Document:

BLOW
& DRIVE INTERLOCK CORPORATION

 

 

 

SECURITIES
PURCHASE AGREEMENT

 

 

 

    	 

    	 	 	 

    

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is made and entered into effective as of the 7th day of August, 2015
(the “Effective Date”) by and between Blow & Drive Interlock Corporation, a Delaware corporation (the “Company”),
and David Stuart Petlak, a(n) Individual (the “Purchaser”). The Company and Purchaser shall each be referred to as
a “Party” and collectively as the “Parties.”

 

AGREEMENT

 

1.PURCHASE
OF SECURITIES: On the Closing Date (as hereinafter defined), subject to the terms and conditions set forth in this Agreement,
the Purchaser hereby agrees to purchase, and the Company hereby agrees to sell, a $50,000 principal amount convertible promissory
note, in the form attached hereto as Exhibit B (the “Note”), convertible into shares of the Company’s
common stock for a total purchase price of fifty thousand dollars ($50,000) (the “Purchase Price”). In addition to
the Note the Purchaser will be issued a warrant to purchase Eighty Thousand (80,000) shares of the Company’s common stock
at an exercise price of $0.80 per share in the form attached hereto as Exhibit C (the “Warrant”). Together
the Note and the Warrant, and the Company’s shares of common stock underlying the Note and the Warrant, will be referred
herein as the “Securities.”

 

 2. CLOSING AND DELIVERY:

 

a)Upon
the terms and subject to the conditions set forth herein, the consummation of the purchase and sale of the Note (the “Closing”)
shall be held simultaneous with the execution of this Agreement, or at such other time mutually agreed upon between the constituent
Parties (the “Closing Date”). The Closing shall take place at the offices of counsel for the Company set forth in
Section 6 hereof, or by the exchange of documents and instruments by mail, courier, facsimile and wire transfer to the extent
mutually acceptable to the Parties hereto.

 

 b) At the Closing:

 

(i)The
Company and the Purchaser shall execute this Agreement, and the Company will execute the Note and the Warrant which shall serve
as evidence of ownership of the Note and the Warrant, free from restrictions on transfer except as set forth in this Agreement
and federal and state securities laws.

 

(ii)
The Purchaser shall deliver to the Company the Purchase Price.

 

    	Page 1 of 10

    	 	 	 

    

 

3.REPRESENTATIONS,WARRANTIESANDAGREEMENTSBY
PURCHASER: The Purchaser hereby represents, warrants and agrees as follows:

 

a)Purchase
for Own Account. Purchaser represents that he is acquiring the Securities solely for his own account and beneficial
interest for investment and not for sale or with a view to distribution of the Securities or any part thereof, has no present
intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise
distributing the same, and does not presently have reason to anticipate a change in such intention.

 

b)Ability
to Bear Economic Risk. Purchaser acknowledges that an investment in the Securities involves a high degree of risk, and represents
that he is able, without materially impairing his financial condition, to hold the Securities for an indefinite period of time
and to suffer a complete loss of his investment.

 

c)Access
to Information. The Purchaser acknowledges that the Purchaser has been furnished with such financial and other
information concerning the Company, the directors and officers of the Company, and the business and proposed business of the
Company as the Purchaser considers necessary in connection with the Purchaser’s investment in the Securities, and is
aware the Company makes quarterly filings with the Securities and Exchange Commission viewable on the EDGAR system. As a
result, the Purchaser is thoroughly familiar with the proposed business, operations, properties and financial condition of
the Company and has discussed with officers of the Company any questions the Purchaser may have had with respect thereto. The
Purchaser understands:

 

(i)The
risks involved in this investment, including the speculative nature of the investment;

 

(ii)The
financial hazards involved in this investment, including the risk of losing the Purchaser’s entire
investment;

 

(iii)The
lack of liquidity and restrictions on transfers of the Securities; and

 

 (iv) The tax consequences of this investment.

 

The
Purchaser has consulted with the Purchaser’s own legal, accounting, tax, investment and other advisers with respect to
the tax treatment of an investment by the Purchaser in the Securities and the merits and risks of an investment in the Securities.

 

d)Securities
Part of Private Placement. The Purchaser has been advised that the Securities have not been registered under the
Securities Act of 1933, as amended (the “Act”), or qualified under the securities law of any state, on the
ground, among others, that no distribution or public offering of the Securities is to be effected and the Securities will be
issued by the Company in connection with a transaction that does not involve any public offering within the meaning of
section 4(a)(2) of the Act and/or Regulation D as promulgated by the Securities and Exchange Commission under the Act, and
under any applicable state blue sky authority. The Purchaser understands that the Company is relying in part on the Purchaser’s representations as set forth herein for purposes of claiming such exemptions and that the basis for such exemptions
may not be present if, notwithstanding the Purchaser’s representations , the Purchaser has in mind merely acquiring
the Securities for resale on the occurrence or nonoccurrence of some predetermined event. The Purchaser has no such
intention.

 

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e)Purchaser
Not Affiliated with Company. The Purchaser, either alone or with the Purchaser’s professional advisers (i) are
unaffiliated with, have no equity interest in, and are not compensated by, the Company or any affiliate or selling agent of
the Company, directly or indirectly (other than as set forth in the Investor Questionnaire attached hereto as Exhibit A); (ii)
has such knowledge and experience in financial and business matters that the Purchaser is capable of evaluating the merits
and risks of an investment in the Securities; and (iii) has the capacity to protect the Purchaser’s own interests in
connection with the Purchaser’s proposed investment in the Securities.

 

f)Further
Limitations on Disposition. Purchaser further acknowledges that the Securities are restricted securities under Rule 144 of
the Act, and, therefore, if the Company, in its sole discretion, chooses to issue any certificates reflecting the ownership interest
in the Securities, those certificates will contain a restrictive legend substantially similar to the following:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE
ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

Without
in any way limiting the representations set forth above, Purchaser further agrees not to make any disposition of all or any portion
of the Securities unless and until:

 

(i)There
is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance
with such Registration Statement; or

 

(ii)Purchaser
shall have obtained the consent of the Company and notified the Company of the proposed disposition and shall have furnished the
Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the
Company, Purchaser shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such
disposition will not require registration under the Act or any applicable state securities laws.

 

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Notwithstanding
the provisions of subparagraphs (i) and (ii) above, no such registration statement or opinion of counsel shall be necessary for
a transfer by such Purchaser to a partner (or retired partner) of Purchaser, or transfers by gift, will or intestate succession
to any spouse or lineal descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the
same extent as if they were Purchasers hereunder as long as the consent of the Company is obtained.

 

 g) Accredited Investor Status (Please check one). Purchaser

 

x
  is

 

is
not

 

an
“accredited investor” as such term is defined in Rule 501 under the Act because Purchaser either:

 

(i)has
a net worth of at least $1,000,000 (for purposes of this question, Purchaser may include spouse’s net worth and may include
the fair market value of home furnishings and automobiles, but must exclude from the calculation the value of Purchaser’s
primary residence and the related amount of any indebtedness on primary residence up to the fair market value of the primary residence
(any indebtedness that exceeds the fair market value of the primary residence must be deducted from net worth calculation)), or

 

(ii)had
an individual income of more than $200,000 in each of the two most recent calendar years, and reasonably expects to have an
individual income in excess of $200,000 in the current calendar year; or along with Purchaser’s spouse had joint
income in excess of $300,000 in each of the two most recent calendar years, and reasonably expects to have a joint income in
excess of $300,000 in the current calendar year.

 

For
purposes of this Agreement, “individual income” means “adjusted gross income” as reported for Federal
income tax purposes, exclusive of any income attributable to a spouse or to property owned by a spouse: (i) the amount of any
interest income received which is tax-exempt under Section 103 of the Internal Revenue Code of 1986, as amended, (the “Code”),
(ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of form 1040), (iii)
any deduction claimed for depletion under Section 611 et seq. of the Code and (iv) any amount by which income from long-term capital
gains has been reduced in arriving at adjusted gross income pursuant to the provisions of Sections 1202 of the Internal Revenue
Code as it was in effect prior to enactment of the Tax Reform Act of 1986.

 

For
purposes of this Agreement, “joint income” means, “adjusted gross income,” as reported for Federal
income tax purposes, including any income attributable to a spouse or to property owned by a spouse, and increased by the
following amounts: (i) the amount of any interest income received which is tax-exempt under Section 103 of the Internal
Revenue Code of 1986, as amended (the “Code”), (ii) the amount of losses claimed as a limited partner in a
limited partnership (as reported on Schedule E of Form 1040), (iii) any deduction claimed for depletion under Section 611 et
seq. of the Code and (iv) any amount by which income from long-term capital gains has been reduced in arriving at adjusted
gross income pursuant to the provisions of Section 1202 of the Internal Revenue Code as it was in effect prior to enactment
of the Tax Reform Act of 1986.

 

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For
the purposes of this Agreement, “net worth” means (except as otherwise specifically defined) the excess of total assets
at fair market value, including home and personal property , over total liabilities, including mortgages and income taxes on unrealized
appreciation of assets.

 

 h) Purchaser Qualifications.

 

(i)If
the Purchaser is an individual, the Purchaser is over 21 years of age; and if the Purchaser is an unincorporated association,
all of its members are of such age.

 

(ii)If
the Purchaser is a corporation, partnership, employee benefit plan or IRA, the Purchaser was either:

 

(a)not
formed for the purpose of investing in the Securities, has or will have other substantial business or investments, and is (please
check one):

 

	 	________	 	an
    employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, provided that the
    investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is a bank,
    savings and loan association, insurance company or registered investment adviser; or
	 	 	 	 
	 	________	 	an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 that has total assets in excess of $5,000,000; or
	 	 	 	 
	 	________	 	each of its shareholders, partners, or beneficiaries is an Accredited Investor; or
	 	 	 	 
	 	________	 	the plan is a self-directed employee benefit plan and the investment decision is made solely by a person that is an Accredited Investor; or a corporation, a partnership, or a Massachusetts or similar business trust with total assets in excess of $5,000,000.

 

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(b)formed
for the specific purpose of investing in the Securities, and is an Accredited Investor because each of its shareholders or beneficiaries
is an Accredited Investor.

 

 (iii) If
the Purchaser is a Trust, the Purchaser was either:

 

(a)not
formed for the specific purpose of investing in the Securities, and is an Accredited Investor because (please check one):

 

	 	 ________	 	the
    trust has total assets in excess of $5,000,000 and the investment decision has been made by a “sophisticated person”;
    or
	 	 	 	 
	 	________ 	 	the
    trustee making the investment decision on its behalf is a bank (as defined in Section 3(a)(2) of the Act), a saving and loan
    association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, acting in its fiduciary capacity;
    or
	 	 	 	 
	 	________ 	 	the
    undersigned trustee certifies that the trust is an Accredited Investor because the granter(s) of the trust may revoke the
    trust at any time and regain title to the trust assets and has (have) retained sole investment control over the assets of
    the trust and the (each) grantor(s) is an Accredited Investor; or
	 	 	 	 
	 	________ 	 	the
    undersigned trustee certifies that the trust is an Accredited Investor because all of the beneficial owners of the trust are
    Accredited Investors.

 

(b)formed
for the specific purpose of investing in the Securities, and the undersigned trustee certifies that the trust is an Accredited
Investor because the granter(s) of the trust may revoke the trust at any time and regain title to the trust assets and has (have)
retained sole investment control over the assets of the trust and the (each) grantor(s) is an Accredited Investor.

 

i)
Purchaser Authorization. The Purchaser, if not an individual, is empowered and duly authorized to enter into this Agreement
under any governing document, partnership agreement, trust instrument, pension plan, charter, certificate of incorporation, bylaw
provision or the like; this Agreement constitutes a valid and binding agreement of the Purchaser enforceable against the Purchaser
in accordance with its terms; and the person signing this Agreement on behalf of the Purchaser is empowered and duly authorized
to do so by the governing document or trust instrument, pension plan, charter, certificate of incorporation, bylaw provision,
board of directors or stockholder resolution, or the like.

 

    	Page 6 of 10

    	 	 	 

    

 

j) No
Backup Withholding. The Social Security Number or taxpayer identification shown in this Agreement is correct, and
the Purchaser is not subject to backup withholding because (i) the Purchaser has not been notified that he or she is subject
to backup withholding as a result of a failure to report all interest and dividends or (ii) the Internal Revenue Service has
notified the Purchaser that he or she is no longer subject to backup withholding.

 

k)
Investor Questionnaire. The Purchaser has accurately completed the Investor Questionnaire attached hereto as Exhibit
A and incorporated by reference herein.

 

4.REPRESENTATIONS,WARRANTIESANDAGREEMENTSBY
COMPANY: The Company hereby represents, warrants and agrees as follows:

 

a)Authority
of Company. The Company has all requisite authority to execute and deliver this Agreement and to carry out and perform its
obligations under the terms of this Agreement.

 

b)Authorization.
All actions on the part of the Company necessary for the authorization, execution, delivery and performance of this Agreement
by the Company and the performance of the Company’s obligations hereunder has been taken or will be taken prior to the issuance
of the Securities. This Agreement, when executed and delivered by the Company, shall constitute valid and binding obligations
of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency,
the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws. The issuance of
the Securities will be validly issued, fully paid and nonassessable , will not violate any preemptive rights, rights of first
refusal, or any other rights granted by the Company, and will be issued in compliance with all applicable federal and state securities
laws, and will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Purchaser
through no action of the Company; provided, however, that the Securities may be subject to restrictions on transfer under state
and/or federal securities laws as set forth herein or as otherwise required by such laws at the time the transfer is proposed.

 

c)Governmental
Consents. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations,
or filings with, any governmental authority required on the part of the Company in connection with the valid execution and delivery
of this Agreement, the offer, sale or issuance of the Securities, or the consummation of any other transaction contemplated hereby
shall have been obtained, except for notices required or permitted to be filed with certain state and federal securities commissions,
which notices will be filed on a timely basis.

 

    	Page 7 of 10

    	 	 	 

    

 

5.INDEMNIFICATION:
The Purchaser hereby agrees to indemnify and defend the Company and its officers and directors and hold them harmless from and
against any and all liability, damage, cost or expense incurred on account of or arising out of:

 

(a)Any
breach of or inaccuracy in the Purchaser’s representations, warranties or agreements herein;

 

(b)Any
disposition of any Securities contrary to any of the Purchaser’s representations, warranties or agreements herein;

 

(c)Any
action, suit or proceeding based on (i) a claim that any of said representations, warranties or agreements were inaccurate or
misleading or otherwise cause for obtaining damages or redress from the Company or any director or officer of the Company under
the Act, or (ii) any disposition of any Securities.

 

 6. MISCELLANEOUS:

 

a)Binding
Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors
and assigns of the Parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

b)Governing
Law; Venue. This Agreement shall be governed by and construed under the laws of the State of California as applied to agreements
among California residents, made and to be performed entirely within the State of California. The Parties agree that any action
brought to enforce the terms of this Agreement will be brought in the appropriate federal or state court having jurisdiction over
Los Angeles County, California, United States of America.

 

c)Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

d)Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

e)Notices. All
notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal busfoess hours of the
recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:

 

	 	If
    to     the Company:	Blow
    & Drive Interlock Corporation

1080
La Cienega Boulevard

Suite 304

Los
Angeles, California 90035

Attn. Laurence Wainer, CEO

Facsimile
L_)___ 

 

    	Page 8 of 10

    	 	 	 

    

 

	 	with a copy to:

	Law Offices of Craig V.
Butler

300
Spectrum Center Drive, Suite 300

Irvine,
CA 92618

Attn:
Craig V. Butler, Esq.

Facsimile (949) 209-2545

 

	 	If
    to     Purchaser:	David
    Stuart Petlak 

1152
Beverwil Dr

L.A.
C.A. 90035

Facsimile (424)362-4990

 

or
at such other address as the Company or Purchaser may designate by ten (10) days advance written notice to the other Party hereto.

 

f)
Modification; Waiver. No modification or waiver of any provision of this Agreement or consent to departure therefrom shall
be effective unless in writing and approved by the Company and the Purchaser.

 

g)Entire
Agreement; Successors. This Agreement and the Exhibits hereto constitute the full and entire understanding and
agreement between the Parties with regard to the subjects hereof and no Party shall be liable or bound to the other Party in
any manner by any representations, warranties, covenants and agreements except as specifically set forth herein. The
representations, warranties and agreements contained in this Agreement shall be binding on the Purchaser’s successors,
assigns, heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of the
Company and its directors and officers.

 

h)Expenses. Each Party shall pay their own expenses in connection with this Agreement. In addition, should either Party commence
any action, suit or proceeding to enforce this Agreement or any term or provision hereof, then in addition to any other
damages or awards that may be granted to the prevailing Party, the prevailing Party shall be entitled to have and recover
from the other Party such prevailing Party’s reasonable attorneys’ fees and costs incurred in
connection therewith.

 

 i) Currency. All
currency is expressed in U.S. dollars.

 

    	Page 9 of 10

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Securities Purchase Agreement as of the date first written above.

 

 

 

    	Page 10 of 10THIS
PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT
IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR
THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO ACTION LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION.

 

CONVERTIBLE
PROMISSORY NOTE

 

	$50,000	November
    19, 2015
	 	Los
    Angeles, CA

 

For
value received, Blow & Drive Interlock Corporation, a Delaware corporation (the “Company”), promises to pay to
Stuart David Petlak an Individual, or its assigns (the “Holder”) the principal sum of Fifty-Thousand Dollars ($50,000). The principal hereof and any unpaid accrued interest thereon shall be due and payable on or before 5:00 p.m., Pacific Time,
on November 19, 2017 (the “Maturity Date”) (unless such payment date is accelerated as provided in Section 4 hereof).
Payment of all amounts due hereunder shall be made at the address of the Holder provided for in Section 6 hereof. Interest shall
accrue on the outstanding principal amount beginning on August 7, 2015, at the rate of ten (10%) per annum, simple interest, and
shall continue on the outstanding principal until paid in full. Interest due under this Note shall be paid by the Company quarterly,
beginning with the quarter ended September 30, 2015 and shall continue until all principal and interest has been repaid under
this Note.

 

1.
HISTORY OF THE NOTE. This Note is being delivered to Holder pursuant to that certain Securities Purchase Agreement
dated November 19, 2015.

 

2.PREPAYMENT
.. The Company may at any time, upon thirty (30) days written notice (each a “Prepayment Notice”), prepay all
or any part of the principal balance of this Note, provided that concurrently with each such prepayment the Company shall pay
accrued interest on the principal, if any, prepaid to the date of such prepayment. Any Prepayment Notice must contain the amount
of principal and interest to be prepaid by the Company. The end of the thirty-day period following a Prepayment Notice shall be
referred to as a “Prepayment Date.” In the event that the Company sends a Prepayment Notice to Holder, Holder may
elect prior to the Prepayment Date to convert into common stock of the Company pursuant to Section 3 hereof, all or part of the
amount of principal and interest to be repaid under the Prepayment Notice instead of receiving such prepayment.

 

3.CONVERSION.
The Holder of this Note is entitled, at its option and subject to the other terms set forth herein, at any time beginning
on the date hereof, and in whole or in part, to convert the outstanding principal amount of this Note, or any portion of the principal
amount hereof, and any accrued interest, into shares of the common stock of the Company. Any amounts the Holder elects to convert
will be converted into common stock at the Conversion Price. The “Conversion Price” shall mean 70% multiplied by the
Market Price (as defined herein) (representing a discount rate of 30%). “Market Price” means the average of the closing
prices (“Closing Price”) for the last five (5) trading days prior to the Conversion Date. If the Company’s common
stock is quoted over-the-counter, then the Closing Price will be as reported on the Over-the-Counter Bulletin Board (the “OTCBB”),
OTCQB or applicable trading market as reported by a reliable reporting service (“Reporting Service”). If the Company’s
common stock is not quoted over-the-counter then the Closing Price will be closing price where such security is listed or traded
or, if no closing price of such security is available in any of the foregoing manners, the average of the closing prices of any
market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. Any conversion
shall be effectuated by giving a written notice (‘‘Notice of Conversion”) to the Company on the date of conversion,
stating therein the amount of principal and accrued interest due to Holder under this Note being converted.

 

    	1

     

    

 

Notwithstanding
the foregoing, the Holder may not convert any outstanding amounts due under this Note if at the time of such conversion the amount
of common stock issued for the conversion, when added to other shares of Company common stock owned by the Holder or which can
be acquired by Holder upon exercise or conversion of any other instrument, would cause the Holder to own more than nine and nine-tenths
percent (9.9%) of the Company’s outstanding common stock. The restriction described in this paragraph may be revoked upon
sixty-one (61) days prior notice from Holder to the Company.

 

4.DEFAULT.
The occurrence of any one of the following events shall constitute an Event of Default:

 

(a)The
non-payment, when due, of any principal or interest pursuant to this Note;

 

(b)The
material breach of any representation or warranty in this Note. In the event the Holder becomes aware of a breach of this Section
4(b), then provided such breach is capable of being cured by Company, the Holder shall notify the Company in writing of such breach
and the Company shall have thirty (30) business days after notice to cure such breach;

 

(c)The
breach of any covenant or undertaking, not otherwise provided for in this Section 4;

 

(d)The
commencement by the Company of any voluntary proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment
of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or
the adjudication of the Company as insolvent or bankrupt by a decree of a court of competent jurisdiction; or the petition or
application by the Company for, acquiescence in, or consent by the Company to, the appointment of any receiver or trustee for
the Company or for all or a substantial part of the property of the Company; or the assignment by the Company for the benefit
of creditors; or the written admission of the Company of its inability to pay its debts as they mature; or

 

    	2

     

    

 

(e)The
commencement against the Company of any proceeding relating to the Company under any bankruptcy, reorganization, arrangement,
insolvency, adjustment of debt, receivership, dissolution or liquidation law or statute of any jurisdiction, whether now or
hereafter in effect, provided, however, that the commencement of such a proceeding shall not constitute an Event of Default unless
the Company consents to the same or admits in writing the material allegations of same, or said proceeding shall remain undismissed
for 20 days; or the issuance of any order, judgment or decree for the appointment of a receiver or trustee for the Company or
for all or a substantial part of the property of the Company, which order, judgment or decree remains undismissed for 20 days;
or a warrant of attachment, execution, or similar process shall be issued against any substantial part of the property of the
Company.

 

Upon
the occurrence of any Default or Event of Default, the Holder, may, by written notice to the Company, declare all or any portion
of the unpaid principal amount due to Holder, together with all accrued interest thereon, immediately due and payable, in which
event it shall immediately be and become due and payable, provided that upon the occurrence of an Event of Default as set forth
in paragraph (d) or paragraph (e) hereof, all or any portion of the unpaid principal amount due to Holder, together with all accrued
interest thereon, shall immediately become due and payable without any such notice.

 

5.TRANSFERABILITY.
This Note shall not be transferred, pledged, hypothecated, or assigned by the Holder without the express written consent
of the Company, which consent will not be unreasonably withheld.

 

6.NOTICES.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient,
if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent as follows:

 

	If
    to     the Company:	Blow
    & Drive Interlock Corporation 1080
	 	La
    Cienega Boulevard
	 	Suite
    304
	 	Los
    Angeles, California 90035
	 	Attn.
    Laurence Wainer
	 	Facsimile LJ

 

	with
    a copy to:	Law
    Offices of Craig V. Butler
	 	300
    Spectrum Center Dr., Suite 300
	 	Irvine,
    CA 92618
	 	Attn:
    Craig V. Butler, Esq.
	 	Facsimile
    No.: (949) 209-2545

 

    	3

     

    

 

 

	If
    to     Holder:	David
    Stuart Petlak
	 	1152
    Beverwil
	 	LA
    CA 90035
	 	Facsimile
    No (424) 362-4990

 

or
at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other Party hereto.

 

7.GOVERNING
LAW; VENUE. The terms of this Note shall be construed in accordance with the laws of the State of California, as
applied to contracts entered into by California residents within the State of California, and to be performed entirely within
the State of California. The parties agree that any action brought to enforce the terms of this Note will be brought in the appropriate
federal or state court having jurisdiction over Los Angeles County, California.

 

8.CONFORMITY
WITH LAW. It is the intention of the Company and of the Holder to conform strictly to applicable usury and similar laws.
Accordingly, notwithstanding anything to the contrary in this Note, it is agreed that the aggregate of all charges which constitute
interest under applicable usury and similar laws that are contracted for, chargeable or receivable under or in respect of this
Note, shall under no circumstances exceed the maximum amount of interest permitted by such laws, and any excess, whether occasioned
by acceleration or maturity of this Note or otherwise, shall be canceled automatically, and if theretofore paid, shall be either
refunded to the Company or credited on the principal amount of this Note.

 

9.MODIFICATION;
WAIVER. No modification or waiver of any provision of this Note or consent to departure therefrom shall be effective unless
in writing and approved by the Company and the Holder.

 

    	4

     

    

 

IN
WITNESS WHEREOF, Company has executed this Convertible Promissory Note as of the date first written above.

 

	 	“Company”
	 	 
	 	Blow
    & Drive Interlock Corporation,
	 	a
    Delaware corporation
	 	 
	 	 
	 	By:	Laurence
    Wainer
	 	Its:	Chief
    Executive Officer

 

Acknowledged:

 

“Holder”

 

	 	 

 

    	5

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