred stock
of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation, memorandum of association,
articles of association, Articles of Incorporation or certificate of incorporation or bylaws, respectively. Neither the Company nor any
of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company
or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing,
except in all cases for violations which would not reasonably be expected to have a Material Adverse Effect. Without limiting the generality
of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no
knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market
in the foreseeable future. During the one year prior to the date hereof, (i) the Common Stock has been listed or designated for quotation
on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company
has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common
Stock from the Principal Market, which has not been publicly disclosed. The Company and each of its Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where
the failure to possess such certificates, authorizations or permits would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect, and neither the Company nor any of its Subsidiaries has received any notice of proceedings relating to the
revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction,
order or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which
has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or
any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company
or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not had and would
not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.

 

(n)            
Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries nor any director, officer, agent, employee, nor any
other person acting for or on behalf of the Company or any of its Subsidiaries (individually and collectively, a “Company Affiliate”)
have violated the U.S. Foreign Corrupt Practices Act (the “FCPA) or any other applicable antibribery or anti corruption laws, nor
has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give,
or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for any Governmental
Entity to any political party or official thereof or to any candidate for political office (individually and collectively, a “Government
Official”) or to any person under circumstances where such Company Affiliate knew or was aware of a high probability that all or
a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any Government Official, for
the purpose, in violation of applicable law, of: (i) (A) influencing any act or decision of such Government Official in his/her official
capacity, (B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper
advantage, or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity, or (ii) assisting
the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

(o)            
Equity Capitalization.

 

(i)                
Definitions:

 

(A)             
“Common Stock” means (x) the Company's shares of common stock, par value $0.005 per share, and (y) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

 

 

 

    	 	7	 

     

    

 

(B)             
“Preferred Stock” means (x) the Company's blank check preferred stock, par value $0.01 per share, the terms of which
may be designated by the board of directors of the Company in a statement of designations, (y) the Company’s Series F preferred
stock, spar value $001 per share, and (z) any capital stock into which such preferred stock shall have been changed or any share capital
resulting from a reclassification of such preferred stock (other than a conversion of such preferred stock into Common Stock in accordance
with the terms of such Certificate of Designations).

 

(ii)             
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists of (A) 1,000,000,000
shares of Common Stock, of which, 70,184,184 are issued and outstanding and (B) 100,000 shares of Preferred Stock, 15,002 of which are
issued and outstanding.

 

(iii)            
Valid Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly issued and are
fully paid and nonassessable.

 

(iv)             
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company's or any Subsidiary's
shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company
or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital
stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any
of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries
or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries,
except as listed in Exhibit C; (C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is
obligated to register the sale of any of their securities under the 1933 Act (except pursuant to this Agreement); (D) there are no
outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and
there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing antidilution
or similar provisions that will be triggered by the issuance of the Securities; and (G) neither the Company nor any Subsidiary has
any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement.

 

(v)               
Organizational Documents. The Company has furnished to the Buyers or filed on EDGAR true, correct and complete copies of the Company's
Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”), and the Company's
bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all convertible securities and the
material rights of the holders thereof in respect thereto.

 

(p)            
Litigation. Except as disclosed in the SEC Documents, there is no action, suit, arbitration, proceeding, inquiry or investigation
before or by the Principal Market, any court, public board, other Governmental Entity, selfregulatory organization or body pending or,
to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the
Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such,
which would reasonably be expected to result in a Material Adverse Effect. After reasonable inquiry of its employees, the Company is not
aware of any event which might result in or form the basis for any such action, suit, arbitration, investigation, inquiry or other proceeding.
Without limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or
any of its Subsidiaries. Neither the Company nor any of its Subsidiaries is the subject of any order, writ, judgment, injunction, decree,
determination or award of any Governmental Entity that would reasonably be expected to result in a Material Adverse Effect.

 

 

 

 

    	 	8	 

     

    

 

(q)            
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the
Company and its Subsidiaries are engaged. In accordance with the previous sentence, the Company currently maintains no insurance policies.
Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for, and neither the Company nor
any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have
a Material Adverse Effect.

 

(r)             
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting
on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation
of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii)
sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any Person any compensation for soliciting another to purchase any other securities of the Company or any of its Subsidiaries.

 

(s)             
Registration Eligibility. The Company is eligible to register the resale of the Conversion Shares by the Buyers using Form S-1
promulgated under the 1933 Act.

 

(t)             
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

(u)            
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot Act
of 2001 and all other applicable U.S. and nonU.S. antimoney laundering laws and regulations, including, but not limited to, the laws,
regulations and Executive Orders and sanctions programs (“Sanctions Programs”) administered by the U.S. Office of Foreign
Assets Control (“OFAC”), including, without limitation, (i) Executive Order 13224 of September 23, 2001 entitled, "Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism" (66 Fed. Reg. 49079 (2001));
and any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

(v)            
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their
agents or counsel with any information that constitutes or could reasonably be expected to constitute material, nonpublic information
concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the
other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing representations in
effecting transactions in securities of the Company. All disclosures provided to the Buyers regarding the Company and its Subsidiaries,
their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the
Company or any of its Subsidiaries, taken as a whole, are true and correct and does not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which
they were made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Company or any of
its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken as a whole,
will be true and correct in all material respects as of the date on which such information is so provided and will not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of
the circumstances under which they were made, not misleading. No event or circumstance has occurred or information exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results
thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before
the date hereof or announcement by the Company but which has not been so publicly disclosed. All financial projections and forecasts that
have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to the Buyers have been prepared in good
faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered to each
Buyer, the Company's best estimate of future financial performance (it being recognized that such financial projections or forecasts are
not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections or forecasts
may differ from the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

 

 

    	 	9	 

     

    

 

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

 

(x)            
Private Placement. Assuming the accuracy of the Buyers’ representations and warranties set forth in Section 2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Buyers as contemplated hereby. The
issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Primary Market.

 

		4.	COVENANTS.

 

(a)              
Reporting Status. For the period beginning on the date hereof, and ending 6 months after the date on which all the Convertible
Debentures and Warrants are no longer outstanding (the “Reporting Period”), the Company shall file on a timely basis
all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required
to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit
such termination.

 

(b)              
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any executives or employees of the Company or to make any payments in respect of any related
party debt. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions contemplated herein,
or lend, contribute, facilitate or otherwise make available such proceeds to any Person (i) to fund, either directly or indirectly,
any activities or business of or with any Person that is identified on the list of Specially Designated Nationals and Blocker Persons
maintained by OFAC, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions
Programs, or (ii) in any other manner that will result in a violation of Sanctions Programs.

 

(c)              
Listing. To the extent applicable, the Company shall promptly secure the listing or designation for quotation (as the case
may be) of all of the Underlying Securities (as defined below) upon each national securities exchange and automated quotation system,
if any, upon which the Common Stock is then listed or designated for quotation (as the case may be, each an “Eligible Market”),
subject to official notice of issuance, and shall use reasonable efforts to maintain such listing or designation for quotation (as the
case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such Eligible Market
for the Reporting Period. Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to
result in the delisting or suspension of the Common Stock on an Eligible Market during the Reporting Period. The Company shall pay all
fees and expenses in connection with satisfying its obligations under this Section 4(c). “Underlying Securities” means
the (i) the Conversion Shares and the Warrant Shares, and (ii) any common stock of the Company issued or issuable with respect to the
Conversion Shares or the Warrant Shares, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted
or exchanged without regard to any limitations on conversion of the Convertible Debentures or the exercise of the Warrants.

 

(d)              
Fees. The Company shall pay to YA Global II SPV, LLC, an affiliate of the lead Buyer (the “Subsidiary Fund”)
a one-time due diligence and structuring fee of $15,000 which the parties agree has been paid prior to the date hereof.

 

(e)              
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and
agrees that, subject to compliance with applicable federal and state securities laws, the Securities may be pledged by an Investor in
connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The Company hereby
agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by a Buyer.

 

 

 

 

    	 	10	 

     

    

 

(f)               
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first Business
Day after the date of this Agreement, the Company shall file a current report of on Form 8-K describing all the material terms of the
transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction
Documents (including, without limitation, this Agreement (and all schedules to this Agreement) (including all attachments, the “Current
Report”). From and after the filing of the Current Report, the Company shall have disclosed all material, nonpublic information
(if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees
or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the
Current Report, the Company acknowledges and agrees that any and all confidentiality or similar obligations with respect to the transactions
contemplated by the Transaction Documents under any agreement, whether written or oral, between the Company, any of its Subsidiaries or
any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates,
on the other hand, shall terminate. The Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their
respective officers, directors, employees and agents not to, provide any Buyer with any material, nonpublic information regarding the
Company or any of its Subsidiaries from and after the date hereof without first obtaining the express prior written consent of such Buyer
(which may be granted or withheld in such Buyer's sole discretion).

 

(g)              
Reservation of Shares. So long as any of the Convertible Debentures remain outstanding, the Company shall take all action
necessary to at all times have authorized, and reserved for the purpose of issuance, no less than 300% of the maximum number of shares
of Common Stock issuable upon conversion of all the Convertible Debentures then outstanding (assuming for purposes hereof that (x) the
Convertible Debentures are convertible at the Conversion Price then in effect, and (y) any such conversion shall not take into account
any limitations on the conversion of the Convertible Debentures) (the “Required Reserve Amount”); provided that
at no time shall the number of shares of Common Stock reserved pursuant to this Section 4(g) be reduced other than proportionally in connection
with any conversion and/or redemption, or reverse stock split. If at any time the number of shares of Common Stock authorized and reserved
for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to
authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize
additional shares to meet the Company's obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized
shares, recommending that stockholders vote in favor of an increase in such authorized number of shares sufficient to meet the Required
Reserved Amount.

 

(h)              
Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance
or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

(i)               
Trading Information. Upon the Company’s request, the Buyer agrees to provide the Company with trading reports setting
forth the number and average sales prices of Conversion Shares and Warrant Shares sold the Buyer during the prior trading week.

 

(j)               
From the date hereof until all the Convertible Debentures have been repaid, unless the holders of at least 75% in principal
amount of the then outstanding Convertible Debentures shall have given prior written consent, the Company shall not, and shall not permit
any of its subsidiaries (whether or not a subsidiary on the date hereof) to, directly or indirectly (i) other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any
kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom, (ii) other than Permitted Liens, enter into, create, incur, assume or suffer
to exist any lien, security interest, option or other charge or encumbrance (each, a “Lien”) of
any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or
profits therefrom, or (iii) amend its charter documents, including, without limitation, its certificate of incorporation and bylaws,
in any manner that materially and adversely affects any rights of the holders of the Convertible Debentures, (iv) make any payments in
respect of any related party debt, or (v) enter into or agree to enter into any debenture, note, security, instrument, contract, financing
arrangements, or other transaction that allows the holder of such instrument or counterparty to such transaction to acquire shares of
Common Stock, or receive payments based on the price of the Common Stock, based on a price that varies or changes based on the market
price of the Common Stock. 

 

 

 

 

    	 	11	 

     

    

 

“Permitted
Indebtedness” shall mean: (i) indebtedness evidenced by the Convertible Debentures; (ii) indebtedness described on a Disclosure
Schedule attached hereto; (iii) indebtedness incurred solely for the purpose of financing the acquisition or lease of any equipment, including
capital lease obligations with no recourse other than to such equipment; (iv) indebtedness (A) the repayment of which has been subordinated
to the payment of the Convertible Debentures on terms and conditions acceptable to the Buyers, including with regard to interest payments
and repayment of principal, (B) which does not mature or otherwise require or permit redemption or repayment prior to or on the 91st day
after the maturity date of any Convertible Debentures then outstanding; and (C) which is not secured by any assets of the Company or its
subsidiaries; (v) indebtedness associated with acquiring new intellectual property assets and licenses, so long as the proceeds are going
to the party(ies) from which the Company is acquiring the assets, licenses, and other properties and (vi) any indebtedness (other than
the indebtedness set out in (i) – (v) above) incurred after the date hereof, provided that such indebtedness does not exceed $20,000
at any given time.

 

“Permitted
Liens” shall mean (1) any security interest granted to the Buyers to secure the obligations under the Convertible Debentures,
(2) any prior security interest granted to the Buyers, (3) existing Liens disclosed by the Company on a Disclosure Schedule attached hereto;
(4) inchoate Liens for taxes, assessments or governmental charges or levies not yet due, as to which the grace period, if any, related
thereto has not yet expired, or being contested in good faith and by appropriate proceedings for which adequate reserves have been established
in accordance with GAAP; (5) Liens of carriers, materialmen, warehousemen, mechanics and landlords and other similar Liens which secure
amounts which are not yet overdue by more than 60 days or which are being contested in good faith by appropriate proceedings for which
adequate reserves have been established in accordance with GAAP; (6) licenses, sublicenses, leases or subleases granted to other persons
not materially interfering with the conduct of the business of the Company; (7) Liens securing capitalized lease obligations and purchase
money indebtedness incurred solely for the purpose of financing an acquisition or lease; (8) easements, rights-of-way, restrictions, encroachments,
municipal zoning ordinances and other similar charges or encumbrances, and minor title deficiencies, in each case not securing debt and
not materially interfering with the conduct of the business of the Company and not materially detracting from the value of the property
subject thereto; (9) Liens arising out of the existence of judgments or awards which judgments or awards do not constitute an Event of
Default; (10) Liens incurred in the ordinary course of business in connection with workers compensation claims, unemployment insurance,
pension liabilities and social security benefits and Liens securing the performance of bids, tenders, leases and contracts in the ordinary
course of business, statutory obligations, surety bonds, performance bonds and other obligations of a like nature (other than appeal bonds)
incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money); (11) Liens in favor
of a banking institution arising by operation of law encumbering deposits (including the right of set-off) and contractual set-off rights
held by such banking institution and which are within the general parameters customary in the banking industry and only burdening deposit
accounts or other funds maintained with a creditor depository institution; (12) usual and customary set-off rights in leases and other
contracts; (13) escrows in connection with acquisitions and dispositions and (14) royalties and other rights to revenue derived from the
sale of the Company’s products that are granted in the ordinary course of business.

 

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)              
Register. The Company shall maintain at its principal executive offices or with the Transfer Agent (or at such other office
or agency of the Company as it may designate by notice to each holder of Securities), a register for the Convertible Debentures and Warrants
in which the Company shall record the name and address of the Person in whose name the Convertible Debentures have been issued (including
the name and address of each transferee), the amount of Convertible Debentures and Warrants held by such Person. The Company shall keep
the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

 

(b)              
Transfer Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws. In connection
with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate
of a Buyer or in connection with a pledge as contemplated herein, the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall
be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities
under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement
and shall have the rights and obligations of a Buyer under this Agreement.

 

 

 

    	 	12	 

     

    

 

		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The obligation of the Company
hereunder to issue and sell the Convertible Debentures to each Buyer at each Closing is subject to the satisfaction, at or before each
Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may be waived
by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

 

(a)              
Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(b)              
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts
withheld pursuant to Section 4(d)) for the Convertible Debentures being purchased by such Buyer at the Closing by wire transfer of immediately
available funds in accordance with the Closing Statement.

 

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

 

		7.	CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

 

The obligation of each Buyer hereunder to purchase
its Convertible Debentures at each Closing is subject to the satisfaction, at or before each Closing Date, of each of the following conditions,
provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at any time in its sole discretion by
providing the Company with prior written notice thereof:

 

(a)              
The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to such Buyer a Convertible Debenture with a principal amount corresponding to the Subscription
Amount set forth opposite such Buyer’s name on Schedule of Buyers attached as Schedule I for the Closing.

 

(b)              
Such Buyer shall have received the opinion of counsel to the Company, dated as of the First Closing Date, in the form reasonably
acceptable to such Buyer.

 

(c)              
The Company shall have delivered to each Buyer copies of its and each Subsidiaries certified copies of its charter, as well as
any shareholder or operating agreements by or among the shareholders or members of any of the Company’s Subsidiaries.

 

(d)              
The Company shall have delivered to such Buyer a certificate evidencing the incorporation and good standing of the Company as of
a date within ten (10) days of the Closing Date.

 

(e)              
Each and every representation and warranty of the Company shall be true and correct in all material respects (other than representations
and warranties qualified by materiality, which shall be true and correct in all respects) as of the date when made and as of each Closing
Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be
true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants,
agreements and conditions set forth in each Transaction Document required to be performed, satisfied or complied with by the Company at
or prior to each Closing Date.

 

(f)               
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have
been suspended, as of each Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension
by the SEC or the Principal Market have been threatened, as of each Closing Date, either (I) in writing by the SEC or the Principal Market
or (II) by falling below the minimum maintenance requirements of the Principal Market.

 

 

 

    	 	13	 

     

    

 

(g)              
The Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for the sale
of the Securities, including without limitation, those required by the Principal Market, if any.

 

(h)              
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(i)               
Since the date of execution of this Agreement, no event or series of events shall have occurred that has resulted in or would reasonably
be expected to result in a Material Adverse Effect, or an Event of Default (as defined in the Convertible Debentures).

 

(j)               
The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be) the maximum
number of Conversion Shares issuable pursuant to the Convertible Debentures to be issued at the Closing.

 

(k)              
Such Buyer shall have received a letter, duly executed by an officer of the Company, setting forth the wire amounts of each Buyer
and the wire transfer instructions of the Company (the “Closing Statement”).

 

(l)               
(i) From the date hereof to the applicable Closing Date, trading in the Common Stock shall not have been suspended by the SEC or
the Principal Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing) and (ii) at any time from the date hereof to the applicable Closing Date, trading in securities generally as reported
by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades
are reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable
judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

(m)            
The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating
to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

 

(n)              
Solely with respect to the Second Closing, the Company shall have filed the Registration Statement with the SEC in accordance with
the provisions set forth in the Registration Rights Agreement, including the filing deadline set forth therein.

 

(o)              
[Other conditions, if any, to be determined]

 

		8.	TERMINATION.

 

In the event
that the First Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall
have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement under
this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been consummated
by such date is the result of such Buyer's breach of this Agreement and (ii) the abandonment of the sale and purchase of the Convertible
Debentures shall be applicable only to such Buyer providing such written notice, provided further that no such termination shall affect
any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described herein. Nothing contained in this
Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement
or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations
under this Agreement or the other Transaction Documents.

 

 

 

    	 	14	 

     

    

 

		9.	MISCELLANEOUS.

 

(a)              
Governing Law; Jurisdiction; Jury Trial. 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. The Company 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 under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, 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. Nothing contained herein shall be deemed or operate to
preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's
obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION
DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY
OR THEREBY.

 

(b)              
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In
the event that any signature is delivered by facsimile transmission or by an email which contains a portable document format (.pdf) file
of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c)              
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include
the masculine, feminine, neuter, singular and plural forms thereof. The terms "including," "includes," "include"
and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein,"
"hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which
they are found.

 

(d)              
Entire Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer, the
Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the
instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and,
except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or
undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

 

(e)              
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt,
when delivered personally or (ii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified,
in each case, properly addressed to the party to receive the same and (B) receipt, when sent by electronic mail. The addresses and email
addresses for such communications shall be:

 

	If to the Company, to:	DALRADA FINANCIAL COPORATION
	 	
    600 La Terraza Blvd.

    Escondido, California 92025

    Telephone: 858-705-3713

    Attention:  Brian Bonar

    E-Mail:  bbonar@dalrada.com

     

 

 

 

    	 	15	 

     

    

 

	With Copy to:	
    Fletcher Robbe International Attorneys at Law

    Telephone:  562-818-3751

    Attention:  Fletcher Robbe

    E-Mail:  frobbe@frobbeintl.com

	 	 
	If to a Buyer, to its address and email address set forth on the Schedule of Buyers, with copies to such Buyer's representatives as set forth on the Schedule of Buyers,
	 	 
	With copy to:	
    David Fine, Esq.

    c/o Yorkville Advisors Global, LP

    1012 Springfield Avenue

    Mountainside, NJ 07092

    Email: legal@yorkvilleadvisors.com

	 	 

or to such other address, email
address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party
five (5) 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) electronically generated by the sender's e-mail service provider containing the time, date, recipient
e-mail address or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively

 

(f)               
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of any of the Convertible Debentures (but excluding any purchasers of Underlying Securities,
unless pursuant to a written assignment by such Buyer). The Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Buyers. In connection with any transfer of any or all of its Securities, a Buyer may assign all,
or a portion, of its rights and obligations hereunder in connection with such Securities without the consent of the Company, in which
event such assignee shall be deemed to be a Buyer hereunder with respect to such transferred Securities.

 

(g)              
Indemnification.

 

(i)                
In consideration of each Buyer's execution and delivery of the Transaction Documents and acquiring the Securities thereunder and
in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and
hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing Persons' agents or other representatives (including, without limitation, those
retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from
and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses
in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
and including reasonable attorneys' fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee
as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company
in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained
in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by
a third party (including for these purposes a derivative action brought on behalf of the Company or any Subsidiary) or which otherwise
involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance or enforcement of any of the Transaction
Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance
of the Securities, or (C) any disclosure properly made by such Buyer pursuant to Section 4(f), or (D) the status of such Buyer or holder
of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a
party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive
or other equitable relief). To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law.

 

 

 

    	 	16	 

     

    

 

(ii)             
Promptly after receipt by an Indemnitee under this Section 9(g) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to
be made against the Company under this Section 9(g), deliver to the Company a written notice of the commencement thereof, and the Company
shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel
mutually reasonably satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to
retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (A) the Company has agreed in writing
to pay such fees and expenses; (B) the Company shall have failed promptly to assume the defense of such Indemnified Liability and
to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (C) the named parties to any such
Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been
advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company
(in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company,
then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided
further, that in the case of clause (C) above the Company shall not be responsible for the reasonable fees and expenses of more than one
(1) separate legal counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation
or defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably available
to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at
all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any
settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the Company shall not
unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, 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 Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation,
and such settlement shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for
hereunder, the Company shall be subrogated to all rights of the Indemnitee 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 Company within a reasonable time of
the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(g), except to
the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

 

(iii)           
The indemnification required by this Section 9(g) shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, within ten (10) days after bills supporting the Indemnified Liabilities are received by the Company.

 

(iv)            
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against
the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

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

 

[REMAINDER PAGE
INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of
the date first written above.

 

	 	
    COMPANY:

     

	 	DALRADA FINANCIAL COPORATION
	 	 
	 	By:/s/ Brian Bonar                                                   
	 	Name:     Brian Bonar
	 	Title:       CEO
	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of
the date first written above.

 

	 	BUYER:

 

 

	 	YA II PN, LTD. 
	 	 	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 	 	 
	 	 	By:	Yorkville Advisors Global II, LLC
	 	 	Its:	General Partner
	 	 	 	 
	 	 	By:	/s/ Matt Beckman                                
	 	 	Name:	Matt Beckman
	 	 	Title:	Member

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

LIST OF EXHIBITS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

EXHIBIT A

 

FORM OF CONVERTIBLE DEBENTURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	21	 

     

    

 

EXHIBIT B

 

FORM OF WARRANTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	22	 

     

    

 

EXHIBIT C

 

Existing Securities; Obligations

 

 

	To be issued:	 	Number	 	Type
	IHG - acquisition	 	750,000	 	Common Stock
	PSC - Acquisition	 	535,000	 	Common Stock
	Kyle McCollum	 	1,000.000	 	Cashless Warrants
	Satinder Singh	 	325,000	 	Cashless Warrants
	Satinder Singh	 	300,000	 	Cashless Warrants
	Richard Darnell	 	250,000	 	Cashless Warrants
	Daniel Riley	 	500,000	 	Cashless Warrants
	Daniel Riley	 	300,000	 	Cashless Warrants
	David Pickett	 	600,000	 	Cashless Warrants
	Owen Naccarato	 	500,000	 	Common Stock
	Harvey Hershkowitz	 	500,000	 	Common Stock
	Directors/advisor Warrants	 	4,500,000	 	Cashless Warrants
	Directors Warrants	 	3,000,000	 	Cashless Warrants
	Board Advisors	 	1,250.000	 	Cashless Warrants
	Total    		14,310,000	 	 

 

 

 

 

 

 

 

 

 

 

    	 	23	 

     

    

 

SCHEDULE OF BUYERS

 

 

	(a)	 	(b)	(c)
	Buyer 	 	Subscription Amount of Convertible Debentures	Purchase Price (96% of Subscription Amount)
	 	 	 	 
	YA II PN, Ltd.	 	 	 
	1012 Springfield Avenue	First Closing:   	$2,000,000.00	$1,920,000.00
	Mountainside, NJ 07092	Second Closing   	$1,000,000.00	$960,000.00
	Email: Legal@yorkvilleadvisors.com	 	 	 
	 	 	 
	 	Aggregate:   	$3,000,000.00 	$2,880,000.00 
	 	 	 	 
	 	 	 
	Legal Representative’s Address and E-Mail Address	 
	David Fine, Esq.	 	 	 
	1012 Springfield Avenue	 	 	 
	Mountainside, NJ 07092	 	 	 
	Email: Legal@yorkvilleadvisors.com	 	 

 

 

 

 

 

 

 

 

 

 

 

    	 	24

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