Exhibit 4.13


 


SECURITIES PURCHASE
AGREEMENT


 


This SECURITIES PURCHASE
AGREEMENT (the “Agreement”) is made as of November 18, 2021, by
and among SENTIENT BRANDS HOLDINGS INC., a Nevada corporation (the “Company”), and LEONITE
FUND I, LP, a Delaware limited partnership (the “Purchaser”).


 


Recital


 


A.           
The Company and the Purchaser are executing and delivering this Agreement in reliance
upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and/or Regulation D promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act;


 


B.          
The Purchaser desires to purchase from the Company, and the Company desires to issue
and sell to the Purchaser, upon the terms and conditions set forth in this Agreement, a Senior Secured Convertible Promissory Note
of the Company, in the aggregate principal amount of four hundred thousand Dollars ($400,000) , in the form attached hereto as
Exhibit A (the “Note”), upon the terms and subject to the limitations and conditions set forth in such
Note;


 


C.          
Company wishes to issue to the Purchaser, as additional consideration for the purchase
of the Note, a Warrant (as defined below) to acquire 666,667 Common Shares (as defined in the Note), in the form attached hereto
as Exhibit B (the “Warrant”), as further provided herein. 


 


Agreement


 


Now,
Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth
below, the Company and the Purchaser, intending to be legally bound, hereby agree as follows:


 


	1.	Amount and Terms of the Note; Warrant




 


1.1             
Purchase of the Note. Subject to the terms of this
Agreement, for consideration of an aggregate principal amount of four hundred thousand Dollars ($400,000) in cash (the “Consideration”),
to be paid by Purchaser to the Company in two (2) tranches of two hundred thousand Dollars ($200,000) each, with the first $200,000
tranche (the “Initial Tranche”) to be paid to the Company on the Issue Date (as defined in the Note) (the “Initial
Closing Date”), less $5,000 which Purchaser shall retain to cover its legal fees, and the second $200,000 tranche (the
“Final Tranche”) to be paid to the Company within 30 days after the Issue Date (the “Final Closing
Date” and together with the Initial Closing Date, the “Closing Dates”), Purchaser agrees to subscribe
for and purchase from the Company , and the Company agrees
to issue and sell to Purchaser, the
Note, subject to the satisfaction (or written
waiver) of the conditions set forth in Section 6 and Section 7 below. 


 






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1.2        
Warrant. The Warrant shall be issued to Purchaser
on the Final Closing Date and shall be exercisable for a period of five (5) years at an exercise price of forty-five cents ($0.45)
per share.


 


1.3        
Form of Payment. On
the Closing Dates, the
Purchaser shall pay
to the Company the Consideration as set forth in section 1.1 above. 


 


	2.	Closing and Delivery



 


2.1             
Closings. The closings of the transactions contemplated
by this Agreement (collectively, the “Closing”) shall occur on the Closing Dates, at such location as may be
agreed to by the parties (including via exchange of electronic signatures).


 


2.2             
Delivery. 


 


(a)On the
Initial Closing Date, Purchaser shall pay and deliver the Initial Tranche to the Company, and the Company shall issue and deliver
the Note to Purchaser.


 


(b)On the
Final Closing Date, Purchaser shall pay and deliver the Final Tranche to the Company, and the Company shall issue and deliver to
the Purchaser the Warrant.


 


	3.	Representations and Warranties of the Company




 


Except as set forth in
the corresponding section of the Disclosure Schedule (as defined below) delivered to the Purchaser concurrently herewith and attached
hereto as Schedule I (the “Disclosure Schedule”) or as disclosed in the Disclosure Materials (as defined
below), the Company, its Subsidiaries (as defined below), Officers and Directors hereby makes the following representations and
warranties as of the date hereof and as of the Initial Closing Date to the Purchaser:


 


3.1             
Organization, Good Standing and Qualification. The
Company and each of its Subsidiaries is a corporation or limited liability company duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation or organization. Each of the Company and its Subsidiaries has the
requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed
to be conducted. The Company and each of its Subsidiaries is duly qualified and is authorized to do business and is in good standing
as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased)
makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would
not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any
Subscription Document (as defined below), (ii) a material adverse effect on the results of operations, assets, business or financial
condition of Company and the Subsidiaries, taken as a whole, or (iii) adversely impair the Company’s ability to perform in
any material respect on a timely basis its obligations under any Subscription Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”).


 






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3.2             
Corporate Power. The Company has all requisite
corporate power to execute and deliver this Agreement, and to issue the Note and Warrant, and to enter into the security and pledge
agreement of even date herewith, in the form attached hereto as Exhibit C (the “Security and Pledge Agreement”),
and the other instruments, documents and agreements being entered in connection with the transactions contemplated by this Agreement
(each a “Subscription Document” and collectively, the “Subscription Documents”) and to carry
out and perform its obligations under the terms of the Subscription Documents. 


 


3.3             
Subsidiaries and Affiliates. Section 3.3 of the Disclosure
Schedule sets forth a true and correct description of all of the Company’s Subsidiaries and Affiliates and the capitalization
(including options, warrants and other such equity), pro forma as of the date hereof reflecting all pending acquisitions. For purposes
of this Agreement, the term “Subsidiary”
means, with
respect to the Company, any corporation
or other entity of
which at
least a
majority of
the outstanding
shares of
stock or
other ownership
interests having
by the
terms thereof
ordinary voting
power to
elect a
majority of
the board
of directors (or persons
performing similar
functions) of
such corporation
or entity (regardless
of whether or
not at
the time,
in the
case of a corporation,
stock of
any other
class or
classes of
such corporation
shall have
or might
have voting
power by
reason of
the happening
of any
contingency) is
at the time
directly or indirectly owned
or controlled by
the Company or one or
more of its Affiliates and the term “Affiliate”
means, as to
any person
(the “Subject
Person”),
any other
person that
directly or
indirectly through
one or
more intermediaries
controls or
is controlled
by, or
is under
direct or
indirect common control
with, the
Subject Person.
For the purposes
of this definition,
“control” when used
with respect to any
person means the power
to direct the
management and policies
of such person, directly
or indirectly, whether through
the ownership of
voting securities, through
representation on such
person’s board of
directors or other
management committee or group, by contract
or otherwise. All references contained herein to the terms Subsidiary or Affiliate,
shall be applicable to all Subsidiaries and Affiliates whether they existed as of the date hereof or were created, acquired, or
otherwise came to be included in the foregoing terms subsequent to the date hereof. 


 


3.4             
Authorization. All corporate action on the part of
the Company, its directors and its stockholders necessary for the authorization of the Subscription Documents and the execution,
delivery and performance of all obligations of the Company under the Subscription Documents, including, but not limited to, the
issuance and delivery of the Note and Warrant, and the reservation of the equity securities issuable upon conversion of the Note
and upon exercise of the Warrant (collectively, the “Underlying Securities”) has been taken or will be taken
prior to the issuance of such Underlying Securities. The Subscription Documents, 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 Underlying Securities, when issued in compliance with the provisions of the Subscription Documents,
will be, validly issued, fully paid and non-assessable and free of any liens, encumbrances, security interests or other adverse
claim (a “Lien”) and issued in compliance with all applicable federal and securities laws.


 






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3.5             
Governmental Consents. Neither Company nor any Subsidiary
is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with,
any court or other foreign, federal, state, local or other governmental authority or other person in connection with the execution,
delivery and performance by the Company of the Subscription Documents, other than (a) applicable Blue Sky filings, (b) such as
have already been obtained or such exemptive filings as are required to be made under applicable securities laws, (c) such other
filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and
federal securities laws which the Company undertakes to file within the applicable time periods. Subject to the accuracy of the
representations and warranties of the Purchaser set forth in Section 4 hereof, the Company has taken all action necessary to exempt:
(i) the issuance and sale of the Note and the Warrant, (ii) the issuance of the Underlying Securities upon due conversion of the
Note and due exercise of the Warrant, and (iii) the other transactions contemplated by the Subscription Documents from the provisions
of any preemptive rights, stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business combination
or control share law or statute binding on the Company or to which the Company or any of its assets and properties may be subject
and any provision of the Company’s Articles of Incorporation or Bylaws, or other organizational documentation, as the case
may be, that is or could reasonably be expected to become applicable to the Purchaser as a result of the transactions contemplated
hereby, including without limitation, the issuance of the Note, the Warrant, and the Underlying Securities (collectively, the “Securities”)
and the ownership, disposition or voting of the Securities by the Purchaser or the exercise of any right granted to the Purchaser
pursuant to this Agreement or the other Subscription Documents.


 


3.6             
Compliance with Laws. Neither Company nor any Subsidiary
is in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any
instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties, which violation
would materially and adversely affect the business, assets, liabilities, financial condition or operations of Company and its Subsidiaries.



 


3.7             
Compliance with Other Instruments. Neither Company
nor any of its Subsidiaries is in violation or default of any term of its organizational documents, or of any provision of any
mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order or writ, other
than such violations that would not individually or in the aggregate have a Material Adverse Effect on the Company. Except as set
forth in Section 3.7 of the Disclosure Schedule, the execution, delivery and performance of the Subscription Documents, and the
consummation of the transactions contemplated by the Subscription Documents will not result in any such violation or be in conflict
with, or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument,
judgment, decree, order or writ or an event that results in the creation of any Lien upon any assets of the Company or the suspension,
revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the
Company or any of its Subsidiaries, its business or operations or any of its assets or properties. The sale of the Note, the issuance
of the Warrant and the subsequent issuance of the Underlying Securities are not and will not be subject to any preemptive rights
or rights of first refusal that have not been properly waived or complied with. 


 






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3.8             
Offering. Assuming the accuracy of the representations
and warranties of the Purchaser contained in Section 4 hereof, the offer, issue, and sale of Securities are and will be exempt
from the registration and prospectus delivery requirements of the Securities Act, and have been registered or qualified or are
exempt from registration and qualification under the registration, permit, or qualification requirements of all applicable state
securities laws. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a
“Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any person listed
in the first paragraph of Rule 506(d)(1) of the Securities Act, except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv)
or (d)(3), is applicable.


 


3.9             
Capitalization. Company has authorized shares as
set forth in Section 3.9 of the Disclosure Schedule. All outstanding shares of capital stock are duly authorized, validly issued,
fully paid and non-assessable and have been issued in compliance with all applicable securities laws. Except for the Warrant and
the Underlying Securities or as otherwise listed in Section 3.9 of the Disclosure Schedule, there are no outstanding options, warrants,
script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any person any right to subscribe for or acquire, any shares of
common stock, or contracts, commitments, understandings or arrangements by which Company or any Subsidiary is or may become bound
to issue additional shares of common stock, or securities or rights convertible or exchangeable into shares of common stock. There
are no price based anti-dilution or price adjustment provisions contained in any security issued by Company (or in any agreement
providing rights to security holders) and the issue and sale of the Securities will not obligate Company to issue shares of common
stock or other securities to any person (other than the Purchaser) and will not result in a right of any holder of Company’s
securities to adjust the exercise, conversion, exchange or reset price under such securities. Except as set forth in Section 3.9
of the Disclosure Schedule, Company owns, directly or indirectly, all of the capital stock of each Subsidiary free and clear of
any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights. 


 


3.10         
SEC Reports; Financial Statements. Except as set
forth in Section 3.10 of the Disclosure Schedule, to the best of the Company’s knowledge the Company has filed all reports
and registration statements required to be filed by it under (i) the Securities Act and the Exchange Act of 1934, as amended (the
“Exchange Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, or (ii) under the Alternative
Reporting Standard as offered by OTC Markets Group, for the two years preceding the date hereof (or such shorter period as the
Company was required by law to file such material) (the foregoing materials, including the exhibits thereto, being collectively
referred to herein as the “SEC Reports” and, together with the Disclosure Schedule to this Agreement, the “Disclosure
Materials”). As of their respective dates, to the best of the Company’s knowledge the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission
promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. Except as indicated in Section 3.10 of the Disclosure Schedule, to the best of the
Company’s knowledge the financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission or OTC Markets as applicable, with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments. 


 






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3.11         
Material Changes. Since the date of the latest financial
statements, to the best of the Company’s knowledge (i) there has been no event, occurrence or development that, individually
or in the aggregate, has had or that could result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting or
the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v)
the Company has not issued any equity securities to any officer, director or affiliate, except pursuant to existing Company stock-based
plans or agreements.


 


3.12         
Litigation. Except as set forth in Section 3.12 of
the Disclosure Schedule, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the
knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before
or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign)
(collectively, an “Action”) which: (i) adversely affects or challenges the legality, validity or enforceability
of any of the Subscription Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably
be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated,
any investigation by governmental authority, or any litigation civil or otherwise, involving the Company or any current or former
director or officer of the Company or its Subsidiaries. 


 


3.13         
Labor Relations. Neither Company nor any Subsidiary
is a party to or bound by any collective bargaining agreements or other agreements with labor organizations. Neither Company nor
any Subsidiary has violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining
rights of employees, labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity
employment, or employees’ health, safety, welfare, wages and hours. No material labor dispute exists or, to the knowledge
of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in
a Material Adverse Effect. 


 






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3.14         
Regulatory Permits. Company and the Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such permits would not have or reasonably
be expected to result in a Material Adverse Effect (“Material Permits”), and neither Company nor any Subsidiary
has received any notice of proceedings relating to the revocation or modification of any Material Permit.


 


3.15         
Title to Assets. Except as set forth in Section 3.15
of the Disclosure Schedule, Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them that is material to the business of Company and the Subsidiaries and good and marketable title in all personal property
owned by them that is material to the business of Company and the Subsidiaries, in each case free and clear of all Liens, except
for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by Company and the Subsidiaries
are held by them under valid, subsisting and enforceable leases of which Company and the Subsidiaries are in compliance.


 


3.16         
Taxes. Except as otherwise itemized in Section 3.16
of the Disclosure Schedule, Company and its Subsidiaries have timely and properly filed all tax returns required to be filed by
them for all years and periods (and portions thereof) for which any such tax returns were due, except where the failure to so file
would not have a Material Adverse Effect; all such filed tax returns are accurate in all material respects; the Company has timely
paid all taxes due and payable (whether or not shown on filed tax returns), except where the failure to so pay would not have a
Material Adverse Effect; there are no pending assessments, asserted deficiencies or claims for additional taxes that have not been
paid; the reserves for taxes, if any, reflected in the financial statements are adequate, and there are no Liens for taxes on any
property or assets of the Company and any of its Subsidiaries (other than Liens for taxes not yet due and payable); there have
been no audits or examinations of any tax returns by any (a) nation, state, commonwealth, province, territory, county, municipality,
district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; or (c) governmental
or quasi-governmental authority of any nature (including any governmental or administrative division, department, agency, commission,
instrumentality, official, organization, unit, body or entity) and any court or other tribunal (a “Governmental Body”),
and the Company or its Subsidiaries have not received any notice that such audit or examination is pending or contemplated; no
claim has been made by any Governmental Body in a jurisdiction where the Company or any of its Subsidiaries does not file tax returns
that it is or may be subject to taxation by that jurisdiction; to the knowledge of the Company, no state of facts exists or has
existed which would constitute grounds for the assessment of any penalty or any further tax liability beyond that shown on the
respective tax returns; and there are no outstanding agreements or waivers extending the statutory period of limitation for the
assessment or collection of any tax. 


 






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3.17         
Patents and Trademarks. Company and the Subsidiaries
have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names,
copyrights, licenses and other similar rights that are necessary or material for use in connection with their respective businesses
and which the failure to so have could have or reasonably be expected to result in a Material Adverse Effect (collectively, the
“Intellectual Property Rights”). Neither Company nor any Subsidiary has received a written notice that the Intellectual
Property Rights used by Company or any Subsidiary violates or infringes upon the rights of any Person. All such Intellectual Property
Rights are enforceable. Company and its Subsidiaries have taken reasonable steps to protect Company’s and its Subsidiaries’
rights in their Intellectual Property Rights and confidential information (the “Confidential Information”).
Each employee, consultant and contractor who has had access to Confidential Information which is necessary for the conduct of Company’s
and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has executed
an agreement to maintain the confidentiality of such Confidential Information and has executed appropriate agreements that are
substantially consistent with the Company’s standard forms thereof. Except under confidentiality obligations, there has been
no material disclosure of any of Company’s or its Subsidiaries’ Confidential Information to any third party.


 


3.18         
Environmental Matters. Neither Company nor any Subsidiary
is in violation of any statute, rule, regulation, decision or order of any Governmental Body relating to the use, disposal or release
of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous
or toxic substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with
any substance that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental
Laws, or is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had
or could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or,
to the Company’s knowledge, threatened investigation that might lead to such a claim.


 


3.19         
Insurance. Inventory shall be kept in a bonded warehouse
and the Company will not sell merchandise into the marketplace without first obtaining liability insurance.


 


3.20         
Transactions with Affiliates and Employees. Except
as disclosed in the Company’s audited financial statements or the Disclosure Materials, none of the officers or directors
of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction
with Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any
entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner,
other than (a) for payment of salary or consulting fees for services rendered, (b) reimbursement for expenses incurred on behalf
of the Company and (c) for other employee benefits, including stock option agreements under any stock option plan of Company. 


 


3.21         
Brokers and Finders. Except as otherwise itemized
in Section 3.21 of the Disclosure Schedule, no person will have, as a result of the transactions contemplated by the Subscription
Documents, any valid right, interest or claim against or upon Company, any Subsidiary or the Purchaser for any commission, fee
or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. 


 






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3.22         
Questionable Payments. Neither Company nor
any of its Subsidiaries nor, to the Company’s knowledge, any of their respective current or former stockholders, directors,
officers, employees, agents or other persons acting on behalf of Company or any Subsidiary, has on behalf of Company or any Subsidiary
or in connection with their respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment
or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payments to any governmental
officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies
or other assets; (d) made any false or fictitious entries on the books and records of Company or any Subsidiary; or (e) made any
unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment of any nature.


 


3.23         
Solvency. The Company has not (a) made a general
assignment for the benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary
petition by its creditors; (c) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets;
(d) suffered the attachment or other judicial seizure of all, or substantially all, of its assets; (e) admitted in writing its
inability to pay its debts as they come due; or (f) made an offer of settlement, extension or composition to its creditors generally.


 


3.24         
Foreign Corrupt Practices Act. None of Company or
any of its Subsidiaries, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company or any
of its Subsidiaries, has, directly or indirectly: (a) used any funds, or will use any proceeds from the sale of the Securities,
for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity,
(b) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political
parties or campaigns from corporate funds, (c) failed to disclose fully any contribution made by Company or any of its Subsidiaries
(or made by any person acting on their behalf of which the Company is aware) or any members of their respective management which
is in violation of any legal requirement, or (d) has violated in any material respect any provision of the Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations thereunder which was applicable to Company or any of its Subsidiaries.


 


3.25         
Disclosures. Neither the Company nor any person acting
on its behalf has provided the Purchaser or its agents or counsel with any information that constitutes or might constitute material,
non-public information, other than the terms of the transactions contemplated hereby. The written materials delivered to the Purchaser
in connection with the transactions contemplated by the Subscription Documents do not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances
under which they were made, not misleading.


 


3.26         
Transfer Agent. Company represents and warrants that
it will not replace its transfer agents without Purchaser’s consent so long as the Note is outstanding. Company acknowledges
that this is extremely material to the Note and the investment is made based on the assumption that this will not happen.


 






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3.27         
Shell Company Status. Set forth in Schedule 3.27
of the Disclosure Schedule is the Company’s representation as to its “Shell Company” status under Rule 144.


 


3.28         
Notice of Material Changes. The Company agrees and
acknowledges that so long as any obligations of the Company under any of the Subscription Documents shall exist, it shall be obligated
to provide Notice to the Purchaser in the event of a material change to any representation or disclosure in any of the Subscription
Documents, including but not limited to, the disclosures on the Disclosure Schedule, and failure to provide such notice shall be
a breach of this Agreement and an Event of Default under Section 4.3 of the Note.


 


	4.	Representations and Warranties of the
Purchaser



 


4.1             
Purchase for Own Account. The Purchaser represents
that it is acquiring the Note for its own account. 


 


4.2             
Information and Sophistication. Without lessening
or obviating the representations and warranties of the Company set forth in Section , the Purchaser hereby: (a) acknowledges that
it has received all the information it has requested from the Company and it considers necessary or appropriate for deciding whether
to acquire the Note, (b) represents that it has had an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of the offering of the Note and to obtain any additional information necessary to verify the accuracy
of the information given the Purchaser and (c) further represents that it has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risk of this investment.


 


4.3             
Ability to Bear Economic Risk. The Purchaser acknowledges
that investment in the Note involves a high degree of risk, and represents that it is able, without materially impairing its financial
condition, to hold the Note for an indefinite period of time and to suffer a complete loss of its investment.


 


4.4             
Accredited Investor Status. The Purchaser is an “accredited
investor” as such term is defined in Rule 501 under the Act.


 


4.5             
Existence; Authorization. The Purchaser is a limited
liability company duly organized, validly existing and in good standing under the laws of the state of its organization, having
full power and authority to own its properties and to carry on its business as conducted. The principal place of business of the
Purchaser is as shown on the signature block below. The Purchaser has the requisite power and authority to deliver this Agreement,
perform its obligations set forth herein, and consummate the transactions contemplated hereby. The Purchaser has duly executed
and delivered this Agreement and has obtained the necessary authorization to execute and deliver this Agreement and to perform
his, her or its obligations herein and to consummate the transactions contemplated hereby. This Agreement, assuming the due execution
and delivery hereof by the Company, is a legal, valid and binding obligation of the Purchaser enforceable against the Purchaser
in accordance with its terms.


 


4.6             
No Regulatory Approval. The Purchaser understands
that no state or federal authority has scrutinized this Agreement or the Note offered pursuant hereto, has made any finding or
determination relating to the fairness for investment in the Note, or has recommended or endorsed the Note, and that the Note has
not been registered or qualified under the Act or any state securities laws, in reliance upon exemptions from registration thereunder.
The Note may not, in whole or in part, be resold, transferred, assigned or otherwise disposed of unless it is registered under
the Act or an exemption from registration is available, and unless the proposed disposition is in compliance with the restrictions
on transferability under federal and state securities laws.


 






    	10



    	 



    

 


4.7             
Purchaser Received Independent Advice. The Purchaser
confirms that the Purchaser has been advised to consult with the Purchaser’s independent attorney regarding legal matters
concerning the Company and to consult with independent tax advisers regarding the tax consequences of investing in the Company.
The Purchaser acknowledges that Purchaser understands that any anticipated United States federal or state income tax benefits may
not be available and, further, may be adversely affected through adoption of new laws or regulations or amendments to existing
laws or regulations. The Purchaser acknowledges and agrees that the Company is providing no warranty or assurance regarding the
ultimate availability of any tax benefits to the Purchaser by reason of the subscription.


 


4.8             
Legends. The Purchaser understands that until such
time as the Securities have been registered under the Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities
Act or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately
sold, the Underlying Securities shall bear a restrictive legend in substantially the following form (and a stop-transfer order
may be placed against transfer of the certificates for such securities):


 


“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
OR EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR REGULATION S UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”


 


	5.	Further Agreements; Post-Closing Covenants



 


5.1             
Intentionally Omitted.


 






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5.2             
Intentionally Omitted. 


 


5.3             
Use of Proceeds. Company agrees to use the
Consideration to be paid by Purchaser to the Company for general working capital purposes.


 


5.4             
Form D; Blue Sky Laws. Company agrees to file a Form
D with respect to the Securities as required under Regulation D and to provide a copy thereof to the Purchaser promptly after such
filing. Company shall take such action as Company shall reasonably determine is necessary to qualify the Securities for sale to
the Purchaser at the applicable Closing pursuant to this Agreement under applicable securities or “blue sky” laws of
the states of the United States (or to obtain an exemption from such qualification), and
shall provide evidence
of any such
action so taken
to the Purchaser
on or prior
to the initial Closing.


 


5.5             
Usury. To the extent it may lawfully do so, the Company
hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled
to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any
action or proceeding that may be brought by the Purchaser in order to enforce any right or remedy under the Note. Notwithstanding
any provision to the contrary contained in the Note, it is expressly agreed and provided that the total liability of the Company
under the Note for payments which under Delaware law are in the nature of interest shall not exceed the maximum lawful rate authorized
under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of
interest or default interest, or both of them, when aggregated with any other sums which under Delaware law in the nature of interest
that the Company may be obligated to pay under the Note exceed such Maximum Rate. It is agreed that if the maximum contract rate
of interest allowed by Delaware law and applicable to the Note is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable
to the Note from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances
whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Purchaser with respect to indebtedness evidenced
by the Note, such excess shall be applied by the Purchaser to the unpaid principal balance of any such indebtedness or be refunded
to the Company, the manner of handling such excess to be at the Purchaser’s election.


 


5.6             
Registration Rights. 


 


(a)               
Company shall give the Purchaser prompt written notice of each filing by Company
with the SEC, of a registration statement (other than a registration statement on Form S-4 or Form S-8 or on any successor forms
thereto), or an offering statement under Regulation A promulgated
under the Act (in each case, referred to hereinafter as a “Registration”). If requested by the Purchaser in
writing within three (3) days after receipt of any such notice, Company shall, at Company’s sole expense (other than the
underwriting discounts, if any, payable in respect of the shares sold by the Purchaser), register or otherwise include all or,
at Purchaser’s option, any portion of the Securities, concurrently with the registration of such other securities, all to
the extent requisite to permit the public offering and sale of the Securities through the securities exchange, if any, on which
the shares of common stock is being sold or on the over-the-counter market.


 






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(b)              
In the event of a Registration pursuant to the provisions of this section, Company
shall furnish to the Purchaser such reasonable number of copies of the registration statement or offering statement and of each
amendment and supplement thereto (in each case, including all exhibits), of each prospectus contained in such registration statement
or offering statement and each supplement or amendment thereto (including each preliminary prospectus), and such other documents,
as the Purchaser may reasonably request to facilitate the disposition of the Securities included in such registration.


 


(c)               
Company shall notify the Purchaser within five (5) business days after such
registration statement or offering statement has become effective or qualified, or a supplement to any prospectus forming a part
of such registration statement or offering statement has been filed.


 


(d)              
Any references herein to (A) a registration statement shall be deemed to also
be references to a Form 1-A Regulation A Offering Statement, (B) prospectus shall be deemed to also be references to offering circular,
and (C) effective date of a registration statement shall be deemed to also be references to qualification date of an offering statement.
The Purchaser’s rights under this Section 5.6 shall automatically terminate once the Purchaser has sold all of the Underlying
Securities.


 


5.7             
Legal Counsel Opinions. 


 


(a)               
Upon the request of the Purchaser from to time to time, Company shall be responsible (at Company’s
cost) for promptly supplying to Company’s transfer agent and the Purchaser a customary legal opinion letter (the “Legal
Counsel Opinion”) to the effect that the resale of the Underlying Securities by the Purchaser or its affiliates, successors
and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule
144 are satisfied and provided the Underlying Securities are not then registered under the 1933 Act for resale pursuant to an effective
registration statement). Should Company fail for any reason to obtain and cause to be issued the Legal Counsel Opinion, the Purchaser
may (at Company’s cost, or if paid by Purchaser, then with costs added to the conversion amount) secure another legal counsel
to issue the Legal Counsel Opinion, and Company will instruct its transfer agent to accept such opinion. Company shall not impede
the removal by its stock transfer agent of the restricted legend from any common stock certificate upon receipt by the transfer
agent of a Rule 144 Opinion Letter. COMPANY HEREBY AGREES THAT IT MAY NEVER TAKE THE POSITION THAT IT IS A “SHELL COMPANY”
IN CONNECTION WITH ITS OBLIGATIONS UNDER THIS AGREEMENT.


 


5.8             
Listing. Company will, so long as the Purchaser owns
any of the Securities, maintain the listing and trading of its Common Shares on OTC Markets or any equivalent trading platform
or electronic quotation system and will comply in all respects with Company’s reporting, filing and other obligations under
the bylaws or rules of the Financial Industry Regulatory Authority, or FINRA, and such exchanges, as applicable, as well as with
the SEC. Company shall promptly provide to the Purchaser copies of any notices it receives from OTC Markets and any other exchanges
or electronic quotation systems on which the Common Shares are then traded regarding the continued eligibility of the Common Shares
for listing on such trading platforms and quotation systems.


 






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5.9             
Information and Observer Rights. As long as the Purchaser
owns at least five percent (5%) of the Securities originally purchased hereunder, Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by Company pursuant to the Exchange
Act. As long as the Purchaser owns at least five percent (5%) of the Securities originally purchased hereunder, if Company is not
required to file reports pursuant to such laws, it will prepare and furnish to the Purchaser and simultaneously make publicly available
in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Securities under Rule 144. Company
further covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent required
from time to time to enable the Purchaser to sell the Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144. If Company fails to remain current in its reporting obligations or to provide currently
publicly available information in accordance with Rule 144(c) and such failure extends for a period of more than 30 Trading Days
(the date which such 30 Trading Day-period is exceeded, being referred to as “Event Date”), then in addition
to any other rights the Purchaser may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary
of each such Event Date (if the applicable Event shall not have been cured by such date) until the information failure is cured,
Company shall pay to the Purchaser an amount in cash, as partial liquidated damages and not as a penalty, equal to one percent
(1%) of purchase price paid for the Securities held by the Purchaser at the Event Date. The partial liquidated damages pursuant
to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an information failure
(except in the case of the first Event Date).


 


5.10         
Confidentiality. The Purchaser agrees that the it
will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company)
the terms and conditions of this Agreement or any confidential information obtained from the Company pursuant to the terms of this
Agreement (including notice of Company’s intention to file a registration statement), unless such confidential information
(a) is known or becomes known to the public in general (other than as a result of a breach of this Section 5.10 by the Purchaser),
(b) is or has been independently developed or conceived by the Purchaser without use of the Company’s confidential information,
or (c) is or has been made known or disclosed to the Purchaser by a third party without a breach of any obligation of confidentiality
such third party may have to the Company; provided, however, that the Purchaser may disclose confidential information (i) to its
attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with
monitoring its investment in the Company; (ii) to any prospective purchaser of any Securities from the Purchaser, if such prospective
purchaser agrees to be bound by the provisions of this Section 5.10; (iii) to any existing or prospective
affiliate, partner, member, stockholder, or wholly owned subsidiary of the Purchaser in the ordinary course of business, provided
that the Purchaser informs such person that such information is confidential and directs such person to maintain the confidentiality
of such information; or (iv) as may otherwise be required by law, provided that the Purchaser notifies the Company within
three (3) business days of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure.



 






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5.11         
Restrictions on Activities. Commencing as of the
date first above written, and so long as the Company has an obligation under the Note, the Company shall not, directly or indirectly,
without the Purchaser’s prior written consent, which consent shall not
be unreasonably withheld:
(a) change the
nature of its
business; (b) sell,
divest, acquire, change
the structure of any material assets other than in the ordinary course of business; (c) solicit any offers for, respond
to any unsolicited offers for, or conduct any negotiations with any other person or entity in respect of any variable rate debt
transactions (i.e., transactions were the conversion or exercise price of the security issued by the Company varies based on the
market price of the Common Shares); or (d) accept Merchant-Cash-Advances.


 


5.12         
Other Restrictions. Unless approved by the Purchaser,
Company and each Subsidiary shall not enter into an agreement or amend an existing agreement
to effect any sale of securities involving, or convert any securities previously issued under, a Variable Rate Transaction or a
merchant cash advance transaction in which it sells future receivables at a discount, or a substantially similar transaction. The
term “Variable Rate Transaction” means a transaction in which Company or any Subsidiary (i) issues or sells
any convertible securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies
with the trading prices of, or quotations for, the Common Shares at any time after
the initial issuance of such convertible securities, or (B) with a conversion, exercise or exchange price that is subject to being
reset at some future date after the initial issuance of such convertible securities or upon the occurrence of specified or contingent
events directly or indirectly related to the business of Company or the Subsidiary, as the case may be, or the market for the Common
Shares, other than pursuant to a customary “weighted average” anti-dilution provisions, or (ii) enters into any agreement
(including, without limitation, an “equity line of credit” or an “at-the-market offering”) whereby Company
or any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive”
or “participation” rights). The Purchaser shall be entitled to obtain injunctive relief against Company and its
Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages.


 


5.13         
Sale of Assets; Issuance of Equity or Debt. Subject
to the following provisions, should Company sell any material assets, or issue any equity, debt, or other security, including the
sale of any Subsidiary, that generate cash proceeds to the Company, the Purchaser shall have the right to be repaid on any outstanding
amount owed under the Note with up to 100% of the proceeds of any such sale or offering, provided, however, that this provision
is not applicable to (i) the first $2,000,000 of cash proceeds in the aggregate, generated in such transactions, (ii) asset-based
loans or lines of credit obtained by the Company, or (iii) transactions generating future financing proceeds with a specific use
of proceeds requirement that such proceeds are to be used exclusively to purchase the assets or equity of an unaffiliated business
in an arm’s length acquisition and the proceeds are used accordingly.


 


5.14         
Participation Rights. For a period of eighteen (18)
months from the Initial Closing Date, in the event Company or any Subsidiary proposes to offer and sell its securities, whether
in the form of debt, Equity Financing (defined below), or any other financing transaction (each a “Future Offering”),
the Purchaser shall have the right, but not the obligation, to participate in the purchase of the securities being offered up to
an amount equal to the Consideration in strict accordance with the terms of such Future Offering (the “Participation Right”).
For the avoidance of doubt, an “Equity Financing” shall mean Company’s or its Subsidiary’s sale of its
Common Shares or any securities conferring the right to purchase Company’s or Subsidiary’s common stock or securities
convertible into, or exchangeable for (with or without additional consideration), shares of the Company’s or Subsidiary’s
common stock. In connection with each Participation Right, Company shall provide written
notice to the Purchaser of the terms and conditions of the Future Offering at least 10 business days prior to the anticipated first
closing of such Future Financing (the “FF Notice”). If the Purchaser shall elect to exercise its Participation
Right, it shall notify Company, in writing, of such election at least five (5) business days prior to the anticipated closing date
set forth in the FF Notice (the “Participation Notice”). In the event the Purchaser does not return a Participation
Notice to Company within such five (5) business day period, the Participation Right granted hereunder shall terminate and be of
no further force and effect; provided, however, that such Participation Right shall be reinstated if the anticipated closing referenced
in the FF Notice does not occur prior to 10 business days following the anticipated first closing date specified in such FF notice.


 






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5.15         
Right of First Refusal. If at any time while this
Note is outstanding, the Company or any Subsidiary has a bona fide offer of capital or financing from any third party that the
Company or Subsidiary intends to act upon, then the Company must first offer such opportunity to the Purchaser to provide such
capital or financing to the Company or Subsidiary on the same terms as each respective third party’s terms. Should the Purchaser
be unwilling or unable to provide such capital or financing to the Company within 10 Trading Days from Purchaser’s receipt
of written notice of the offer (the “Offer Notice”) from the Company, then the Company or Subsidiary may obtain
such capital or financing from that respective third party. If the Company does not receive the capital or financing from the respective
third party within 60 days after the date of the respective Offer Notice, then the Company must again offer the capital or financing
opportunity to the Purchaser as described above, and the process detailed above shall be repeated. The Offer Notice must be sent
via electronic mail to avi@leonitecap.com Cc: dberger@bergerlawpllc.com.


 


5.16         
Terms of Future Financings. So long as any obligations
of the Company under the Subscription Documents are outstanding, solely in connection with a financing of the Company and subject
to the provisions of this section, upon any issuance of (or announcement of intent to effect an issuance of) any security, or amendment
to (or announcement of intent to effect an amendment to) any security that was originally issued before the Issue Date, by the
Company or any Subsidiary, with any term that in the aggregate with all of the terms in such future financing, is more favorable
to the holder of such security than, or with a term in favor of the holder of such security that was not similarly provided to,
the Purchaser in the Subscription Documents, then (i) the Company shall notify the Purchaser of such additional or more favorable
term within five (5) business days of the new issuance and/or amendment (as applicable) of the respective security, and (ii) such
term, at Purchaser’s option, shall become a part of the transaction documents with the Purchaser (regardless of whether the
Company complied with the notification provision of this Section 5.16), provided, however, that this provision is not applicable
to (i) the Company’s Form 1-A Regulation A Offering Statement which qualified with the SEC on November 1, 2021, (ii) compensation
paid by the Company to Costaldo Law Group P. C. or its assigns, or Grace Court Advisors Inc. or its assigns, (iii) compensation
paid by the Company to its employees or directors, or (iv) compensation paid by the Company to consultants, service providers,
advisors, or vendors in Common Shares or securities of the Company at market value as of the date of issuance. The types of terms
contained in another security that may be more favorable to the purchaser of such security include, but are not limited to, terms
addressing conversion discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts, commitment
shares, stock sale price, private placement price per share, and warrant coverage. If Purchaser
elects to have the term become a part of the transaction documents with the Purchaser, then the Company shall immediately deliver
acknowledgment of such adjustment in form and substance reasonably satisfactory to the Purchaser (the “Acknowledgment”)
within 30 days of Company’s receipt of request from Purchaser (the “Adjustment Deadline”), provided that Company’s
failure to timely provide the Acknowledgement shall not affect the automatic amendments contemplated hereby.


 






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5.17         
Breach of Covenants. The Company acknowledges and
agrees that if the Company breaches any covenants set forth in this Section, in addition to any other remedies available to the
Purchaser pursuant to this Agreement, it will be considered an Event of Default under Section 4.3 of the
Note.


 


5.18         
Transfer Agent
Instructions.
Company shall issue irrevocable
instructions to Company’s transfer
agent to issue
certificates, registered in
the name of
the Purchaser or
its nominee, upon
exercise of the Warrant, in such amounts as specified from time to time by the Purchaser to Company in accordance with the
terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that Company proposes to replace
its transfer agent, Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable
Transfer Agent Instructions in a form as initially delivered pursuant to this Agreement (including but not limited to the provision
to irrevocably reserved Common Shares in the Reserved Amount (as defined in the Note)) signed by the successor transfer agent to
Company and Company. Prior to registration of the Underlying Securities under the Securities Act or the date on which the Underlying
Securities may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that
can then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 4.8 of this Agreement.
Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5.18
will be given by Company to its transfer agent; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or
hinder its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for Underlying
Securities to be issued to the Purchaser upon conversion of or otherwise pursuant to the Note as and when required by the Note
and this Agreement; (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders
its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on
any certificate for any Underlying Securities issued to the Purchaser upon conversion of or otherwise pursuant to the Note as and
when required by the Note and this Agreement, and (iv) it will provide any required corporate resolutions and issuance approvals
to its transfer agent if and as required by its transfer agent. Nothing in this Section shall affect in any way the Purchaser’s
obligations and agreement set forth in Section 5.6 hereof to comply with all applicable prospectus delivery requirements, if any,
upon re-sale of the Underlying Securities. If the Purchaser provides Company with an opinion of counsel in form, substance and
scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be
made without registration under the 1933 Act pursuant to Rule 144, or other exemptions, and such sale or transfer is effected through
an opinion of counsel, the Company shall permit the transfer, and, in the case of the Underlying Securities, promptly instruct
its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified
by the Purchaser. Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Purchaser,
by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, Company acknowledges that the remedy
at law for a breach of its obligations under this Section 5.18 may be inadequate and agrees, in the event of a breach or threatened
breach by Company of the provisions of this Section, that the Purchaser shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without
any bond or other security being required.


 






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5.19         
Further Assurances. The Purchaser agrees and covenants
that at any time and from time to time it will execute and deliver to the Company such further instruments and documents and take
such further action as the Company may reasonably require within three (3) business days of any such request in order to carry
out the full intent and purpose of this Agreement and to comply with state or federal securities laws
or other regulatory approvals.


 


5.20         
Exchange Act Reporting.
Failure to remain subject to and fully compliant with the SEC reporting requirements under
the Exchange Act (including but not limited to becoming delinquent in its filings) for 30 consecutive days, shall be an event of
default under the Note and this Agreement until such time that such delinquency has been cured.


 


	6.	Conditions to the Company’s Obligation
to Sell



 


The obligation of the Company
hereunder to issue and sell the Note to the Purchaser, on the Initial Closing Date, is subject to the satisfaction, at or before
the Initial Closing Date, of each of the following conditions thereto, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion:


 


(a)               
The Purchaser shall have executed this Agreement and delivered the same to the
Company.


 


(b)              
The Purchaser
shall have delivered
the Initial Tranche in
accordance with Sections 1.1, 1.3
and 2.2(a) above.


 


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


 


(d)              
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any
self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.


 






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	7.	Conditions to The Purchaser’s
Obligation to Purchase



 


The obligation of the Purchaser
hereunder to purchase the Note from the Company, on the Initial Closing Date, is subject to the satisfaction, at or before the
Initial Closing Date, of each of the following conditions, provided that these conditions are for the Purchaser’s sole benefit
and may be waived by the Purchaser at any time in its sole discretion:


 


(a)               
The Company shall have executed this Agreement and delivered the same to the
Purchaser.


 


(b)              
The Company shall have delivered to the Purchaser the duly executed Note.


 


(c)               
Intentionally Omitted.


 


(d)              
Company shall have delivered executed Subscription Documents, with the exception of the Warrant
which shall be delivered on the Final Closing Date, or such other instruments as contemplated by this Agreement.


 


(e)               
Intentionally Omitted.


 


(f)               
The Company has provided the Purchaser with a current schedule of liabilities.


 


(g)              
Intentionally Omitted.


 


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


 


(i)                
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any
self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the
transactions contemplated by this Agreement.


 


(j)                
No event shall have occurred which could reasonably be expected to have a Material Adverse
Effect on the Company including but not limited to a change in the Exchange Act reporting status of the Company or the failure
of the Company to be timely in its Exchange Act reporting obligations. 


 


(k)              
Company shall have delivered to the Purchaser (i) a certificate evidencing the formation and
good standing of Company in its jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction,
as of a date within ten (10) days of the Initial Closing Date; and (ii) resolutions adopted by the Company’s Board of Directors
at a duly called meeting or by unanimous written consent authorizing this Agreement and all other documents, instruments and transactions
contemplated hereby. 


 






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(l)                
Intentionally Omitted. 


 


(m)            
Intentionally Omitted. 


 


	8.	Miscellaneous



 


8.1             
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.


 


8.2             
Governing Law; Consent to Jurisdiction. This Agreement
shall be governed by and construed under the laws of the State of Delaware, without giving effect to conflicts of laws principles.
Each party to this Agreement hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting
in Delaware, for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt
requested) to such party at the address in effect for notices to it under this agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. 


 


8.3             
Counterparts. This Agreement may be executed in two
(2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for
all purposes.


 


8.4             
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.


 


8.5             
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 electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the next
business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid,
or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification
of receipt. All communications shall be sent to the Company and to the Purchaser at the addresses set forth on the signature page
to this Agreement or at such other addresses as the Company or Purchaser may designate by 10 days’ advance written notice
to the other parties hereto.


 


8.6             
Modification; Waiver. No modification or waiver of
any provision of this Agreement or consent to departure therefrom shall be effective only upon the written consent of the Company
and the Purchaser. Any provision of the Note may be amended or waived by the written consent of the Company and the Purchaser.


 






    	20



    	 



    

 


8.7             
Expenses. The Company and the Purchaser shall each
bear its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein.


 


8.8             
Delays or Omissions. It is agreed that no delay or
omission to exercise any right, power or remedy accruing to the Purchaser, upon any breach or default of the Company under the
Subscription Documents shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach
or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of
any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further
agreed that any waiver, permit, consent or approval of any kind or character by Purchaser of any breach or default under this Agreement,
or any waiver by any Purchaser of any provisions or conditions of this Agreement must be in writing and shall be effective only
to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded
to the Purchaser, shall be cumulative and not alternative.


 


8.9             
Entire Agreement. 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 any other party in any manner by any representations, warranties, covenants and agreements except
as specifically set forth herein.


 


[Signature page
follows]




 


 






    	21



    	 



    

 


In
Witness Whereof, the parties have executed this Securities Purchase Agreement
as of the date first written above.


 





	COMPANY:	 
	 	 
	SENTIENT
BRANDS HOLDINGS INC.	 
	By:
	/s/
George Furlan	 
	Name:
George Furlan	 
	Title:
Interim Chief Executive Officer	 








 





	Address:	555
Madison Avenue, 5th Floor
	 	New York, New
York 10022
	 	 
	PURCHASER:
	 	 
	LEONITE
FUND I, LP
	By
its Manager, Leonite Advisors LLC








 





	By:
	/s/
Avi Geller	 
	Name:
Avi Geller	 
	Title:
Manager	 








 





	Address:	1
Hillcrest Center Dr., Suite 232
	 	Spring Valley,
NY 110977








 


[Securities Purchase Agreement – Signature
page]


 






    	22



    	 



    

 





SCHEDULE I 


Disclosure Schedule


 


Section 3.3 Subsidiaries and Affiliates


 


Section 3.7 Compliance with Other Instruments


 


Section 3.9 Capitalization


 


Section 3.10 SEC Reports; Financial Statements


 


Section 3.12 Litigation


 


Section 3.15 Title to Assets


 


Section 3.16 Taxes


 


Section 3.21 Brokers and Finders


 


Section 3.27 Shell Company Status 


 


Section 7(f) Schedule of Liabilities 


 






    	 



    	 



    

 


Exhibit
A


 


Form
of Convertible Promissory Note


 


(See
Attached)


 






    	 



    	 



    

 


Exhibit
B


 


Form
of Warrant


 


(See
Attached)


 






    	 



    	 



    

 





Exhibit
C


 


Form
of Security and Pledge Agreement


 


(See
Attached)