Exhibit
6.1
POSTING
AGREEMENT
[06/25/2021]
StartEngine
Primary LLC
3900 W Alameda
Ave., Suite 1200
Burbank,
CA 91505
Dear Ladies
and Gentlemen:
[Oracle
Health, Inc][COMPANY], a [Delaware][STATE] [C-Corp][ENTITY]
located at [910 Woodbridge Ct. Safety Harbor, FL 34695][ADDRESS] (the “Company”),
proposes, subject to the terms and conditions contained in this Posting Agreement (this “Agreement”), to issue and
sell shares of its [3,000,000 shares of common stock ($2/share)][SECURITIES],
$XXX par value per share (the “Shares”) to investors (collectively, the “Investors”) in a public
offering (the “Offering”) on the online website provided by StartEngine Crowdfunding, Inc. (the “Platform”)
pursuant to Regulation A through StartEngine Primary LLC ( “StartEngine”), acting on a best efforts basis only, in
connection with such sales. The Shares are more fully described in the Offering Statement (as hereinafter defined).
The
Company hereby confirms its agreement with StartEngine concerning the purchase and sale of the Shares, as follows:
1. ENGAGEMENT.
Company hereby engages StartEngine to provide the services set out herein upon the subject to the terms and conditions set out in
this Agreement, Terms of Use (“Platform Terms”), and Privacy Policy; each of which is hereby incorporated
into this Agreement. Company has read and agreed to the Terms of Use and Company understands that this Posting Agreement governs
Company’s use of the Site and the Services. Terms not defined herein are as defined in Platform Terms.
2.
SERVICES AND FEES.
| ● | OFFERING
SERVICE:Company agrees that StartEngine shall provide the services below for a fee of
$15,000 for out of pocket accountable expenses paid prior to StartEngine commencing. |
Any
portion of this amount not expended and accounted for shall be returned to the Company at the end of the engagement.
Company
will pay, or reimburse if paid by StartEngine, out of pocket expenses for (i) the preparation and delivery of certificates representing
the Shares (if any), (ii) FINRA filing fees, (iii) notice filing requirements under the securities or Blue Sky laws, (iv) all transfer
taxes, if any, with respect to the sale and delivery of the Shares by the Company to the Investors.
| ● | Campaign
Page Design: design, build, and create Company’s campaign page. |
| ● | Support:
provide Company with dedicated account manager and marketing consulting services. |
| ● | Standard
Subscription Agreement: provision of a standard purchase agreement to execute between Company
and Investors, which may be used at Company’s option. |
| ● | Multiple
Withdrawals (Disbursements): money transfers to Company |
| ● | DISTRIBUTION:As
compensation for the services provided hereunder by StartEngine Primary, Company shall pay
to StartEngine at each closing of the Offering a fee consisting of the following: |
| ● | 7%
cash commission based on the dollar amount received from investors. |
| ● | [Equity
choice] Non-cash commission paid in the same securities in this offering in an amount equivalent
to 2% of the total securities
issued to investors in this offering
(excluding bonus shares). |
| ● | [Warrant
choice] Non-cash commission paid in the form of a warrant to purchase the same securities
in this offering and at the same terms in an amount equivalent to 2%
of the total securities issued to investors in this offering (excluding bonus shares). |
| ○ | Lock-up
Covenant. Notwithstanding the foregoing provision, StartEngine hereby agrees that the
securities issued pursuant to the non-cash commission shall not be sold during the offering,
or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging,
short sale, derivative, put, or call transaction that would result in the effective economic
disposition of the securities by any person for a period of 180 days immediately following
the date of qualification or commencement of sales of the public offering pursuant to which
the securities were issued, except as provided in FINRA Rule 5110(e)(2). |
Ill
Check this box for selecting the split fee option (see below)
| ● | If
the “split fee” option is selected then the following provision shall apply: In
each case StartEngine Capital may charge investors a fee of 3.5%, in which case the commission
set forth above shall be reduced commensurately. In the event an investor invests in excess
of $20,000, such investor fee shall be limited to $700 and Company shall pay the 3.5% additional
commission with respect to any amount in excess of $20,000, in accordance with the commission
schedule set forth above. |
| ● | Promote
service fee. A payment of 3% of the Television media ad spent or Facebook ads spend not to
exceed $100,000. |
The
fee shall be paid in cash upon disbursement of funds from escrow at the time of each closing. Payment will be made to StartEngine directly
from the escrow account maintained for the Offering. The Company acknowledges that StartEngine is responsible for providing instructions
to the escrow agent for distribution of funds held pending completion or termination of the Offering.
The
fee does not include the escrow fees, transaction fees, AML review and cash management fee to be negotiated directly with third party
or EDGARization services or any services other than set out above.
| ● | PROMOTE
SERVICE: StartEngine Primary will design with the Company’s approval the digital
ads and manage the digital advertising platform accounts for Company for no additional fee. |
| ● | The
Issuer is expressly forbidden from bidding on any StartEngine branded keywords, misspellings,
and similar terms in advertising campaigns on the Google, Bing, and Facebook platforms. Some
of these keywords include but are not limited to: |
| ○ | StartEngine
Crowdfunding |
The
Offering is subject to termination if the Company violates these targeting and bidding requirements.
3. DEPOSIT
HOLD. Company agrees that 6% of the total funds committed will be held back as a deposit hold in case of any ACH refunds or
credit card chargebacks. The hold will remain in effect for 180 days following the close of the Offering. 75% of this hold back will
be released back to the company after 60 days and the remaining 25% shall be held for the remaining 120 days.
4.
CREDIT CARD FEES. Company agrees that fees payable to Vantiv, LLC or Stripe Inc. with respect to the use of credit cards to purchase
the Securities are for the account of the Company and to reimburse StartEngine Crowdfunding Inc. for any such fees incurred, upon each
closing held with respect to the Offering detailed in the Credit Card Services Agreement.
5.
DELIVERY AND PAYMENT.
(a) On
or after the date of this Agreement, the Company and selected escrow agent (the “Escrow Agent”) will enter into an
Escrow Agreement (the “Escrow Agreement”), pursuant to which escrow accounts will be established, at the Company’s
expense (the “Escrow Accounts”).
(b) Prior
to the initial Closing Date (as hereinafter defined) of the Offering or, as applicable, any subsequent Closing Date, (i) each
Investor will execute and deliver a Subscription Agreement (each, an “Investor Subscription Agreement”) to the
Company through the facilities of the Platform; (ii) each Investor will transfer to the Escrow Account funds in an amount equal to
the price per Share as shown on the cover page of the Final Offering Circular (as hereinafter defined) multiplied by the number of
Shares subscribed by such Investor and as adjusted by any discounts or bonuses applicable to certain Investors; (iii) subscription
funds received from any Investor will be promptly transmitted to the Escrow Accounts in compliance with Rule 15c2-4 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and (iv) the Escrow Agent will notify the
Company and StartEngine in writing as to the balance of the collected funds in the Escrow Accounts.
(c)
If the Escrow Agent shall have received written notice from StartEngine on or before 9 a.m. Pacific time on such o date(s) as may be
agreed upon by the Company and StartEngine (each such date, a “Closing Date”), the Escrow Agent will release the
balance of the Escrow Accounts for collection by the Company and StartEngine as provided in the Escrow Agreement and the Company
shall deliver the Shares purchased on such Closing Date to the Investors, which delivery may be made via book entry with the
Company’s securities registrar and transfer agent, [V-Stock][Name of transfer agent] (the “Transfer Agent”). The initial closing (the “Closing”) and any
subsequent closing (each, a “Subsequent Closing”) shall be effected through the Platform. All actions taken at
the Closing shall be deemed to have occurred simultaneously on the date of the Closing and all actions taken at any Subsequent
Closing shall be deemed to have occurred simultaneously on the date of any such Subsequent Closing.
(d) If
the Company and StartEngine determine that the offering will not proceed, then the Escrow Agent will promptly return the funds to the
investors without interest.
6. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY. The Company represents and warrants and covenants to StartEngine that1:
(a) The
Company will file with the Securities and Exchange Commission (the “Commission”) an offering statement on Form 1-A
(collectively, with the various parts of such offering statement, each as amended as of the Qualification Date for such part, including
any Offering Circular and all exhibits to such offering statement, the “Offering Statement”) relating to the Shares
pursuant to Regulation A as promulgated under the Securities Act of 1933, as amended (the “Act”), and the other applicable
rules, orders and regulations (collectively referred to as the “Rules and Regulations”) of the Commission promulgated
under the Act. As used in this Agreement:
(1) “Final
Offering Circular” means the offering circular relating to the public offering of the Shares as filed with the Commission pursuant
to Rule 253(g)(2) of Regulation A of the Rules and Regulations, as amended and supplemented by any further filings under Rule 253(g)(2);
| 1 | To
be updated upon due diligence review; additional provisions may be added. |
(2) “Preliminary
Offering Circular” means the offering circular relating to the Shares included in the Offering Statement pursuant to Regulation
A of the Rules and Regulations in the form on file with the Commission on the Qualification Date;
(3) “Qualification
Date” means the date as of which the Offering Statement was or will be qualified with the Commission pursuant to Regulation
A, the Act and the Rules and Regulations; and
(4) “Testing-the-Waters
Communication” means any website post, broadcast or cable radio or internet communication, email, social media post, video
or written communication with potential investors undertaken in reliance on Rule 255 of the Rules and Regulations.
(b) The
Offering Statement will be filed with the Commission in accordance with the Act and Regulation A of the Rules and Regulations; no stop
order of the Commission preventing or suspending the qualification or use of the Offering Statement, or any amendment thereto, has been
issued, and no proceedings for such purpose have been instituted or, to the Company’s knowledge, are contemplated by the Commission.
(c) The
Offering Statement, at the time it becomes qualified, and as of each Closing Date, will conform in all material respects to the requirements
of Regulation A, the Act and the Rules and Regulations.
(d) The
Offering Statement, at the time it became qualified, as of the date hereof, and as of each Closing Date, will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.
(e) The
Preliminary Offering Circular will not, as of its date, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided, however, that the Company makes no representation or warranty with respect to the statements
contained in the Preliminary Offering Circular as provided by StartEngine in Section 10(ii).
(f) The
Final Offering Circular will not, as of its date and on each Closing Date, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that the Company makes no representation or warranty
with respect to the statements contained in the Final Offering Circular as provided by StartEngine in Section 10(ii).
(g) Each
Testing-the-Waters Communication, if any, when considered together with the Final Offering Circular or Preliminary Offering Circular,
as applicable, did not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, provided,
however, that the Company makes no representation or warranty with respect to the statements contained in the Preliminary Offering
Circular as provided by StartEngine in Section 10(ii).
(h)
As of each Closing Date, the Company will be duly organized and validly existing as a [C-Corp][ENTITY] in good standing under the laws of the State of [Delaware][STATE]. The Company has full power and authority to
conduct all the activities conducted by it, to own and lease all the assets owned and leased by it and to conduct its business as
presently conducted and as described in the Offering Statement and the Final Offering Circular. The Company is duly licensed or
qualified to do business and in good standing as a foreign organization in all jurisdictions in which the nature of the activities
conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary, except where
the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on or affecting the business, prospects, properties, management, financial
position, stockholders’ equity, or results of operations of the Company (a “Material Adverse Effect”).
Complete and correct copies of the [certificate of incorporation and of the bylaws] of the Company and all amendments thereto have
been made available to StartEngine, and no changes therein will be made subsequent to the date hereof and prior to any Closing Date
except as disclosed in the Offering Statement.
(i) The
Company has no subsidiaries, nor does it own a controlling interest in any entity other than those entities set forth on Schedule
2 to this Agreement (each a “Subsidiary” and collectively the “Subsidiaries”). Each Subsidiary
has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of formation. Each Subsidiary
is duly qualified and in good standing as a foreign company in each jurisdiction in which the character or location of its properties
(owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except for those failures to
be so qualified or in good standing which would not be reasonably expected to have a Material Adverse Effect. All of the shares of issued
capital stock of each corporate subsidiary, and all of the share capital, membership interests and/or equity interests of each subsidiary
that is not a corporation, have been duly authorized and validly issued, are fully paid and non-assessable and are owned directly or
indirectly by the Company, free and clear of any lien, encumbrance, claim, security interest, restriction on transfer, shareholders’
agreement, proxy, voting trust or other defect of title whatsoever.
(j)
The Company is organized in, and its principal place of business is in, the United States.
(k) The
Company is not subject to the ongoing reporting requirements of Section 13 or 15(d) of the Exchange Act and has not been subject to an
order by the Commission denying, suspending, or revoking the registration of any class of securities pursuant to Section 12(j) of the
Exchange Act that was entered within five years preceding the date the Offering Statement was originally filed with the Commission. The
Company is not, nor upon completion of the transactions contemplated herein will it be, an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such
terms are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company is
not a development stage company or a “business development company” as defined in Section 2(a)(48) of the Investment Company
Act. The Company is not a blank check company and is not an issuer of fractional undivided interests in oil or gas rights or similar
interests in other mineral rights. The Company is not an issuer of asset-backed securities as defined in Item 1101(c) of Regulation AB.
(l) Neither
the Company, nor any predecessor of the Company; nor any other issuer affiliated with the Company; nor any director or executive officer
of the Company or other officer of the Company participating in the offering, nor any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, nor any promoter connected with the Company, is subject to the disqualification provisions of Rule
262 of the Rules and Regulations.
(m) The
Company is not a “foreign private issuer,” as such term is defined in Rule 405 under the Act.
(n) The
Company has full legal right, power and authority to enter into this Agreement, the Escrow Agreement and perform the transactions contemplated
hereby and thereby. This Agreement and the Escrow Agreement each have been or will be authorized and validly executed and delivered by
the Company and are or will be each a legal, valid and binding agreement of the Company enforceable against the Company in accordance
with its terms, subject to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and equitable principles of general applicability.
(o) The
issuance and sale of the Shares have been duly authorized by the Company, and, when issued and paid for in accordance with the Investor
Subscription Agreement, will be duly and validly issued, fully paid and nonassessable and will not be subject to preemptive or similar
rights. The holders of the Shares will not be subject to personal liability by reason of being such holders. The Shares, when issued,
will conform to the description thereof set forth in the Final Offering Circular in all material respects.
(p) The
Company has not authorized anyone other than the management of the Company and StartEngine to engage in Testing-the-Waters Communications.
The Company reconfirms that StartEngine have been authorized to act on its behalf in undertaking Testing-the-Waters Communications. The
Company has not distributed any Testing-the-Waters Communications other than those listed on Schedule 1 hereto.
(q) The
financial statements and the related notes included in the Offering Statement and the Final Offering Circular present fairly, in all
material respects, the financial condition of the Company and its Subsidiaries as of the dates thereof and the results of operations
and cash flows at the dates and for the periods covered thereby in conformity with United States generally accepted accounting principles
(“GAAP”), except as may be stated in the related notes thereto. No other financial statements or schedules of the
Company, any Subsidiary or any other entity are required by the Act or the Rules and Regulations to be included in the Offering Statement
or the Final Offering Circular. There are no off-balance sheet arrangements (as defined in Regulation S-K Item 303(a)(4)(ii)) that may
have a material current or future effect on the Company’s financial condition, changes in financial condition, results of operations,
liquidity, capital expenditures or capital resources.
(r) [Turner
Stone LLC] (the “Accountants”), will report on the financial statements and schedules
described in Section 6(r), are registered independent public accountants with respect to the Company as required by the Act and the Rules
and Regulations. The financial statements of the Company and the related notes and schedules included in the Offering Statement and the
Final Offering Circular comply as to form in all material respects with the requirements of the Act and the Rules and Regulations and
present fairly the information shown therein.
(s) Since
the date of the most recent financial statements of the Company included or incorporated by reference in the Offering Statement and the
most recent Preliminary Offering Circular and prior to the Closing and any Subsequent Closing, other than as described in the Final Offering
Circular (A) there has not been and will not have been any change in the capital stock of the Company or long-term debt of the Company
or any Subsidiary or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class
of capital stock or equity interests, or any Material Adverse Effect, or any development that would reasonably be expected to result
in a Material Adverse Effect; and (B) neither the Company nor any Subsidiary has sustained or will sustain any material loss or interference
with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or
dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise
disclosed in the Offering Statement and the Final Offering Circular.
(t) Since
the date as of which information is given in the most recent Preliminary Offering Circular, neither the Company nor any Subsidiary has
entered or will before the Closing or any Subsequent Closing enter into any transaction or agreement, not in the ordinary course of business,
that is material to the Company and its Subsidiaries taken as a whole or incurred or will incur any liability or obligation, direct or
contingent, not in the ordinary course of business, that is material to the Company and its Subsidiaries taken as a whole, and neither
the Company nor any Subsidiary has any plans to do any of the foregoing.
(u) The
Company and each Subsidiary has good and valid title in fee simple to all items of real property and good and valid title to all
personal property described in the Offering Statement or the Final Offering Circular as being owned by them, in each case free and
clear of all liens, encumbrances and claims except those that (1) do not materially interfere with the use made and proposed to be
made of such property by the Company and its Subsidiaries or (2) would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect. Any real property described in the Offering Statement or the Final Offering Circular as being
leased by the Company or any Subsidiary that is material to the business of the Company and its Subsidiaries taken as a whole is
held by them under valid, existing and enforceable leases, except those that (A) do not materially interfere with the use made or
proposed to be made of such property by the Company and its Subsidiaries or (B) would not be reasonably expected, individually or in
the aggregate, to have a Material Adverse Effect.
(v) There
are no legal, governmental or regulatory actions, suits or proceedings pending, either domestic or foreign, to which the Company is a
party or to which any property of the Company is the subject, nor are there, to the Company’s knowledge, any threatened legal,
governmental or regulatory investigations, either domestic or foreign, involving the Company or any property of the Company that, individually
or in the aggregate, if determined adversely to the Company, would reasonably be expected to have a Material Adverse Effect or materially
and adversely affect the ability of the Company to perform its obligations under this Agreement; to the Company’s knowledge, no
such actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or threatened by others.
(w)
The Company and each Subsidiary has, and at each Closing Date will have, (1) all governmental licenses, permits, consents,
orders, approvals and other authorizations necessary to carry on its business as presently conducted except where the failure to
have such governmental licenses, permits, consents, orders, approvals and other authorizations would not be reasonably expected to
have a Material Adverse Effect, and (2) performed all its obligations required to be performed, and is not, and at each Closing Date
will not be, in default, under any indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture, note
agreement, lease, contract or other agreement or instrument (collectively, a “contract or other agreement”) to
which it is a party or by which its property is bound or affected and, to the Company’s knowledge, no other party under any
material contract or other agreement to which it is a party is in default in any respect thereunder. The Company and its
Subsidiaries are not in violation of any provision of their organizational or governing documents.
(x) The
Company has obtained all authorization, approval, consent, license, order, registration, exemption, qualification or decree of any court
or governmental authority or agency or any sub-division thereof that is required for the performance by the Company of its obligations
hereunder, in connection with the offering, issuance or sale of the Shares under this Agreement or the consummation of the transactions
contemplated by this Agreement as may be required under federal, state, local and foreign laws, the Act or the rules and regulations
of the Commission thereunder, state securities or Blue Sky laws, and the rules and regulations of FINRA.
(y) There
is no actual or, to the knowledge of the Company, threatened, enforcement action or investigation by any governmental authority that
has jurisdiction over the Company, and the Company has received no notice of any pending or threatened claim or investigation
against the Company that would provide a legal basis for any enforcement action, and the Company has no reason to believe that any
governmental authority is considering such action.
(z) Neither
the execution of this Agreement, nor the issuance, offering or sale of the Shares, nor the consummation of any of the transactions contemplated
herein, nor the compliance by the Company with the terms and provisions hereof or thereof will conflict with, or will result in a breach
of, any of the terms and provisions of, or has constituted or will constitute a default under, or has resulted in or will result in the
creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any Subsidiary pursuant to the
terms of any contract or other agreement to which the Company or any Subsidiary may be bound or to which any of the property or assets
of the Company or any Subsidiary is subject, except such conflicts, breaches or defaults as may have been waived or would not, in the
aggregate, be reasonably expected to have a Material Adverse Effect; nor will such action result in any violation, except such violations
that would not be reasonably expected to have a Material Adverse Effect, of (1) the provisions of the organizational or governing documents
of the Company or any Subsidiary, or (2) any statute or any order, rule or regulation applicable to the Company or any Subsidiary or
of any court or of any federal, state or other regulatory authority or other government body having jurisdiction over the Company or
any Subsidiary.
(aa)
There is no document or contract of a character required to be described in the Offering Statement or the Final Offering Circular or
to be filed as an exhibit to the Offering Statement which is not described or filed as required. All such contracts to which the Company
or any Subsidiary is a party have been authorized, executed and delivered by the Company or any Subsidiary, and constitute valid and
binding agreements of the Company or any Subsidiary, and are enforceable against the Company in accordance with the terms thereof, subject
to the effect of applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and equitable principles
of general applicability. None of these contracts have been suspended or terminated for convenience or default by the Company or any
of the other parties thereto, and the Company has not received notice of any such pending or threatened suspension or termination.
(bb)
The Company and its directors, officers or controlling persons have not taken, directly or indirectly, any action intended, or which
might reasonably be expected, to cause or result, under the Act or otherwise, in, or which has constituted, stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of the Company’s Common Stock.
(cc)
Other than as previously disclosed to StartEngine in writing, the Company, or any person acting on behalf of the Company, has not and,
except in consultation with StartEngine, will not publish, advertise or otherwise make any announcements concerning the distribution
of the Shares, and has not and will not conduct road shows, seminars or similar activities relating to the distribution of the Shares
nor has it taken or will it take any other action for the purpose of, or that could reasonably be expected to have the effect of, preparing
the market, or creating demand, for the Shares.
(dd) No holder of securities of
the Company has rights to the registration of any securities of the Company as a result of the filing of the Offering Statement or the
transactions contemplated by this Agreement, except for such rights as have been waived or as are described in the Offering Statement.
(ee) No labor dispute
with the employees of the Company or any Subsidiary exists or, to the knowledge of the Company, is threatened, and the Company is not
aware of any existing or threatened labor disturbance by the employees of any of its or any Subsidiary’s principal suppliers, manufacturers,
customers or contractors.
(ff)
The Company and each of its Subsidiaries: (i) are and have been in material compliance with all laws, to the extent applicable, and
the regulations promulgated pursuant to such laws, and comparable state laws, and all other local, state, federal, national,
supranational and foreign laws, manual provisions, policies and administrative guidance relating to the regulation of the Company
and its subsidiaries except for such non-compliance as would not be reasonably expected, individually or in the aggregate, to have a
Material Adverse Effect; (ii) have not received notice of any ongoing claim, action, suit, proceeding, hearing, enforcement,
investigation, arbitration or other action from any Regulatory Agency or third party alleging that any product operation or activity
is in material violation of any laws and has no knowledge that any such Regulatory Agency or third party is considering any such
claim, litigation, arbitration, action, suit, investigation or proceeding; and (iii) are not a party to any corporate integrity
agreement, deferred prosecution agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has any
reporting obligations pursuant to any such agreement, plan or correction or other remedial measure entered into with any
Governmental Authority.
(gg) The business and
operations of the Company, and each of its Subsidiaries, have been and are being conducted in compliance with all applicable laws, ordinances,
rules, regulations, licenses, permits, approvals, plans, authorizations or requirements relating to occupational safety and health, or
pollution, or protection of health or the environment (including, without limitation, those relating to emissions, discharges, releases
or threatened releases of pollutants, contaminants or hazardous or toxic substances, materials or wastes into ambient air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes, whether solid, gaseous or liquid
in nature) of any governmental department, commission, board, bureau, agency or instrumentality of the United States, any state or political
subdivision thereof, or any foreign jurisdiction (“Environmental Laws”), and all applicable judicial or administrative
agency or regulatory decrees, awards, judgments and orders relating thereto, except where the failure to be in such compliance would not
be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect; and neither the Company nor any of its Subsidiaries
has received any notice from any governmental instrumentality or any third party alleging any material violation thereof or liability
thereunder (including, without limitation, liability for costs of investigating or remediating sites containing hazardous substances and/or
damages to natural resources).
(hh) There has been
no storage, generation, transportation, use, handling, treatment, Release or threat of Release of Hazardous Materials (as defined below)
by or caused by the Company or any of its Subsidiaries (or, to the knowledge of the Company, any other entity (including any predecessor)
for whose acts or omissions the Company or any of its Subsidiaries is or could reasonably be expected to be liable) at, on, under or from
any property or facility now or previously owned, operated or leased by the Company or any of its Subsidiaries, or at, on, under or from
any other property or facility, in violation of any Environmental Laws or in a manner or amount or to a location that could reasonably
be expected to result in any liability under any Environmental Law, except for any violation or liability which would not, individually
or in the aggregate, have a Material Adverse Effect. “Hazardous Materials” means any material, chemical, substance,
waste, pollutant, contaminant, compound, mixture, or constituent thereof, in any form or amount, including petroleum (including crude
oil or any fraction thereof) and petroleum products, natural gas liquids, asbestos and asbestos containing materials, naturally occurring
radioactive materials, brine, and drilling mud, regulated or which can give rise to liability under any Environmental Law. “Release”
means any spilling, leaking, seepage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing,
depositing, dispersing, or migrating in, into or through the environment, or in, into from or through any building or structure.
(ii)
The Company and its Subsidiaries own, possess, license or have other adequate rights to use, on reasonable terms, all material
patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses,
inventions, trade secrets, technology, know-how and other intellectual property necessary for the conduct of the Company’s and
each of its Subsidiary’s business as now conducted (collectively, the “Intellectual Property”), except to
the extent such failure to own, possess or have other rights to use such Intellectual Property would not result in a Material
Adverse Effect. Except as set forth in the Final Offering Circular: (a) no party has been granted an exclusive license to use any
portion of such Intellectual Property owned by the Company or its Subsidiaries; (b) to the knowledge of the Company, there is no
infringement by third parties of any such Intellectual Property owned by or exclusively licensed to the Company or its Subsidiaries;
(c) the Company is not aware of any defects in the preparation and filing of any of patent applications within the Intellectual
Property; (d) to the knowledge of the Company, the patents within the Intellectual Property are being maintained and the required
maintenance fees (if any) are being paid; (e) there is no pending or, to the knowledge of the Company, threatened action, suit,
proceeding or claim by others challenging the Company’s or any of its Subsidiaries’ rights in or to any Intellectual
Property, and the Company and its Subsidiaries are unaware of any facts which would form a reasonable basis for any such claim; (f)
there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the
validity or scope or enforceability of any such Intellectual Property, and the Company and its Subsidiaries are unaware of any facts
which would form a reasonable basis for any such claim; and (g) there is no pending, or to the knowledge of the Company, threatened
action, suit, proceeding or claim by others that the Company’s or any of its Subsidiaries’ business as now conducted
infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the
Company and its Subsidiaries are unaware of any other fact which would form a reasonable basis for any such claim. To the knowledge
of the Company, no opposition filings or invalidation filings have been submitted which have not been finally resolved in connection
with any of the Company’s patents and patent applications in any jurisdiction where the Company has applied for, or received,
a patent.
(jj) Except as would
not have, individually or in the aggregate, a Material Adverse Effect, the Company and each Subsidiary (1) has timely filed all federal,
state, provincial, local and foreign tax returns that are required to be filed by such entity through the date hereof, which returns are
true and correct, or has received timely extensions for the filing thereof, and (2) has paid all taxes, assessments, penalties, interest,
fees and other charges due or claimed to be due from the Company, other than (A) any such amounts being contested in good faith and by
appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP or (B) any such amounts currently payable
without penalty or interest. There are no tax audits or investigations pending, which if adversely determined could have a Material Adverse
Effect; nor to the knowledge of the Company is there any proposed additional tax assessments against the Company or any Subsidiary which
could have, individually or in the aggregate, a Material Adverse Effect. No transaction, stamp, capital or other issuance, registration,
transaction, transfer or withholding tax or duty is payable by or on behalf of StartEngine to any foreign government outside the United
States or any political subdivision thereof or any authority or agency thereof or therein having the power to tax in connection with (i)
the issuance, sale and delivery of the Shares by the Company; (ii) the purchase from the Company, and the initial sale and delivery of
the Shares to purchasers thereof; or (iii) the execution and delivery of this Agreement or any other document to be furnished hereunder.
(kk) On each Closing
Date, all stock transfer or other taxes (other than income taxes) which are required to be paid in connection with the sale and transfer
of the Shares to be issued and sold on such Closing Date will be, or will have been, fully paid or provided for by the Company and all
laws imposing such taxes will be or will have been fully complied with.
(ll) The Company and
its Subsidiaries are insured with insurers with appropriately rated claims paying abilities against such losses and risks and in such
amounts as are prudent and customary for the businesses in which they are engaged; all policies of insurance and fidelity or surety bonds
insuring the Company, each Subsidiary or their respective businesses, assets, employees, officers and directors are in full force and
effect; and there are no claims by the Company or its Subsidiary under any such policy or instrument as to which any insurance company
is denying liability or defending under a reservation of rights clause; neither the Company nor any Subsidiary has been refused any insurance
coverage sought or applied for; and neither the Company nor any Subsidiary has any reason to believe that it will not be able 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 is not materially greater than the current cost.
(mm)
Neither the Company nor its Subsidiaries, nor any director, officer, agent or employee of either the Company or any Subsidiary has
directly or indirectly, (1) made any unlawful contribution to any federal, state, local and foreign candidate for public office, or
failed to disclose fully any contribution in violation of law, (2) made any payment to any federal, state, local and foreign
governmental officer or official, or other person charged with similar public or quasi-public duties, other than payments required
or permitted by the laws of the United States or any jurisdiction thereof, (3) violated or is in violation of any provisions of the
U.S. Foreign Corrupt Practices Act of 1977, or (4) made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.
(nn) The operations
of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no material action,
suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of
its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(oo) Neither the Company
nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer, agent or employee of the Company or any of its
Subsidiaries is currently subject to any U.S. sanctions (the “Sanctions Regulations”) administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use
the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or
other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC or listed on the OFAC Specially Designated Nationals and Blocked Persons List. Neither the Company nor, to the knowledge of the
Company, any director, officer, agent or employee of the Company, is named on any denied party or entity list administered by the Bureau
of Industry and Security of the U.S. Department of Commerce pursuant to the Export Administration Regulations (“EAR”);
and the Company will not, directly or indirectly, use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities
of any person currently subject to any Sanctions Regulations or to support activities in or with countries sanctioned by said authorities,
or for engaging in transactions that violate the EAR.
(pp) The Company has
not distributed and, prior to the later to occur of the last Closing Date and completion of the distribution of the Shares, will not distribute
any offering material in connection with the offering and sale of the Shares other than each Preliminary Offering Circular and the Final
Offering Circular, or such other materials as to which StartEngine shall have consented in writing.
(rr)
Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and all stock purchase, stock option, stock-based severance, employment, change-in-control, medical,
disability, fringe benefit, bonus, incentive, deferred compensation, employee loan and all other employee benefit plans, agreements,
programs, policies or other arrangements, whether or not subject to ERISA, that is maintained, administered or contributed to by the
Company or any of its affiliates for employees or former employees, directors or independent contractors of the Company or its
Subsidiaries, or under which the Company or any of its Subsidiaries has had or has any present or future obligation or liability,
has been maintained in material compliance with its terms and the requirements of any applicable federal, state, local and foreign
laws, statutes, orders, rules and regulations, including but not limited to ERISA and the Code; no prohibited transaction, within
the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability to the
Company with respect to any such plan excluding transactions effected pursuant to a statutory or administrative exemption; no event
has occurred (including a “reportable event” as such term is defined in Section 4043 of ERISA) and no condition exists
that would subject the Company to any material tax, fine, lien, penalty, or liability imposed by ERISA, the Code or other applicable
law; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no
“accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the
fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the
present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.
(ss) No relationship,
direct or indirect, exists between or among the Company or any Subsidiary, on the one hand, and the directors, officers, stockholders,
customers or suppliers of the Company or any Subsidiary, on the other, which would be required to be disclosed in the Offering Statement,
the Preliminary Offering Circular and the Final Offering Circular and is not so disclosed.
(tt) The Company has
not sold or issued any securities that would be integrated with the offering of the Shares contemplated by this Agreement pursuant to
the Act, the Rules and Regulations or the interpretations thereof by the Commission or that would fail to come within the safe harbor
for integration under Regulation A.
(uu) Except as set
forth in this Agreement, there are no contracts, agreements or understandings between the Company and any person that would give rise
to a valid claim against the Company or StartEngine for a brokerage commission, finder’s fee or other like payment in connection
with the offering of the Shares.
(vv) To the knowledge
of the Company, there are no affiliations with FINRA among the Company’s directors, officers or any five percent or greater stockholder
of the Company or any beneficial owner of the Company’s unregistered equity securities that were acquired during the 180-day period
immediately preceding the initial filing date of the Offering Statement.
(ww)
There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or
guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their
respective family members. The Company has not directly or indirectly, including through its Subsidiaries, extended or maintained
credit, arranged for the extension of credit, or renewed any extension of credit, in the form of a personal loan to or for any
director or executive officer of the Company or any of their respective related interests, other than any extensions of credit that
ceased to be outstanding prior to the initial filing of the Offering Statement. No transaction has occurred between or among the
Company and any of its officers or directors, stockholders, customers, suppliers or any affiliate or affiliates of the foregoing
that is required to be described or filed as an exhibit to in the Offering Statement, the Preliminary Offering Circular or the Final
Offering Circular and is not so described.
7. AGREEMENTS OF THE COMPANY.
(a) The
[Offering Statement has become qualified, and] the Company will file the Final Offering Circular, subject to the prior approval of StartEngine,
pursuant to Rule 253 and Regulation A, within the prescribed time period.
(b) Upon
effectiveness of this agreement, the Company will not, during such period as the Final Offering Circular would be required by law to be
delivered in connection with sales of the Shares in connection with the offering contemplated by this Agreement (whether physically or
through compliance with Rules 251 and 254 under the Act or any similar rule(s)), file any amendment or supplement to the Offering Statement
or the Final Offering Circular unless a copy thereof shall first have been submitted to StartEngine within a reasonable period of time
prior to the filing thereof and StartEngine shall not have reasonably objected thereto in good faith.
(c) The
Company will notify StartEngine promptly, and will, if requested, confirm such notification in writing: (1) when any amendment or supplement
to the Offering Statement is filed; (2) of any request by the Commission for any amendments to the Offering Statement or any amendment
or supplements to the Final Offering Circular or for additional information; (3) of the issuance by the Commission of any stop order preventing
or suspending the qualification of the Offering Statement or the Final Offering Circular, or the initiation of any proceedings for that
purpose or the threat thereof; and (4) of becoming aware of the occurrence of any event that in the judgment of the Company makes any
statement made in the Offering Statement, the Preliminary Offering Circular or the Final Offering Circular untrue in any material respect
or that requires the making of any changes in the Offering Statement, the Preliminary Offering Circular or the Final Offering Circular
in order to make the statements therein, in light of the circumstances in which they are made, not misleading. If the Company has omitted
any information from the Offering Statement, it will use its best efforts to comply with the provisions of and make all requisite filings
with the Commission pursuant to Regulation A, the Act and the Rules and Regulations and to notify StartEngine promptly of all such filings.
(d)
If, at any time when the Final Offering Circular relating to the Shares is required to be delivered under the Act, the Company
becomes aware of the occurrence of any event as a result of which the Final Offering Circular, as then amended or supplemented,
would, in the reasonable judgment of counsel to the Company or counsel to StartEngine, include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, or the Offering Statement, as then amended or supplemented, would, in the reasonable judgment
of counsel to the Company or counsel to StartEngine, include any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein not misleading, or if for any other reason it is necessary, in the reasonable judgment
of counsel to the Company or counsel to StartEngine, at any time to amend or supplement the Final Offering Circular or the Offering
Statement to comply with the Act or the Rules and Regulations, the Company will promptly notify StartEngine and will promptly
prepare and file with the Commission, at the Company’s expense, an amendment to the Offering Statement and/or an amendment or
supplement to the Final Offering Circular that corrects such statement and/or omission or effects such compliance. The Company
consents to the use of the Final Offering Circular or any amendment or supplement thereto by StartEngine, and StartEngine agrees to
provide to each Investor, prior to the Closing and, as applicable, any Subsequent Closing, a copy of the Final Offering Circular and
any amendments or supplements thereto.
(e) If
at any time following the distribution of any Testing-the-Waters Communication there occurred or occurs an event or development as a result
of which such Testing-the-Waters Communication included or would include an untrue statement of a material fact or omitted or would omit
to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent
time, not misleading, the Company has or will promptly notify StartEngine in writing and has or will promptly amend or supplement and
recirculate, at its own expense, such Testing-the-Waters Communication to eliminate or correct such untrue statement or omission.
(j) The Company
will apply the net proceeds from the offering and sale of the Shares in the manner set forth in the Final Offering Circular under the
caption “Use of Proceeds.”
8. [LEFT BLANK]
9. CONDITIONS
OF THE OBLIGATIONS OF STARTENGINE. The obligations of StartEngine hereunder are subject to the following conditions:
(i)
No stop order suspending the qualification of the Offering Statement shall have been issued, and no proceedings for that purpose
shall be pending or threatened by any securities or other governmental authority (including, without limitation, the Commission),
(b) no order suspending the effectiveness of the Offering Statement shall be in effect and no proceeding for such purpose shall be
pending before, or threatened or contemplated by, any securities or other governmental authority (including, without limitation, the
Commission), (c) any request for additional information on the part of the staff of any securities or other governmental authority
(including, without limitation, the Commission) shall have been complied with to the satisfaction of the staff of the Commission or
such authorities and (d) after the date hereof no amendment or supplement to the Offering Statement or the Final Offering Circular
shall have been filed unless a copy thereof was first submitted to StartEngine and StartEngine did not object thereto in good faith,
and StartEngine shall have received certificates of the Company, dated as of the Closing Date (and at the option of StartEngine, any
Subsequent Closing Date) and signed by the Chief Executive Officer of the Company, and the Chief Financial Officer of the Company,
to the effect of clauses (a), (b) and (c).
(ii) Since
the respective dates as of which information is given in the Offering Statement and the Final Offering Circular, (a) there shall not have
been a Material Adverse Effect, whether or not arising from transactions in the ordinary course of business, in each case other than as
set forth in or contemplated by the Offering Statement and the Final Offering Circular and (b) the Company shall not have sustained any
material loss or interference with its business or properties from fire, explosion, flood or other casualty, whether or not covered by
insurance, or from any labor dispute or any court or legislative or other governmental action, order or decree, which is not set forth
in the Offering Statement and the Final Offering Circular, if in the reasonable judgment of StartEngine any such development makes it
impracticable or inadvisable to consummate the sale and delivery of the Shares to Investors as contemplated hereby.
(iii) Since
the respective dates as of which information is given in the Offering Statement and the Final Offering Circular, there shall have been
no litigation or other proceeding instituted against the Company or any of its officers or directors in their capacities as such, before
or by any federal, state or local or foreign court, commission, regulatory body, administrative agency or other governmental body, domestic
or foreign, which litigation or proceeding, in the reasonable judgment of StartEngine, would reasonably be expected to have a Material
Adverse Effect.
(iv) Each
of the representations and warranties of the Company contained herein shall be true and correct as of each Closing Date in all respects
for those representations and warranties qualified by materiality and in all material respects for those representations and warranties
that are not qualified by materiality, as if made on such date, and all covenants and agreements herein contained to be performed on the
part of the Company and all conditions herein contained to be fulfilled or complied with by the Company at or prior to such Closing Date
shall have been duly performed, fulfilled or complied with in all material respects.
(v) At
the Closing, and at any Subsequent Closing at the option of StartEngine, there shall be furnished to StartEngine a certificate, dated
the date of its delivery, signed by each of the Chief Executive Officer and the Chief Financial Officer of the Company, in form and substance
satisfactory to StartEngine to the effect that each signer has carefully examined the Offering Statement, the Final Offering Circular,
and that to each of such person’s knowledge:
(a)
As of the date of each such certificate, (x) the Offering Statement does not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading and (y)
the Final Offering Circular does not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading and (2) no event has occurred as a result of which it is necessary to amend or supplement the Final Offering Circular in
order to make the statements therein not untrue or misleading in any material respect.
(b) Each
of the representations and warranties of the Company contained in this Agreement were, when originally made, and are, at the time such
certificate is delivered, true and correct in all respects for those representations and warranties qualified by materiality and in all
material respects for those representations and warranties that are not qualified by materiality.
(c) Each
of the covenants required herein to be performed by the Company on or prior to the date of such certificate has been duly, timely and
fully performed and each condition herein required to be complied with by the Company on or prior to the delivery of such certificate
has been duly, timely and fully complied with.
(d) No
stop order suspending the qualification of the Offering Statement or of any part thereof has been issued and no proceedings for that purpose
have been instituted or are contemplated by the Commission.
(e) Subsequent
to the date of the most recent financial statements in the Offering Statement and in the Final Offering Circular, there has been no Material
Adverse Effect.
(vi) FINRA
shall not have raised any objection with respect to the fairness or reasonableness of the plan of distribution, or other arrangements
of the transactions, contemplated hereby.
10. INDEMNIFICATION.
(i)
The Company shall indemnify and hold harmless StartEngine, each selling group participant, and each of their directors, officers,
employees and agents and each person, if any, who controls StartEngine or such selling group participant within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act (each an “Indemnified Party”), from and against any and
all losses, claims, liabilities, expenses and damages, joint or several (including any and all investigative, legal and other
expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim
asserted (whether or not such Indemnified Party is a party thereto)), to which it, or any of them, may become subject under the Act
or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities,
expenses or damages arise out of or are based on (a) any untrue statement or alleged untrue statement made by the Company in Section
6 of this Agreement, (b) any untrue statement or alleged untrue statement of any material fact contained in (1) any Preliminary
Offering Circular, the Offering Statement or the Final Offering Circular or any amendment or supplement thereto, (3) any
Testing-the-Waters Communication or (4) any application or other document, or any amendment or supplement thereto, executed by the
Company based upon written information furnished by or on behalf of the Company filed with the Commission or any securities
association or securities exchange (each, an “Application”), or (c) the omission or alleged omission to state in
any Preliminary Offering Circular, the Offering Statement, the Final Offering Circular, or any Testing-the-Waters Communication, or
any amendment or supplement thereto, or in any Application a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading; provided, however, that the
Company will not be liable to the extent that such loss, claim, liability, expense or damage arises from the sale of the Shares in
the offering to any person and is based solely on an untrue statement or omission or alleged untrue statement or omission made in
reliance on and in conformity with written information furnished to the Company by any Indemnified Party through StartEngine
expressly for inclusion in the Offering Statement, any Preliminary Offering Circular, the Final Offering Circular, or
Testing-the-Waters Communication, or in any amendment or supplement thereto or in any Application, it being understood and agreed
that the only such information furnished by any Indemnified Party consists of the information described as such in subsection (ii)
below. This indemnity agreement will be in addition to any liability which the Company may otherwise have.
(ii) StartEngine
will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company may become subject,
under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that arise out of or
are based solely upon an untrue statement or alleged untrue statement of a material fact contained in the Offering Statement, any Preliminary
Offering Circular or the Final Offering Circular, or any amendment or supplement thereto, or any Testing-the-Waters Communication, or
arise out of or are based solely upon the omission or alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in the Offering Statement, any Preliminary Offering Circular or the
Final Offering Circular, or any amendment or supplement thereto, or any Written Testing-the-Waters Communication, in reliance upon and
in conformity with written information furnished to the Company by StartEngine expressly for use therein; and will reimburse the Company
for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim
as such expenses are incurred.
(iii)
Promptly after receipt by an Indemnified Party under subsection (i) or (ii) above of notice of the commencement of any action, such
Indemnified Party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any Indemnified Party otherwise than under such subsection. In case any such
action shall be brought against any Indemnified Party and it shall notify the indemnifying party of the commencement thereof, the
indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such Indemnified Party (who shall
not, except with the consent of the Indemnified Party, be counsel to the indemnifying party), and, after notice from the
indemnifying party to such Indemnified Party of its election so to assume the defense thereof, the indemnifying party shall not be
liable to such Indemnified Party under such subsection for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such Indemnified Party, in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of the Indemnified Party, effect the settlement or
compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of
which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an actual or potential party
to such action or claim) unless such settlement, compromise or judgment (a) includes an unconditional release of the Indemnified
Party from all liability arising out of such action or claim and (b) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any Indemnified Party.
(iv)
If the indemnification provided for in this Section 10 is unavailable or insufficient to hold harmless an Indemnified Party under
subsection (i) or (ii) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or payable by such Indemnified Party as a result of such
losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and StartEngine on the other from the offering of the Shares. If, however, the
allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to
give the notice required under subsection (iii) above, then each indemnifying party shall contribute to such amount paid or payable
by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and StartEngine on the other in connection with the statements or omissions which resulted in
such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and StartEngine on the other shall be deemed to be in the same
proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bears to the Fee received
by StartEngine. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
Company on the one hand or StartEngine on the other and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and StartEngine agree that it would not be just and
equitable if contribution pursuant to this subsection (iv) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to above in this subsection (iv). The amount paid or
payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred
to above in this subsection (iv) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection
(iv), each StartEngine will not be required to contribute any amount in excess of the Fee received by such StartEngine. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.
11. TERMINATIONS.
(i) StartEngine
may terminate this Agreement at any time by written notice to the Company. Company may terminate this Agreement at any time by written
notice to StartEngine. The Services and Fees are non-refundable. Any unpaid fees due to StartEngine are due immediately upon termination.
(ii) The
obligations of StartEngine under this Agreement may be terminated at any time prior to the initial Closing Date, by notice to the Company
from such StartEngine, without liability on the part of StartEngine to the Company if, prior to delivery and payment for the Shares, in
the sole judgment of StartEngine: (a) there has occurred any material adverse change in the securities markets or any event, act or occurrence
that has materially disrupted, or in the opinion of StartEngine, will in the future materially disrupt, the securities markets or there
shall be such a material adverse change in general financial, political or economic conditions or the effect of international conditions
on the financial markets in the United States is such as to make it, in the judgment of StartEngine, inadvisable or impracticable to market
the Shares or enforce contracts for the sale of the Shares; (b) there has occurred any outbreak of hostilities or escalation thereof or
other calamity or crisis or any change or development involving a prospective change in national or international political, financial
or economic conditions, including without limitation as a result of terrorist activities, such as to make it, in the judgment of StartEngine,
inadvisable or impracticable to market the Shares or enforce contracts for the sale of the Shares; (c) trading on the New York Stock Exchange,
Inc., NYSE American or NASDAQ Stock Market has been suspended or materially limited, or minimum or maximum ranges for prices for securities
shall have been fixed, or maximum ranges for prices for securities have been required, by any of said exchanges or by such system or by
order of the Commission, FINRA, or any other governmental or regulatory authority; (d) a banking moratorium has been declared by any state
or Federal authority; or (e) in the judgment of StartEngine, there has been, since the time of execution of this Agreement or since the
respective dates as of which information is given in the Final Offering Circular, any Material Adverse Effect of the Company and its Subsidiaries
considered as a whole, whether or not arising in the ordinary course of business;
(iii) If
this Agreement is terminated pursuant to this Section 11, such termination shall be without liability of any party to any other party
except as provided in Section 10(ii) hereof.
12.
NOTICES. Notice given pursuant to any of the provisions of this Agreement shall be in writing and, unless otherwise specified, shall
be mailed or delivered (i) if to the Company, at [910 Woodbridge Ct. Safety Harbor. FL 34695][address], Attention: [Jaeson
Bang][name], or (ii) if to StartEngine to Harbor. FL 34695 3900 W Alameda Ave., Suite 1200 Burbank, CA 91505, Attention: CEO, with
copies to [counsel]. Any such notice shall be effective only upon receipt. Any notice under Section 12 may be made by facsimile or telephone,
but if so made shall be subsequently confirmed in writing.
13. SURVIVAL.
The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company and StartEngine set
forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement shall remain in full force and effect,
regardless of (i) any investigation made by or on behalf of the Company, any of its officers or directors, StartEngine or any controlling
person referred to in Section 10 hereof and (ii) delivery of and payment for the Shares. The respective agreements, covenants, indemnities
and other statements set forth in Sections 6, 7 and 10 hereof shall remain in full force and effect, regardless of any termination or
cancellation of this Agreement.
14. SUCCESSORS.
This Agreement shall inure to the benefit of and shall be binding upon StartEngine, the Company and their respective successors, and nothing
expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy
or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof
being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person except that (i)
the indemnification and contribution contained in Sections 10(i) and (iv) of this Agreement shall also be for the benefit of the directors,
officers, employees and agents of StartEngine and any person or persons who control such StartEngine within the meaning of Section 15
of the Act or Section 20 of the Exchange Act and (ii) the indemnification and contribution contained in Sections 10(ii) and (iv) of this
Agreement shall also be for the benefit of the directors of the Company, the officers of the Company who have signed the Offering Statement
and any person or persons who control the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act. No purchaser
of Shares shall be deemed a successor because of such purchase.
15. GOVERNING
LAW. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California applicable
to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based upon this Agreement
or the transactions contemplated hereby may be instituted in the California Courts, and each party irrevocably submits to the exclusive
jurisdiction of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such
party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such
court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding
in the California Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit,
action or other proceeding brought in any such court has been brought in an inconvenient forum.
16.
ACKNOWLEDGEMENT. The Company acknowledges and agrees that StartEngine is acting solely in the capacity of an arm’s length
contractual counterparty to the Company with respect to the offering of Shares contemplated hereby. Additionally, StartEngine is not
advising the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction with
respect to the offering contemplated hereby or the process leading thereto (irrespective of whether StartEngine has advised or is
advising the Company on other matters). The Company has conferred with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and StartEngine
shall have no responsibility or liability to the Company or any other person with respect thereto. The StartEngine advises that it
and its affiliates are engaged in a broad range of securities and financial services and that it or its affiliates may have business
relationships or enter into contractual relationships with purchasers or potential purchasers of the Company’s securities. Any
review by StartEngine of the Company, the transactions contemplated hereby or other matters relating to such transactions will be
performed solely for the benefit of StartEngine and shall not be on behalf of, or for the benefit of, the Company.
17. COUNTERPARTS.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
18. ENTIRE
AGREEMENT. This Agreement constitutes the entire understanding between the parties hereto as to the matters covered hereby and supersedes
all prior understandings, written or oral, relating to such subject matter.
[signature page follows]
IN
WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below.
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[COMPANY] |
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|
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By: |
/s/ Jaeson Bang |
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Name: |
Jaeson Bang |
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Title: |
CEO |
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|
|
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Accepted as of the date hereof: 06/25/2021 |
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|
|
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STARTENGINE PRIMARY, LLC |
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|
|
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By: |
/s/ Allen |
| |
Name: |
Allen |
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Title: |
VP |
| |
|
|
| |
|
06/27/2021 |
SCHEDULE 1
Testing the Waters
[TBD]
SCHEDULE
2
SUBSIDIARIES
[TBD]
26
