# EDGAR Filing Document

**Accession Number:** 0001934924
**File Stem:** 0001140361-23-008619
**Filing Date:** 2023-2
**Character Count:** 620100
**Document Hash:** 127e53139f7564fbcbd3de53daf3f4b7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-23-008619.hdr.sgml**: 20240829

**ACCESSION NUMBER**: 0001140361-23-008619

**CONFORMED SUBMISSION TYPE**: DOS/A

**PUBLIC DOCUMENT COUNT**: 16

**FILED AS OF DATE**: 20230227

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Tesseract Collective, Inc.
- **CENTRAL INDEX KEY:** 0001934924
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **IRS NUMBER:** 873751500
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** DOS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 367-00331
- **FILM NUMBER:** 23669135

**BUSINESS ADDRESS:**
- **STREET 1:** 45 ROCKEFELLER PLAZA
- **STREET 2:** 20TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10111
- **BUSINESS PHONE:** 917-379-6544

**MAIL ADDRESS:**
- **STREET 1:** 45 ROCKEFELLER PLAZA
- **STREET 2:** 20TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10111

## Part

#### **TABLE OF CONTENTS**

### UNITED STATES<br>

### SECURITIES AND EXCHANGE COMMISSION<br>

### Washington, D.C. 20549

### FORM 1-A

#### REGULATION A OFFERING CIRCULAR<br>

#### UNDER THE SECURITIES ACT OF 1933

---

| |
|:---|
| **TESSERACT COLLECTIVE, INC.** |
| (Exact name of issuer as specified in its charter) |
| **Delaware** |
| (State of other jurisdiction of incorporation or organization) |

---

#### 45 Rockefeller Plaza, 20<sup>th</sup> Floor <br>

#### New York, New York 10111 <br>
(917) 379-6544

(Address, including zip code, and telephone number,<br>

including area code of issuer's principal executive office)

---

| | |
|:---|:---|
| **Richard Seet** <br>**Chief Executive Officer** <br>**45 Rockefeller Plaza, 20<sup>th</sup> Floor** <br>**New York, New York 10111** <br>(917) 379-6544 | **Charles Riotto** <br>**President** <br>**45 Rockefeller Plaza, 20<sup>th</sup> Floor** <br>**New York, New York 10111** <br>(973) 653-7460 |

---

(Name, address, including zip code, and telephone number, <br>

including area code, of agent for service)

Copy to:

G. Alex Weniger-Araujo, Esq. <br>

#### Loeb & Loeb LLP <br>

#### 345 Park Avenue <br>

#### New York, NY 10154 <br>
(212) 407-4000

---

| | |
|:---|:---|
| **7336** | **87-3751500** |
| (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer <br>Identification Number) |

---

This offering circular shall only be qualified upon order of the Commission, unless a subsequent amendment is filed indicating the intention to become qualified by operation of the terms of Regulation A.

------

#### **TABLE OF CONTENTS**

**An offering statement pursuant to Regulation A relating to these securities has been filed with the U.S. Securities and Exchange Commission (the "Commission"). Information contained in this preliminary offering circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. This preliminary offering circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a final offering circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the final offering circular or the offering statement in which such final offering circular was filed may be obtained.PART II – Offering Circular**

**The registrant is submitting this draft offering statement for non-public review pursuant to Rule 252(d) of Regulation A under the Securities Act of 1933, as amended.**

#### As Submitted to the Securities and Exchange Commission on February 24, 2023

#### Preliminary Offering Circular Dated February 24, 2023
![](logo_tesseract.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

TESSERACT COLLECTIVE, INC.

This is an initial public offering of our securities (this "Offering"). We are offering shares of our common stock, $0.0001 par value per share ("Common Stock"). The offering price is $ per share of Common Stock. A description of these securities can be found beginning on page [72](#h2g) of this offering circular (this "Offering Circular").

The proposed sale will begin as soon as practicable after this Offering Circular has been qualified by the Securities and Exchange Commission (the "Commission") and the relevant state regulators, as necessary. This offering will close upon the earlier of (1) the sale of the maximum number of shares of Common Stock offered hereby, (2) one year from the date this Offering begins, or (3) a date prior to one year from the date this Offering begins that is so determined by our board of directors. This offering is on a "best efforts," no minimum, basis. There is no minimum number of shares of Common Stock that we must sell in order to conduct a closing in this Offering.

We will commence the sale of the shares of Common Stock as of the date on which the Offering Statement of which this Offering Circular is a part is declared qualified by the Commission. The Company may close the entire Offering at one time or may have multiple closings. Throughout this Offering Circular, we have assumed multiple closings and refer to the "initial closing" as the first such closing and the "final closing" as the last such closing. Additional closings, if any, will occur on a rolling basis throughout the offering period. The maximum Offering period is 12 months from the date of commencement, but we reserve the right to terminate this Offering for any reason at any time prior to the initial closing. Each time the company accepts funds is defined as a "closing." We intend that the funds tendered in cash by potential investors will be received directly by Continental Stock Transfer & Trust Company (the "Escrow Agent") and will be transferred to the company upon closing.

There is no minimum offering amount and the Company anticipates undertaking closings on a monthly basis without qualifications for such closings until such time as the maximum offering amount is reached. Prior to a closing, investor's funds will be held in escrow and such investor will not have any rights as a shareholder of the Company, including the right to receive distributions and vote the shares. Funds held in escrow are not refundable and the Company may direct a closing regardless of the amount which is being held in escrow at such time. After each such closing, funds tendered by investors will be available to the Company and investors will become shareholders of the Company with the same rights as other holders of the Company's common stock.

There is currently no public trading market for our securities. For the time being, we do not intend to apply for listing of our Common Stock on any securities exchange or for quotation in any automated dealer quotation system or other over-the-counter market, however, the Company reserves the right to later amend this Offering in the event that the Company seeks to apply for listing on an exchange or quotation in an over-the-counter market.

Our Chief Executive Officer, Mr. Richard Seet, owns 53.7% of our common stock and is expected to own approximately % after the consummation of this Offering, assuming the maximum number of shares of Common Stock offered hereby are sold.

**See "*Risk Factors*" beginning on page [13](#tRF) of this Offering Circular for a discussion of information that should be considered in connection with deciding whether to make an investment.**

**The Commission does not pass upon the merits of or give its approval to any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. These securities are offered pursuant to an exemption from registration with the Commission; however, the Commission has not made an independent determination that the securities offered are exempt from registration.**

---

| | | |
|:---|:---|:---|
|  | **Underwriting/Selling** <br>**Agents' discounts** <br>**and commissions<sup>(a)</sup>** | **Proceeds to** <br>**Issuer<sup>(b)</sup>**  |
| Common Stock | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;$ |
| Total Maximum Offering | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;$ |

---

(a)<br> We do not currently intend to use commissioned sales agents, placement agents or underwriters. In the event we use commissioned sales agents or underwriters going forward, we will file an amendment to this Offering Circular.

(b) The amount of total proceeds set forth in the table does not include deductions for expenses related to this Offering, including the filing, printing, legal, accounting, escrow agent and other miscellaneous expenses, estimated to be approximately $.

This is a Regulation A+ Tier 2 offering.

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting requirements. As a smaller reporting company within the meaning of Rule 405, we are following the Form S-1 disclosure requirements for smaller reporting companies. This offering circular is intended to provide the information required by Part I of Form S-1.

**Generally, no sale may be made to you in this Offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to <u>www.investor.gov.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023

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#### **TABLE OF CONTENTS**

#### ABOUT THIS OFFERING CIRCULAR
This Offering Circular speaks only as of the date hereof.

We will amend this Offering Circular whenever the information it contains has become false or misleading in light of existing circumstances and for other purposes, such as to disclose material developments related to the securities offered hereby, to update required financial statements or if there has been a fundamental change in the information initially presented. We will file an amended offering circular as part of an amendment to our Form 1-A, which we will file with the Commission, state regulators or other appropriate regulatory bodies. Our shares of Common Stock are not available for offer and sale to residents of every state.

**This Offering Circular contains all of the representations by the company concerning this Offering, and no person shall make different or broader statements than those contained herein. Investors are cautioned not to rely upon any information not expressly set forth in this Offering Circular.**

**Investment in small businesses involves a high degree of risk, and investors should not invest any funds in this Offering unless they can afford to lose their entire investment. In making an investment decision, investors must rely on their own examination of the company and the terms of the offering, including the merits and risks involved.**

**This Offering Circular does not constitute an offer to sell or solicitation of an offer to buy in any jurisdiction in which such offer or solicitation would be unlawful or any person to whom it is unlawful to make such offer or solicitation. The shares of Common Stock may not be sold nor may offers to buy be accepted prior to the time an Offering Circular which is not designated as a preliminary Offering Circular is delivered and the offering statement filed with the Commission becomes qualified.**

**Neither the delivery of this Offering Circular nor any sale made hereunder shall, under any circumstances, create an implication that there has been no change in the affairs of the company since the date hereof. Information contained in the preliminary Offering Circular is subject to completion or amendment.**

#### NASAA uniform legend:
**In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended by the federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act of 1933, as amended, and the applicable state securities laws, pursuant to registration or exemption therefrom. Investors should be aware that they will be required to bear the financial risks of this investment for an indefinite period of time.**

Notice to Foreign Investors

If the purchaser lives outside the United States, it is the purchaser's responsibility to fully observe the laws of any relevant territory or jurisdiction outside the United States in connection with any purchase of the securities, including obtaining required governmental or other consents or observing any other required legal or other formalities. The Company reserves the right to deny the purchase of the securities by any foreign purchaser.

------

#### **TABLE OF CONTENTS**

#### MARKET AND INDUSTRY DATA
Within this Offering Circular, we reference information and statistics regarding the industries in which we do or will operate, including digital art, High-End Art and licensing and merchandising industries, which include categories such as fashion, housewares, and leather goods, amongst others (all as defined herein). We are responsible for these statements included in this Offering Circular. We have relied, to the extent available, upon management's review of information and statistics from various independent third-party sources, including the third-party sources listed below, and other publicly available information prepared by a number of sources. Some data and other information contained in this Offering Circular are also based on management's knowledge of digital art, High-End Art and ancillary industries, and their good faith estimates and calculations, which are derived from their review and interpretation of independent sources. Data regarding the industries in which we do or will compete are inherently imprecise and are subject to significant business, economic and competitive uncertainties beyond our control, but we believe they generally indicate size, position and market share within this industry. All market data and industry information used in this Offering Circular involves a number of assumptions and limitations and you are cautioned not to give undue weight to such estimates. While we believe such information is reliable, we cannot guarantee the accuracy or completeness of this information and we have not independently verified any third-party information. While we believe our internal company research and estimates are reliable, such research and estimates have not been verified by any independent source. Projections, assumptions and estimates of our future performance and the future performance of the industries in which we expect to operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors," "Cautionary Statement Regarding Forward-Looking Statements" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties.

We have also obtained certain information from third-party sources, including Data published by Arts Economics (2022) The Art Market 2022, An Art Basel & UBS Report ("The Art Market 2022 Report").

#### TRADEMARKS, SERVICE MARKS AND TRADE NAMES
We have proprietary rights to trademarks used in this Offering Circular that are important to our business, many of which are registered under applicable intellectual property laws.

Solely for convenience, the trademarks, service marks, logos and trade names referred to in this Offering Circular are without the® and™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks and trade names. This Offering Circular contains additional trademarks, service marks and trade names of others, which are the property of their respective owners. All trademarks, service marks and trade names appearing in this Offering Circular are, to our knowledge, the property of their respective owners. We do not intend our use or display of other companies' trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

------

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [SUMMARY](#tSUM) | &nbsp;&nbsp;&nbsp;[1](#tSUM) |
| [RISK FACTORS](#tRF) | &nbsp;&nbsp;[13](#tRF) |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#tCSR) | &nbsp;&nbsp;[35](#tCSR) |
| [USE OF PROCEEDS](#tUOP) | &nbsp;&nbsp;[36](#tUOP) |
| &nbsp;&nbsp;[DILUTION](#tDIL) | &nbsp;&nbsp;[37](#tDIL) |
| [CAPITALIZATION](#tCAP) | &nbsp;&nbsp;[38](#tCAP) |
| &nbsp;&nbsp;[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tMDA) | &nbsp;&nbsp;[39](#tMDA) |
| [OUR BUSINESS](#tOB) | &nbsp;&nbsp;[45](#tOB) |
| [MANAGEMENT](#tMGM) | &nbsp;&nbsp;[59](#tMGM) |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#tCRR) | &nbsp;&nbsp;[69](#tCRR) |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#tSOO) | &nbsp;&nbsp;[71](#tSOO) |
| [SECURITIES BEING OFFERED AND DESCRIPTION OF SECURITIES](#tSBO) | &nbsp;&nbsp;[72](#tSBO) |
| [SHARES ELIGIBLE FOR FUTURE SALE](#tSEF) | &nbsp;&nbsp;[74](#tSEF) |
| [PLAN OF DISTRIBUTION](#tPOD) | &nbsp;&nbsp;[75](#tPOD) |
| [LEGAL MATTERS](#tLM) | &nbsp;&nbsp;[78](#tLM) |
| &nbsp;&nbsp;[EXPERTS](#tEXP) | &nbsp;&nbsp;[78](#tEXP) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYC) | &nbsp;&nbsp;[78](#tWYC) |
| [INDEX TO FINANCIAL STATEMENTS](#tIFS) | &nbsp;&nbsp;[F-1](#tIFS) |

---

------

#### SUMMARY
*This summary highlights certain information appearing elsewhere in this Offering Circular. For a more complete understanding of this Offering, you should read the entire Offering Circular carefully, including the risk factors and the financial statements.*

Unless otherwise stated in this Offering Circular, "we", "us", "our", "Company", and "Tesseract" refer to Tesseract Collective, Inc.

#### Overview
Tesseract Collective, Inc., doing business as Tesseract Icons ("Tesseract" or the "Company"), is a developmental stage intellectual property company. We intend to build our intellectual property library through the creation and amassing of intellectual property rights to original digital artworks derived from iconic personalities, iconic brands, iconic characters, or iconic works from the physical art and collectibles markets (going forward, "Icon" will refer to iconic personalities, brands, characters, or art generally recognized as icons). We plan to commission original digital artworks derived from Icons created in partnership with renowned museums or cultural institutions, many of which are themselves recognized icons. Tesseract intends to enter into license agreements which allow for the name, image, and/or likeness of the Icons to be utilized; our museum partners will select artists to produce the digital artworks in collaboration with the Icon, and then exhibit the produced digital artworks in a gallery show at the museum. Each of the Icons, the museum partners, and the selected artists who will produce the digital artworks will be deemed collaborators ("Collaborator(s)"). We call such digital artworks created for Tesseract by the museum selected artists in collaboration with the Icon we introduce, and then exhibited by the museum, "Collaborative Original Digital Artwork(s)" or "CODA(s). The stakeholders of the CODA include the Icon, the museum partner, and the artist. We plan to secure a global master license for all rights, excluding non-fungible token ("NFT(s)") rights, in perpetuity, to the intellectual property underlying the CODA from each of its stakeholders (a "Perpetual Global Master License"). Thereafter, we intend to monetize the Perpetual Global Master License via the sub-licensing of such rights to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories.

Because the contractual rights to mint NFTs will be specifically excluded from our intended Perpetual Global Master License, placing the CODAs on the blockchain in the form of NFTs will not be a part of our business plan, and we have no intention of engaging in the business of creating, licensing or selling NFTs or operating in the NFT, crypto asset, or cryptocurrency markets, or transacting in cryptocurrency.

Our existing assets include:

&nbsp;&nbsp;&nbsp;&nbsp;• The license for collaborative digital art rights derived from the original illustrations of *Le Petit Prince/The Little Prince* ("The Little Prince" going forward). The Little Prince has sold over 200 million copies worldwide, which makes it one of the best-selling books ever written; with translations in over 400 languages and dialects, it is the second most translated book after the Bible. The rights to produce CODAs under the agreement are non-exclusive. We are in negotiations to amend this agreement to a Perpetual Global Master License which would exclude contractual rights to mint NFTs.

&nbsp;&nbsp;&nbsp;&nbsp;• A TED Partner Institute Agreement to produce an event (a "TED Event") which is filmed and hosted by TED. It is our intent to produce the TED Event featuring a museum partner of our choosing. TED's mission is to discover and spread ideas that spark imagination, embrace possibility, and catalyze impact. Hence TED's tagline: ideas worth spreading. Overall, according to TED.com, TED talks are viewed or listened to more than three billion times annually.

Our immediate objectives are: (i) to find a museum partner to develop CODAs derived from the original illustrations from The Little Prince; (ii) to find a museum partner with whom to center a TED Event, where TED will identify "ideas worth spreading" within the museum partner's community, and the museum partner will develop and exhibit CODAs inspired by the talks covered in the TED Event; and, (iii) to enter into Perpetual Global Master Licenses for each of The Little Prince and TED CODAs.

While we currently have a license granting us rights to produce and license CODAs based on the original illustrations of The Little Prince and an agreement to produce a TED Event, we intend to seek Perpetual Global Master Licenses to both properties; moreover, we intend to seek additional Perpetual Global Master Licenses granting us rights to produce and license CODAs based on other Icons. By focusing on Icons and the creation of CODAs with museums, we believe we significantly differentiate our intellectual property from other producers of digital art.

1<br>

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#### **TABLE OF CONTENTS**

#### Our Team
To capitalize on collaborations between Icons, museums, and artists; then securing the Perpetual Global Master License from each stakeholder; and then exploiting the Perpetual Global Master License in licensing and merchandising with third-party licensees, we have assembled a team of highly credentialed principals and advisors. Our team has deep industry expertise with museums, art, fashion, music, entertainment, and luxury goods. Our team also has considerable experience in the structuring of digital art licenses from Icons; demonstrated virtuosity in developing CODAs via partnerships with cultural institutions, visual artists, musicians, entertainers, fashion designers, and/or luxury brands; and licensing and merchandising.

Because of our team's relationships and experience, we have the highest-level access to Icons, Collaborators in cultural institutions, art, music, entertainment, social influencing, fashion, and/or luxury brands, amongst others; and licensing and merchandising.

#### The Opportunity
We believe four forces create an opportunity which Tesseract intends to exploit:

1.<br> The rise of digital art, including outside the NFT space, as a category worthy of collection among high-net-worth art collectors.

2.<br> Because digital art is now coming to fore, museums will increase their exhibitions and collections of digital art.

3.<br> Copyright protection afforded new intellectual property.

4.<br> The use of collaborations to expand the licensing market potential of intellectual property underlying digital art.

*<u>The Rise of Digital Art As A Category Worthy of Collection Among High-Net-Worth Collectors</u>*

According to Art Basel and UBS in their joint report "The Art Market 2022", in a survey of high-net-worth ("HNW"; defined as individuals with investable assets, excluding real estate and private business assets, of greater than $1 million) collectors from across the globe, the following pie chart and bar graph represent the average allocation of art as a percentage of the HNW collector's overall wealth, excluding real estate and private business assets, in 2021.

2<br>

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#### **TABLE OF CONTENTS**
![](ny20004683x6_charts01.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

#### Source: Arts Economics (2022) The Art Market 2022, An Art Basel & UBS Report.
Digital art as a niche arose in tandem with the computer. Known initially as "computer art," Herbert W. Franke was among the pioneers of computer art, who created works of art – so-called oscillograms – with analog computing systems and cathode ray oscillographs in the mid-1950s. On a control panel, Franke turned, calculated and manipulated sine curves and sawtooth curves, which were photographed with a camera and then superimposed on the screen.

While digital art has been in existence for more than sixty years, according to the Art Basel UBS report: "Previously a more niche area of collecting, digital art came into much greater mainstream focus in 2021 ... via a number of high-profile sales." Note, it is unclear whether digital art as defined by "The Art Market 2022 Report" includes NFTs.

*<u>Because Digital Art Is Now Coming To Fore, Museums Will Increase Their Exhibitions And Collections Of</u> <u>Digital Art</u>*

Museums are cultural arbiters. They consider the context of time and place and select artifacts which speak to and highlight the culture of that time and place. That digital art is now growing in public consciousness, there will soon be a likely current for museums to establish digital art collections.

To wit, according to the New York Times in an article on October 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;• "In September [2022], a foundation for the media mogul William Paley, who founded CBS, announced that it would auction a trove of artworks from his collection (including pieces by Picasso, Rodin and Renoir) for an estimated $70 million. The proceeds are supposed to help MoMA [the Museum of Modern Art in New York] further expand its digital footprint ..."

&nbsp;&nbsp;&nbsp;&nbsp;• At "the Guggenheim Museum, executives are hiring a new assistant curator for digital art that will be funded by LG, the electronics company, which is also paying for a $100,000 annual award to artists making "groundbreaking achievements in technology-based art."

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#### **TABLE OF CONTENTS**
&nbsp;&nbsp;&nbsp;&nbsp;• According to Christiane Paul, the Whitney Museum's digital art curator, "usually I had to sell the idea of digital art to the upper administrative levels," she said. "Now trustees are coming to me and asking if the Whitney should be in the metaverse."

And with museums' resources limited, we believe that the Company can help museums in their missions: to fund commissioned original digital artwork museum curators deem relevant to au courant culture. For funding the curation, production, and exhibition of designated digital artworks, the Company intends to obtain a Perpetual Global Master License in return. Such a structure allows the digital artworks, and its underlying intellectual property, to remain in the possession of the exhibiting cultural institution; while Tesseract can commercialize the intellectual property via license.

*<u>Copyright Protection Afforded New Intellectual Property</u>*

By and large, a licensee licenses from a licensor the use of the licensor's intellectual property because the licensor is a brand which is familiar to the broader public. Via the use of the licensor's brand, the licensee's products could differentiate itself from a sea of commodified goods through the consumer's attachment to the licensor. Unsurprisingly, in the world of art licensing, much of the imagery which is used in licensed merchandise sales are generally older recognized artworks not under copyright protection or those relatively newer works still under copyright protection. In the case of those not under copyright protection, the associated licensed art is generally sold in conjunction with a right to use the cultural institution's name. For example, while the Mona Lisa is not under copyright protection, most licensed images of the Mona Lisa are sold in tandem with the use of the Louvre trademark, the cultural institution that owns the Mona Lisa. In either case, intellectual property protection exists in the trademark of the institution and/or the copyright of the protected newer artwork. Thus, a competitive barrier is erected.

Following from above, the Company believes there is an opportunity to excel with new art intellectual property in one of three mutually non-exclusive ways: (i) create digital art which could be quickly recognized by the public because of less intense competition in the digital art niche; (ii) the use of new digital art intellectual property, for which the general public may be less familiar, paired with an elite cultural institution which is a distinguished brand; and/or (iii) a combination of both (i) and (ii).

The Company believes there is an opportunity in commissioning new digital art, curated by the museums themselves, whereby the museums select the artist, approve the digital artwork, and then exhibit the digital artwork in a gallery show. In their organization of the gallery show, the museums pronounce their point of view on the digital art displayed to the general public. By connecting the art with a recognized museum brand, we can take a less known image, and tether that visual with a known brand. The goal is to confer a halo effect to the image that might otherwise not be notable were it to stand in isolation.

*<u>The Use Of Collaborations To Expand The Licensing Market Potential Of The Intellectual Property Underlying</u> <u>Digital Art</u>*

Below are data for licensing and merchandising sales, in millions of dollars, from various property types from Licensing International's report entitled "2022 Global Licensing Industry Study":

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **2021 Sales**<br>**Revenues** | **2019 Sales**<br>**Revenues** | **2018 Sales** <br>**Revenues**  | **2017 Sales** <br>**Revenues**  | **2016 Sales** <br>**Revenues**  | **2015 Sales** <br>**Revenues**  |
| **Entertain/Characters** | $129932 | $128392 | $122682 | $121526 | $118324 | $113245 |
| **Corporate/Brand** | &nbsp;&nbsp;$76900 | &nbsp;&nbsp;$60174 | &nbsp;&nbsp;$58829 | &nbsp;&nbsp;$55770 | &nbsp;&nbsp;$54641 | &nbsp;&nbsp;$52820 |
| &nbsp;&nbsp;**Sports** | &nbsp;&nbsp;$31260 | &nbsp;&nbsp;$28935 | &nbsp;&nbsp;$27838 | &nbsp;&nbsp;$26544 | &nbsp;&nbsp;$25298 | &nbsp;&nbsp;$24889 |
| **Fashion** | &nbsp;&nbsp;$28433 | &nbsp;&nbsp;$33803 | &nbsp;&nbsp;$27838 | &nbsp;&nbsp;$26544 | &nbsp;&nbsp;$25298 | &nbsp;&nbsp;$24889 |
| **Publishing** | &nbsp;&nbsp;$26695 | &nbsp;&nbsp;$22232 | &nbsp;&nbsp;$20532 | &nbsp;&nbsp;$18437 | &nbsp;&nbsp;$17513 | &nbsp;&nbsp;$15678 |
| &nbsp;&nbsp;**Collegiate** | &nbsp;&nbsp;&nbsp;$7666 | &nbsp;&nbsp;&nbsp;$6481 | &nbsp;&nbsp;&nbsp;$6139 | &nbsp;&nbsp;&nbsp;$5688 | &nbsp;&nbsp;&nbsp;$5757 | &nbsp;&nbsp;&nbsp;$5940 |
| **Celebrity** | &nbsp;&nbsp;&nbsp;$6224 | &nbsp;&nbsp;&nbsp;$4785 | &nbsp;&nbsp;&nbsp;$4665 | &nbsp;&nbsp;&nbsp;$4603 | &nbsp;&nbsp;&nbsp;$4452 | &nbsp;&nbsp;&nbsp;$4209 |
| **Music** | &nbsp;&nbsp;&nbsp;$3465 | &nbsp;&nbsp;&nbsp;$3663 | &nbsp;&nbsp;&nbsp;$3484 | &nbsp;&nbsp;&nbsp;$3333 | &nbsp;&nbsp;&nbsp;$3081 | &nbsp;&nbsp;&nbsp;$2816 |
| **Art** | &nbsp;&nbsp;&nbsp;$3437 | &nbsp;&nbsp;&nbsp;$2983 | &nbsp;&nbsp;&nbsp;$2710 | &nbsp;&nbsp;&nbsp;$2475 | &nbsp;&nbsp;&nbsp;$1775 | &nbsp;&nbsp;&nbsp;$1439 |
| **Non-Profit** | $1498 | $1381 | $1170 | $1181 | $971 | $921 |
| **TOTAL WW** | **$315511** | **$292830** | **$280292** | **$271638** | **$282880** | **$251713** |

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Art licensing and merchandising has grown from $1.4 billion in 2015 to $3.4 billion in 2021. Excluding the Covid 19 pandemic year of 2020, that is a compound annual growth rate of 19%.

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As per data evidenced above, were we to consider art licensing alone, the 2021 licensing market had $3.4 billion in sales; by bringing The Little Prince as a Collaborator for CODAs, we would expand our base market to include entertainment/character licensing, which was $129.9 billion in sales in 2021; and by utilizing celebrity Icon Collaborators for CODAs, we would expand our base market to include celebrity licensing, which was $6.2 billion in sales in 2021.

Thus, via various collaborations, one can significantly expand the traditional art licensing market to include other categories with potential market sizes as seen from the 2021 licensing revenue metrics above.

While increasing potential buying audiences via collaborations is conceptually straightforward, it's execution is anything but. While we believe that Tesseract's team is well placed to execute such collaborations, there are no assurances that we will be able to create such collaborations, that our sales will comprise a material portion of the overall market in each property type, or that our sales will increase as a result of broadening our market base outside of the traditional art market.

We believe the four forces articulated above create a unique opportunity for Tesseract via commissioning museum quality CODAs, with possible additional collaborations via celebrity and character Icons, in return for their Perpetual Global Master License.

#### Our Strategy
We intend to build ourselves into an intellectual property company. We intend to build our intellectual property library through the creation and amassing of rights to original digital artworks derived from iconic personalities, iconic brands, iconic characters, or iconic works from the physical art and collectibles markets.

We intend to commission original digital artworks derived from the Icons created in partnership with renowned museums or cultural institutions. Tesseract intends to enter into license agreements which allow for the name, image, and/or likeness of the Icons to be utilized. Our museum partners will select the artists to produce CODAs in collaboration with the Icon we introduce, each of whom is a collaborator in the artistic endeavor, and then exhibit the produced digital artworks in a gallery show at the museum. The stakeholders of a CODA include the Icon, the museum partner, and the artists.

We plan to secure a global master license for all non-NFT rights in perpetuity to the intellectual property underlying the CODAs from each of its stakeholders. Thereafter, we intend to monetize the Perpetual Global Master License via the sub-licensing of such rights to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories. Thus, the sub-licensees would imprint the visual imagery of the CODAs on:

&nbsp;&nbsp;&nbsp;&nbsp;• T-shirts

&nbsp;&nbsp;&nbsp;&nbsp;• Scarves

&nbsp;&nbsp;&nbsp;&nbsp;• Bracelets and other jewelry wear

&nbsp;&nbsp;&nbsp;&nbsp;• Plates and chinaware

There are five features to our strategy:

1. First, we believe it is noteworthy to partner an Icon with a museum and their selected artists. We believe this construct of a rare Icon, partnered with the high curatorial standards of museums, what we term "scarcity times scarcity," allows for the creation of CODAs of distinction, and the agglomeration of an exceptional asset base available only from Tesseract.

2. Second, by securing a Perpetual Global Master License from each stakeholder to the produced CODAs, we would create a competitive barrier to our CODAs. Because we intend that the license would be perpetual, our ability to utilize the intellectual property inherent in the license never expires. Thus, the Company can build a library of enduring rights without a license end date.

3.<br> Third, we believe that digital artworks which have been exhibited in a museum gallery show are rare. We believe the museum showcase will elevate our exhibited works over non-museum exhibited artworks in public minds.

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4. Fourth, we believe our CODAs will be instantly recognizable, as we intend that the Icons from which our CODAs are derived from will be well-known, and the artist creating the CODAs will be well respected in the high-end art community because they were selected by the museum partner. Such recognition is prized when we enter sub-licensing discussions with third-party licensees.

5.<br> Last, by enlisting multiple Collaborators—the Icon, the cultural institution, and the artist—we would expand the CODA marketing and buying audience by piggybacking on the enthusiasts of each of the Collaborators.

#### Our Strengths
We believe Tesseract is well positioned to capitalize on the Icon and museum developed CODA licensing market, and that executing on such a strategy requires bespoke skills resident within Tesseract.

We believe our principal strengths in capturing this opportunity are:

&nbsp;&nbsp;&nbsp;&nbsp;• We have access to numerous Icons, Collaborators, and cultural institutions: Because of the backgrounds of our team members, we have direct or indirect relationships with:

&nbsp;&nbsp;&nbsp;&nbsp;○ Owners or creators of Icons, their licensees, and/or their licensing agents; and

&nbsp;&nbsp;&nbsp;&nbsp;○ Renowned Collaborators, be they museums, artists, musicians, celebrities, influencers, fashion designers, and/or luxury brands, amongst others.

&nbsp;&nbsp;&nbsp;&nbsp;• Because of the credibility of our team, we believe that we will be seen as trusted stewards of Icons and Collaborators. We believe those in the industry will trust our respected team to not sully the brands or reputation of the Icons we license, or Collaborators with whom we work. We believe our team will inspire confidence in those with whom we plan to transact.

&nbsp;&nbsp;&nbsp;&nbsp;• Because of our team's experience in private equity, we believe we can obtain the Perpetual Global Master License from all the CODA stakeholders at reasonable prices.

&nbsp;&nbsp;&nbsp;&nbsp;• Because our core management team is steeped in licensing, we have an in-depth understanding of how to market our CODA visual inventory in ways which we believe will resonate with the market.

While we believe that there is a significant opportunity in the intellectual property of CODAs associated with Icons curated and exhibited by museums, given our early stage of development, it will require substantial management resources, time, and capital, amongst other factors, for Tesseract to capture any portion of this market.

#### Our Business Model
We expect to derive our revenue from two sources: (i) exploitation of our Perpetual Global Master Licenses via licensing and merchandising to third-party sub-licensees; and, (ii) because we intend to hold an annual TED Event featuring a different cultural institution each year, the sale of tickets and sponsorship from our TED Events.

We expect to have high operating leverage with a small core staff consisting of personnel in commissioning and creative direction in CODA development, CODA licensing and merchandising, marketing, and finance. With such lean staffing, we believe we can manage and execute Tesseract's licensing and merchandising of CODAs effectively.

We carry no physical inventory. We expect that our minimal capital expenditure requirements will result in high cash flow conversion and increased capacity to invest in future growth initiatives, which include the commissioning of new CODAs in partnership with Icons and museums, thus expanding our inventory of intellectual property for CODA licensing and merchandising opportunities.

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#### Our Icon
*<u>Le Petit Prince/The Little Prince</u>*

Our license provides the non-exclusive right to produce CODAs inspired by the originals of all writings, sketches, and final illustrations, amongst others, for The Little Prince.

![](ny20004683x6_cover.jpg)<br>

The Little Prince has sold over 200 million copies worldwide, which makes it one of the best-selling books ever written. With translations in over 400 languages and dialects, The Little Prince is the second most translated book after the Bible. It has been adapted to numerous art forms and media, including audio recordings, radio plays, live stage, film, television, ballet, and opera.

#### TED Talks
![](ny20004683x6_tedx1.jpg)<br>

We have entered into a TED Partner Institute Agreement. It is our intention to feature a museum partner ("Tesseract TED Museum Partner") and its community as the focal point of a TED Event orchestrated by Tesseract.

Once a Tesseract TED Museum Partner has been identified, and should we secure the consent of the stakeholders to the intellectual property of the CODAs, we intend to enter into a Perpetual Global Master License with the Tesseract TED Museum Partner.

With the Perpetual Global Master License, we intend to commercialize the license as soon as possible upon the finalization of the CODA visuals.

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#### Early Stage of Development
We are a recently formed company with a limited operating history. Our CODAs are not yet under development. We have never been profitable. Currently, we have no products available for sale, and to date we have not generated any revenue from product sales or merchandising or licensing. Because the Company has recurring losses from operations and an accumulated deficit, our auditors have raised substantial doubt about the Company's ability to continue as a going concern.

#### Competition
The visual imagery from our CODAs, which would underpin the intellectual property of our Perpetual Global Master License, are subject to extensive competition from various domestic and foreign intellectual property owners of visual images available for licensing. Such competitors could include our potential collaborating museum partners themselves. We intend to license the imagery from our CODAs across a wide range of product categories, including apparel, accessories, media, home goods, amongst others, in which we and our potential licensees face intense competition, including, in the case of our potential licensees, from other licensees.

In general, competitive factors include visual art quality, name recognition, consumer preference, product quality, price, style and service. In addition, we face competition from other art intellectual property management companies in specific, and other intellectual property management companies in general, for licenses. Other companies owning established intellectual property may decide to enter into licensing arrangements similar to the ones we are currently contemplating. Furthermore, our potential licensees may decide to more prominently promote and market competing intellectual property, or develop or purchase other intellectual property, rather than enter into arrangements with us.

#### Corporate Information
We were incorporated in the State of Delaware on November 29, 2021. Our principal executive offices are located at 45 Rockefeller Plaza, 20<sup>th</sup> Floor, New York, New York 10111. Our corporate telephone number is (917) 379-6544.

Our corporate website is www.tesseracticons.com. The information contained on or that can be accessed through our website is not incorporated by reference into this Offering Circular and you should not consider information on our website to be part of this Offering Circular or in deciding whether to purchase our shares of Common Stock.

#### Summary Risk Factors
Our business is subject to a number of risks of which you should be aware before making an investment decision. You should carefully consider all of the information set forth in this Offering Circular and, in particular, should evaluate the specific factors set forth under the "*Risk Factors*" section of this Offering Circular in deciding whether to invest in our Common Stock. Among these important risks are the following:

#### Risks Relating to our Early Stage of Development and our Financial Position
&nbsp;&nbsp;&nbsp;&nbsp;• We are a recently formed company with a limited operating history.

&nbsp;&nbsp;&nbsp;&nbsp;• Our products are not yet under development.

&nbsp;&nbsp;&nbsp;&nbsp;• We only have one license securing rights to our intended product offerings and there can be no assurances that we will be able to acquire the rights to more iconic art.

&nbsp;&nbsp;&nbsp;&nbsp;• Although we have engaged in some operational activities since inception, we have an evolving and unpredictable business model.

&nbsp;&nbsp;&nbsp;&nbsp;• Our business plan is speculative.

&nbsp;&nbsp;&nbsp;&nbsp;• We have never been profitable. Currently, we have no products available for sale, and to date we have not generated any revenue from product sales or cash flows from operations. As a result, our ability to reduce our losses and reach profitability is unproven, and we may never achieve or sustain profitability.

&nbsp;&nbsp;&nbsp;&nbsp;• We will need to expand the size of our company but we may not be successful in managing growth.

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&nbsp;&nbsp;&nbsp;&nbsp;• We will require substantial additional funding, which may not be available to us on acceptable terms, or at all, and, if not so available, may require us to delay, limit, reduce or cease our operations.

&nbsp;&nbsp;&nbsp;&nbsp;• We are a development stage company and are in the process of developing our products and services. The Company's ability to continue as a going concern is contingent upon its ability to achieve and maintain profitable operations and the Company's ability to raise additional capital as required. Our auditors have indicated that these conditions raise substantial doubt about the Company's ability to continue as a going concern.

#### Risks Related to Our Business
&nbsp;&nbsp;&nbsp;&nbsp;• The market and consumer demand for collectible products based on digital art is new and highly uncertain.

&nbsp;&nbsp;&nbsp;&nbsp;• Consumer demand for art and collectibles is unpredictable, which may cause significant variability in our results of operations, and the volatility in prices for collectibles and other goods based on digital art may result in downward price pressure.

&nbsp;&nbsp;&nbsp;&nbsp;• Economic uncertainty in our key markets may affect consumer purchases of discretionary items, which may adversely affect demand for our products.

&nbsp;&nbsp;&nbsp;&nbsp;• We do not have certain critical capabilities in-house and, as a result, must rely on third parties, including, but not limited to, our Collaborators, to provide us with services and products essential to our business.

&nbsp;&nbsp;&nbsp;&nbsp;• Our business is dependent on the creativity of our Collaborators, and they may not design or develop CODAs that will be popular with target consumers for our products.

&nbsp;&nbsp;&nbsp;&nbsp;• Competition in the art and collectibles industry, and the ongoing creation of new art, as well as competition for licensing, may make it difficult for us to be successful.

&nbsp;&nbsp;&nbsp;&nbsp;• The Art and licensing industries are highly competitive and the barriers to entry are low. If we are unable to compete effectively with existing or new competitors, our sales, market share and profitability could decline.

&nbsp;&nbsp;&nbsp;&nbsp;• The value of products based on digital art is not the same as for physical art, and relies in part on the development and general acceptance of digital art as a category, rather than solely on the digital artwork itself.

#### Risks Related to Intellectual Property
&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to obtain, maintain and protect intellectual property rights associated with our products, in particular trademarks and copyrights, our ability to compete could be negatively impacted.

&nbsp;&nbsp;&nbsp;&nbsp;• The failure to protect, or the loss of, intellectual property rights by us or our company's licensor-partners could compromise our competitive position and result in cancellation, loss of rights or diminution in value of our digital and other assets.

&nbsp;&nbsp;&nbsp;&nbsp;• Third-party claims regarding our licensed intellectual property rights could result in our being unable to continue using such rights, which could adversely impact our revenue or result in a judgment or monetary damages being levied against us.

&nbsp;&nbsp;&nbsp;&nbsp;• Failure to obtain Perpetual Global Master Licenses and renew any existing ones could materially adversely affect our operations, and we will lose our rights to protect against the future creation of duplicative products.

&nbsp;&nbsp;&nbsp;&nbsp;• Variability in intellectual property laws may adversely affect our intellectual property position.

#### Risks Related to Government Regulation, Litigation and the International Nature of Our Business
&nbsp;&nbsp;&nbsp;&nbsp;• We and our licensors are subject to local laws and regulations in the U.S. and abroad.

&nbsp;&nbsp;&nbsp;&nbsp;• Organizations face growing regulatory and compliance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;• Legislative and regulatory actions taken now or in the future may increase our costs and impact our business, governance structure, financial condition or results of operations.

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#### Risks Related to Management and Personnel
&nbsp;&nbsp;&nbsp;&nbsp;• Our success is critically dependent on the efforts and dedication of our officers and other employees, and the loss of one or more key employees, or our inability to attract and retain qualified personnel and maintain our corporate culture, could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;• Our management team does not have experience successfully operating other businesses in the digital asset industry.

#### Risks Related to this Offering
&nbsp;&nbsp;&nbsp;&nbsp;• The determination for the offering price of our shares is more arbitrary compared with the pricing of securities for an established operating company.

&nbsp;&nbsp;&nbsp;&nbsp;• No public market for our securities currently exists, and an active trading market may not develop or be sustained.

&nbsp;&nbsp;&nbsp;&nbsp;• There is no underwriter or placement agent for this Offering, so no outside independent party has verified any of the statements contained in this Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;• The shares of Common Stock are offered on a "best efforts" basis and the company may not raise the maximum amount being offered

&nbsp;&nbsp;&nbsp;&nbsp;• An investment in our shares of Common Stock could result in a loss of your entire investment.

&nbsp;&nbsp;&nbsp;&nbsp;• Investors in this Offering will experience immediate and substantial dilution.

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#### THE OFFERING

#### Securities being offered by us
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock at $ per share.

#### Securities outstanding prior to this Offering
21,495,001 shares of Common Stock.

#### Securities outstanding after this Offering
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock, if the maximum amount of shares of Common Stock offering pursuant to this Offering Circular are sold

#### Maximum Offering Amount
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares at $ per share, or $.

#### Market for our securities
There is no public market for our securities, including the shares of Common Stock.

#### Use of proceeds
We estimate that the proceeds to us from the Offering, after deducting the offering expenses payable by us, will be approximately . The net proceeds available to us will be used as set forth in *Use of Proceeds* on page [36](#tUOP). We will likely use the proceeds to fund the development of creative ideas for CODAs to develop new products, to negotiate, and license other Icons, to support the research of, and to engage, our micro-influencer community, and working capital and general corporate purposes.

#### Risk Factors
An investment in the Company is highly speculative and involves a significant degree of risk. Prospective investors should carefully consider the *Risk Factors* beginning on page [13](#tRF) before investing in the shares of Common Stock offered hereby.

#### Termination of the offering
This offering will close upon the earlier of (1) the sale of the maximum number of shares of Common Stock, (2) one year from the date this Offering begins, or (3) a date prior to one year from the date this Offering begins that is so determined by our board of directors.

Except as otherwise indicated, the number of shares of Common Stock outstanding after this Offering exclude:

&nbsp;&nbsp;&nbsp;&nbsp;• 30,000 shares of Common Stock issuable upon exercise of the Ferdinand IP Warrants that we have agreed to issue to Ferdinand IP Law Group, our outside counsel for intellectual property legal services (see "*Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources* ");

&nbsp;&nbsp;&nbsp;&nbsp;• the shares of Common Stock to be issued to Leagas Delaney in consideration of amounts due for creative advertising services provided (see "*Certain Relationships and Related Party Transactions* ");

&nbsp;&nbsp;&nbsp;&nbsp;• an aggregate of     shares of our Common Stock available for future equity awards under the 2022 Equity Incentive Plan (the "2022 Plan"); and

&nbsp;&nbsp;&nbsp;&nbsp;• an aggregate of    shares of our Common Stock that will be available for future equity awards under the 2023 Equity Incentive Plan, that we plan to adopt (the "2023 Plan").

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#### SUMMARY FINANCIAL DATA
The following table sets forth a summary of our historical financial data as of, and for the periods ended on, the dates indicated. The summary financial data was derived from our audited financial statements, and should be read in conjunction with the financial statements and the accompanying notes, which are included elsewhere in this Offering Circular. In addition, the summary financial data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Use of Proceeds," "Capitalization," and "Risk Factors," also included elsewhere in this Offering Circular.

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| | | |
|:---|:---|:---|
|  | **For the Period** <br>**November 29, 2021** <br>(Inception) to <br>**December 31,**<br>**2021** | **For the**<br>**six months ended**<br>**June 30, 2022** |
| **Operating Data:**<br>|  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;$138889 |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;234203  |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2504 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;593552  |
| &nbsp;&nbsp;&nbsp;Net loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2504) | &nbsp;&nbsp;&nbsp;&nbsp;(966644)  |
| &nbsp;&nbsp;&nbsp;Basic net loss per common share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.05) |
| &nbsp;&nbsp;&nbsp;Diluted net loss per common share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.05) |
| &nbsp;&nbsp;&nbsp;Weighted average common shares outstanding:<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted | &nbsp;&nbsp;&nbsp;&nbsp;8465456 | &nbsp;&nbsp;19382052 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Actual** <br>**December 31,** <br>**2021** | **Actual**<br>**June 30, 2022** | **Pro Forma<sup>(1)</sup>**<br>**June 30, 2022** | **Pro Forma** <br>**As Adjusted<sup>(2)</sup>**<br>**June 30, 2022** |
| **Balance Sheet Data:**<br>|  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | &nbsp;&nbsp;$81510 | &nbsp;&nbsp;&nbsp;$10607 | &nbsp;&nbsp;$758107 | $|
| &nbsp;&nbsp;&nbsp;Total assets | &nbsp;&nbsp;82369 | &nbsp;&nbsp;&nbsp;210135 | &nbsp;&nbsp;957635 |  |
| &nbsp;&nbsp;&nbsp;Total liabilities | &nbsp;&nbsp;83127 | &nbsp;&nbsp;&nbsp;677483 | &nbsp;&nbsp;677483 |  |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(758) | &nbsp;&nbsp;(467348) | &nbsp;&nbsp;280152 |  |

---

(1) The "Pro Forma" information gives effect to the sale of 1,495,000 common stock shares from July 1 through February 14, 2023, for net cash proceeds $747,500. 

(2) The "Pro Forma As Adjusted" information gives effect to the "Pro Forma" information set forth in footnote 1 as adjusted for the sale of all of the maximum number of shares of Common Stock by us in the offering (the "Maximum Offering Amount") after deducting the estimated offering expenses payable by us.

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#### RISK FACTORS
*An investment in the Common Stock offered by this Offering Circular involves a high degree of risk. You should consider carefully all of the material risks described below, together with the other information contained in this Offering Circular, before making a decision to invest in the company's securities. If any of the following risk factors actually occur, our business, financial condition, results of operations and prospects could suffer, the trading price of our securities could decline and you could lose all or part of your investment.*

#### The Risks Relating to our Early Stage of Development and our Financial Position

#### We are a recently formed company with a limited operating history.
We are a recently formed company with a limited operating history. As a result, there is no basis upon which to evaluate our ability to implement our business plan. We are subject to all of the challenges, complications, problems, expenses and other risks, including unforeseen risks, inherent in establishing a new business. There can be no assurance that we will be able to successfully implement our business plan. No investment should be made by investors who cannot afford to lose their entire investment.

#### Our products are not yet under development.
We may commit significant resources to product development. There can be no assurance, however, we will successfully complete product development on a timely basis, or at all. Failure to complete or timely complete product development will have a significant adverse impact on our business prospects and financial condition.

***We only have one license securing rights to our intended product offerings and there can be no assurances that we will be able to acquire the rights to more iconic art.***

Although we intend to acquire rights to additional iconic art, we currently only have a license to develop CODAs derived from the original illustrations from The Little Prince, and to create and sell merchandise and other products based on such CODAs. While part of our business model is to protect the scarcity of the products we offer, this approach also substantially limits the digital art offerings that we can generate from our license. There can be no assurances that we will be able to acquire the rights to additional iconic Art in the future at a reasonable price, or at all, and we are substantially reliant on the product offerings that can be derived from the original illustrations from The Little Prince.

Further, the license only provides a non-exclusive right to produce CODAs, and accordingly, limits the value of our license because third parties may produce other CODAs from the same artwork. We are also in negotiations to amend the license agreement to exclude NFT rights. If SOGEX enters into a new agreement with a third party to sell NFTs based on the original artwork of The Little Prince, the value of our products based on CODAs may decrease, and could have a material impact on our results of operations.

#### Although we have engaged in some operational activities since inception, we have an evolving and unpredictable business model.
Although we have engaged in some operational activities, we were organized in November 2021, and our lack of long-term operating history makes predictions of future operating results difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets, such as in the digital asset space. Such risks for us include, but are not limited to, an evolving and unpredictable business model, the ability to facilitate growth during continuing advances in technology, methods or processes, and the ability to evolve with changes in the market. To address these risks, we must, among other things, build our customer base, implement and successfully execute our business and marketing strategy, continually develop and upgrade our product offerings, respond to competitive developments, and attract, retain and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our business prospects, financial condition and results of operations.

#### Our business plan is speculative.
Our present business and planned business are speculative and subject to numerous risks and uncertainties. There is no assurance that we will generate significant revenues or profits.

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***We have never been profitable. Currently, we have no products available for sale, and to date we have not generated any revenue from product sales. As a result, our ability to reduce our losses and reach profitability is unproven, and we may never achieve or sustain profitability.***

We have never generated revenue and have never been profitable and do not expect to generate revenue or be profitable in the foreseeable future. We have not yet created any product offerings for purchase by consumers. We have incurred net losses since our inception, including net losses of $966,644 for the six months ended June 30 2022, and had an accumulated deficit of $969,148 as of June 30, 2022.

To date, we have devoted most of our financial resources to licensing our intellectual property and our corporate overhead. We have not generated any revenues from product sales. We expect to continue to incur net losses and negative cash flows for the foreseeable future, and we expect these losses to increase when we seek to license further Icons and other High-End Art. These net losses and negative cash flows have had, and will continue to have, an adverse effect on our stockholders' equity (deficit) and working capital.

Further, because of the numerous risks and uncertainties associated with the art industry, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve profitability. The amount of future net losses will depend, in part, on the rate of future growth of our expenses and our ability to generate revenues.

#### We will need to expand the size of our company but we may not be successful in managing growth.
We will need to expand the size of our company as we implement our business plan. This plan contemplates use of third-party providers for many products and services, including the development of CODAs and licensing of products associated with the CODAs. Nonetheless, it can be anticipated that expansion in the scope of our operations will result in increasing complexity of running our business. We currently have three employees, our Chief Executive Officer, our Chief Financial Officer, and our President. In addition to attracting and retaining additional personnel, we will be required to manage any growth, including implementing and continually improving our operational, financial and management controls, reporting systems and procedures. We may not be able to successfully manage the growth and increased complexity of our business, which could impede achievement of our business development objectives.

***There is substantial doubt about our ability to continue as a going concern and if we are unable to generate significant revenue or secure additional financing we may be unable to implement our business plan and grow our business.***

We are a development stage company and are in the process of developing our products and services. The Company's ability to continue as a going concern is contingent upon its ability to achieve and maintain profitable operations and the Company's ability to raise additional capital as required. Our auditors have indicated that these conditions raise substantial doubt about the Company's ability to continue as a going concern.

There is uncertainty regarding our ability to implement our business plan and to grow our business to a greater extent than we can with our existing financial resources without additional financing. Except from the proceeds of this Offering, we have no binding agreements, commitments or understandings to secure additional financing at this time. We also have no binding agreements, commitments or understandings to acquire any other businesses or assets. Our long-term future growth and success is dependent upon our ability to generate cash from operating activities and obtain additional financing, potentially beyond the proceeds of this Offering. There is no assurance that we will be able to generate sufficient cash from operations, sell shares of common stock in addition to this Offering or borrow additional funds. Our inability to obtain additional cash could have a material adverse effect on our ability to fully implement our business plan as described herein and grow our business to a greater extent than we can with our existing financial resources.

However, a major assumption underlying management's belief is that this Offering is successful, raising the maximum amount being offered in this Offering. As there is no assurance that this Offering will be successful or that the Company will be able to implement its current business plan for the reasons set forth herein and elsewhere in "Risk Factors," there is no assurance the Company will meet its targets. No investor should rely on any assumption that the Company will meet these targets in making an investment decision concerning the shares of Common Stock in this Offering.

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***We will require substantial additional funding, which may not be available to us on acceptable terms, or at all, and, if not so available, may require us to delay, limit, reduce or cease our operations.***

Developing our CODAs and other products, purchasing Perpetual Global Master Licenses and paying guarantees under our existing license and agreement with TED, are expensive. Our financial resources will also be used for general corporate purposes, general and administrative expenses, capital expenditures, working capital and maintenance of our licensed intellectual property to the extent required under our license agreement. Accordingly, we will continue to require substantial additional capital to meet these capital requirements. Because the availability of licensing and product creation opportunities are uncertain, we are unable to estimate the actual funds we will require to complete our product offerings under development, and the acquisition of rights to additional art.

The amount and timing of our future funding requirements will depend on many factors, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;• the progress, costs, results and timing of our CODAs and other associated products to be created based on the original artwork of The Little Prince;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enter into Perpetual Global Master Licenses with museums for development of CODAs and products based on the CODAs;

&nbsp;&nbsp;&nbsp;&nbsp;• the number and characteristics of product offerings that we pursue;

&nbsp;&nbsp;&nbsp;&nbsp;• the cost associated with, and ability of, our third-party service providers and Collaborators to produce and complete the CODAs and the products we intend to offer to consumers;

&nbsp;&nbsp;&nbsp;&nbsp;• our need to expand our product offerings;

&nbsp;&nbsp;&nbsp;&nbsp;• market acceptance of our product offerings;

&nbsp;&nbsp;&nbsp;&nbsp;• the costs of acquiring, licensing or investing in businesses, products, and technologies;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain, expand and defend the scope of our intellectual property portfolio rights, including the amount and timing of any payments we may be required to make, or that we may receive, in connection with our agreement with TED and our license and other products we intend to offer;

&nbsp;&nbsp;&nbsp;&nbsp;• our need and ability to hire additional management, technical, and other personnel;

&nbsp;&nbsp;&nbsp;&nbsp;• the effect of competing digital asset, art, fashion, music, and luxury brand market developments;

&nbsp;&nbsp;&nbsp;&nbsp;• our need to implement additional internal systems and infrastructure, including financial and reporting systems; and

&nbsp;&nbsp;&nbsp;&nbsp;• the economic and other terms, timing of and success of our existing licensing arrangement and any collaboration, licensing or other arrangements into which we may enter in the future.

Some of these factors are outside of our control. Based on our current financial resources, our expected level of operating expenditures and the net proceeds and/or the anticipated net proceeds, respectively, from this Offering, assuming we receive the maximum amount being offered in this Offering, we believe that we will be able to fund our projected operating requirements for at least the next months. This period could be shortened if there are any significant increases in planned spending on our capital needs as summarized above. Thereafter, we will need to obtain additional financing to fund future guarantee payments, licenses, service provider costs and other expenses. We expect to finance our cash needs primarily through equity offerings and debt. We may also raise capital through collaborations and development agreements, strategic alliances and licensing arrangements.

Additional funding may not be available to us on acceptable terms or at all. In addition, the terms of any financing may adversely affect the holdings or the rights of our stockholders. In addition, the issuance of additional shares by us, or the possibility of such issuance, may cause the market price of our shares of common stock, if and when established, to decline.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail one or more of our business plans. We also could be required to seek funds through arrangements with collaborative partners or otherwise that may require us to relinquish rights to some of our licenses or otherwise agree to terms unfavorable to us.

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#### We face risks from increases in inflation.
Recent increases in inflation in the United States and elsewhere may lead to national, regional and international economic disruptions, any of which could affect the Company's operations and ability to effect a public offering. In addition, the Company's ability to effect a public offering may be impacted by inflation, including as a result of increased market volatility or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all.

#### Risks Related to Our Business

#### We face risks from doing business internationally.
We intend for our business to be global, and we may therefore sell our products outside the U.S. and potentially derive revenue in foreign jurisdictions. As a result, our business may be subject to certain risks inherent in international business, many of which are beyond our control. These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;• laws and policies affecting trade, investment and taxes, including laws and policies relating to the repatriation of funds and withholding taxes, and changes in these laws;

&nbsp;&nbsp;&nbsp;&nbsp;• the Foreign Corrupt Practices Act and similar laws regulating interactions and dealings with foreign government officials;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in local regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;• differing degrees of protection for intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;• differing consumer tastes and preferences;

&nbsp;&nbsp;&nbsp;&nbsp;• the instability of foreign economies and governments;

&nbsp;&nbsp;&nbsp;&nbsp;• fluctuating foreign exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;• the spread of communicable diseases in such jurisdictions, which may impact business in such jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;• war and acts of terrorism.

Events or developments related to these and other risks associated with international operations could adversely affect our revenue from non-U.S. sources, which could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.

#### The market and consumer demand for products based on digital art is highly uncertain.
While the digital art market has attracted growing attention in the general population and consumer base, widespread understanding of digital art is lacking. Prices of products based on digital art are also highly uncertain, and will likely correspond in part to the attractiveness of the underlying digital art. No assurance can be given that our investment in various licenses, or our development or future creation of CODAs and derivative collectible products, will attract consumer interest to the extent necessary to be successful and achieve our business goals.

Consumer demand for art is influenced not only by overall economic conditions, but also by changing trends in the art market as to which collecting categories and artists are most sought after and by the preferences of individual collectors. The art and collectibles market has also been subject to volatility in demand in recent periods. Demand for high value art and collectibles depends to a large extent on general, economic, political and social conditions in a given market as well as the tastes of the collector or art enthusiast community resulting in changes in the types of art and collectibles that are most sought after. High-End Art and Icons in particular are purchased comparatively by only a small consumer base and accordingly face additional challenges to gain interest in light of significant competition and changing trends. Volatility in demand may lead to volatility in the value of art and collectibles, which may result in further downward price pressure. There can also be no assurance that even where High-End Art and Icons are in high demand, that products based on CODAs will be similarly sought after by consumers. These conditions and trends are difficult to predict and may adversely impact our ability to obtain and sell our products, potentially causing significant variability in our results of operations from period to period.

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#### **TABLE OF CONTENTS**
***The sales prices of products based on our CODAs are unpredictable, and there is no assurance that the price of the digital art from which our products will derive will be sold at prices similar to prices for the underlying digital art.***

The selling prices of products based on our CODAs are highly unpredictable. CODAs are a new type of asset, and, historically, the prices of digital art in the market have been highly volatile, and we anticipate that such volatility will continue in the future, including with regard to the potential sale price of our CODAs. Merchandise and other products based on CODAs is a new type of asset and the sale of such products does not have a significant historical track record. Additionally, there is no assurance that the price of the digital art from which our products will derive, or the digital art market itself, will correlate with the salability or prices of our merchandise and other products based on the CODAs.

***The prices of digital art, including NFTs, can be extremely volatile, and to the extent the prices of our products depends on the success of the digital art market in general, or the digital art and NFTs sold by third parties based on the CODAs may reduce consumer interest in our merchandise and other products.***

Prices of NFTs and other digital art are volatility and unpredictable. Decreases in the prices of even unrelated NFTs sold by third parties may cause volatility in the entire digital asset industry and may affect the value of our licenses to produce and sell merchandise and other products based on the CODAs. For example, a security breach or any other incident or set of circumstances that affects purchaser or user confidence in the blockchain or crypto assets may affect the digital asset industry as a whole and may also cause the price of digital assets to fluctuate or demand to drop. To the extent the prices of our products depends on the success of the digital art market in general, or the digital art and NFTs sold by third parties based on the CODAs, such occurrences may reduce consumer interest in our merchandise and other products, which could result in decreased revenue and hurt our financial position.

#### Economic uncertainty in our key markets may affect consumer purchases of discretionary items, which may adversely affect demand for our products.
Our products, for many consumers, will be discretionary items. Factors affecting the level of consumer spending for such discretionary items include general economic conditions and other factors such as consumer confidence in future economic conditions, fears of recession and trade wars, the availability and cost of consumer credit, the availability and timing of government stimulus programs to increase general economic growth, levels of unemployment, and tax rates. As global economic conditions continue to be volatile or economic uncertainty remains, particularly in light of the COVID-19 pandemic and military conflicts such as those in Ukraine, trends in consumer discretionary spending also remain unpredictable and subject to reductions as a result of significant increases in employment, financial market instability, and uncertainties about the future. Unfavorable economic conditions may lead consumers to delay or reduce purchases of our products. Consumer demand for our products may decline as a result of an economic downturn, or economic uncertainty in our key markets, particularly in North America, Europe, and Asia. Our sensitivity to economic cycles and any related fluctuation in consumer demand may have a material adverse effect on our business, results of operations, and financial condition.

***We do not have certain critical capabilities in-house and, as a result, must rely on third parties, including, but not limited to our Collaborators, to provide us with services and products essential to our business.***

We do not have any Collaborators or sales capabilities in-house. Developing and managing such capabilities in-house is complex and would require the commitment of substantial resources without any assurance of success. Accordingly, we will rely on third parties to provide a variety of services and products that are central to establish and operate our business. It is possible that some of these third parties will fail to provide essential products and perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other third-party operations could adversely affect our business.

In addition, the use of third-party providers may require us to disclose certain proprietary information to these parties, which could increase the risk that this information will be misappropriated. There are a limited number of third-party providers that specialize or have the requisite expertise to create, maintain and provide products, such as products derived from our CODAs and services required to implement our business plan. Identifying, qualifying and managing performance of third-party providers can be difficult, time consuming and cause delays in the development and progression of our business.

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***Our business is dependent on the creativity of our Collaborators and other artists, and they may not design or develop CODAs that will be popular with consumers.***

We are dependent, in part, on the creativity of our Collaborators and other artists to produce CODAs that will be popular with consumers sufficient to create derivative merchandise and other products that will be attractive to customers. The ultimate consumer interest in and success of, such CODAs, and thereby our products, depends on the efforts of these third parties. We do not control the creative process of our Collaborators or the other artists who will create the CODAs. Further, the interests of consumers evolve extremely quickly and can change dramatically from year to year. To be successful we must correctly anticipate the CODAs that will be attractive enough to consumers to sell products based on the CODAs, and we will need to work with our Collaborators to quickly develop and introduce products that can compete successfully for consumers' spending.

#### We have limited internal resources available to identify and monitor third-party providers.
We have limited internal resources available to identify and monitor third-party providers. It is very difficult to identify and engage highly skilled Collaborators who have the capabilities to design products based on Icons, even in collaboration with artists engaged by museums, that would attract significant attention and demand. To the extent we are unable to identify, retain and successfully manage the performance of third-party providers, our business may be adversely affected, and we may be subject to the imposition of civil or criminal penalties if any of their products, services, or actions violates applicable law.

***Any harm to the brand of our Collaborators, other artists or third-party providers with which we work, may have a material adverse effect on our brand and reputation.***

The demand for products based on our CODAs created, at least in part, by a Collaborator, may be influenced by the general perception of the art and collectibles that such Collaborator has produced. Any actions by Collaborators may impact the image and perceived value of the CODAs and the derived products to be sold by us. Further, any negative publicity surrounding any of our Collaborators or third-party providers, may have a material adverse effect on our brand or the perception of our brand. In particular, we have no control over the personal and sometimes professional actions of our Collaborators and other third-party providers, and therefore any effect such actions have directly or indirectly on our brand due to personal and professional actions is out of our control.

***As we intend to become a purveyor of licensed consumer products, if, and when we do, we or our Collaborators may not be able to design and develop products that will be popular with consumers, and we may not be able to maintain the popularity of successful products.***

The interests of consumers evolve extremely quickly and can change dramatically from year to year. To be successful we must correctly anticipate the Icons and the products we license and sell that will appeal to consumers and quickly develop and introduce products that can compete successfully for consumers' limited time, attention and spending. Evolving consumer tastes and shifting interests, coupled with an ever changing and expanding pipeline of products and content that compete for consumers' interest and acceptance, create an environment in which some products and content can fail to achieve consumer acceptance, while others can be popular during a certain period of time but then be rapidly replaced. If we devote time and resources to developing and marketing products that consumers do not find appealing enough to buy in sufficient quantities, our sales and profits may decline, and our business performance may be damaged. Similarly, if our product offerings fail to correctly anticipate consumer interests, our sales and earnings will be adversely affected.

Additionally, we intend for our business to be global and it will depend on interest in and acceptance of our products and our licensors' brands by consumers in diverse markets around the world with different tastes and preferences. As such, our success depends on our ability to successfully predict and adapt to changing consumer tastes and preferences in multiple markets and geographies and to design products that can achieve popularity globally over a broad and diverse consumer audience. There is no guarantee that we will be able to successfully develop and market products with global appeal.

Consumer demand for culture-based products can and does shift rapidly and without warning. As a result, even if our product offerings are initially successful, there can be no guarantee that we will be able to maintain their popularity with consumers. Accordingly, our success will depend, in part, on our ability to continually design and introduce new products that consumers find appealing. To the extent we are unable to do so, our sales and profitability will be adversely affected.

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#### An inability to develop and introduce products in a timely and cost-effective manner may damage our business.
Our sales and profitability depend on our ability to bring products to market to meet customer demands and before consumers begin to lose interest in a given property. There is no guarantee that we will be able to introduce new or continuing products in a timely manner or on a cost-effective basis to meet constantly changing consumer demands. Furthermore, our license agreement to develop CODAs derived from the original illustrations from The Little Prince and to sell merchandise and other products based off the CODAs requires us to obtain the licensor's approval of the products we develop under the license prior to making any sales, and future license agreements may similarly contain such restrictions, which can have the effect of delaying our product releases and limiting the types of products we produce. Moreover, unforeseen delays or difficulties in the development process or significant increases in the planned cost of development may cause the introduction date for products to be later than anticipated, may reduce or eliminate the profitability of such products or, in some situations, may cause a product or new brand introduction to be cancelled.

***Competition in the art, merchandising and collectibles industries, and the ongoing creation of new art, as well as competition for licensing, may make it difficult for us to be successful.***

The amount of art available globally is constantly growing. As new artists become involved in the art market, the amount of art will continue to increase. The flood of art into the market could create an overabundant supply compared to demand and impact the interest in our various products. We will need to consistently distinguish ourselves from our competition and the other art being introduced into the market, but there can be no assurance we will be able to do so.

Furthermore, competition for licenses to Icons is intense, and we must vigorously compete to obtain licenses to the intellectual property we need to produce our CODAs and sell products based on the CODAs. This competition could lessen our ability to secure, maintain, and renew our existing licenses, or require us to pay licensors higher royalties and higher minimum guaranteed payments in order to obtain new licenses or retain our existing licenses. To the extent we are unable to license properties on commercially reasonable terms, or on terms at least as favorable as our competitors, our competitive position and demand for our products will suffer. Because our ability to compete for licensed properties may likely be based on our ability to generate royalty revenues for our licensors, any reduction in the demand for and sales of our products will further inhibit our ability to obtain licenses on commercially reasonable terms or at all. As a result, any such reduction in the demand for and sales of our products could have a material adverse effect on our business, financial condition and results of operations.

***The art and licensing industries are highly competitive and the barriers to entry are low. If we are unable to compete effectively with existing or new competitors, our sales, market share and profitability could decline.***

The art and licensing industries are, and will continue to be, highly competitive. We compete with other artists across other iconic properties, music, fashion, and sports, some of which have substantially more resources than us, stronger name recognition, longer operating histories and greater economies of scale. We also compete with numerous smaller designers and creators. Across our business, we face competitors who are constantly monitoring and attempting to anticipate consumer tastes and trends, seeking ideas that will appeal to consumers and introducing new products that compete with our products for consumer acceptance and purchase.

In addition to existing competitors, the barriers to entry for new participants in the art and licensing industries are low, and the increasing use of digital technology, social media, and the internet to spark consumer interest has further increased the ability for new participants to enter our markets and has broadened the array of companies against which we compete. New participants can gain access to our customers and consumers and become a significant source of competition for our products in a very short period of time. Our competitors, including those with more resources and greater economies of scale, can obtain licenses to design and sell products based on the same properties that we license, potentially on more favorable terms. Any of these competitors may be able to bring new products to market more quickly, respond more rapidly than us to changes in consumer preferences and produce products of higher quality or that can be sold at more accessible price points. To the extent our competitors' products achieve greater market acceptance than our products, our business, financial condition and results of operations will be adversely affected.

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***Our operating results may fluctuate from quarter to quarter and year to year due to the timing and popularity of new product releases and the seasonal sales of the auction houses.***

Our business may be stronger in certain periods where we have product releases especially in the earlier stages of the business' development. Additionally, as we currently intend to utilize auction houses for our sales, we will be subject to the seasonality experienced by auction houses. The global art auction market has two principal selling seasons, which generally occur in the second and fourth quarters of the year. In addition, as a result of the sporadic nature of our business in its early stages, we could be significantly and adversely affected by unforeseen events such as economic downturns, a terrorist attack, or pandemic that would impact demand around the introduction of a new group of products.

The timing and mix of products we sell in any given year will depend on various factors, including anniversaries, milestones, and celebratory occasions of both the licensor and/or third-party collaborator, as well as the timing of when certain auctions occur. Sales of a certain product or group of products tied to a particular celebratory occasion can dramatically increase our net sales in any given quarter or year and our results of operations may also fluctuate as a result of these factors. Therefore, in quarterly reporting periods, the comparison of our results between reporting periods can be significantly influenced by these factors.

***If we fail to comply with federal, state, and foreign laws relating to privacy and data protection, we may face potentially significant liability, negative publicity, an erosion of trust, and increased regulation, any of which could materially adversely affect our business, results of operations, and financial condition.***

Privacy and data protection laws, rules, and regulations are complex, and their interpretation is rapidly evolving, making implementation and enforcement, and thus compliance requirements, ambiguous, uncertain, and potentially inconsistent. Compliance with such laws may require changes to our data collection, use, transfer, disclosure, other processing, and certain other related business practices and may thereby increase compliance costs or have other material adverse effects on our business. The laws of many states and countries require businesses, which maintain personal data to implement reasonable security measures to keep such information secure and otherwise restrict the ways in which such information can be collected, processed, disclosed, transferred and used.

The U.S. government, including Congress, the Federal Trade Commission and the Department of Commerce, has announced that it is reviewing the need for greater regulation for the collection of information concerning consumer behavior on the Internet, including regulation aimed at restricting certain targeted advertising practices. In addition, numerous states have enacted or are in the process of enacting state level data privacy laws and regulations governing the collection, use, and processing of state residents' personal data. For example, the California Consumer Privacy Act (the "CCPA") took effect on January 1, 2020. The CCPA establishes a new privacy framework for covered businesses. The CCPA provides new and enhanced data privacy rights to California residents, such as affording consumers the right to access and delete their information and to opt out of certain sharing and sales of personal information. The law also prohibits covered businesses from discriminating against consumers (for example, charging more for services) for exercising any of their CCPA rights. The CCPA imposes potentially severe statutory damages as well as a private right of action for certain data breaches that result in the loss of personal information. This private right of action is expected to increase the likelihood of, and risks associated with, data breach litigation. It remains unclear how various provisions of the CCPA will be interpreted and enforced. In November 2020, California voters passed the California Privacy Rights and Enforcement Act of 2020 (the "CPRA"). The CPRA further expands the CCPA with additional data privacy compliance requirements that may impact our business, and establishes a regulatory agency dedicated to enforcing those requirements. Further, on March 2, 2021, Virginia enacted the Virginia Consumer Data Protection Act (the "CDPA"), a comprehensive privacy statute that shares similarities with the CCPA and CPRA. Similar laws have been proposed in other states and at the federal level, reflecting a trend toward more stringent privacy legislation in the United States. The effects of the CCPA, CPRA, CDPA, and any enactment of any other similar state or federal laws, are and will continue to be significant and may require us to modify our data processing practices and policies and may thereby increase compliance costs (and our potential liability) or have other material adverse effects on our business.

In the European Union, the General Data Protection Regulation (GDPR), which became effective on May 25, 2018, has also resulted in and may, if we re-enter the EU market, continue to result in significantly greater compliance burdens and costs for companies like ours. We are obligated to handle and safeguard any personal data we collect from EU residents in accordance with the GDPR for as long as we retain such personal data. This obligation extends to compliance with laws, rules, and regulations regarding cross-border transfers of personal data. Recent legal developments in Europe have created complexity and uncertainty in this area; for example, on July 16, 2020, the Court of Justice of the European Union (the

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"CJEU") invalidated the EU-U.S. Privacy Shield Framework under which personal data could be transferred from the European Economic Area ("EEA") to the United States. While the CJEU upheld the adequacy of the standard contractual clauses, it noted that reliance on them alone may not necessarily be sufficient in all circumstances. The European Commission adopted new standard contractual clauses on June 4, 2020. While the previous standard contractual clauses may be relied upon and considered adequate for a transitional period of 18 months, as of December 27, 2022, entities relying on the standard contractual clauses to transfer personal data outside the EEA will need to have the new standard contractual clauses in place. In addition, the United Kingdom's Information Commissioner's Office has published new data transfer standard contracts for transfers from the United Kingdom under the UK GDPR. This new documentation will be mandatory for relevant data transfers from September 21, 2022. Additionally, in certain circumstances, we rely on derogations provided for by law.

Failure to comply with the GDPR may result in fines of up to 20 million Euros or up to 4% of the annual global revenue of the infringer, whichever is greater. It may also lead to civil litigation, with the risks of damages or injunctive relief, or regulatory orders adversely impacting the ways in which our business can use personal data. Canada is in the process of passing comparable or other robust data privacy legislation or regulation, which may lead to additional costs and increase our overall risk exposure.

To the extent we send direct electronic marketing communications to EU residents and/or place cookies on electronic devices used by EU or UK residents within the European Union/United Kingdom, we may also be subject to evolving EU and UK privacy laws on cookies and e-marketing. In the European Union and the United Kingdom, regulators are increasingly focusing on compliance with requirements in the online behavioral advertising ecosystem, and current national laws that are derived from the ePrivacy Directive are highly likely to be replaced across the European Union (but not directly in the United Kingdom) by an EU regulation known as the ePrivacy Regulation which will significantly increase fines for non-compliance. In the European Union and the United Kingdom, informed consent is required for the placement of a cookie or similar technologies on a user's device and for direct electronic marketing. The GDPR also imposes conditions on obtaining valid consent, such as a prohibition on pre-checked consents and a requirement to ensure separate consents are sought for each type of cookie or similar technology. While the text of the ePrivacy Regulation is still under development, a recent European court decision and regulators' recent guidance are driving increased attention to cookies and tracking technologies. For example, the CNIL is increasingly active in enforcement in this area, as are other regulators as a result of actions by NYOB (a not-for-profit privacy activist group), that has issued approximately 750 complaints to European website operators regarding their cookie banners and referred 422 of these to relevant national regulators - and has said that it aims to seek enforcement on up to 10,000 websites in Europe. To the extent we place cookies on electronic devices used by EU residents, we may be required to change our practices, which could lead to substantial costs, require significant systems changes, limit the effectiveness of our marketing activities, divert the attention of our technology personnel, adversely affect our margins, increase costs and subject us to additional liabilities.

Various other governments and consumer agencies around the world have also called for new regulation and changes in industry practices and many have enacted different and often contradictory requirements for protecting personal information collected and maintained electronically. Compliance with numerous and contradictory requirements of different jurisdictions is particularly difficult and costly for a business such as ours, which may collect personal information from individuals in multiple jurisdictions. If any jurisdiction in which we operate adopts news laws or changes its interpretation of its laws, rules, or regulations relating to data residency or localization such that we are unable to comply in a timely manner or at all, we could risk losing our rights to operate in such jurisdictions. Many of these regulations expose us to the possibility of material penalties, significant legal liability, changes in how we operate or offer our products, and interruptions or cessation of our ability to operate in key geographic regions, any of which could materially adversely affect our business, results of operations, and financial condition.

We also may conduct certain verification procedures, including background checks, in relation to prospective employees. Such verification procedures include using a third-party service provider which acquires information from a variety of sources, such as consumer credit reporting agencies and other providers of public data. The Fair Credit Reporting Act (the "FCRA") applies to consumer credit reporting agencies as well as data furnishers and users of consumer reports, as those terms are defined in the FCRA. The FCRA promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies that engage in the practice of assembling or evaluating information relating to consumers for certain specified purposes, including for employment. The FCRA limits the distribution and use of consumer reports, and establishes consumer rights to access and dispute their own credit files, among other rights and obligations. Many states have enacted laws with requirements similar to the federal FCRA.

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Some of these laws impose additional, or more stringent, requirements than the federal FCRA. Despite our compliance efforts, we may become subject to claims that we have violated the federal FCRA or state equivalents based on past, present, and future business practices. Violation of the FCRA can result in civil and criminal penalties. The U.S. Federal Trade Commission, the Consumer Financial Protection Bureau, and the State Attorneys' General, acting alone or in cooperation with one another, actively enforce the FCRA. In addition to regulatory risks, verification procedures for prospective employees may not expose all potentially relevant information, and our third-party service provider may fail to conduct background checks adequately or disclose information that could be relevant to a determination of eligibility.

When we are required to disclose personal data pursuant to demands from government agencies, including tax authorities, state and city regulators, law enforcement agencies, and intelligence agencies, privacy regulators could perceive such disclosure as a failure by us to comply with privacy and data protection policies, notices, and laws, which could result in proceedings or actions against us in the same or other jurisdictions. Conversely, if we do not provide the requested information to government agencies due to a disagreement on the interpretation of the law, we are likely to face enforcement action from such government, engage in litigation, face increased regulatory scrutiny, and experience an adverse impact on our relationship with governments or our ability to offer our services within certain jurisdictions. Any of the foregoing could materially adversely affect our brand, reputation, business, results of operations, and financial condition.

Any failure or perceived failure by us to comply with privacy and data protection policies, notices, laws, rules, and regulations could result in proceedings or actions against us by individuals, consumer rights groups, government agencies, or others. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. Further, these proceedings and any subsequent adverse outcomes may subject us to significant negative publicity, and an erosion of trust. If any of these events were to occur, our business, results of operations, and financial condition could be materially adversely affected.

***Our operating plan relies in large part on assumptions and analyses conducted by the Company. If these assumptions prove to be incorrect, the Company's actual operating results may be materially different from our forecasted results.***

Whether actual operating results and business developments will be consistent with the Company's expectations and assumptions as reflected in its forecast depends on a number of factors, many of which are outside the Company's control, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;• whether the Company can obtain sufficient capital to sustain and grow its business;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to manage the Company's growth;

&nbsp;&nbsp;&nbsp;&nbsp;• demand for the Company's products and services;

&nbsp;&nbsp;&nbsp;&nbsp;• the timing and costs of new and existing marketing and promotional efforts;

&nbsp;&nbsp;&nbsp;&nbsp;• competition;

&nbsp;&nbsp;&nbsp;&nbsp;• the Company's ability to retain existing key management, to integrate recent hires and to attract, retain and motivate qualified personnel;

&nbsp;&nbsp;&nbsp;&nbsp;• the overall strength and stability of domestic and international economies; and

&nbsp;&nbsp;&nbsp;&nbsp;• consumer spending habits;

Unfavorable changes in any of these or other factors, most of which are beyond the Company's control, could materially and adversely affect our business, results of operations and financial condition.

***Security threats to us could result in, a loss of our digital assets, or damage to our reputation and our brand, each of which could adversely affect an investment in us.***

Security breaches, computer malware and computer hacking attacks have been a prevalent concern in the markets. Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause intentional malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer viruses, could harm our business operations or result in loss

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of our digital assets. Any breach of our or our service providers' infrastructure could result in damage to our reputation which could adversely affect an investment in us. Furthermore, we believe that, as our assets grow, it may become a more appealing target for security threats such as hackers and malware.

The security system and operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of ours, or otherwise, and, as a result, an unauthorized party may obtain access to our data. Additionally, outside parties may attempt to fraudulently induce employees of ours to disclose sensitive information in order to gain access to our infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of our security system occurs, the market perception of the effectiveness of our security system could be harmed, which could adversely affect an investment in us.

In the event of a security breach, we may be forced to cease operations, or suffer a reduction in assets, the occurrence of each of which could adversely affect an investment in us.

#### Use of social media may materially and adversely affect our reputation or subject us to fines or other penalties.
We intend to significantly rely on our online presence and those of the micro influencers we intend to engage, to reach consumers, and to use third-party social media platforms as marketing tools. For example, we maintain Facebook, Twitter, Instagram, Discord, and Reddit accounts. As e-commerce and social media platforms continue to rapidly evolve, we must continue to maintain a presence on these platforms and establish presences on new or emerging popular social media platforms. If we are unable to cost-effectively use social media platforms as marketing tools, our ability to acquire new consumers and our financial condition may suffer. Furthermore, the pool of micro influencers capable of promoting our products to our consumer base is small, and identifying and engaging ones that we believe will be successful in helping us achieve our business goals will be difficult. If we are unable to identify and engage such influencers, if it takes longer than expected, or if such influencers underperform or become subject to negative publicity, consumer interest in our products may not meet our expectations and our sales and results of operations may be materially impacted.

***Geopolitical risks, such as those associated with Russia's invasion of Ukraine, could result in a decline in the outlook for the U.S. and global economies.***

The uncertain nature, magnitude, and duration of hostilities stemming from Russia's recent military invasion of Ukraine, including the potential effects of sanctions and retaliatory cyber-attacks on the world economy and markets, have contributed to increased market volatility and uncertainty, and such geopolitical risks could have an adverse impact on macroeconomic factors which affect our assets and businesses.

***The vendors and platforms that we work with, or may work with in the future, need to keep pace with changing technologies in order to provide effective solutions, and we will need to stay ahead of the technology changes and risks in order to be successful.***

The vendors and platforms that we work with, or may work with in the future, need to keep pace with changing technologies in order to provide effective solutions. In addition, we will need to stay ahead of the technology changes and risks in order to be successful. Our current and future vendors and platforms need to anticipate, and quickly react to, rapid changes occurring in communications technologies and to the development of new and improved devices and services that result from these changes. Our current and future vendors and platforms must maintain their ability to remain technologically competitive and may require substantial expenditures and lead-time and the integration of newly acquired technologies will also take time. We will have the capability and flexibility to change providers, if necessary. We may not be able to successfully change platforms without significant time and effort. To the extent that we need to change providers and we are unable to do so in a timely manner, our sales and profitability may be impacted.

#### Risks Related to Intellectual Property
***If we are unable to obtain, maintain and protect intellectual property rights associated with our products, in particular trademarks and copyrights, our ability to compete could be negatively impacted.***

Intellectual property to which we have rights is central to our business. The market for our products depends to a significant extent upon the value associated with the Icons we license, the CODAs curated and/or designed by our

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Collaborators, and the products designed by our licensees. Although certain of intellectual property on which we rely for our business is registered in the United States and in several of the foreign countries in which we operate, there can be no assurances with respect to the rights associated with such intellectual property in those countries, including our ability to register, use, maintain or defend key trademarks and copyrights. We rely on a combination of trademark, trade dress, copyright and trade secret laws, as well as confidentiality procedures and contractual restrictions, to establish and protect our intellectual property or other proprietary rights. However, these laws, procedures and restrictions provide only limited and uncertain protection and any of the intellectual property rights may be challenged, invalidated, circumvented, infringed or misappropriated, including by counterfeiters and parallel importers. The costs required to protect our licensors' trademarks and copyrights may be substantial.

Third parties could bring infringement, invalidity, or similar claims with respect to any of our licensors' trademarks and copyrights, or any trademarks or copyrights that we may seek to obtain in the future. Any such claims, whether or not successful, could be extremely costly to defend, divert management's attention and resources, damage our reputation and brands, and substantially harm our business and results of operations.

In order to protect or enforce intellectual property and other proprietary rights on which our business relies, or to determine the enforceability, scope or validity of the intellectual or proprietary rights of others, we may initiate litigation or other proceedings against third parties. Any lawsuits or proceedings that we initiate could be expensive, take significant time and divert management's attention from other business concerns. Litigation and other proceedings also put the intellectual property at risk of being invalidated, or if not invalidated, may result in the scope of the intellectual property rights being narrowed. In addition, our efforts to try to protect and defend our licensors' trademarks and copyrights may be ineffective. Additionally, we may provoke third parties to assert claims against us. We may not prevail in any lawsuits or other proceedings that we initiate, and the damages or other remedies awarded, if any, may not be commercially valuable. The occurrence of any of these events may have a material adverse effect on our business, financial condition and results of operations.

In addition, many of our products will bear the trademarks and other intellectual property rights of our licensor, and the value of our products is affected by the value of those rights. Our licensors' ability to maintain and protect their trademarks and other intellectual property rights is subject to risks similar to those described above with respect to our intellectual property. We do not control the protection of the trademarks and other intellectual property rights of our licensors and cannot ensure that our licensors will be able to secure or protect their trademarks and other intellectual property rights. The loss of any of our significant owned or licensed trademarks, copyrights or other intellectual property could have a material adverse effect on our business, financial condition and results of operations. In addition, our licensors may engage in activities or otherwise be subject to negative publicity that could harm their reputation and impair the value of the intellectual property rights we license from them, which could reduce consumer demand for our products and adversely affect our business financial condition and results of operations.

***The failure to protect, or the loss of, intellectual property rights by us or our company's licensor-partners could compromise our competitive position and result in cancellation, loss of rights to our CODAs and our products.***

Our business model is reliant on the licensing of rare intellectual property content from the intellectual property owners for our company's development of CODAs and commercialization of our products based on the licensed intellectual property. We are reliant on our licensor-partners to monitor for unauthorized uses of trademarks and copyrights on an ongoing basis. Depending upon the terms of our company's license agreements with our licensor-partners, our company may share the obligation to enforce and protect the licensed intellectual property in the digital art space. For example, pursuant to our license agreement to develop CODAs derived from the original illustrations from The Little Prince and the sale of merchandise and other products based on the CODAs, we agreed to assist the licensor to the extent necessary to protect the copyright, trademark and any other rights licensed under the agreement. Collectively, we and our licensor-partners rely primarily upon a combination of federal, state and local laws in the U.S., Canada, Europe and other countries around the world, as well as contractual restrictions, to protect and enforce the intellectual property rights. However, we believe that such measures afford only limited protection and, accordingly, there can be no assurance that the actions taken by our partners and/or our company to establish, protect and enforce the licensed intellectual property rights will prevent infringement of such rights by others, or prevent the loss of revenue or other resulting damages.

For instance, despite the efforts of our licensor-partners and/or our efforts to protect and enforce the licensed intellectual property rights, unauthorized parties may misappropriate or attempt to copy aspects of the licensed

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intellectual property, which could harm the reputation of our digital assets, decrease their value and/or cause a decline in sales of our products and thus our revenue. Further, we and our licensors may not be able to detect infringement of our intellectual property rights quickly or at all, and at times we or our licensors may not be successful in combating counterfeit, knockoff, or other infringing products, thereby damaging our competitive position. In addition, we depend upon the laws of the countries where our products are sold to protect our intellectual property. Intellectual property rights may be unavailable or limited in some countries because intellectual property laws vary from jurisdiction to jurisdiction or because the intellectual property rights for certain works may have expired. Consequently, in certain foreign jurisdictions, there may be no protection under any copyright or trademark registrations. If our licensor-partners fail to timely file a trademark application in any such jurisdiction, they may be precluded from obtaining a trademark registration in such jurisdiction at a later date. Failure to adequately pursue and enforce trademark rights could damage our digital and other assets, and make it easier for others to compete with our assets.

***Third-party claims regarding our licensed intellectual property rights could result in our being unable to continue using such rights, which could adversely impact our revenue or result in a judgment or monetary damages being levied against us.***

We may be subject to legal proceedings and claims, including claims of alleged infringement or violation of the patents, trademarks and other intellectual property rights of third parties. In the future, we may be required to assert infringement claims against third parties or third parties may assert infringement claims against us and/or our licensor-partners. To the extent that any of our licensed intellectual property is deemed to violate the rights of others in any litigation or proceeding or, as a result of any claim, we may be prevented from using it. Further, litigation could also result in a judgment or monetary damages being levied against us. There can be no assurance that we or our licensors would prevail in any litigation relating to the licensed intellectual property rights. Further, even where we or our licensors prevail in any litigation relating to the licensed intellectual property rights, such litigation might result in substantial legal costs to us and diversion of resources and management attention away from our business.

#### Our license to use the brands or intellectual properties that we have or will contract with could be terminated in certain circumstances.
We do not own the brands or any other branded assets but have a license to develop products under the license agreement for The Little Prince. We intend to enter into other license agreements in the future. Although the license granted to us for the CODA rights to the Little Prince has a three-year term that is renewable at our option, the license may be terminated by the licensor if we fail to pay any sums due and to cure the deficiency within 30 days after receipt of notice, or otherwise fail to perform under the License Agreement. Further, the license only provides for non-exclusive rights to produce CODAs, and as a result, there is reduced competitive protections in the case of producing CODAs based on the original artwork of The Little Prince. Although we are in negotiations to amend the existing License Agreement, there is no assurance we will be able to do so.

***Failure to renew a licensing agreement such as The Little Prince License, could materially adversely affect our operations, and we will lose our rights to protect against the future creation of duplicative CODAs.***

Although our license for CODA rights to the The Little Prince has a three-year term that is renewable for one additional three-year term at our option, the license may not be renewed under certain circumstances, including where we are not in good standing with the Delaware Secretary of State, have failed to pay all sums due and owing to the licensor or are in breach of the license agreement at the time of the exercise of the renewal, or have failed to achieve gross receipts of at least $2.5 million. Additional renewals are not provided for in the License Agreement and would require further negotiations between the parties. The parties to the License Agreement have not agreed to any future renewals as of the date hereof. We expect our future licenses may similarly have provisions with which we must comply in order to renew such license.

Following expiration, we would be required to discontinue marketing and selling the products based on our CODAs or otherwise using the licensed intellectual property under the agreement. We will also lose our ability to create additional products based on the license, and will lose any protections we had against the licensor granting the same or similar rights to the underlying art. This would allow the licensor to grant such CODA and other related rights to third parties who in the case of CODAs, may sell the rights to produce new CODAs derived from the original art. Such occurrences, or the fear of such occurrences, and the resulting reduced scarcity of our products, could reduce the value of the CODAs that we intend to sell, and the value of any CODAs previously sold, which could in turn

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reduce the resale value and any fees due to us in connection with such resales. Further, if we are unable to renew our licenses, we may be required to locate a suitable replacement for the lost business, and even if we are able to do so, there can be no assurance that the replacement will compensate for or limit the impact on our operations and the value of our CODAs. These risks would also apply to any future licenses with similar terms.

***We may not realize the full benefit of our licenses if the properties we license have less market appeal than expected or if sales from the products that use those properties are not sufficient to satisfy the minimum guaranteed royalty payments, if any.***

We seek to fulfill consumer preferences and interests by designing and selling products primarily based on properties owned by third parties and licensed to us. The popularity of the properties we license can significantly affect our sales and profitability. As we intend to produce CODAs based on iconic art, the success of the underlying content will likely have an important impact on the level of consumer interest in the associated products we are offering. If the performance of our licensors fails to meet expectations or if there was a shift in consumer tastes away from such assets generally, our results of operations could be adversely affected. In addition, competition in our industry for access to licensed properties can lessen our ability to secure, maintain, and renew our existing licenses on commercially reasonable terms, if at all, and to attract and retain the talented employees necessary to develop and market successful products based on these properties.

Our The Little Prince license agreement requires us to pay minimum royalty guarantees, and we intend to enter into similar agreements in the future, which minimum payments may in some cases be greater than what we are ultimately able to recoup from actual sales. Relevant price information upon which we may base minimum royalty guarantees may be scarce or unreliable, and thus our pricing of minimum royalty guarantees may be, to some degree, speculative and/or subjective. Acquiring or renewing licenses may require the payment of minimum guaranteed royalties that we consider to be too high to be profitable, which may result in losing licenses that we currently hold when they become available for renewal, or missing business opportunities for new licenses. Additionally, we have no guarantee that any particular property or asset we license will translate into a successful product. The underperformance of any such product may result in reduced sales and operating profit for us.

#### Variability in intellectual property laws may adversely affect our intellectual property position.
Intellectual property laws and regulations, in particular, have been subject to significant variability either through administrative or legislative changes to such laws or regulations or changes or differences in judicial interpretation, and it is expected that such variability will continue to occur. Additionally, intellectual property laws and regulations differ among states, and countries. Variations in the laws and regulations or in interpretations of laws and regulations in the United States and other countries may diminish the value of our intellectual property and may change the impact of third-party intellectual property on us. Accordingly, we cannot predict the scope of what may be granted to us, the extent to which we will be able to enforce our intellectual property rights against third parties, or the extent to which third parties may be able to enforce their intellectual property rights against us.

#### Intellectual property rights claims may adversely affect the operation of some or all digital asset networks.
Third parties may assert intellectual property claims relating to the holding and transfer of digital assets and their source code. Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in some or all digital asset networks' long-term viability or the ability of end-users to hold and transfer digital assets may adversely affect an investment in us. Additionally, a meritorious intellectual property claim could prevent us and other end-users from accessing some or all digital asset networks or holding or transferring their digital assets. As a result, an intellectual property claim against us or other large digital asset network participants could adversely affect an investment in us.

#### Risks Related to Government Regulation, Litigation and the International Nature of Our Business
***We could be exposed to losses and/or reputational harm as a result of various claims and lawsuits incidental to the ordinary course of our business.***

We may become involved in various legal proceedings, lawsuits and other claims incidental to the ordinary course of our business. We are required to assess the likelihood of any adverse judgments or outcomes in these matters, as well as potential ranges of probable or reasonably possible losses. A determination of the amount of losses,

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if any, to be recorded or disclosed as a result of these contingencies will be based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel. The amount of losses recorded or disclosed for such contingencies may change in the future due to new developments in each matter or a change in settlement strategy.

#### We and our licensors are subject to local laws and regulations in the U.S. and abroad.
We and our licensors are subject to various foreign and U.S. federal, state and local laws and regulations affecting our business. While we actively identify and monitor our obligations and the applicability of all laws to ensure that we are compliant, our efforts to maintain compliance with laws and regulations may require us to incur significant expenses, and our failure to comply with such laws may expose us to potential liability. In addition, our ability to operate or compete effectively as well as our financial results could be materially adversely affected by the introduction of new laws, policies or regulations; changes in the interpretation or application of existing laws, policies and regulations; or our licensor's failure to obtain or maintain required regulatory approvals. Our failure to remain compliant with local laws and regulations may negatively impact their financial condition and our ability to sell products, which could result in a material adverse effect on our business, results of operation and financial position.

#### Organizations face growing regulatory and compliance requirements.
New and evolving regulations and compliance standards for cyber security, data protection, privacy, and internal IT controls are often created in response to the tide of cyber-attacks and will increasingly impact organizations. Existing regulatory standards require that organizations implement internal controls for user access to applications and data. In addition, data breaches are driving a new wave of regulation with stricter enforcement and higher penalties. Regulatory and policy-driven obligations require expensive and time-consuming compliance measures. The fear of non-compliance, failed audits, and material findings has pushed organizations to spend more to ensure they are in compliance, often resulting in costly, one-off implementations to mitigate potential fines or reputational damage. Any substantial costs associated with failing to meet regulatory requirements, combined with the risk of fallout from security breaches, could have a material adverse effect on our business and brand.

#### Risks Related to Management and Personnel
***Our success is critically dependent on the efforts and dedication of our officers and other employees, and the loss of one or more key employees, or our inability to attract and retain qualified personnel and maintain our corporate culture, could adversely affect our business.***

Our officers and employees are integral to all our efforts. It is their skill, creativity and hard work that drive our success. In particular, our success depends to a significant extent on the continued service and performance of our senior management team which consists of our Co-Founders, Richard X. Seet and Charles Riotto. The Company has had modest experience in the digital art industry and the management team has minimal experience developing business ventures in the digital art industry. Nevertheless, we are dependent on their talents and believe they are a key component to our relationships with our licensors and certain of our key agents and sales channels. The loss of any member of our senior management team, or of any other key employees, or the inability to successfully complete planned management transitions, could impair our ability to execute our business plan and could therefore have a material adverse effect on our business, financial condition and results of operations. We do not currently maintain key man life insurance policies on any member of our senior management team or on our other key employees.

In addition, competition for qualified personnel is intense. We compete with many other potential employers in recruiting, hiring and retaining our senior management team and our many other skilled officers and other employees around the world.

Furthermore, as we continue to grow our business and hire new employees, it may become increasingly challenging to hire people who will maintain our corporate culture. We believe our corporate culture, which fosters speed, teamwork and creativity, is one of our key competitive strengths. As we continue to grow, we may be unable to identify, hire or retain enough people who will maintain our corporate culture, including those in management and other key positions. If we are unable to maintain the strength of our corporate culture, our competitive ability and our business may be adversely affected.

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#### Risks Related to this Offering

#### The determination for the offering price of our shares is more arbitrary compared with the pricing of securities for an established operating company.
Prior to this Offering there has been no public market for any of our securities. Factors considered in determining the prices and terms of the shares offered hereby include:

&nbsp;&nbsp;&nbsp;&nbsp;• the history and prospects of companies similar to our company;

&nbsp;&nbsp;&nbsp;&nbsp;• prior offerings of those companies;

&nbsp;&nbsp;&nbsp;&nbsp;• our prospects;

&nbsp;&nbsp;&nbsp;&nbsp;• our capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;• an assessment of our management;

&nbsp;&nbsp;&nbsp;&nbsp;• general conditions of the securities markets at the time of the offering; and

&nbsp;&nbsp;&nbsp;&nbsp;• other factors as were deemed relevant.

However, although these factors were considered, the determination of the offering prices is more arbitrary than the pricing of securities for an established operating company.

#### No public market for our securities currently exists, and an active trading market may not develop or be sustained.
Our securities are not currently quoted or traded on any trading market and there can be no assurance that an active public market for our securities will ever develop in the future. In the absence of an active trading market:

&nbsp;&nbsp;&nbsp;&nbsp;• investors may have difficulty buying and selling or obtaining market quotations;

&nbsp;&nbsp;&nbsp;&nbsp;• market visibility for our securities may be limited; and

&nbsp;&nbsp;&nbsp;&nbsp;• a lack of visibility for our securities may have a depressive effect on any market price for our securities that might develop.

The lack of an active trading market may also impair our ability to raise capital to continue to fund operations by selling securities and may impair our ability to acquire additional intellectual property assets by using our securities as consideration.

#### This investment is illiquid.
There is no currently established market for reselling these securities. If you decide that you want to resell these securities in the future, you may not be able to find a buyer. Although we intend to apply in the future for quotation of our common stock on an over-the-counter market, or similar, exchange, there are a number of requirements that the company may or may not be able to satisfy in a timely manner. Even if we obtain that quotation, we do not know the extent to which investor interest will lead to the development and maintenance of a liquid trading market. You should assume that you may not be able to liquidate your investment for some time or be able to pledge these shares as collateral.

***Even if our securities become publicly traded and an active trading market develops, the market price of our securities may be volatile, and purchasers of our securities could incur substantial losses.***

Even if our securities become publicly traded and even if an active trading market develops for our securities, of which no assurances can be given, the market price of our securities may be volatile and subject to wide fluctuations in response to various factors. The stock market in general, and the market for new companies, in particular, have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. The market price for our securities may also be influenced by many additional factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully commercialize, and realize revenues from sales of, any products we may develop;

&nbsp;&nbsp;&nbsp;&nbsp;• the performance of any merchandise and other products based on our CODAs and other products we may develop;

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&nbsp;&nbsp;&nbsp;&nbsp;• the success of competitive products or technologies;

&nbsp;&nbsp;&nbsp;&nbsp;• regulatory or legal developments in the U.S. and other countries, especially changes in laws or regulations applicable to any products we may develop;

&nbsp;&nbsp;&nbsp;&nbsp;• introductions and announcements of new products by us, our commercialization partners, or our competitors, and the timing of these introductions or announcements;

&nbsp;&nbsp;&nbsp;&nbsp;• actions taken by regulatory agencies with respect to our products;

&nbsp;&nbsp;&nbsp;&nbsp;• variations in our financial results or those of companies that are perceived to be similar to us;

&nbsp;&nbsp;&nbsp;&nbsp;• the success of our efforts to enter into Perpetual Global Master Licenses and to license additional products or other products we may develop;

&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;• developments or disputes concerning patents or other proprietary rights, including patents, litigation matters and our or our licensors' ability to obtain intellectual property protection for our products;

&nbsp;&nbsp;&nbsp;&nbsp;• our ability or inability to raise additional capital and the terms on which we raise it;

&nbsp;&nbsp;&nbsp;&nbsp;• the recruitment or departure of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in the structure of the end markets for our products;

&nbsp;&nbsp;&nbsp;&nbsp;• changes in market conditions in the art and collectibles sectors, actual or anticipated changes in earnings estimates or changes in stock market analyst recommendations regarding our securities, other comparable companies or our industry generally;

&nbsp;&nbsp;&nbsp;&nbsp;• general economic, industry and market conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;• the other risks described in this "Risk Factors" section.

These broad market and industry factors may seriously harm the market price of our securities, regardless of our operating performance. In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies. Such litigation, if instituted against us, could result in substantial costs and diversion of management's attention and resources, which could materially and adversely affect our business, financial condition, results of operations and prospects.

***There is no underwriter or placement agent for this Offering, so no outside independent party has verified any of the statements contained in this Offering Circular.***

Although we may engage one or more sales agents, placement agents or underwriters in the future, currently there are no sales agents, placement agents or underwriters in connection with this Offering. As a result, no sales agents, placement agents or underwriters have performed a due diligence review or valuation of the company specifically in connection with this Offering.

#### Management will have discretion as to the use of proceeds from this Offering.
The net proceeds from this Offering will be used for the purposes described under "Use of Proceeds." The Company reserves the right to use the funds obtained from this Offering for other purposes not presently contemplated that it deems to be in the best interests of the company and its stockholders in order to address changed circumstances or opportunities. Because of the foregoing, the success of the company will be substantially dependent upon the discretion and judgment of the company's management with respect to application and allocation of the net proceeds of this Offering. Investors for the securities offered hereby will be entrusting their funds to the company's management, upon whose judgment and discretion the investors must depend.

#### The shares of Common Stock are offered on a "best efforts" basis and the company may not raise the maximum amount being offered
Since we are offering the shares of Common Stock on a "best efforts" basis, there is no assurance that we will sell enough shares to meet our capital needs. If you purchase shares of Common Stock in this Offering, you will do so without any assurance that we will raise enough money to satisfy the full Use Of Proceeds which we have outlined in this Offering Circular or to meet our working capital needs.

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***If the maximum offering is not raised, it may increase the amount of long-term debt or the amount of additional equity we need to raise, and future issuances of equity could cause the market price of our Common Stock to decline and result in the dilution of your shareholding, whereas future issuances of debt, which would rank senior to our Common Stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which would rank senior to our Common Stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be able to achieve from an investment in our Common Stock.***

There is no assurance that the maximum number of shares of Common Stock in this Offering will be sold. If the Maximum Offering Amount is not sold, we may need to incur additional debt or raise additional equity in order to finance our operations. Future issuances of our Common Stock or securities convertible into our Common Stock or the expiration of lock-up agreements that restrict the issuance of new Common Stock or the trading of outstanding stock, could cause the market price of our Common Stock to decline. We cannot predict the effect, if any, of future issuances of our Common Stock or securities convertible into our Common Stock, or the future expirations of lock-up agreements, on the price of our Common Stock. In all events, future issuances of our Common Stock would result in the dilution of your shareholding. In addition, the perception that new issuances of our Common Stock or other securities convertible into our Common Stock, could occur, or the perception that locked-up parties will sell their securities when the lock-ups expire, could adversely affect the market price of our Common Stock.

Increasing the amount of debt will increase our debt service obligations and make less cash available for distribution to our shareholders. Further, upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders of our Common Stock. Moreover, if we issue additional preferred stock, the holders of such preferred stock could be entitled to preferences over holders of Common Stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to issue debt or preferred securities in any future offering, or borrow money from lenders, will depend in part on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders of our Common Stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return they may be able to achieve from an investment in our Common Stock.

#### Our executive officer and director and principal stockholders have the ability to control all matters submitted to stockholders for approval.
Upon completion of this Offering, assuming the Maximum Offering Amount is sold, our executive officer, director and stockholders who own 5% or more of our currently outstanding shares of common stock, will beneficially own shares, in the aggregate, representing approximately % of our currently outstanding shares of common stock. As a result, if these stockholders were to choose to act together, they would continue to be able to control all matters submitted to our stockholders for approval, as well as our management and affairs. For example, these persons, if they choose to act collectively, would control the election of directors and approval of any merger, consolidation or sale of all or substantially all of our assets. This concentration of voting power could delay or prevent an acquisition of the company on terms that other stockholders may desire.

#### An investment in our shares of common stock could result in a loss of your entire investment.
An investment in our shares of Common Stock offered in this Offering involves a high degree of risk and you should not purchase the shares of Common Stock if you cannot afford the loss of your entire investment. You may not be able to liquidate your investment for any reason in the near future.

***Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful stockholder claims against us and may reduce the amount of money available to us.***

As permitted by Section 102(b)(7) of the Delaware General Corporation Law, our certificate of incorporation limits the liability of our directors to the fullest extent permitted by law. In addition, as permitted by Section 145 of the Delaware General Corporation Law, our certificate of incorporation and by-laws provide that we shall indemnify, to the fullest extent authorized by the Delaware General Corporation Law, each person who is involved in any litigation or other proceeding because such person is or was a director or officer of the company or is or was serving as an officer or director of another entity at our request, against all expense, loss or liability reasonably incurred or suffered in connection therewith. Our certificate of incorporation provides that indemnification includes the right to

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be paid expenses incurred in defending any proceeding in advance of its final disposition, provided, however, that such advance payment will only be made upon delivery to us of an undertaking, by or on behalf of the director or officer, to repay all amounts so advanced if it is ultimately determined that such director is not entitled to indemnification.

Section 145 of the Delaware General Corporation Law permits a corporation to indemnify any director or officer of the corporation against expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any action, suit or proceeding brought by reason of the fact that such person is or was a director or officer of the corporation, if such person acted in good faith and in a manner that he reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, if he or she had no reason to believe his or her conduct was unlawful. In a derivative action, (i.e., one brought by or on behalf of the corporation), indemnification may be provided only for expenses actually and reasonably incurred by any director or officer in connection with the defense or settlement of such an action or suit if such person acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be provided if such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which the action or suit was brought shall determine that the defendant is fairly and reasonably entitled to indemnity for such expenses despite such adjudication of liability.

The above limitations on liability and our indemnification obligations limit the personal liability of our directors and officers for monetary damages for breach of their fiduciary duty as directors by shifting the burden of such losses and expenses to us. Certain liabilities or expenses covered by our indemnification obligations may not be covered by such insurance or the coverage limitation amounts may be exceeded. As a result, we may need to use a significant amount of our funds to satisfy our indemnification obligations, which could severely harm our business and financial condition and limit the funds available to stockholders who may choose to bring a claim against the company.

#### Our outstanding securities may have an adverse effect on the market price of our securities.
As of the date of this Offering Circular, we have 21,495,001 shares of common stock outstanding. The sale, or even the possibility of sale, of our securities could have an adverse effect on the future market price for our securities or on our ability to obtain future public financing.

#### We do not expect to declare or pay dividends in the foreseeable future.
We do not expect to declare or pay dividends in the foreseeable future, as we anticipate that we will invest future earnings in the development and growth of our business. Therefore, holders of our Common Stock will not receive any return on their investment unless they sell their securities, and holders may be unable to sell their securities on favorable terms or at all.

#### Investors in this Offering will experience immediate and substantial dilution.
If all of the shares offered hereby are sold, investors in this Offering will own less than % of the then outstanding shares of common stock, but will have paid over % of the total consideration for our outstanding shares, resulting in a dilution of $ per share. See "*Dilution*" for further information.

***Our securities may be considered a "penny stock," and thereby be subject to additional sale and trading regulations that may make it more difficult to sell.***

The Commission has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system). If the price of any class of our traded securities is less than $5.00, such securities will be deemed to be penny stock. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that prior to effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (a) the purchaser's written acknowledgment of the receipt of a risk

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disclosure statement; (b) a written agreement to transactions involving penny stocks; and (c) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our securities, and therefore holders may have difficulty selling their securities once they are publicly traded.

***Our use of Form 1-A and our reliance on Regulation A for this Offering may make it more difficult to raise capital as and when we need it, as compared to if we were conducting a traditional initial public offering on Form S-1.***

Because of the exemptions from various reporting requirements provided to us under Regulation A and because we are only permitted to raise up to $75,000,000 in any 12-month period under Regulation A (although we may raise capital in other ways), our common stock may be less attractive to purchasers and it may be difficult for us to raise additional capital as and when we need it. If we are unable to raise additional capital as and when we need it, the growth of the product offerings and our financial condition and results of operations may be adversely affected, which may have a material adverse effect on the value of our common stock.

#### We are not subject to Sarbanes-Oxley regulations and lack the financial controls and safeguards required of public companies.
We do not have the internal infrastructure necessary, and are not required, to complete an attestation about our financial controls that would be required under Section 404 of the Sarbanes-Oxley Act of 2002. There can be no assurances that there are no significant deficiencies or material weaknesses in the quality of our financial controls. We expect to incur additional expenses and diversion of management's time if and when it becomes necessary to perform the system and process evaluation, testing and remediation required to comply with the management certification and auditor attestation requirements.

***Financial Industry Regulatory Authority sales practice requirements may also limit your ability to buy and sell our securities, which could depress the price of our securities.***

Financial Industry Regulatory Authority, or FINRA, rules require broker-dealers to have reasonable grounds for believing that an investment is suitable for a customer before recommending that investment to the customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status and investment objectives, among other things. Under interpretations of these rules, FINRA believes that there is a high probability such speculative low-priced securities will not be suitable for at least some customers. Thus, FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our securities, which may limit your ability to buy and sell our securities once publicly traded, have an adverse effect on the market for our securities, and thereby depress their market prices.

***We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our securities less attractive to investors.***

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, which was enacted in April 2012. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year following the fifth anniversary of the completion of an initial public offering, (2) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (3) the date on which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the prior June 30<sup>th</sup>, and (4) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period. We cannot predict if investors will find our securities less attractive because we may rely on these exemptions. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and their market prices may suffer or be more volatile.

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Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an "emerging growth company," we intend to rely on certain of these exemptions, including without limitation, (i) providing an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board, or PCAOB, regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis.

***Our status as an "emerging growth company" under the JOBS Act of 2012 may make it more difficult to raise capital as and when we need it.***

Because of the exemptions from various reporting requirements provided to us as an "emerging growth company" and because we will have an extended transition period for complying with new or revised financial accounting standards, we may be less attractive to investors and it may be difficult for us to raise additional capital as and when we need it. Investors may be unable to compare our business with other companies in our industry if they believe that our financial accounting is not as transparent as other companies in our industry. Any inability to raise additional capital as and when we need it, could have a material adverse effect on our business, financial condition, operating results, liquidity and prospects.

***Provisions in our corporate charter documents and under Delaware law could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management.***

Provisions in our corporate charter and our by-laws may discourage, delay or prevent a merger, acquisition or other change in control of us that stockholders may consider favorable, including transactions in which stockholders might otherwise receive a premium for their shares. These provisions could also limit the price that investors might be willing to pay in the future for our securities, thereby depressing the market price of our common stock. In addition, these provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors. Because our board of directors is responsible for appointing the members of our management team, these provisions could in turn affect any attempt by our stockholders to replace current members of our management team. Among others, these provisions include the following:

&nbsp;&nbsp;&nbsp;&nbsp;• our certificate of incorporation prohibits cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates; and

&nbsp;&nbsp;&nbsp;&nbsp;• our board of directors is able to issue, without stockholder approval, shares of undesignated preferred stock, which makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to acquire us.

These provisions may also frustrate or prevent any attempts by our stockholders to replace or remove our current management or members of our board of directors. In addition, we are subject to Section 203 of the Delaware General Corporation Law, which generally prohibits a Delaware corporation from engaging in any of a broad range of business combinations with an interested stockholder for a period of three years following the date on which the stockholder became an interested stockholder, unless such transactions are approved by our board of directors. This provision could have the effect of delaying or preventing a change of control, whether or not it is desired by or beneficial to our stockholders. Further, other provisions of Delaware law may also discourage, delay or prevent someone from acquiring us or merging with us.

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***Because we do not have an audit or compensation committee, shareholders will have to rely on our directors who are not independent, to perform these functions.***

We do not have an audit or compensation committee comprised of an independent director. Indeed, we do not have any audit or compensation committee. The board of directors performs these functions as a whole. The members of the board of directors are not independent directors. Thus, there is a potential conflict in that board members who are also part of management will participate in decisions concerning management compensation and audit issues that may affect management decisions.

***Because we lack certain internal controls over financial reporting in that we do not have an audit committee and our Board of Directors has no technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company's financial personnel to advise the Board on such matters, we are subject to increased risk related to financial statement disclosures.***

We lack certain internal controls over financial reporting in that we do not have an audit committee and our Board of Directors has no technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company's financial personnel to advise the Board on such matters. Accordingly, we are subject to increased risk related to financial statement disclosures.

***The preparation of our financial statements involves the use of estimates, judgments and assumptions, and our financial statements may be materially affected if such estimates, judgments or assumptions prove to be inaccurate.***

Financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") typically require the use of estimates, judgments and assumptions that affect the reported amounts. Often, different estimates, judgments and assumptions could reasonably be used that would have a material effect on such financial statements, and changes in these estimates, judgments and assumptions may occur from period to period over time. Significant areas of accounting requiring the application of management's judgment include, but are not limited to, determining the fair value of assets and the timing and amount of cash flows from assets. These estimates, judgments and assumptions are inherently uncertain and, if our estimates were to prove to be wrong, we would face the risk that charges to income or other financial statement changes or adjustments would be required. Any such charges or changes could harm our business, including our financial condition and results of operations and the price of our securities. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" for a discussion of the accounting estimates, judgments and assumptions that we believe are the most critical to an understanding of our financial statements and our business.

***If securities industry analysts do not publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our Common Stock could be negatively affected.***

Any trading market for our Common Stock will be influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price and market trading volume of our Common Stock could be negatively affected. In the event we are covered by analysts, and one or more of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and market trading volume of our Common Stock could be negatively affected.

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#### CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
The statements contained in this Offering Circular that are not purely historical are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this Offering Circular may include, for example, statements about our:

&nbsp;&nbsp;&nbsp;&nbsp;• limited operating history;

&nbsp;&nbsp;&nbsp;&nbsp;• reliance on third parties for technical and artistic capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;• results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;• ability to manage growth;

&nbsp;&nbsp;&nbsp;&nbsp;• regulatory, legal or operational risks;

&nbsp;&nbsp;&nbsp;&nbsp;• success in retaining or recruiting, or changes required in, our officers, advisors, key employees, if any, or directors;

&nbsp;&nbsp;&nbsp;&nbsp;• capital structure;

&nbsp;&nbsp;&nbsp;&nbsp;• unpredictable events, such as the COVID-19 pandemic, wars and military conflicts, and associated disruptions could seriously harm our future revenues and financial condition, delay our operations, increase our costs and expenses, and impact our ability to raise capital;

&nbsp;&nbsp;&nbsp;&nbsp;• ability to obtain additional financing when and if needed; and

&nbsp;&nbsp;&nbsp;&nbsp;• liquidity.

The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), including, but not limited to, the duration and spread of the COVID-19 pandemic and those factors described under the heading "Risk Factors", or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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#### USE OF PROCEEDS
We estimate that, if we sell the Maximum Offering Amount, the net proceeds of this Offering will be approximately $ from the sale of our common stock offered by us in this Offering based upon the public offering price of $ per share, and after deducting estimated offering expenses payable by us.

The principal purposes of this Offering are to obtain additional capital to support our operations and to facilitate our future access to the public capital markets. We will likely use the net proceeds of this Offering for:

&nbsp;&nbsp;&nbsp;&nbsp;• $ for funding the development of creative ideas for CODAs, which include discussions, negotiations, and possible partnerships with Collaborators including museum partners, and CODA licensing and merchandising for The Little Prince license;

&nbsp;&nbsp;&nbsp;&nbsp;• $ for funding for the TED Event and to find a museum partner for TED

&nbsp;&nbsp;&nbsp;&nbsp;• $ for engaging in discussions, negotiating, and licensing other Icons;

&nbsp;&nbsp;&nbsp;&nbsp;• $ for finding sub-licensees for our Perpetual Global Master License; and

&nbsp;&nbsp;&nbsp;&nbsp;• $ for working capital and general corporate purposes.

Based on our current financial resources, our expected level of operating expenditures and the net proceeds and/or anticipated net proceeds, respectively, from prior financings and currently contemplated securities offerings, including this Offering, we believe that we will be able to fund our projected operating requirements for at least the next months. This period could be shortened if there are any significant increases in planned spending on costs associated with acquiring licenses, or with developing and selling our CODAs and other related products derived therefrom. Thereafter, we will need to obtain additional financing to fund such activities. We expect to finance our cash needs primarily through equity and debt offerings. If we secure additional equity funding, investors in this Offering would be diluted. No plans for additional financing are currently being contemplated by the Company, and in all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us. See "*Risk Factors—There is substantial doubt about our ability to continue as a going concern and if we are unable to generate significant revenue or secure additional financing we may be unable to implement our business plan and grow our business*."

Also, we do not currently have sufficient visibility to predict the sufficiency of our financial resources based upon the unpredictability and potential adverse impact of the global pandemic, as well as wars and other military conflicts, on our operations and overall business.

None of the proceeds from this Offering will be used to compensate or otherwise make payments to our named executive officers.

The expected use of net proceeds of this Offering represents our intentions based upon our present plans and business conditions. We cannot predict with certainty all of the particular uses for the proceeds of this Offering or the amounts that we will actually spend on the uses set forth above. Accordingly, we will have significant flexibility in applying the net proceeds of this Offering. The timing and amount of our actual expenditures will be based on many factors, including our ability to obtain additional financing, the progress, cost and results of our development of CODAs and our additional research and business development strategies and other factors described in "*Risk Factors*", as well as the amount of cash we use in our operations. See "*Management will have discretion as to the use of proceeds from this Offering.*"

Pending the use of the net proceeds described above, we intend to invest the net proceeds of this Offering in short-term, interest-bearing, investment-grade securities.

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#### DILUTION
The difference between the offering price per share of Common Stock in this Offering and the pro forma as adjusted net tangible book value per share after this Offering constitutes the dilution to investors in this Offering. Net tangible book value per share is determined by dividing our net tangible book value, which is our total tangible assets less total liabilities, by the total number of outstanding shares of common stock.

As of June 30, 2022, on an actual basis, a pro forma basis and a pro forma as adjusted basis, our net tangible book value is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Actual** | **Pro Forma<sup>(1)</sup>** | **Pro Forma** <br>**As** <br>**Adjusted<sup>(2)</sup>** |
| Net book value | &nbsp;&nbsp;&nbsp;$(467348) | &nbsp;&nbsp;&nbsp;&nbsp;$280152 | $|
| Less: intangible assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  |
| Net tangible book value | $(467348) | $280152 | $|
| Total common shares outstanding | &nbsp;&nbsp;20000001 | &nbsp;&nbsp;21495001 |  |
| Net tangible book value per common share | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(0.023) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.013 | $|

---

(1) The "Pro Forma" information gives effect to the sale of 1,495,000 common stock shares from July 1 through February 14, 2023, for net cash proceeds of $747,500. 

(2) The "Pro Forma As Adjusted" information gives effect to the "Pro Forma" information set forth in footnote 1 as adjusted for the sale of all of the maximum number of shares of Common Stock by us in the offering (the "Maximum Offering Amount") after deducting the estimated offering expenses payable by us.

After giving effect to the sale of the shares of Common Stock in this Offering, on a pro forma as adjusted basis, our net tangible book value would be $, or $ per share of Common Stock, after deducting the expenses of this Offering totaling approximately $. This would represent an immediate in pro forma as adjusted net tangible book value of $ per share to our existing stockholders and an immediate dilution of $ per share to investors purchasing shares of Common Stock in this Offering.

The following table illustrates the dilution to new investors on a per-share basis:

---

| | | |
|:---|:---|:---|
| Offering price per share of Common Stock |  | $ |
| &nbsp;&nbsp;&nbsp;Pro forma net tangible book value per common share before this Offering | $ |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in pro forma as adjusted net tangible book value per common share attributable to investors purchasing shares of Common Stock in this Offering |  |  |
| Pro forma as adjusted net tangible book value per share after this Offering |  | $ |
| Dilution to new investors |  |  |

---

The following table sets forth information with respect to our existing stockholders and the new investors as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares Purchased** | **Total Consideration** | **Average Price**<br>**Per** <br>**Share** |
|  | **Number** | **Percent** | **Average Price**<br>**Per** <br>**Share** |
| Existing stockholders | 21495001<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | &nbsp;&nbsp;&nbsp;$0.058 |
| New investors | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | &nbsp;&nbsp;&nbsp;$ |
| Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |  |

---

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#### CAPITALIZATION
The following table sets forth our capitalization as of June 30, 2022 on an actual basis, on a pro forma basis to give effect to the events described in footnote (1) below, and on a pro forma as adjusted basis to give effect to the events described in footnote (2), below.

---

| | | | |
|:---|:---|:---|:---|
|  | **Actual** | **Pro Forma<sup>(1)</sup>** | **Pro Forma** <br>**As** <br>**Adjusted<sup>(2)</sup>** |
| Stockholders' equity (deficit):<br>|  |  |  |
| Preferred stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | $|
| Common stock, $0.0001 par value, 80,000,000 shares authorized; 20,000,001, 21,495,001 and shares issued and outstanding, actual, pro forma, and pro forma as adjusted, respectively | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2150 |  |
| Additional paid-in capital | &nbsp;&nbsp;&nbsp;499800 | &nbsp;&nbsp;1247151 |  |
| Accumulated deficit | &nbsp;&nbsp;(969148) | &nbsp;&nbsp;&nbsp;(969148) |  |
| Total stockholders' equity (deficit) | &nbsp;&nbsp;(467348) | &nbsp;&nbsp;&nbsp;&nbsp;280152 |  |
| &nbsp;&nbsp;&nbsp;Total capitalization | $(467348) | $280152 | $|

---

(1) The "Pro Forma" information gives effect to the sale of 1,495,000 common stock shares from July 1 through February 14, 2023, for net cash proceeds of $747,500. 

(2) The "Pro Forma As Adjusted" information gives effect to the "Pro Forma" information set forth in Footnote 1 as adjusted for the sale of all of the maximum number of shares of Common Stock by us in the offering (the "Maximum Offering Amount") after deducting the estimated offering expenses payable by us.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS <br>

#### OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
*The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and related notes appearing elsewhere in this Offering Circular. Some of the information contained in this discussion and analysis or set forth elsewhere in this Offering Circular, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements involving risks and uncertainties and should be read together with "Cautionary Statement Regarding Forward-Looking Statements" and the "Risk Factors" section of this Offering Circular for a discussion of important factors which could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

#### Overview
Tesseract Collective is a digital art company which intends to build the portfolio of intellectual property rights derived from iconic personalities, iconic brands, iconic characters, or iconic works from the physical art and collectibles markets, commission original digital artworks derived from this portfolio and generate revenues the via the sub-licensing of such rights to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories. The Company intends to secure global master licenses for all rights, excluding non-fungible token ("NFT(s)") rights, in perpetuity, to the intellectual property underlying the digital art (a "Perpetual Global Master License"). Because the contractual rights to mint NFTs will be specifically excluded from our intended Perpetual Global Master License, placing the CODAs on the blockchain in the form of NFTs will not be a part of our business plan, and we have no intention of engaging in the business of creating, licensing or selling NFTs or operating in the NFT, crypto asset, or cryptocurrency markets, or transacting in cryptocurrency. The Company also intends to produce events in partnership with media organizations and cultural institutions.

For the six months ended June 30, 2022, we had net losses of $966,644. As of June 30, 2022, we had an accumulated deficit of $969,148.

We expect to incur operating losses for the foreseeable future until we start generating revenues from the sale and licensing of digital artworks and other transactions sufficient to cover our operating costs. We anticipate that our expenses will increase as we add operational, financial and management information systems and personnel to support the expansion of our business and operate as a public reporting company.

Until the Company starts generating revenues sufficient to fund its operations, the Company plans to fund its activities from operations and through equity offerings and debt financings. There can be no assurance that we will be successful in partnering with the Collaborators and marketing digital artwork or in implementing any other growth strategies. Further, there can be no assurance as to the availability of such future equity and debt financings, or if available, on terms acceptable to the Company. If we are not able to secure adequate additional funding or generate sufficient revenue, it would have a negative impact on our overall financial condition and the Company may be forced to make reductions in spending and/or curtail or suspend operations.

#### License Agreement with SOGEX
On January 31, 2022, we entered into a license agreement with *Société de Gestion et d'Exploitation des Droits Dérivés de l'OEuvre d'Antoine de Saint-Exupéry* ("SOGEX"), and amended that agreement on June 20, 2022 (as amended, the "License Agreement"). Pursuant to the License Agreement, SOGEX granted us the exclusive right to use the title "Le Petit Prince", texts in short quotes, original artwork, sketches, designs, drawings, pictures, paintings and characters which appear in the masterwork "Le Petit Prince" book (the "Property") (i) to develop digital art pieces based on and inspired by the Property, (ii) to encode the digital art pieces with blockchain and other technologies to allow the digital art pieces to be sold as NFTs, (iii) to use certain presentation materials in relation to the marketing and sale of the digital art pieces, (iv) to create, manufacture and sell merchandise, such as apparel and accessories, and (v) the right to grant sub-licenses and form other legal relationships in our discretion to carry out these objectives. Any copyrights or other similar rights in any digital art pieces that are derivative works incorporating elements of both the Property and creative expression or work of a Collaborative (i.e., CODAs), are owned equally among the Company, SOGEX, and the Collaborator, while any copyrights or other similar rights digital art pieces of the Property's original artwork will remain with SOGEX.

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Notwithstanding the current terms of the License Agreement, the Company has no intention of engaging in the business of creating, licensing or selling NFTs or operating in the NFT, crypto asset, or cryptocurrency markets, or transacting in cryptocurrency, as such, the NFT's related rights will not be used.

The Company is in process of renegotiating the license agreement with SOGEX such that the Company's rights are focused on development and marketing of digital artworks and exclude any rights to produce NFTs.

Pursuant to the existing License Agreement, prior to renegotiation to exclude NFTs, we agreed to pay royalties to SOGEX including: (i) a 50% royalty based on net profits from NFTs sold without Collaborators, and (ii) 33% of net profits from NFTs sold or marketed by Collaborators. As the Company has no intention of engaging in the business of creating, licensing or selling NFT, the Company does not expect to incur any revenue-based royalty obligations under the existing terms of the license agreement. The minimum royalty payments under this agreement are (a) $150,000 payable upon execution of the License Agreement, (b) $400,000 payable in two installments on March 31, 2023 and September 30, 2023, and (c) $450,000 payable in two installments on March 31, 2024 and September 30, 2024. In addition, we will hold one-third of the rights to all CODAs created pursuant to the License Agreement.

The License Agreement expires on January 31, 2025, but may be renewed for one additional three-year term at our option upon 90 days prior notice if we are in good standing with the Delaware Secretary of State, have paid all sums due and owing to the licensor, are not in breach of the license agreement at the time of the exercise of the renewal, and have achieved gross receipts of at least $2.5 million. Further renewals are not provided for in the License Agreement and would require further negotiations between the parties. The parties to the License Agreement have not agreed to any future renewals as of the date hereof.

The minimum royalty payments and upfront payments are capitalized and reflected in prepaid expenses on the Company's balance sheet. These costs are amortized over the period of use on a straight-line basis which reflects the pattern in which the Company benefits from the intellectual property rights. Amortization of the capitalized costs is recorded in cost of sales in the statement of operations. If it is determined that it is probable that the expected revenue will not allow for the recoverability of these costs, the Company will write off the amount against the prepaid asset for the non-recoverable portion. The Company will continue to evaluate whether this prepaid asset is recoverable over the term of the license agreement. In situations where a minimum commitment is not expected to be met based on expected revenues, the Company will record to the expense equal to the minimum amount when it is reasonably certain that revenues generated will not meet the minimum commitment.

#### Agreement with TED
On November 11, 2022, the Company entered into an agreement with Ted Conferences LLC ("TED") to produce and film an event hosted by TED ("Event") in 2024 in London, England. Under the terms of the agreement, the Company is engaged to pay $2,200,000 to TED for its services related to the Event curation and production. The Company will be responsible for the Event coordination and costs of the production of the Event themselves. The initial $20,000 non-refundable payment was made upon the execution of the agreement. The Company is obligated to make monthly payments of $220,000 between March and November 2023.

#### Financial Overview

#### For the six months ended June 30, 2022
The following table summarizes our results of operations for the six months ended June 30, 2022:

---

| | |
|:---|:---|
|  | **Six months ended** <br>**June 30, 2022**  |
| Operating Expenses: <br>|  |
| Cost of sales | &nbsp;&nbsp;&nbsp;$138889 |
| Sales and marketing | &nbsp;&nbsp;&nbsp;234203 |
| General and Administrative  | &nbsp;&nbsp;&nbsp;593552  |
| &nbsp;&nbsp;Net Loss | &nbsp;&nbsp;&nbsp;$(966644) |

---

Our net losses were $966,644 for the six months ended June 30, 2022.

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#### Revenue
We did not generate any revenue during the six months ended June 30, 2022.

#### Operating Expenses
*Cost of sales*

Cost of sales consists of $138,889 amortization of minimum royalties related to the SOGEX License Agreement. The total minimum royalty payments of $1,000,000 are recognized on a straight-line basis over the three-year term of the SOGEX License Agreement, as this recognition method reflects the use of the licensed intellectual property.

The cost of sales will include amortization of the capitalized license costs over the applicable license term. The costs related to the CODAs creation, including fees related to the intellectual property license granting us rights to produce CODAs from artwork and images, commissions to agents and artists and costs of storage will be capitalized as costs of indefinite-life digital assets and tested for impairment. We will also incur costs related to the event production in partnership with TED that will be deferred until the event is held. The event budget ranges may vary between $0.6 million to $1.0 million depending on venue, location, attendee goals, catering direction, audio and visual needs, design scope and experiential options.

*Advertising costs*

Advertising costs of $234,203 incurred during the six months ended June 30, 2022 include costs incurred on public relations, website and logo design, advertising, field marketing, and market research services.

*General and administrative expenses*

General and administrative expenses totaled $593,552 during the six months ended June 30, 2022, consisting primarily of $272,500 of accrued compensation costs related to the salaries of our executive employees; $150,000 of strategic advisory fees to HCFP/Strategy Advisors LLC, an affiliated entity; and approximately $100,000 in legal and accounting fees.

#### For the period from November 29, 2021 (inception) through December 31, 2021
The following table summarizes our results of operations for the period from November 29, 2021 (inception) through December 31, 2021:

---

| | |
|:---|:---|
|  | **November 29,** <br>**2021 (inception)** <br>**through December**<br>**31, 2021** |
| Operating Expenses:<br>|  |
| General and Administrative | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2504 |
| &nbsp;&nbsp;Net Loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2504) |

---

Our net losses were $2,504 for the period from November 29, 2021 (inception) through December 31, 2021.

#### Revenue
We did not generate any revenue during the period from November 29, 2021 (inception) through December 31, 2021.

#### Operating Expenses

#### General and Administrative Expenses
General and administrative expenses consist primarily of costs related to accounting and legal services and expenses associated with obtaining licenses. We incurred $2,504 of general and administrative expenses for the period from November 29, 2021 (inception) through December 31, 2021, all of which relate to general corporate legal services.

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#### Seasonality
Our business may be stronger in certain periods where we have product releases especially in the earlier stages of the business's development. Additionally, as we currently intend to utilize auction houses for our sales, we will be subject to the seasonality experienced by auction houses. The global art auction market has two principal selling seasons, which generally occur in the second and fourth quarters of the year. The timing and mix of products we sell in any given year will depend on various factors, including anniversaries, milestones, and celebratory occasions of both the licensor and/or third-party collaborator, as well as the timing of when certain auctions occur. Sales of a certain product or group of products tied to a particular celebratory occasion can dramatically increase our net sales in any given quarter or year and our results of operations may also fluctuate as a result of these factors. See "*Risk Factors — Our operating results may fluctuate from quarter to quarter and year to year due to the timing and popularity of new product releases and the seasonal sales of the auction houses."*

#### Liquidity and Capital Resources
We have incurred losses since our inception and, as of June 30, 2022, we had an accumulated deficit of $969,148. We expect to incur operating losses for the foreseeable future until we start generating revenues from the sale and licensing of digital artwork sufficient to cover our operating expenses. We expect that our general and administrative expenses will continue to increase. We intend to fund our operations initially through a combination of equity offerings and debt financings, and once we start generating revenue, through the revenues from sale and licensing of digital artwork as well as from ticket sales and sponsorship sales for TED event(s). From November 29, 2021 (inception) through June 30, 2022, we have funded our operations principally with $481,800 from the sale of shares of common stock. As of June 30, 2022, we had cash of $10,607 and negative working capital of $467,348.

In April 2022, pursuant to securities purchase agreements for common stock, the Company issued 2,000,000 shares of common stock to various individual investors (the "April 2022 Private Placement"). Gross cash proceeds from the April 2022 Private Placement totaled $480,000. Included in the 2,000,000 shares issued in connection with the April 2022 Private Placement were 80,000 shares issued in exchange for services with a fair value of $20,000. The Company plans to use the proceeds from the April 2022 Private Placement to fund the buildup of its digital artwork portfolio. In addition, the Company intends to use the proceeds to seek licenses to other iconic assets, engage in marketing activities, hold promotion events and to fund general corporate expenses.

In January 2022, the Company made the first $150,000 minimum royalty payment under the License Agreement with SOGEX. There were no earned royalties due (based on NFTs sales) under this agreement since no revenues have been generated to date and the Company has never sold any NFTs. The Company has committed to make additional minimum royalty payments of $400,000 payable in two installments on March 31, 2023 and September 30, 2023, and $450,000 payable in two installments on March 31, 2024 and September 30, 2024.

Pursuant to an agreement with Ferdinand IP Law Group, the Company's outside intellectual property counsel ("Ferdinand IP"), as partial consideration for legal services and reduced hourly billing rates, the Company agreed to, subject to the approval of the Company's board of directors, issue warrants (the "Ferdinand IP Warrants") within thirty (30) days of the date of the closing of this Offering. The Company and Ferdinand IP will enter into a separate warrant agreement to provide for specific terms, including: (i) the Ferdinand IP Warrants were to vest in 12 equal monthly installments commencing on January 1, 2022 such that the Warrants will be fully exercisable upon their issuance at the closing of the Offering; (ii) the Ferdinand IP Warrants may be exercised by Ferdinand IP in connection with a public offering, SPAC transaction, Series A or later round financing, or a sale of the Company (pursuant to a merger, sale of stock, sale of assets or otherwise) (the "Financing"); and (iii) the Ferdinand IP Warrants will have an exercise price of one cent ($.01) and Ferdinand IP will have the right to acquire 30,000 total shares of common stock. The issuance of the Ferdinand IP Warrants represents stock-based compensation and will have no impact on the Company's future liquidity and capital resources. The issuance of the Ferdinand IP Warrants represents stock-based compensation and will have no impact on the Company's future liquidity and capital resources. The Company recorded a $7,376 liability related to the services performed through June 30, 2022, to be settled in Warrants.

In January 2022, the Company engaged Leagas Delaney Limited ("Leagas Delaney") to provide the Company with creative advertising services. In lieu of cash payment, the Company has agreed to issue shares of Common stock immediately following the qualification of the Company's Form 1-A. The number of shares issuable to the vendor is based on the amount of fees invoiced as of the date of qualification of the Company's Form 1-A, multiplied by $0.75 per share. During the six months ended June 30, 2022, the Company incurred expenses for these services

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totaling $79,962, equal to the fair value of the Company's Common stock issuable to the vendor as of June 30, 2022. The fair value per share of the Company's common stock as of June 30, 2022 was deemed to be $0.50 per share. The fair value of the shares issuable to the vendor of $79,962 has been included in accounts payable and accrued expenses as of June 30, 2022. The issuance of the common stock shares to Leagas Delaney represents stock-based compensation and will have no impact on the Company's future liquidity and capital resources.

From July through December 2022, in connection with an ongoing private placement of common stock for $0.50 per share (the "Ongoing Private Placement"), the Company issued 1,495,000 shares for the net proceeds of $747,500, of which 200,000 shares to the Company's two directors, who are also executive employees, for cash consideration of $100,000.

On November 11, 2022, the Company entered into an agreement with TED Conferences LLC ("TED") to produce and film an event hosted by TED ("Event") in 2024. Under the terms of the agreement, the Company is engaged to pay $2,200,000 to TED for its services related to the Event curation and production. The Company will be responsible for the Event coordination and costs of the production of the Event themselves. The initial $20,000 non-refundable payment was made upon the execution of the agreement. The Company is then obligated to make monthly payments of $220,000 between March and November 2023.

#### Future Funding Requirements
We have not generated any revenue to date, and there is no assurance that we will be able to generate any revenue from sales. At the same time, we expect our expenses to increase in connection with our ongoing business development activities. We also expect to incur additional costs associated with operating as a public reporting company. We anticipate that we will need additional funding in connection with our continuing operations.

Based upon our current operating plan, until we raise the funds we are seeking under this Offering, we may need to continue to raise capital through private placements to fund our operating expenses. We may need to obtain additional financing to fund our continuing operations subsequent to this Offering. Because of the numerous risks and uncertainties associated with our operations, we are unable to estimate the amounts of increased capital outlays and operating expenditures necessary. Our future capital requirements will depend on many factors, including licensing or other arrangements into which we may enter in the future, marketing activities, implementing additional internal systems and infrastructure, including financial and reporting systems; and the economic and other terms, timing and success of any collaboration.

Until such time as we can generate substantial revenue from sales, we expect to finance our cash needs through a combination of equity and debt financings. To the extent that we raise additional capital through the sale of equity or convertible debt and equity securities, the ownership interests of our common stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends.

#### Off-Balance Sheet Arrangements
We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements as defined under Securities and Exchange Commission rules.

#### Critical Accounting Policies and Estimates
Our management's discussion and analysis of our financial condition and results of operations is based on our unaudited condensed financial statements, which we have prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP. The preparation of unaudited condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the reporting periods. We evaluate these estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions. Critical accounting estimates address accounting matters that are inherently uncertain due to unknown future resolution of such matters. Management routinely discusses the development, selection, and disclosure of each critical accounting estimates.

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Our significant accounting policies and estimates are more fully described in Note 2 to our financial statements appearing elsewhere in this Offering Circular. We believe that the accounting policies are critical for fully understanding and evaluating our financial condition and results of operations.

#### Recent Accounting Pronouncements
We have evaluated recent accounting pronouncements issued but not yet effective and has determined that upon adoption, none of these standards will have a material impact on the Company's financial statements.

#### JOBS Act
On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

We are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an "emerging growth company," we intend to rely on certain of these exemptions, including without limitation, (i) providing an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an "emerging growth company" until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of the completion of an initial public offering; (iii) the date on which we have issued more than $1 billion in non-convertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the Securities and Exchange Commission.

#### Controls and Procedures
We are not currently required to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act. We expect to be required to comply with the internal control requirements of the Sarbanes-Oxley Act for the fiscal year ending December 31, 2023. As of the date of this prospectus, we have not completed an assessment, nor have our auditors tested our systems, of internal controls.

#### Effect of Inflation and Changes in Prices
Recent increases in inflation in the United States and elsewhere may lead to national, regional and international economic disruptions, any of which could affect the Company's operations and ability to effect a public offering. In addition, the Company's ability to effect a public offering may be impacted by inflation, including as a result of increased market volatility or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all.

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#### OUR BUSINESS

#### Overview
Tesseract Collective, Inc., doing business as Tesseract Icons ("Tesseract" or the "Company"), is a developmental stage intellectual property company. We intend to build our intellectual property library through the creation and amassing of intellectual property rights to original digital artworks derived from iconic personalities, iconic brands, iconic characters, or iconic works from the physical art and collectibles markets (going forward, "Icon" will refer to iconic personalities, brands, characters, or art generally recognized as icons). We plan to commission original digital artworks derived from Icons created in partnership with renowned museums or cultural institutions, many of which are themselves recognized icons. Tesseract intends to enter into license agreements which allow for the name, image, and/or likeness of the Icons to be utilized; our museum partners will select artists to produce the digital artworks in collaboration with the Icon, and then exhibit the produced digital artworks in a gallery show at the museum. Each of the Icons, the museum partners, and the selected artists who will produce the digital artworks will be deemed collaborators ("Collaborator(s)"). We call such digital artworks created for Tesseract by the museum selected artists in collaboration with the Icon we introduce, and then exhibited by the museum, "Collaborative Original Digital Artwork(s)"or "CODA(s). The stakeholders of the CODA include the Icon, the museum partner, and the artist. We plan to secure a global master license for all rights, excluding non-fungible token ("NFT(s)") rights, in perpetuity, to the intellectual property underlying the CODA from each of its stakeholders (a "Perpetual Global Master License"). Thereafter, we intend to monetize the Perpetual Global Master License via the sub-licensing of such rights to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories.

Because the contractual rights to mint NFTs will be specifically excluded from our intended Perpetual Global Master License, placing the CODAs on the blockchain in the form of NFTs will not be a part of our business plan, and we have no intention of engaging in the business of creating, licensing or selling NFTs or operating in the NFT, crypto asset, or cryptocurrency markets, or transacting in cryptocurrency.

Our existing assets include:

&nbsp;&nbsp;&nbsp;&nbsp;• The license for collaborative digital art rights derived from the original illustrations of *Le Petit Prince/The Little Prince* ("The Little Prince" going forward). The Little Prince has sold over 200 million copies worldwide, which makes it one of the best-selling books ever written; with translations in over 400 languages and dialects, it is the second most translated book after the Bible. The rights to produce CODAs under the agreement are non-exclusive. We are in negotiations to amend this agreement to a Perpetual Global Master License which would exclude contractual rights to mint NFTs.

&nbsp;&nbsp;&nbsp;&nbsp;• A TED Partner Institute Agreement to produce an event (a "TED Event") which is filmed and hosted by TED. It is our intent to produce the TED Event featuring a museum partner of our choosing. TED's mission is to discover and spread ideas that spark imagination, embrace possibility, and catalyze impact. Hence TED's tagline: ideas worth spreading. Overall, according to TED.com, TED talks are viewed or listened to more than three billion times annually.

Our immediate objectives are: (i) to find a museum partner to develop CODAs derived from the original illustrations from The Little Prince; (ii) to find a museum partner with whom to center a TED Event, where TED will identify "ideas worth spreading" within the museum partner's community, and the museum partner will develop and exhibit CODAs inspired by the talks covered in the TED Event; and, (iii) to enter into Perpetual Global Master Licenses for each of The Little Prince and TED CODAs.

While we currently have a license granting us rights to produce and license CODAs based on the original illustrations of The Little Prince and an agreement to produce a TED Event, we intend to seek Perpetual Global Master Licenses to both properties; moreover, we intend to seek additional Perpetual Global Master Licenses granting us rights to produce and license CODAs based on other Icons. By focusing on Icons and the creation of CODAs with museums, we believe we significantly differentiate our intellectual property from other producers of digital art.

#### Our Team
To capitalize on collaborations between Icons, museums, and artists; then securing the Perpetual Global Master License from each stakeholder; and then exploiting the Perpetual Global Master License in licensing and merchandising with third-party licensees, we have assembled a team of highly credentialed principals and advisors.

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Our team has deep industry expertise with museums, art, fashion, music, entertainment, and luxury goods. Our team also has considerable experience in the structuring of digital art licenses from Icons; demonstrated virtuosity in developing CODAs via partnerships with cultural institutions, visual artists, musicians, entertainers, fashion designers, and/or luxury brands; and licensing and merchandising.

Because of our team's relationships and experience, we have the highest-level access to Icons, Collaborators in cultural institutions, art, music, entertainment, social influencing, fashion, and/or luxury brands, amongst others; and licensing and merchandising.

**Richard Seet. Mr. Seet is one of our co-founders and has been Chief Executive Officer and a director since our inception in November of 2021. Mr. Seet is also Chairman of RXS Enterprises, LLC, a private investment vehicle. Mr. Seet has been a director, trustee, and/or advisor to numerous private and public companies, including CellPoint Digital, the TED Residency, and CreateTOTALLY. In October 2020, RXS Enterprises led a $687 million take-private bid with Brookfield Special Investments for Iconix Brand Group, a leading brand management company.** 

Prior to RXS Enterprises, Mr. Seet was Chairman and CEO of Amity Entertainment, an independent film and children's entertainment company he built in partnership with Angelo, Gordon & Co, a $43 billion alternative investment fund. In 2007, he won an Emmy award as an Executive Producer of The Big Comfy Couch, a children's property owned by Amity.

Prior to Amity, Mr. Seet co-founded Qiosk.com, a startup venture with equity financing led by United Business Media, a FTSE 100 company, providing digital distribution of multimedia interactive magazines. Qiosk's clients include Hearst, Cahners Business Information, Crain Communications, American Lawyer Media, ABP International, Penn Well and CMP Media LLC.

Prior to Qiosk, he was a principal with the Carlyle Group ("Carlyle") where he initiated and led Carlyle's entry into Asia and the creation of its first Asian focused private equity funds.

Prior to Carlyle, Mr. Seet was a research associate at the Harvard Business School where he developed and authored numerous teaching case studies on Asian competitive strategy.

Mr. Seet received his S.B. at the Massachusetts Institute of Technology and his doctoral education in molecular genetics at Harvard where he was a Baxter Fellow.

**Charles Riotto. Mr. Riotto is one of our co-founders and has been President and a director since our inception. For over 32 years, Mr. Riotto has been a leader in the global licensing and toy industries. As President of LIMA (International Licensing Industry Merchandisers' Association 1997-2018), he led the organization from a small US-based association into an international powerhouse with offices and affiliates in 12 different countries and members in more than 35 countries. At the time of his retirement in 2018, LIMA (now Licensing International) was renowned globally as the hub of the licensing industry for education, business connections, industry data and networking opportunities, and was recognized internationally as the authoritative voice of the worldwide licensing industry. Mr. Riotto was responsible for the day-to-day operations of the association and interactions with the Board of Directors which featured the industry's most prominent executives from around the world.**

Prior to joining LIMA, Mr. Riotto served as Executive Director of the International Recording Media Association, a global trade group based in Princeton, New Jersey. Previously, he was Executive Director of the Toy Manufacturers of America, Inc. (now The Toy Association), the leading trade association for the global toy industry, based in New York City.

Mr. Riotto graduated from Montclair State University with a B.A. in Business Administration.

**David Todrin. Mr. Todrin is Chief Financial Officer of Tesseract. He joined the Company on September 1, 2022. Since January 2010, Mr. Todrin has been the President of David Todrin Consulting, the professional services firm he founded to provide CFO services primarily to early-stage companies. In this capacity, Mr. Todrin has served as CFO and advisor for over 35 companies ranging from $1.0 million seed capital funded companies through over $100 million in raised capital Series C level companies, with global teams ranging from two to 100 employees. His experience includes accounting, treasury, business modeling, AP, and tax, among others, and has experience building financial processes from the bottom up to ensure management has the information needed for decision–making, investor inquiries and overall planning.**

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Prior to that, Mr. Todrin led planning and analysis efforts for public and private companies ranging from $1 million to $2 billion in annual revenue for over 20 years, including Thomson Learning, Scholastic, Bloomberg (via Geller & Associates), Avon Products, and Save the Children. He has built financial processes from scratch, implemented enterprise-level planning systems; led M&A and Due Diligence efforts.

Mr. Todrin earned his B.S. from Georgetown University, his M.Sc. from Brown University and his MBA in Finance and Accounting from Columbia Business School. Mr. Todrin held his CPA license from 1990 through 2018.

**Chris Michaels. Dr. Michaels has been a Senior Advisor since February 2022. Dr. Michaels is the Director of the Reel Store, a new center for digital creativity and immersive storytelling in Coventry, England. It is the United Kingdom's first permanent digital gallery.** 

Previously, he was the Director of Digital, Communications and Technology at The National Gallery, London. Before he joined the Gallery, he was Head of Digital & Publishing at the British Museum, where he founded their digital department and created their digital strategy.

He is a Digital Consultant for Bolton & Quinn, the world's leading communications company to arts and cultural organizations, and the Haus Der Kunst, Munich. He was named one of a top 10 "power influencers" on the Museum sector in 2022. He is a Senior Visiting Research Fellow at King's College London, a Bloomberg Technology Fellow and a Creative Industries Fellow of the Arts and Humanities Research Council. He was named a 5G Trailblazer by Ericsson in 2021. He has acted as an advisor for the Arts Council England, the Singapore National Heritage Board and the Humboldt Forum in Berlin.

He has a PhD from the University of Bristol and an MPA in Innovation from University College London. He is writing a book on research and development in the Creative Industries.

**Lynn Hazan. Ms. Hazan has been a Senior Advisor since January 2022. Ms. Hazan is a co-Managing Partner of Influence Media Partners ("Influence"), a music catalog acquisition fund. Prior to Influence, Ms. Hazan was General Manager and CFO of Epic Records ("Epic"). At Epic, Ms. Hazan managed all operating divisions for Epic including Finance & Strategic Planning, Accounting, Strategic Marketing (Branding and Licensing), A&R Operations/Admin, Release Planning, IT and HR/People Planning and Development. Her team structured and negotiated all deals with established artists (including Mariah Carey, DJ Khaled/We The Best, Jennifer Lopez, Future, Meghan Trainor, Travis Scott, 21 Savage, Camila Cabello) as well as new and developing acts and labels.**

Prior to Epic, Ms. Hazan was General Manager and CFO of RED Music, a division of Sony Music Entertainment. Prior to RED Music, she was CFO of RCA Records.

She has been selected as one of Billboard's "Top Women in the Music Business" four times.

She received her S.B. from the Massachusetts Institute of Technology and her M.B.A. from The Wharton School.

**Bruce David Klein. Mr. Klein has been a Senior Advisor since our inception. Mr. Klein is President of Atlas Media Corp ("Atlas"), among the world's leading independent producers of award-winning non-fiction content. Atlas' acclaimed specials and series have become staple programming for such prestigious programming services as Netflix, Discovery Channel, HBO, Travel Channel, National Geographic, Investigation Discovery, MTV, E! Entertainment, Animal Planet, Lifetime, AMC, TLC, A&E, SyFy, Food Network, and History – as well as countless programming services in 100+ countries worldwide. Atlas also produces premium feature documentaries that have won numerous awards at film festivals around the globe before launching theatrically and on services like NBC, IFC, Netflix. For eleven years in a row, Atlas was named to RealScreen Magazine's prestigious annual "Global 100" list of the most respected and influential providers of non-fiction entertainment in the world.**

Mr. Klein has created, written, directed, produced and/or executive-produced series and specials such as HOTEL IMPOSSIBLE (Travel), DR. G: MEDICAL EXAMINER (Discovery Health/TLC), PLAYING WITH FIRE (E!), EPIC WIN (MTV), STALKED: SOMEONE'S WATCHING (ID), BRAINWASHED (Discovery Channel), THE MIND OF A MURDERER (ID), BEHIND THE BASH with Giada De Laurentiis (Food), BREAKING VEGAS (History), and IT CAN HAPPEN TOMORROW (Weather). He wrote and directed the TV movie WHO KILLED CHANDRA LEVY? (TLC) and the theatrical documentary, MEAT LOAF: IN SEARCH OF PARADISE. He recently produced the acclaimed theatrical documentary BEST WORST THING THAT EVER COULD HAVE HAPPENED

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with Stephen Sondheim, Hal Prince, Jason Alexander (named on "Top 10 Films" lists by the NY Times, Newsweek, amongst others) which launched to raves at the New York Film Festival before its national theatrical run and Netflix premiere. Mr. Klein is the director of ICAHN: THE RESTLESS BILLIONAIRE which premiered on HBO in February 2022.

Mr. Klein is a member of the Academy of Television Arts & Sciences, and serves on the Executive Committee of the National Association of Television Program Executives (NATPE) and is a founding Board Member of the Nonfiction Producers Association (NPACT).

Mr. Klein graduated Phi Beta Kappa and summa cum laude from SUNY Binghamton with a B.A. in Psychology and Creative Writing.

**Betsy Pearce. Ms. Pearce has been a Senior Advisor since our inception. Ms. Pearce is an attorney specialized in the international fashion/luxury industry. The law firm Pearce LLP was founded in 2001.**

Ms. Pearce serves an international clientele from a base in New York and business presence in Paris. With 20 years in the luxury business, Ms. Pearce offers legal experience, business acumen, industry expertise and the insight of a certified business coach.

Ms. Pearce has represented numerous designer-founders, many in the sale of his/her company and namesake brand. Notable clients, past and present, include Alexander McQueen, Carolina Herrera, Tomas Meier, Kate Spade, Alexander Wang, Rick Owens, Kanye West, John Hardy and Ann Demeulemeester.

Ms. Pearce has also represented over 100 creative directors and CEOs, negotiating their engagements with international luxury brands including Louis Vuitton, Gucci, Bottega Veneta, Balenciaga, Chloe, Christian Dior, Jimmy Choo, Ralph Lauren, Balmain, Coach, Calvin Klein, Donna Karan, Vera Wang, Nina Ricci, Schiaparelli and Salvatore Ferragamo.

Ms. Pearce is on the board of Catholic Guardian Services and is a former board member of Balenciaga. She is a member of Plum Alley, private investment platform for women-founded companies; The Forum, a U.K. Social Club for business founders; and Salmagundi, a New York arts club founded circa 1871.

Prior to founding Pearce LLP, Ms. Pearce was a litigator at Cravath, Swaine & Moore, an entertainment lawyer at two NYC firms for a decade and a clerk for a federal district judge in the Southern District of New York.

Pearce has a law degree from Columbia University, a Certification in Coaching from Columbia Business School/Teachers' College and a B.A. from Brown University.

**Margaret Johnson, OBE. Ms. Johnson has been a Senior Advisor since our inception. Ms. Johnson is Group Chief Executive Officer and co-owner of Leagas Delaney, an independent global creative communications and branding agency with offices in London, Hamburg, Shanghai, Milan, Los Angeles, and Johannesburg. During her career at Leagas Delaney, Ms. Johnson developed deep expertise in strategy and branding having worked with global brand clients such as Unilever, P&G, adidas, InterContinental Hotels, William Grant, Bosch and Timberland; and luxury brands such as Patek Philippe, LVMH, Harrods, Pictet Group, Porsche, Brown Brothers Harriman, and The Dalmore.**

In 2006, Ms. Johnson was appointed as a Non-Exec of the Admiral Group, one of the most successful UK FTSE 100 insurance companies with an international portfolio of companies in Europe and the USA. During her tenure at Admiral Group, Ms. Johnson was a member of the Audit and Remuneration Committees until she retired from the Board in 2016. From 2017 to 2021, Ms. Johnson took up the role of Non-Exec Director of Admiral Group's price comparison site, Confused.com, where she was Chair of Risk and Compliance, and during that period also served as Non-Exec Director of Penguin Portals Group. She was also a member of the other international price comparison boards of the Admiral Group until their successful sale to RVU in 2020.

Ms. Johnson was awarded an OBE in 2013 for her services to the creative industry and voluntary services recognizing her achievements as a senior female leader and her contribution to the Red Cross.

Ms. Johnson received her BSc in Economics and a MSc in Business Administration from Edinburgh University.

**Sid Mofya. Sid Mofya has been a Senior Advisor since October 2022. Mr. Mofya is the Executive Director of the Draper Venture Network, a global consortium of 20 venture capital firms investing in early-stage technologies across the globe. In this capacity, he serves as an advisor to firms that specialize in Web3 investments including** 

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Draper Associates (Coinbase, Tezos, Ethereum, Ledger, Maker), Draper Dragon (Gemini, VeChain, Nifty's, Maker's Place, Club NFT), Draper Goren Holm (Totle, Ownera, LunarCrush), Blockchain Valley Ventures (Artory, Keyless), as well as the DVN's Draper Roundtable – a platform for aggregating capital for coinvestment into top Web 3 companies from the Draper Network's global portfolio.

A Zambian native, Mr. Mofya's previous work includes strategy, finance, and operations roles with Pricewaterhouse Coopers, Royal Dutch Shell, and the UK Ministry of Justice. He is a member of the Kauffman Fellows, one of the premier investment networks in the world.

He received his Bachelor of Engineering from the University of Sheffield, and an MBA from the Acton School of Business in Texas.

**Joshua R. Lamstein. Mr. Lamstein has been a Senior Advisor since our inception. Since 2014, Mr. Lamstein has also been Vice Chairman of HCFP and Co-Chairman and Co-Managing Partner of HCFP/Capital Partners. Mr. Lamstein is also a senior officer and/or director of portfolio companies of HCFP/Capital Partners, including serving as Chairman of Scopus BioPharma (Nasdaq: "SCPS"), a publicly-traded clinical-stage biopharmaceutical company. Mr. Lamstein previously served as a Director of PAVmed Inc. (Nasdaq: "PAVM"), of which HCFP was a Co-Founder. He also serves as a Venture Partner of a seed-stage venture fund with approximately $100 million of assets under management. Mr. Lamstein has worked in venture capital and private equity for over 20 years, including as a Managing Director of GF Capital Private Equity Fund, a $240 million middle market private equity fund, and as a Partner of LMS Capital, a FTSE 250 London Stock Exchange-listed investment trust. Mr. Lamstein initiated the trust's presence in San Francisco and Silicon Valley. He began his career in private equity at Apollo Management and prior thereto was an investment banker at Lehman Brothers. Mr. Lamstein has been a member of the board of directors of numerous private and public companies, including Canvs.ai, Feed.fm, Rocksbox, TrueAnthem and World Education, Inc.** 

Mr. Lamstein received his B.A., with honors, from Colgate University and his M.B.A. from the MIT Sloan School of Management.

#### The Opportunity
We believe four forces create an opportunity which Tesseract intends to exploit:

1.<br> The rise of digital art, including outside the NFT space, as a category worthy of collection among high-net-worth art collectors.

2.<br> Because digital art is now coming to fore, museums will increase their exhibitions and collections of digital art.

3.<br> Copyright protection afforded new intellectual property.

4.<br> The use of collaborations to expand the licensing market potential of intellectual property underlying digital art.

*<u>The Rise of Digital Art As A Category Worthy of Collection Among High-Net-Worth Collectors</u>* 

According to Art Basel and UBS in their joint report "The Art Market 2022", in a survey of high-net-worth ("HNW"; defined as individuals with investable assets, excluding real estate and private business assets, of greater than $1 million) collectors from across the globe, the following pie chart and bar graph represent the average allocation of art as a percentage of the HNW collector's overall wealth, excluding real estate and private business assets, in 2021.

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#### **TABLE OF CONTENTS**
![](ny20004683x6_charts01.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

#### Source: Arts Economics (2022) The Art Market 2022, An Art Basel & UBS Report.
Digital art as a niche arose in tandem with the computer. Known initially as "computer art," Herbert W. Franke was among the pioneers of computer art, who created works of art – so-called oscillograms – with analog computing systems and cathode ray oscillographs in the mid-1950s. On a control panel, Franke turned, calculated and manipulated sine curves and sawtooth curves, which were photographed with a camera and then superimposed on the screen.

While digital art has been in existence for more than sixty years, according to the Art Basel UBS report: "Previously a more niche area of collecting, digital art came into much greater mainstream focus in 2021 ... via a number of high-profile sales." Note, it is unclear whether digital art as defined by "The Art Market 2022 Report" includes NFTs.

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#### **TABLE OF CONTENTS**
Furthermore, the graphic below from "The Art Market 2022 Report" reflects data on purchase intent for 2022:

![](ny20004683x6_barcharts05.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

#### Source: Arts Economics (2022) The Art Market 2022, An Art Basel & UBS Report.
As observed in the Art Basel and UBS report, digital art is growing from a niche to a recognized category, with HNW collector purchase intent rivalling that of paintings (i.e., 60% paintings vs. 56% digital art). With digital art growing as part of HNW collectors' art collections, it implies that digital art will enter into public vogue in time.

As evidence of the rise of digital art as a collecting category, to satisfy such demand for digital art, one of the prestige art auction houses, Phillips, showcased an online auction focused on digital art in 2022: Ex-Machina: A History of Generative Art. Ex-Machina was an exhibition and online auction of early computer art, video art, and digital art. Ex-Machina illustrated the history of generative art with previews in Phillips's Paris galleries from 31 May, 2022 to 17 June, 2022. The exhibition then traveled their London galleries, where it was on view from 11 July, 2022 to 5 August, 2022. The works were offered via an online auction from 13 - 20 July, 2022. The auction highlighted non-NFT digital artwork with unseen works by pioneers Vera Molnar, Herbert W. Franke and Gottfried Jäger,

*<u>Because Digital Art Is Now Coming To Fore, Museums Will Increase Their Exhibitions And Collections Of</u> <u>Digital Art</u>*

Museums are cultural arbiters. They consider the context of time and place and select artifacts which speak to and highlight the culture of that time and place. That digital art is now growing in public consciousness, there will soon be a likely current for museums to establish digital art collections.

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#### **TABLE OF CONTENTS**
To wit, according to the New York Times in an article on October 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;• "In September [2022], a foundation for the media mogul William Paley, who founded CBS, announced that it would auction a trove of artworks from his collection (including pieces by Picasso, Rodin and Renoir) for an estimated $70 million. The proceeds are supposed to help MoMA [the Museum of Modern Art in New York] further expand its digital footprint …"

&nbsp;&nbsp;&nbsp;&nbsp;• At "the Guggenheim Museum, executives are hiring a new assistant curator for digital art that will be funded by LG, the electronics company, which is also paying for a $100,000 annual award to artists making "groundbreaking achievements in technology-based art."

&nbsp;&nbsp;&nbsp;&nbsp;• According to Christiane Paul, the Whitney Museum's digital art curator, "usually I had to sell the idea of digital art to the upper administrative levels," she said. "Now trustees are coming to me and asking if the Whitney should be in the metaverse."

And with museums' resources limited, we believe that the Company can help museums in their missions: to fund commissioned original digital artwork museum curators deem relevant to au courant culture. For funding the curation, production, and exhibition of designated digital artworks, the Company intends to obtain a Perpetual Global Master License in return. Such a structure allows the digital artworks, and its underlying intellectual property, to remain in the possession of the exhibiting cultural institution; while Tesseract can commercialize the intellectual property via license.

*<u>Copyright Protection Afforded New Intellectual Property</u>* 

By and large, a licensee licenses from a licensor the use of the licensor's intellectual property because the licensor is a brand which is familiar to the broader public. Via the use of the licensor's brand, the licensee's products could differentiate itself from a sea of commodified goods through the consumer's attachment to the licensor. Unsurprisingly, in the world of art licensing, much of the imagery which is used in licensed merchandise sales are generally older recognized artworks not under copyright protection or those relatively newer works still under copyright protection. In the case of those not under copyright protection, the associated licensed art is generally sold in conjunction with a right to use the cultural institution's name. For example, while the Mona Lisa is not under copyright protection, most licensed images of the Mona Lisa are sold in tandem with the use of the Louvre trademark, the cultural institution that owns the Mona Lisa. In either case, intellectual property protection exists in the trademark of the institution and/or the copyright of the protected newer artwork. Thus, a competitive barrier is erected.

Following from above, the Company believes there is an opportunity to excel with new art intellectual property in one of three mutually non-exclusive ways: (i) create digital art which could be quickly recognized by the public because of less intense competition in the digital art niche; (ii) the use of new digital art intellectual property, for which the general public may be less familiar, paired with an elite cultural institution which is a distinguished brand; and/or (iii) a combination of both (i) and (ii).

We choose to compete by commissioning new digital art because we believe that digital is a rising new class of art sought by both collectors and cultural institutions. And because of this, we believe the competition to stand out in digital art is possibly less intense than in the traditional art categories. Because it is new art intellectual property, a copyright of such imagery would create a significant long-term competitive barrier.

Elite cultural institutions are well known brands. They are renowned for many reasons, including but not limited to: first, because of recognized masterpieces many museums own within their permanent collections, they are endowed irreplicable advantages against those without; second, their curatorial talents in identifying artists and trends; and last, their ability to situate art within cultural contexts are acknowledged by the community at large.

Thus, the Company believes there is an opportunity in commissioning new digital art, curated by the museums themselves, whereby the museums select the artist, approve the digital artwork, and then exhibit the digital artwork in a gallery show. In their organization of the gallery show, the museums pronounce their point of view on the digital art displayed to the general public. By connecting the art with a recognized museum brand, we can take a less known image, and tether that visual with a known brand. The goal is to confer a halo effect to the image that might otherwise not be notable were it to stand in isolation.

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*<u>The Use Of Collaborations To Expand The Licensing Market Potential Of The Intellectual Property Underlying</u> <u>Digital Art</u>*

Below are data for licensing and merchandising sales, in millions of dollars, from various property types from Licensing International's report entitled "2022 Global Licensing Industry Study":

#### Sales of Licensed Merchandise and Services, By Property Type, 2015-2021

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **2021 Sales**<br>**Revenues** | **2019 Sales**<br>**Revenues** | **2018 Sales** <br>**Revenues**  | **2017 Sales** <br>**Revenues**  | **2016 Sales** <br>**Revenues**  | **2015 Sales** <br>**Revenues**  |
| **Entertain/Characters** | $129932 | $128392 | $122682 | $121526 | $118324 | $113245 |
| **Corporate/Brand** | &nbsp;&nbsp;$76900 | &nbsp;&nbsp;$60174 | &nbsp;&nbsp;$58829 | &nbsp;&nbsp;$55770 | &nbsp;&nbsp;$54641 | &nbsp;&nbsp;$52820 |
| &nbsp;&nbsp;**Sports** | &nbsp;&nbsp;$31260 | &nbsp;&nbsp;$28935 | &nbsp;&nbsp;$27838 | &nbsp;&nbsp;$26544 | &nbsp;&nbsp;$25298 | &nbsp;&nbsp;$24889 |
| **Fashion** | &nbsp;&nbsp;$28433 | &nbsp;&nbsp;$33803 | &nbsp;&nbsp;$32243 | &nbsp;&nbsp;$32001 | &nbsp;&nbsp;$31060 | &nbsp;&nbsp;$29756 |
| **Publishing** | &nbsp;&nbsp;$26695 | &nbsp;&nbsp;$22232 | &nbsp;&nbsp;$20532 | &nbsp;&nbsp;$18437 | &nbsp;&nbsp;$17513 | &nbsp;&nbsp;$15678 |
| &nbsp;&nbsp;**Collegiate** | &nbsp;&nbsp;&nbsp;$7666 | &nbsp;&nbsp;&nbsp;$6481 | &nbsp;&nbsp;&nbsp;$6139 | &nbsp;&nbsp;&nbsp;$5688 | &nbsp;&nbsp;&nbsp;$5757 | &nbsp;&nbsp;&nbsp;$5940 |
| **Celebrity** | &nbsp;&nbsp;&nbsp;$6224 | &nbsp;&nbsp;&nbsp;$4785 | &nbsp;&nbsp;&nbsp;$4665 | &nbsp;&nbsp;&nbsp;$4603 | &nbsp;&nbsp;&nbsp;$4452 | &nbsp;&nbsp;&nbsp;$4209 |
| **Music** | &nbsp;&nbsp;&nbsp;$3465 | &nbsp;&nbsp;&nbsp;$3663 | &nbsp;&nbsp;&nbsp;$3484 | &nbsp;&nbsp;&nbsp;$3333 | &nbsp;&nbsp;&nbsp;$3081 | &nbsp;&nbsp;&nbsp;$2816 |
| **Art** | &nbsp;&nbsp;&nbsp;$3437 | &nbsp;&nbsp;&nbsp;$2983 | &nbsp;&nbsp;&nbsp;$2710 | &nbsp;&nbsp;&nbsp;$2475 | &nbsp;&nbsp;&nbsp;$1775 | &nbsp;&nbsp;&nbsp;$1439 |
| **Non-Profit** | $1498 | $1381 | $1170 | $1181 | $971 | $921 |
| **TOTAL WW** | **$315511** | **$292830** | **$280292** | **$271638** | **$282880** | **$251713** |

---

Art licensing and merchandising has grown from $1.4 billion in 2015 to $3.4 billion in 2021. Excluding the Covid-19 pandemic year of 2020, that is a compound annual growth rate of 19%.

As per data evidenced above, were we to consider art licensing alone, the 2021 licensing market had $3.4 billion in sales; by bringing The Little Prince as a Collaborator for CODAs, we would expand our base market to include entertainment/character licensing, which was $129.9 billion in sales in 2021; and by utilizing celebrity Icon Collaborators for CODAs, we would expand our base market to include celebrity licensing, which was $6.2 billion in sales in 2021.

Thus, via various collaborations, one can significantly expand the traditional art licensing market to include other categories with potential market sizes as seen from the 2021 licensing revenue metrics above.

While increasing potential buying audiences via collaborations is conceptually straightforward, it's execution is anything but. While we believe that Tesseract's team is well placed to execute such collaborations, there are no assurances that we will be able to create such collaborations, that our sales will comprise a material portion of the overall market in each property type, or that our sales will increase as a result of broadening our market base outside of the traditional art market.

We believe the four forces articulated above create a unique opportunity for Tesseract via commissioning museum quality CODAs, with possible additional collaborations via celebrity and character Icons, in return for their Perpetual Global Master License.

#### Our Strategy
We intend to build ourselves into an intellectual property company. We intend to build our intellectual property library through the creation and amassing of rights to original digital artworks derived from iconic personalities, iconic brands, iconic characters, or iconic works from the physical art and collectibles markets.

We intend to commission original digital artworks derived from the Icons created in partnership with renowned museums or cultural institutions. Tesseract intends to enter into license agreements which allow for the name, image, and/or likeness of the Icons to be utilized. Our museum partners will select the artists to produce CODAs in collaboration with the Icon we introduce, each of whom is a collaborator in the artistic endeavor, and then exhibit the produced digital artworks in a gallery show at the museum. The stakeholders of a CODA include the Icon, the museum partner, and the artists.

We plan to secure a global master license for all non-NFT rights in perpetuity to the intellectual property underlying the CODAs from each of its stakeholders. Thereafter, we intend to monetize the Perpetual Global Master

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#### **TABLE OF CONTENTS**
License via the sub-licensing of such rights to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories. Thus, the sub-licensees would imprint the visual imagery of the CODAs on:

&nbsp;&nbsp;&nbsp;&nbsp;• T-shirts

&nbsp;&nbsp;&nbsp;&nbsp;• Scarves

&nbsp;&nbsp;&nbsp;&nbsp;• Bracelets and other jewelry wear

&nbsp;&nbsp;&nbsp;&nbsp;• Plates and chinaware

There are five features to our strategy:

1. First, we believe it is noteworthy to partner an Icon with a museum and their selected artists. We believe this construct of a rare Icon, partnered with the high curatorial standards of museums, what we term "scarcity times scarcity," allows for the creation of CODAs of distinction, and the agglomeration of an exceptional asset base available only from Tesseract.

2. Second, by securing a Perpetual Global Master License from each stakeholder to the produced CODAs, we would create a competitive barrier to our CODAs. Because we intend that the license would be perpetual, our ability to utilize the intellectual property inherent in the license never expires. Thus, the Company can build a library of enduring rights without a license end date.

3.<br> Third, we believe that digital artworks which have been exhibited in a museum gallery show are rare. We believe the museum showcase will elevate our exhibited works over non-museum exhibited artworks in public minds.

4. Fourth, we believe our CODAs will be instantly recognizable, as we intend that the Icons from which our CODAs are derived from will be well-known, and the artist creating the CODAs will be well-respected in the high-end art community because they were selected by the museum partner. Such recognition is prized when we enter sub-licensing discussions with third-party licensees. 

5.<br> Last, by enlisting multiple Collaborators—the Icon, the cultural institution, and the artist—we would expand the CODA marketing and buying audience by piggybacking on the enthusiasts of each of the Collaborators.

#### Our Strengths
We believe Tesseract is well positioned to capitalize on the Icon and museum developed CODA licensing market, and that executing on such a strategy requires bespoke skills resident within Tesseract.

We believe our principal strengths in capturing this opportunity are:

&nbsp;&nbsp;&nbsp;&nbsp;• We have access to numerous Icons, Collaborators, and cultural institutions: Because of the backgrounds of our team members, we have direct or indirect relationships with:

&nbsp;&nbsp;&nbsp;&nbsp;○ Owners or creators of Icons, their licensees, and/or their licensing agents; and

&nbsp;&nbsp;&nbsp;&nbsp;○ Renowned Collaborators, be they museums, artists, musicians, celebrities, influencers, fashion designers, and/or luxury brands, amongst others.

&nbsp;&nbsp;&nbsp;&nbsp;• Because of the credibility of our team, we believe that we will be seen as trusted stewards of Icons and Collaborators. We believe those in the industry will trust our respected team to not sully the brands or reputation of the Icons we license, or Collaborators with whom we work. We believe our team will inspire confidence in those with whom we plan to transact.

&nbsp;&nbsp;&nbsp;&nbsp;• Because of our team's experience in private equity, we believe we can obtain the Perpetual Global Master License from all the CODA stakeholders at reasonable prices.

&nbsp;&nbsp;&nbsp;&nbsp;• Because our core management team is steeped in licensing, we have an in-depth understanding of how to market our CODA visual inventory in ways which we believe will resonate with the market.

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#### **TABLE OF CONTENTS**
While we believe that there is a significant opportunity in the intellectual property of CODAs associated with Icons curated and exhibited by museums, given our early stage of development, it will require substantial management resources, time, and capital, amongst other factors, for Tesseract to capture any portion of this market.

#### Our Business Model
We expect to derive our revenue from two sources: (i) exploitation of our Perpetual Global Master Licenses via licensing and merchandising to third-party sub-licensees; and, (ii) because we intend to hold an annual TED Event featuring a different cultural institution each year, the sale of tickets and sponsorship from our TED Events.

We expect to have high operating leverage with a small core staff consisting of personnel in commissioning and creative direction in CODA development, CODA licensing and merchandising, marketing, and finance. With such lean staffing, we believe we can manage and execute Tesseract's licensing and merchandising of CODAs effectively.

We carry no physical inventory. We expect that our minimal capital expenditure requirements will result in high cash flow conversion and increased capacity to invest in future growth initiatives, which include the commissioning of new CODAs in partnership with Icons and museums, thus expanding our inventory of intellectual property for CODA licensing and merchandising opportunities.

#### Our Icons and Commercialization Timelines
*<u>Le Petit Prince/The Little Prince</u>*

Our license provides the non-exclusive right to produce CODAs inspired by the originals of all writings, sketches, and final illustrations for, amongst others, The Little Prince.

![](ny20004683x6_cover.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

The Little Prince has sold over 200 million copies worldwide, which makes it one of the best-selling books ever written. With translations in over 400 languages and dialects, The Little Prince is the second most translated book after the Bible. It has been adapted to numerous art forms and media, including audio recordings, radio plays, live stage, film, television, ballet, and opera.

Some quantitative highlights include:

&nbsp;&nbsp;&nbsp;&nbsp;• The animated film of The Little Prince has been streamed over 30 million times on Netflix

&nbsp;&nbsp;&nbsp;&nbsp;• The book has over 10 million fans on Facebook

&nbsp;&nbsp;&nbsp;&nbsp;• The Little Prince Park in France receives over one million visitors annually

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#### **TABLE OF CONTENTS**
The Company intends to retain a leading art advisor to facilitate a partnership with museums who will develop CODAs derived from the TED talks.

Should we secure a museum interested in curating and exhibiting a collection of CODAs for The Little Prince, we anticipate the exhibition of the collection on or around April 2024, which coincides with the 80th anniversary publication of The Little Prince.

Once a collaborating museum has been identified, and should we secure the consent of the stakeholders to the intellectual property of the CODAs, it is our intent to amend our existing The Little Prince license agreement to a Perpetual Global Master License.

With a Perpetual Global Master License, we intend to commercialize the license as soon as possible following the finalization of the CODA visuals.

#### TED Talks
![](ny20004683x6_tedx1.jpg)<br>

&nbsp;&nbsp;&nbsp;&nbsp;<br>

We have entered into a TED Partner Institute Agreement. It is our intention to feature a museum partner ("Tesseract TED Museum Partner") and its community as the focal point of a TED Event orchestrated by Tesseract.

Every year, TED works with a group of select companies and foundations to identify internal ideators, inventors, connectors, and creators. Drawing on the same rigorous regimen that has prepared speakers for the TED main stage, TED will work closely with Tesseract and the Tesseract TED Museum Partner, overseeing curation of ideas for talks and providing intensive one-on-one talk development to sharpen and fine tune ideas.

The culmination is a TED Event. The TED Event will feature between 12 to 15 talks highlighting ideas worth spreading from the Tesseract TED Museum Partner community. These talks will be filmed and distributed by TED to its worldwide audience. The filmed talks will join the growing library of valuable TED talks that can spur innovation and transform organizations.

To visually illustrate the unique ideas emanating from our Tesseract TED Museum Partner community, it is our intent to have the Tesseract TED Museum Partner curate CODAs inspired by the TED talks.

The Company intends to retain a leading art advisor to facilitate a partnership with museums who will develop CODAs derived from the TED talks.

Should we secure a museum interested in participating as a Tesseract TED Museum Partner, we anticipate the TED Event and exhibition to debut on October 2024.

Once a Tesseract TED Museum Partner has been identified, and should we secure the consent of the stakeholders to the intellectual property of the CODAs, we intend to enter into a Perpetual Global Master License with the Tesseract TED Museum Partner.

With the Perpetual Global Master License, we intend to commercialize the license as soon as possible upon the finalization of the CODA visuals.

#### Early Stage of Development
We are a recently formed company with a limited operating history. Our CODAs are not yet under development. We have never been profitable. Currently, we have no products available for sale, and to date we have not generated any revenue from product sales or merchandising or licensing. Because the Company has recurring losses from operations and an accumulated deficit, our auditors have raised substantial doubt about the Company's ability to continue as a going concern.

#### Competition
The visual imagery from our CODAs, which would underpin the intellectual property of our Perpetual Global Master License, are subject to extensive competition from various domestic and foreign intellectual property owners

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#### **TABLE OF CONTENTS**
of visual images available for licensing. Such competitors could include our potential collaborating museum partners themselves. We intend to license the imagery from our CODAs across a wide range of product categories, including apparel, accessories, media, home goods, amongst others, in which we and our potential licensees face intense competition, including, in the case of our potential licensees, from other licensees.

In general, competitive factors include visual art quality, name recognition, consumer preference, product quality, price, style and service. In addition, we face competition from other art intellectual property management companies in specific, and other intellectual property management companies in general, for licenses. Other companies owning established intellectual property may decide to enter into licensing arrangements similar to the ones we are currently contemplating. Furthermore, our potential licensees may decide to more prominently promote and market competing intellectual property, or develop or purchase other intellectual property, rather than enter into arrangements with us.

#### Intellectual Property
As of the date hereof, we do not own nor have we registered any patents, copyrights or trademarks. We have secured two agreements: (i) non-exclusive NFT rights to produce CODAs inspired by the original illustrations of The Little Prince, which we intend to amend to a perpetual global master license for all non-NFT rights; and, (ii) a TED Partner Institute Agreement to produce a TED event. Our success depends in part on our ability to obtain rights to intellectual property, in particular trademarks and copyrights, enforce our and our licensor's rights to intellectual property against infringers, and operate without infringing on the proprietary rights of third parties. See "*Risk Factors - Risks Related to Intellectual Property*" for additional information regarding risks to the Company related to intellectual property on which the Company's business relies.

#### Facilities
Our office space is located at 45 Rockefeller Plaza, 20<sup>th</sup> Floor, New York, New York 10111. We believe this facility is suitable and adequate for our current operations.

#### Employees
We currently have three employees. They are our Chief Executive Officer, our President and our Chief Financial Officer.

We also utilize other third-party consultants in the ordinary course of business with expertise in various aspects of Icon license acquisition, museum advisory, CODA development, and general sales and marketing.

#### Legal Proceedings
We are not a party to any legal proceedings.

#### Government Regulation
Regulation of the art and collectible industry varies from jurisdiction to jurisdiction and state to state. In any jurisdictions or states in which we operate, we may be required to obtain licenses and permits to conduct business, including dealer and sales licenses, and will be subject to local laws.

In connection with the products we plan to provide, we must comply with these various laws and regulations from federal, state, local and foreign regulatory agencies. We believe that we are in material compliance with regulatory requirements applicable to our business. These regulatory requirements may include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;• to the extent applicable, federal, state, local and foreign laws protecting employees, which may include regulations involving, but not limited to, health care, minimum wage, work and safety laws, as well as Title VII of the Civil Rights Act and the Americans with Disabilities Act and regulations of the U.S. Department of Labor, the Occupational Safety & Health Administration, the U.S. Equal Employment Opportunity Commission and the equivalent state, local and foreign agencies, and other similar laws;

&nbsp;&nbsp;&nbsp;&nbsp;• to the extent we conduct foreign operations, the U.S. Foreign Corrupt Practices Act, the UK Bribery Act and other similar anti-bribery and anti- kickback laws and regulations that generally prohibit companies and their intermediaries from making improper payments for the purpose of obtaining or retaining business; and

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&nbsp;&nbsp;&nbsp;&nbsp;• federal, state and foreign anticorruption, data protection, data privacy, cybersecurity consumer protection, content regulation and other laws and regulations, including without limitation, the California Consumer Privacy Protection Act ("CCPA"), and the EU/UK General Data Protection Regulation ("GDPR");

&nbsp;&nbsp;&nbsp;&nbsp;• in relation to our sales and marketing activities, various consumer protection rules and regulations promulgated and/or enforced by various federal and state regulators such as the U.S. Federal Trade Commission, and state attorneys general as well as non-U.S. regulatory authorities that relate to advertising, product delivery and other consumer-facing practices

Our failure to comply with applicable laws and regulations could adversely affect the Company. Claims arising out of actual or alleged violations of law could be asserted against us by individuals or governmental authorities and could expose us to significant damages or other penalties.

See "*Risk Factors*" for additional information regarding regulatory risks to the Company.

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#### MANAGEMENT

#### Executive Officers and Directors
Our executive officers and directors are set forth below. Our executive officers are full-time employees, and we currently have no other significant employees.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Richard Seet | &nbsp;&nbsp;56 | Chief Executive Officer and Director |
| Charles Riotto | &nbsp;&nbsp;73 | President and Director  |
| David Todrin  | &nbsp;&nbsp;63 | Chief Financial Officer |

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**Richard Seet. Mr. Seet is one of our co-founders and has been Chief Executive Officer and a director since our inception in November 2021. Mr. Seet has also served as Chairman of RXS Enterprises, LLC, a private investment vehicle, since December 2008. Mr. Seet has been a director of CellPoint Digital since January 2019, an advisor to the TED Residency from 2017 to 2019, and a non-executive director of CreateTOTALLY since September 2021. In October 2020, RXS Enterprises led a $687 million take-private bid with Brookfield Special Investments for Iconix Brand Group, a leading brand management company.** 

Prior to launching RXS Enterprises, from 2005 to 2007, Mr. Seet was Chairman and CEO of Amity Entertainment, an independent film and children's entertainment company he built in partnership with Angelo, Gordon & Co, a $43 billion alternative investment fund. In 2007, Mr. Seet won an Emmy award as an Executive Producer of The Big Comfy Couch, a children's property owned by Amity. Prior to Amity, from 1999 to 2002, Mr. Seet co-founded and served as President at Qiosk.com, a startup venture with equity financing led by United Business Media, a FTSE 100 company, providing digital distribution of multimedia interactive magazines. Qiosk's clients include Hearst, Cahners Business Information, Crain Communications, American Lawyer Media, ABP International, Penn Well and CMP Media LLC. Prior to Qiosk, from 1995 to 1999, he was a principal with the Carlyle Group ("Carlyle") where he initiated and led Carlyle's entry into Asia and the creation of its first Asian focused private equity funds. Prior to Carlyle, from 1994 to 1995, Mr. Seet was a research associate at the Harvard Business School where he developed and authored numerous teaching case studies on Asian competitive strategy.

Mr. Seet received his S.B. at the Massachusetts Institute of Technology and his doctoral education in molecular genetics at Harvard where he was a Baxter Fellow.

We believe that Mr. Seet is well-qualified to be on our board of directors due to his experience in the entertainment industry, as and executive, entrepreneur and investor, and his technological expertise and background.

**Charles Riotto. Mr. Riotto is one of our co-founders and has been President and a director since our inception. For over 32 years, Mr. Riotto has been a leader in the global licensing and toy industries. Mr. Riotto served as President of International Licensing Industry Merchandisers' Association (LIMA) (now Licensing International) from June 1997 to June 2018, where he led the organization from a small US-based association into an international organization with offices and affiliates in 12 different countries and members in more than 35 countries. During his tenure, LIMA was renowned globally as the hub of the licensing industry for education, business connections, industry data and networking opportunities, and was recognized internationally as the authoritative voice of the worldwide licensing industry. Mr. Riotto was responsible for the day-to-day operations of LIMA and interactions with the Board of Directors. Prior to joining LIMA, Riotto served as Executive Director of the International Recording Media Association, a global trade group based in Princeton, New Jersey, from 1995 to 1997. Previously, from 1981 to 1993, he was Executive Director of the Toy Manufacturers of America, Inc. (now The Toy Association), the leading trade association for the global toy industry, based in New York City. Mr. Riotto graduated from Montclair State University with a B.A. in Business Administration.**

We believe Mr. Riotto is well-qualified to be on our board of directors due to his experience in licensing and merchandising and trade, as well as his widespread relationships in the licensing and merchandising industry.

**David Todrin. Mr. Todrin is Chief Financial Officer of Tesseract. He joined the Company on September 1, 2022. Since January 2010, Mr. Todrin has been the President of David Todrin Consulting, the professional services firm he founded to provide CFO services primarily to early-stage companies. In this capacity, Mr. Todrin has served as CFO and advisor for over 35 companies ranging from $1.0 million seed capital funded companies through over $100 million in** 

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raised capital Series C level companies, with global teams ranging from two to 100 employees. His experience includes accounting, treasury, business modeling, AP, and tax, among others, and has experience building financial processes from the bottom up to ensure management has the information needed for decision–making, investor inquiries and overall planning.

Prior to that, Mr. Todrin led planning and analysis efforts for public and private companies ranging from $1 million to $2 billion in annual revenue for over 20 years, including Thomson Learning, Scholastic, Bloomberg (via Geller & Associates), Avon Products, and Save the Children. He has built financial processes from scratch, implemented enterprise-level planning systems; led M&A and Due Diligence efforts.

Mr. Todrin earned his B.S. from Georgetown University, his M.Sc. from Brown University and his MBA in Finance and Accounting from Columbia Business School. Mr. Todrin held his CPA license from 1990 through 2018.

#### Our Senior Advisors
We have complemented our management team and board of directors by also engaging our advisors, who have experience in investment and bringing companies to the public markets, as well as experience in the NFT and High-End Art industries. Our advisors will assist us on an advisory basis in identifying Icons to license, engaging potential Collaborators, and providing other services relevant to our business. We believe that engaging our advisors will allow us to have even greater access to expertise and industry networks that will allow us the ability to execute and differentiate our investment strategy. None of our advisors owe us any fiduciary duties and while we expect that they will assist us in identifying High-End Art to license, engaging potential Collaborators, and providing other services relevant to our business, they have no obligation to do so and will continue to devote their business time to activities unrelated to us.

**Chris Michaels. Dr. Michaels has been a Senior Advisor since February 2022. Dr. Michaels is the Director of the Reel Store, a new center for digital creativity and immersive storytelling in Coventry, England. It is the United Kingdom's first permanent digital gallery.**

Previously, he was the Director of Digital, Communications and Technology at The National Gallery, London. Before he joined the Gallery, he was Head of Digital & Publishing at the British Museum, where he founded their digital department and created their digital strategy.

He is a Digital Consultant for Bolton & Quinn, the world's leading communications company to arts and cultural organizations, and the Haus Der Kunst, Munich. He was named one of a top 10 "power influencers" on the Museum sector in 2022. He is a Senior Visiting Research Fellow at King's College London, a Bloomberg Technology Fellow and a Creative Industries Fellow of the Arts and Humanities Research Council. He was named a 5G Trailblazer by Ericsson in 2021. He has acted as an advisor for the Arts Council England, the Singapore National Heritage Board and the Humboldt Forum in Berlin.

He has a PhD from the University of Bristol and an MPA in Innovation from University College London. He is writing a book on research and development in the Creative Industries.

**Betsy Pearce. Ms. Pearce has been a Senior Advisor since our inception. Ms. Pearce is an attorney specialized in the international fashion/luxury industry. The law firm Pearce LLP was founded in 2001. Ms. Pearce serves an international clientele from a base in New York and business presence in Paris. With 20 years in the luxury business, Ms. Pearce offers legal experience, business acumen, industry expertise and the insight of a certified business coach. Ms. Pearce has represented numerous designer-founders, many in the sale of his/her company and namesake brand. Notable clients, past and present, include Alexander McQueen, Carolina Herrera, Tomas Meier, Kate Spade, Alexander Wang, Rick Owens, Kanye West, John Hardy and Ann Demeulemeester. Ms. Pearce has also represented over 100 creative directors and CEOs, negotiating their engagements with international luxury brands including Louis Vuitton, Gucci, Bottega Veneta, Balenciaga, Chloe, Christian Dior, Jimmy Choo, Ralph Lauren, Balmain, Coach, Calvin Klein, Donna Karan, Vera Wang, Nina Ricci, Schiaparelli and Salvatore Ferragamo. Ms. Pearce is on the board of Catholic Guardian Services and is a former board member of Balenciaga. She is a member of Plum Alley, private investment platform for women-founded companies; The Forum, a U.K. Social Club for business founders; and Salmagundi, a New York arts club founded circa 1871. Prior to founding Pearce LLP, Ms. Pearce was a litigator at Cravath, Swaine & Moore, an entertainment lawyer at two NYC firms for a decade and a clerk for a federal district judge in the Southern District of New York.** 

Ms. Pearce has a law degree from Columbia University, a Certification in Coaching from Columbia Business School/Teachers' College and a B.A. from Brown University.

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**Lynn Hazan. Ms. Hazan has been a Senior Advisor since January 2022. Ms. Hazan is a co-Managing Partner of Influence Media Partners ("Influence"), a music catalog acquisition fund. Prior to Influence, Ms. Hazan was General Manager and CFO of Epic Records ("Epic"). At Epic, Ms. Hazan managed all operating divisions for Epic including Finance & Strategic Planning, Accounting, Strategic Marketing (Branding and Licensing), A&R Operations/Admin, Release Planning, IT and HR/People Planning and Development. Prior to Epic, Ms. Hazan was General Manager and CFO of RED Music, a division of Sony Music Entertainment. Prior to RED Music, she was CFO of RCA Records.**

Ms. Hazan has been selected as one of Billboard's "Top Women in the Music Business" four times.

Ms. Hazan received her S.B. from the Massachusetts Institute of Technology and her M.B.A. from The Wharton School.

**Margaret Johnson, OBE. Ms. Johnson has been a Senior Advisor since our inception. Ms. Johnson is Group Chief Executive Officer and co-owner of Leagas Delaney, an independent global creative communications and branding agency with offices in London, Hamburg, Shanghai, Milan, Los Angeles, and Johannesburg. During her career at Leagas Delaney, Ms. Johnson developed deep expertise in strategy and branding having worked with global brand clients such as Unilever, P&G, adidas, InterContinental Hotels, William Grant, Bosch and Timberland; and luxury brands such as Patek Philippe, LVMH, Harrods, Pictet Group, Porsche, Brown Brothers Harriman, and The Dalmore.**

In 2006, Ms. Johnson was appointed as a Non-Exec of the Admiral Group, one of the most successful UK FTSE 100 insurance companies with an international portfolio of companies in Europe and the USA. During her tenure at Admiral Group, Ms. Johnson was a member of the Audit and Remuneration Committees until she retired from the Board in 2016. From 2017 to 2021, Ms. Johnson took up the role of Non-Exec Director of Admiral Group's price comparison site, Confused.com, where she was Chair of Risk and Compliance, and during that period also served as Non-Exec Director of Penguin Portals Group. She was also a member of the other international price comparison boards of the Admiral Group until their successful sale to RVU in 2020.

Ms. Johnson was awarded an OBE in 2013 for her services to the creative industry and voluntary services recognizing her achievements as a senior female leader and her contribution to the Red Cross.

Ms. Johnson received her BSc in Economics and a MSc in Business Administration from Edinburgh University.

**Bruce David Klein. Mr. Klein has been a Senior Advisor since our inception. Mr. Klein is President of Atlas Media Corp ("Atlas"), among the world's leading independent producers of award-winning non-fiction content. Atlas' acclaimed specials and series have become staple programming for such prestigious programming services as Netflix, Discovery Channel, HBO, Travel Channel, National Geographic, Investigation Discovery, MTV, E! Entertainment, Animal Planet, Lifetime, AMC, TLC, A&E, SyFy, Food Network, and History – as well as countless programming services in 100+ countries worldwide. Atlas also produces premium feature documentaries that have won numerous awards at film festivals around the globe before launching theatrically and on services like NBC, IFC, Netflix. For eleven years in a row, Atlas was named to RealScreen Magazine's prestigious annual "Global 100" list of the most respected and influential providers of non-fiction entertainment in the world.**

Mr. Klein has created, written, directed, produced and/or executive-produced series and specials such as HOTEL IMPOSSIBLE (Travel), DR. G: MEDICAL EXAMINER (Discovery Health/TLC), PLAYING WITH FIRE (E!), EPIC WIN (MTV), STALKED: SOMEONE'S WATCHING (ID), BRAINWASHED (Discovery Channel), THE MIND OF A MURDERER (ID), BEHIND THE BASH with Giada De Laurentiis (Food), BREAKING VEGAS (History), and IT CAN HAPPEN TOMORROW (Weather). He wrote and directed the TV movie WHO KILLED CHANDRA LEVY? (TLC) and the theatrical documentary, MEAT LOAF: IN SEARCH OF PARADISE. He recently produced the acclaimed theatrical documentary BEST WORST THING THAT EVER COULD HAVE HAPPENED with Stephen Sondheim, Hal Prince, Jason Alexander (named on "Top 10 Films" lists by the NY Times, Newsweek, amongst others) which launched to raves at the New York Film Festival before its national theatrical run and Netflix premiere. Mr. Klein is the director of ICAHN: THE RESTLESS BILLIONAIRE which premiered on HBO in February 2022.

Mr. Klein is a member of the Academy of Television Arts & Sciences, and serves on the Executive Committee of the National Association of Television Program Executives (NATPE) and is a founding Board Member of the Nonfiction Producers Association (NPACT).

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Mr. Klein graduated Phi Beta Kappa and summa cum laude from SUNY Binghamton with a B.A. in Psychology and Creative Writing.

**Sid Mofya. Sid Mofya has been a Senior Advisor since October 2022. Mr. Mofya is the Executive Director of the Draper Venture Network, a global consortium of 20 venture capital firms investing in early-stage technologies across the globe. In this capacity, he serves as an advisor to firms that specialize in Web3 investments including Draper Associates (Coinbase, Tezos, Ethereum, Ledger, Maker), Draper Dragon (Gemini, VeChain, Nifty's, Maker's Place, Club NFT), Draper Goren Holm (Totle, Ownera, LunarCrush), Blockchain Valley Ventures (Artory, Keyless), as well as the DVN's Draper Roundtable – a platform for aggregating capital for co-investment into top Web 3 companies from the Draper Network's global portfolio.**

A Zambian native, Mr. Mofya's previous work includes strategy, finance, and operations roles with Pricewaterhouse Coopers, Royal Dutch Shell, and the UK Ministry of Justice. He is a member of the Kauffman Fellows, one of the premier investment networks in the world. He received his Bachelor of Engineering from the University of Sheffield, and an MBA from the Acton School of Business in Texas.

**Joshua R. Lamstein. Since 2014, Mr. Lamstein has been Vice Chairman of HCFP and Co-Chairman and Co-Managing Partner of HCFP/Capital Partners. Mr. Lamstein is also a senior officer and/or director of portfolio companies of HCFP/Capital Partners, including serving as Chairman and a director of Scopus BioPharma (Nasdaq: "SCPS"), a publicly-traded clinical-stage biopharmaceutical company. Mr. Lamstein previously served as a Director of PAVmed Inc. (Nasdaq: "PAVM"), of which HCFP was a Co-Founder. He also has served as a Venture Partner of a seed-stage venture fund with approximately $100 million of assets under management. Mr. Lamstein has worked in venture capital and private equity for over 20 years, including as a Managing Director of GF Capital Private Equity Fund, a middle market private equity fund, and as a Partner of LMS Capital, a FTSE 250 London Stock Exchange-listed investment trust. He began his career in private equity at Apollo Management and prior thereto was an investment banker at Lehman Brothers. Mr. Lamstein has been a member of the board of directors of numerous private and public companies, including Canvs.ai, Feed.fm, Rocksbox, TrueAnthem and World Education, Inc. Mr. Lamstein has also been a Senior Advisor to John Snow, Inc., a leading healthcare consulting firm.**

Mr. Lamstein received his B.A., *with honors*, from Colgate University and his M.B.A. from the MIT Sloan School of Management.

#### Composition of our Board of Directors
Our board of directors currently consists of two members: Richard Seet and Charles Riotto.

Our directors hold office until their successors have been elected and qualified or until the earlier of their resignation or removal. There are no family relationships among any of our directors or executive officers.

Our bylaws provide that the authorized number of directors comprising our board of directors shall be fixed by a majority of the total number of directors or by our stockholders.

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

#### Director Independence
We have no independent directors. In making such determinations, our board considered the relationships that each such person has with our Company and all the other facts and circumstances our board deemed relevant in determining independence, including the beneficial ownership of our capital stock by each such person.

#### Committees of the Board of Directors
Our board of directors does not currently have an audit committee, a compensation committee or a nominating and governance committee.

#### Board Leadership Structure and Risk Oversight
The board of directors oversees our business and considers the risks associated with our business strategy and decisions. The board implements its risk oversight function as a whole.

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#### Code of Ethics and Business Conduct
We have not yet adopted a code of ethics and business conduct, which would apply to our employees, directors and officers, including our principal financial officer, principal accounting officer or controller, or persons performing similar functions. In the event that the Company seeks to apply for listing on an exchange or quotation in an over-the-counter market, to the extent it is required, we intend to adopt a code of ethics and business conduct.

#### Executive Compensation

#### Summary Compensation Table
The following table shows the total compensation paid or accrued during the fiscal year ended December 31, 2022, to our Chief Executive Officer and our other two most highly-compensated executive officers that were serving as executive officers as of December 31, 2022 (our "named executive officers"). The Company did not pay or accrue any compensation for our named executive officers during the fiscal year ended December 31, 2021.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary** | **Bonus** | **Option**<br>**Awards** | **Non-Qualified**<br>**Deferred**<br>**Compensation**<br>**Earnings** | **All Other**<br>**Compensation** | **Total** |
| &nbsp;&nbsp;&nbsp;Richard Seet, Chief <br>Executive Officer<sup>(1)</sup> | 2022 | $250000 | $— | &nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | $250000 |
| &nbsp;&nbsp;&nbsp;Charles Riotto,<br>President and Director<sup>(1)</sup> | 2022 | $250000  | &nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  | $250000 |
| &nbsp;&nbsp;&nbsp;David Todrin, Chief <br>Financial Officer | 2022 | &nbsp;&nbsp;$56800  | &nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$—  | &nbsp;&nbsp;$56800 |

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(1) We began to accrue an annual base salary of $250,000 for each of Messrs. Seet and Riotto and, following this Offering, we expect to enter into formalized employment and compensation arrangements with them, that will include such base salary of $250,000, to be paid retroactively, as well as bonus arrangements.

#### Employment Agreements
We currently do not have formal employment agreements or offer letters with Messrs. Seet and Riotto. However, effective January 1, 2022, we began to accrue an annual base salary of $250,000 for each of Messrs. Seet and Riotto and, following this Offering, we expect to enter into formalized employment and compensation arrangements with them, that will include such base salary of $250,000, to be paid retroactively, as well as bonus arrangements.

#### Summary of Employment Agreement with David Todrin
We have entered into an employment agreement with David Todrin, our Chief Financial Officer, dated as of September 1, 2022. Pursuant to the employment agreement, annual compensation to Mr. Todrin includes $170,400 in cash and an equity grant consisting of stock options to purchase 400,000 shares of our common stock. Starting with the contract year ending August 31, 2024, Mr. Todrin will be eligible to receive a discretionary performance-based bonus if Mr. Todrin is employed by the Company on the last day of such contract year. The Company will reimburse Mr. Todrin for all proper expenses in accordance with the terms of the Company's reimbursement policies.

The employment agreement also provides for severance payments and benefits upon termination by the Company without Cause (as defined below), or by Mr. Todrin for Good Reason (as defined below), including a lump sum cash payment in the amount of $21,300 within 15 days after the effective date of the separation agreement that would be entered into between Mr. Todrin and the Company. Payment of the severance pay is conditioned on (i) executive's continued compliance in all material respects with executive's continuing obligations to the Company, including, without limitation, the terms of the employment agreement and of the confidentiality agreement that survive termination of executive's employment with the Company, and (ii) executive signing a separation agreement and general release in a form of that provided to executive by the Company on or about the termination date.

"Cause" means the executive's (i) willful misconduct; (ii) willful or gross neglect of executive's job duties; (iii) material failure to perform executive's job duties; (iv) refusal to follow a lawful directive of the Company that is materially related to his employment duties; (v) material failure to comply with the Company's material policies and practices; (vi) act of moral turpitude, theft, fraud or dishonesty; (vii) commission of any felony or misdemeanor

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(other than minor traffic violations or offenses of a comparable magnitude not involving dishonesty, fraud or breach of trust); (viii) breach of any material term of a contractual agreement between executive and the Company, including, without limitation, the employment agreement; (ix) willful act that is (or reasonably would be expected to be) materially damaging or detrimental to the Company; (x) material violation of any federal securities law, rule or regulation or the rule of any securities self-regulatory organization; or (xi) becoming a statutorily disqualified person, as that term is defined in Section 39a)(39) of the Exchange Act; provided, however, that, in the event of conduct described in clauses (iii), (iv), (v) or (viii) that is capable of being cured, Cause shall exist only if the Company provides written notice to executive reasonably detailing such grounds giving rise to Cause and executive fails to cure such grounds for Cause to the reasonable satisfaction of the Company within five (5) business days after delivery to Executive of such written notice, if reasonably curable within five (5) business days, or, if not, then within such time as is reasonable under the circumstances, which in no event shall exceed fifteen (15) calendar days, unless despite good faith efforts, elements beyond Executive's control require additional time to cure, in which case the Company may extend this period in additional 5 day increments up to 30 days.

"Good Reason" means (i) a material and substantial diminution in executive's duties, authority, or responsibilities that would be inconsistent with executive's position (other than while Executive is temporarily physically or mentally incapacitated, as permitted under the employment agreement, or as required by applicable law), (ii) a material failure by the Company to pay executive's compensation; or (iii) other material breach by the Company of a material provision of the employment agreement or any other agreement between the Company and executive; provided, however, that such event shall constitute Good Reason only if (x) executive has provided the Company with written notice reasonably detailing the event giving rise to Good Reason within thirty (30) days after the initial occurrence thereof or, if later, within thirty (30) days after the date upon which executive first becomes aware of such event, (y) the Company fails to cure such event within thirty (30) days after delivery to it of such written notice; and (z) executive actually terminates executive's employment for such uncured Good Reason event, on at least ten (10) days' prior written notice, within thirty (30) days following the expiration of such thirty (30) day period referred to in clause (y) above.

#### Outstanding Equity Awards at Fiscal Year End
As of December 31, 2022, we had not granted any equity awards to our named executive officers.

#### Director Compensation
Until the appointment of our independent directors, we do not have any outside directors and, accordingly, have not paid any compensation to our directors for serving as directors.

#### 2022 Omnibus Incentive Plan
Our board of directors and stockholders have adopted and approved the 2022 Omnibus Incentive Plan (the "2022 Plan"). The 2022 Plan is a comprehensive incentive compensation plan under which we can grant equity-based and other incentive awards to our officers, employees, directors, consultants and advisers. The purpose of the 2022 Plan is to help us attract, motivate and retain such persons with awards under the 2022 Plan and thereby enhance shareholder value.

The maximum aggregate number of shares of common stock which may be issued pursuant to awards under the 2022 Plan is 2,100,000 shares, and the maximum aggregate number of shares which may be issued pursuant to the exercise of Incentive Stock Options is 2,100,000 shares. As of the date of this Offering Circular, we have granted an aggregate of options to various key employees, directors, and consultants under the 2022 Plan. As of the date of this Offering Circular, there are ] shares available to be granted under the 2022 Plan. On or prior to the consummation of this offering, we intend to cancel the 2022 Plan and replace the 2022 Plan with the 2023 Plan, as more fully described below.

#### 2023 Equity Incentive Plan
On or prior to the completion of this Offering, our board of directors and stockholders will adopt and approve the 2023 Equity Incentive Plan (the "2023 Plan"). The 2023 Plan will replace and supersede the 2022 Plan. The 2023 Plan is a comprehensive incentive compensation plan under which we can grant equity-based and other incentive awards to our officers, employees, directors, consultants and advisers. The purpose of the 2023 Plan is to help us attract, motivate and retain such persons with awards under the 2023 Plan and thereby enhance shareholder value.

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*Administration. The 2023 Plan is administered by the board, and upon completion of this Offering will be administered by a committee comprised of two (2) or more members of the Board who are selected by the Board (the "committee"), each of whom is a "non-employee director" within the meaning of Rule 16b-3 promulgated under the Exchange Act and "independent" for purposes of any applicable listing requirements. If a member of the committee is eligible to receive an award under the 2023 Plan, such committee member shall have no authority under the plan with respect to his or her own award. Among other things, the committee has complete discretion, subject to the express limits of the 2023 Plan, to determine the directors, employees and nonemployee consultants to be granted an award, the type of award to be granted the terms and conditions of the award, the form of payment to be made and/or the number of shares of common stock subject to each award, the exercise price of each option and base price of each stock appreciation right ("SAR"), the term of each award, the vesting schedule for an award, whether to accelerate vesting, the value of the common stock underlying the award, and the required withholding, if any. The committee may amend, modify or terminate any outstanding award, provided that the participant's consent to such action is required if the action would impair the participant's rights or entitlements with respect to that award. The committee is also authorized to construe the award agreements, and may prescribe rules relating to the 2023 Plan. Notwithstanding the foregoing, the committee does not have any authority to grant or modify an award under the 2023 Plan with terms or conditions that would cause the grant, vesting or exercise thereof to be considered nonqualified "deferred compensation" subject to Code Section 409A, unless such award is structured to be exempt from or comply with all requirements of Code Section 409A.*

*Grant of Awards; Shares Available for Awards. The 2023 Plan provides for the grant of stock options, SARs, performance share awards, performance unit awards, distribution equivalent right awards, restricted stock awards, restricted stock unit awards and unrestricted stock awards to non-employee directors, officers, employees and nonemployee consultants of Tesseract Collective, Inc. or its affiliates. The aggregate number of shares of common stock reserved and available for grant and issuance under the 2023 Plan is . No more than shares of common stock in the aggregate may be issued under the 2023 Plan in connection with incentive stock options. Shares shall be deemed to have been issued under the 2023 Plan solely to the extent actually issued and delivered pursuant to an award. If any award granted under the 2023 Plan expires, is cancelled, or terminates unexercised or is forfeited, the number of shares subject thereto is again available for grant under the 2023 Plan. The 2023 Plan shall continue in effect, unless sooner terminated, until the tenth (10<sup>th</sup>) anniversary of the date on which it is adopted by the board of directors. The board of directors in its discretion may terminate the 2023 Plan at any time with respect to any shares for which awards have not theretofore been granted; provided, however, that the 2023 Plan's termination shall not materially and adversely impair the rights of a holder, without the consent of the holder, with respect to any award previously granted.*

Future new hires and additional non-employee directors and/or consultants would be eligible to participate in the 2023 Plan as well. The number of stock options, shares of restricted stock, or other awards to be granted to executives and directors under the 2023 Plan cannot be determined at this time, as the grant of such awards is dependent upon various factors such as hiring requirements and job performance.

*Stock Options. The 2023 Plan provides for either "incentive stock options" ("ISOs"), which are intended to meet the requirements for special federal income tax treatment under Section 422 of the Code, or "nonqualified stock options" ("NSOs"). Stock options may be granted on such terms and conditions as the committee may determine, which shall be specified in the option agreement; provided, however, that the per share exercise price under a stock option may not be less than the fair market value of a share of common stock on the date of grant and the term of the stock option may not exceed 10 years (110% of such value and five years in the case of an ISO granted to an employee who owns (or is deemed to own) more than 10% of the total combined voting power of all classes of capital stock of our Company or a parent or subsidiary of our Company). ISOs may only be granted to employees. In addition, the aggregate fair market value of common stock covered by one or more ISOs (determined at the time of grant), which are exercisable for the first time by an employee during any calendar year may not exceed $100,000. Any excess is treated as a NSO.*

*Stock Appreciation Rights. A SAR entitles the participant, upon exercise, to receive an amount, in cash or stock or a combination thereof, equal to the increase in the fair market value of the underlying common stock between the date of grant and the date of exercise. The committee shall set forth in the applicable SAR award agreement the terms and conditions of the SAR, including the base value for the SAR (which shall not be less than the fair market value of a share on the date of grant), the number of shares subject to the SAR and the period during which the SAR may be exercised and any other special rules and/or requirements which the committee imposes on the SAR. No SAR shall* 

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be exercisable after the expiration of ten (10) years from the date of grant. SARs may be granted in tandem with, or independently of, stock options granted under the 2023 Plan. A SAR granted in tandem with a stock option (i) is exercisable only at such times, and to the extent, that the related stock option is exercisable in accordance with the procedure for exercise of the related stock option; (ii) terminates upon termination or exercise of the related stock option (likewise, the common stock option granted in tandem with a SAR terminates upon exercise of the SAR); (iii) is transferable only with the related stock option; and (iv) if the related stock option is an ISO, may be exercised only when the value of the stock subject to the stock option exceeds the exercise price of the stock option. A SAR that is not granted in tandem with a stock option is exercisable at such times as the committee may specify.

*Performance Shares and Performance Unit Awards. Performance share and performance unit awards entitle the participant to receive cash or shares of common stock upon the attainment of specified performance goals. In the case of performance units, the right to acquire the units is denominated in cash values. The committee shall set forth in the applicable award agreement the performance goals and objectives and the period of time to which such goals and objectives shall apply. If such goals and objectives are achieved, such distribution of shares, or payment in cash, as the case may be, shall be made no later than by the fifteenth (15<sup>th</sup>) day of the third (3<sup>rd</sup>) calendar month next following the end of the Company's fiscal year to which such performance goals and objectives relate, unless otherwise structured to comply with Code Section 409A.*

*Distribution Equivalent Right Awards. A distribution equivalent right award entitles the participant to receive bookkeeping credits, cash payments and/or common stock distributions equal in amount to the distributions that would have been made to the participant had the participant held a specified number of shares of common stock during the period the participant held the distribution equivalent right. A distribution equivalent right may be awarded as a component of another award (but not an option or SAR award) under the 2023 Plan, where, if so awarded, such distribution equivalent right will expire or be forfeited by the participant under the same conditions as under such other award. The committee shall set forth in the applicable distribution equivalent rights award agreement the terms and conditions, if any, including whether the holder is to receive credits currently in cash, is to have such credits reinvested (at fair market value determined as of the date of reinvestment) in additional ordinary shares, or is to be entitled to choose among such alternatives.*

*Restricted Stock Awards. A restricted stock award is a grant or sale of common stock to the holder, subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the committee or the board of directors may impose, which restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as the committee or the board of directors may determine at the date of grant or purchase or thereafter. If provided for under the restricted stock award agreement, a participant who is granted or has purchased restricted stock shall have all of the rights of a shareholder, including the right to vote the restricted stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement imposed by the committee or the board of directors or in the award agreement). During the restricted period applicable to the restricted stock, subject to certain exceptions, the restricted stock may not be sold, transferred, pledged, exchanged, hypothecated, or otherwise disposed of by the participant.*

*Restricted Stock Unit Awards. A restricted stock unit award provides for a grant of shares or a cash payment to be made to the holder upon the satisfaction of predetermined individual service-related vesting requirements, based on the number of units awarded to the holder. The committee shall set forth in the applicable restricted stock unit award agreement the individual service-based vesting requirements which the holder would be required to satisfy before the holder would become entitled to payment and the number of units awarded to the holder. The holder of a restricted stock unit shall be entitled to receive a cash payment equal to the fair market value of an ordinary share, or one ordinary share, as determined in the sole discretion of the committee and as set forth in the restricted stock unit award agreement, for each restricted stock unit subject to such restricted stock unit award, if and to the extent the holder satisfies the applicable vesting requirements. Such payment or distribution shall be made no later than by the fifteenth (15<sup>th</sup>) day of the third (3<sup>rd</sup>) calendar month next following the end of the calendar year in which the restricted stock unit first becomes vested, unless otherwise structured to comply with Code Section 409A. A restricted stock unit shall not constitute an equity interest in the Company and shall not entitle the Holder to voting rights, dividends or any other rights associated with ownership of shares of Common Stock prior to the time the Holder shall receive a distribution of shares.*

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*Unrestricted Stock Awards. An unrestricted stock award is a grant or sale of shares of our common stock to the employees, non-employee directors or non-employee consultants that are not subject to transfer, forfeiture or other restrictions, in consideration for past services rendered to the Company or an affiliate or for other valid consideration.*

*Change-in-Control Provisions. The committee may, in its sole discretion, at the time an award is granted or at any time prior to, coincident with or after the time of a change in control, cause any award either (i) to be cancelled in consideration of a payment in cash or other consideration in amount per share equal to the excess, if any, of the price or implied price per share of common stock in the change in control over the per share exercise, base or purchase price of such award, which may be paid immediately or over the vesting schedule of the award; (ii) to be assumed, or new rights substituted therefore, by the surviving corporation or a parent or subsidiary of such surviving corporation following such change in control; (iii) accelerate any time periods, or waive any other conditions, relating to the vesting, exercise, payment or distribution of an award so that any award to a holder whose employment has been terminated as a result of a change in control may be vested, exercised, paid or distributed in full on or before a date fixed by the committee; (iv) to be purchased from a holder whose employment has been terminated as a result of a change of control, upon the holder's request, for an amount of cash equal to the amount that could have been obtained upon the exercise, payment or distribution of such rights had such award been currently exercisable or payable; or (v) terminate any then outstanding award or make any other adjustment to the awards then outstanding as the committee deems necessary or appropriate to reflect such transaction or change. The number of shares subject to any award shall be rounded to the nearest whole number.*

*Amendment and Termination. The committee may adopt, amend and rescind rules relating to the administration of the 2023 Plan, and amend, suspend or terminate the 2023 Plan, but no such amendment or termination will be made that materially and adversely impairs the rights of any participant with respect to any award received thereby under the 2023 Plan without the participant's consent, other than amendments that are necessary to permit the granting of awards in compliance with applicable laws.*

#### Certain U.S. Federal Income Tax Consequences of the Plan
The following is a general summary of certain U.S. federal income tax consequences under current tax law to the Company (to the extent it is subject to U.S. federal income taxation on its net income) and to participants in the Plan who are individual citizens or residents of the United States for federal income tax purposes ("U.S. Participants") of stock options which are ISOs, or stock options which are NSOs, unrestricted stock, restricted stock, restricted stock units, performance stock, performance units, SARs, and dividend equivalent rights. This summary does not purport to cover all of the special rules that may apply, including special rules relating to limitations on our ability to deduct certain compensation, special rules relating to deferred compensation, golden parachutes, U.S. Participants subject to Section 16(b) of the Exchange Act or the exercise of a stock option with previously-acquired ordinary shares. This summary assumes that U.S. Participants will hold their ordinary shares as capital assets within the meaning of Section 1221 of the Code. In addition, this summary does not address the foreign, state or local or other tax consequences, or any U.S. federal non-income tax consequences, inherent in the acquisition, ownership, vesting, exercise, termination or disposition of an award under the Plan, or ordinary shares issued pursuant thereto. Participants are urged to consult with their own tax advisors concerning the tax consequences to them of an award under the Plan or ordinary shares issued thereunder pursuant to the Plan.

A U.S. Participant generally does not recognize taxable income upon the grant of a NSO if structured to be exempt from or comply with Code Section 409A. Upon the exercise of a NSO, the U.S. Participant generally recognizes ordinary compensation income in an amount equal to the excess, if any, of the fair market value of the ordinary shares acquired on the date of exercise over the exercise price thereof, and the Company generally will be entitled to a deduction for such amount at that time. If the U.S. Participant later sells ordinary shares acquired pursuant to the exercise of a NSO, the U.S. Participant recognizes a long-term or short-term capital gain or loss, depending on the period for which the ordinary shares were held. A long-term capital gain is generally subject to more favorable tax treatment than ordinary income or a short-term capital gain. The deductibility of capital losses is subject to certain limitations.

A U.S. Participant generally does not recognize taxable income upon the grant or, except for purposes of the U.S. alternative minimum tax ("AMT") the exercise, of an ISO. For purposes of the AMT, which is payable to the extent it exceeds the U.S. Participant's regular income tax, upon the exercise of an ISO, the excess of the fair market value of the ordinary shares subject to the ISO over the exercise price is a preference item for AMT purposes. If the U.S. Participant disposes of the ordinary shares acquired pursuant to the exercise of an ISO more than two years after

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the date of grant and more than one year after the transfer of the ordinary shares to the U.S. Participant, the U.S. Participant generally recognizes a long-term capital gain or loss, and the Company will not be entitled to a deduction. However, if the U.S. Participant disposes of such ordinary shares prior to the end of either of the required holding periods, the U.S. Participant will have ordinary compensation income equal to the excess (if any) of the fair market value of such shares on the date of exercise (or, if less, the amount realized on the disposition of such shares) over the exercise price paid for such shares, and the Company generally will be entitled to deduct such amount.

A U.S. Participant generally does not recognize income upon the grant of a SAR. The U.S. Participant recognizes ordinary compensation income upon exercise of the SAR equal to the increase in the value of the underlying shares, and the Company generally will be entitled to a deduction for such amount.

A U.S. Participant generally does not recognize income on the receipt of a performance stock award, performance unit award, restricted stock unit award, unrestricted stock award or dividend equivalent rights award until a cash payment or a distribution of ordinary shares is received thereunder. At such time, the U.S. Participant recognizes ordinary compensation income equal to the excess, if any, of the fair market value of the ordinary shares or the amount of cash received over any amount paid therefor, and the Company generally will be entitled to deduct such amount at such time.

A U.S. Participant who receives a restricted stock award generally recognizes ordinary compensation income equal to the excess, if any, of the fair market value of such ordinary shares at the time the restriction lapses over any amount paid for the ordinary shares. Alternatively, the U.S. Participant may make an election under Section 83(b) of the Code to be taxed on the fair market value of such ordinary shares at the time of grant. The Company generally will be entitled to a deduction at the same time and in the same amount as the income that is required to be included by the U.S. Participant.

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#### CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Other than compensation arrangements, we describe below transactions and series of similar transactions, since our inception, to which we were a party or will be a party, in which:

&nbsp;&nbsp;&nbsp;&nbsp;• the amounts involved exceeded or will exceed the lesser of $120,000 or 1% of the average of our total assets at year-end for the completed fiscal year; and

&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers, or holders of more than 5% of our capital stock, or any member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest.

We have engaged Leagas Delaney Limited ("Leagas Delaney") to perform creative advertising services for us. Margaret Johnson, an advisor to the Company, is the Chief Executive Officer of Leagas Delaney. In lieu of cash payment, we have agreed to issue shares of our Common Stock at a later date based on the amount of fees invoiced as of such date. As of June 30, 2022, £103,398 has been incurred by the Company for services provided by Leagas Delaney.

We have engaged 829 Studios LLC ("829 Studios") to perform strategic services in connection with our marketing plan and to build, maintain, and develop our web site as the Company evolves. A founding partner of 829 Studios is the son of Charles Riotto, our President and a member of our board of directors. As of une 30, 2022, $126,437.50 has been incurred by the Company for services provided by 829 Studios.

On November 29, 2021 (inception), one share of common stock was issued to a director for consideration of $0.01.

In December 2021, in connection with a private placement of common stock, the Company issued 12,600,000 shares of common stock to the Company's directors and officers for cash consideration of $1,260, of which $260 is included in stock subscriptions receivable – related party as of December 31, 2021. The amount of $260 was received in January 2022.

In December 2021, the Company initiated a private placement of common stock at the price of $0.25 per share. Pursuant to the private placement, the Company collected $80,000 in December 2021 from the two directors and executive employees. The private placement was subject to the acceptance of the subscription agreements by the Company. In January 2022, the Company refunded the $80,000 of the stock subscription amounts (for 320,000 shares of common stock) as this private placement was not accepted by the Company.

In January 2022, in connection with a private placement of common stock, the Company issued 600,000 shares of common stock to the Company's directors and officers for cash consideration of $150,000.

From July through November 2022, in connection with an ongoing private placement of common stock for $0.50 per share (the "Ongoing Private Placement"), the Company issued 200,000 shares to the Company's two directors, who are also executive employees, for cash consideration of $100,000.

HCFP/Strategy Advisors LLC ("HCFP Strategy Advisors"), an affiliated entity, has agreed to provide strategic advisory services to the Company for a monthly service fee of $25,000 beginning January 1, 2022. For the six months ended June 30, 2022, the Company incurred expenses of $150,000 related to the agreement described above. The costs are included in "General and administrative" expenses in the accompanying condensed statement of operations for the six months ended June 30, 2022. Amounts payable to HCFP/Strategy Advisors as of June 30, 2022 totaled $50,000, included in "Accounts payable and accrued expenses" in the accompanying condensed balance sheet as of June 30, 2022.

#### Indemnification Agreements
We intend to enter into indemnification agreements with each of our executive officers and directors prior to the completion of this Offering. The indemnification agreements will provide the executive officers and directors with contractual rights to indemnification, expense advancement and reimbursement, to the fullest extent permitted under the Delaware General Corporation Law (DGCL), subject to certain exceptions contained in those agreements. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons, we have been advised that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

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#### Policies and Procedures for Related Party Transactions
We have not yet adopted a written related party transaction policy, which would cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we were or are to be a participant, where the amount involved exceeds the lesser of $120,000 in any fiscal year or one percent of the average of our total assets as of the two previous fiscal years and a related party had, has or will have a direct or indirect material interest, including without limitation, purchases of goods or services by or from the related party or entities in which the related party has a material interest, indebtedness, guarantees of indebtedness and employment by us of a related party. In the event that the Company seeks to apply for listing on an exchange or quotation in an over-the-counter market, to the extent it is required, we intend to adopt a written related party transaction policy.

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#### SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information regarding the beneficial ownership of our shares of Common Stock as of the date of this Offering Circular (assuming none of the individuals listed purchase shares in this Offering), by:

&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to be the beneficial owner of more than 5% of our outstanding shares;

&nbsp;&nbsp;&nbsp;&nbsp;• each of our executive officers and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;• all of our executive officers and directors as a group.

The percentage of beneficial ownership in the table below is based on 21,495,001 shares of Common Stock deemed to be outstanding as of the date of this Offering Circular. Shares of Common Stock subject to options, warrants, or other conversion privileges currently exercisable or convertible, or exercisable or convertible within 60 days of the date of this table, are deemed outstanding for computing the percentage of the person holding such option, warrant, or other convertible instrument but are not deemed outstanding for computing the percentage of any other person. Unless otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all shares beneficially owned by them. Additionally, except as otherwise indicated, beneficial ownership reflected in the table has been determined in accordance with Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended.

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner<sup>(1)</sup>** | **Amount**<br>**and Nature**<br>**of Beneficial**<br>**Ownership<sup>(2)</sup>** | **Approximate**<br>**Percentage of**<br>**Outstanding Shares of**<br>**Common Stock** |
| **Name and Address of Beneficial Owner<sup>(1)</sup>** | **Amount**<br>**and Nature**<br>**of Beneficial**<br>**Ownership<sup>(2)</sup>** | **Prior to Offering** |
| *Directors and Executive Officers*<br>|  |  |
| Richard Seet | 11550001 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53.7%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| Charles Riotto | &nbsp;&nbsp;1650000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.67%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| David Todrin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |
| All directors and executive officers as a group (3 individuals) | 13200001 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61.37%<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% |

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(1)<br> Unless otherwise indicated, the business address of each of the individuals is 45 Rockefeller Plaza, 20<sup>th</sup> Floor, New York, New York 10111.

(2)<br> Reflects the number of the Company's Common Stock shares unless indicated otherwise.

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#### SECURITIES BEING OFFERED AND DESCRIPTION OF SECURITIES

#### General
Our authorized capital stock consists of 80,000,000 shares of Common Stock, $0.0001 par value, and 20,000,000 shares of preferred stock, $0.0001 par value. As of the date of this Offering Circular, there were 21,495,001 shares of Common Stock outstanding and no shares of preferred stock outstanding. The following description summarizes the material terms of our capital stock. Because it is only a summary, it may not contain all the information that is important to you.

#### Common Stock
As of the date of this Offering Circular, there were 21,495,001 shares of Common Stock outstanding. There is currently no public trading market for our Common Stock.

Common stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors. Holders of our Common Stock are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds legally available therefor.

Upon our dissolution, liquidation or winding up, holders of our Common Stock are entitled to share ratably in our net assets legally available after the payment of all our debts and other liabilities, subject to the preferential rights of any preferred stock then outstanding. Holders of our Common Stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

#### Preferred Stock
Our board of directors is authorized, without action by the stockholders, to designate and issue up to an aggregate of 20,000,000 shares of preferred stock in one or more series. Our board of directors can designate the rights, preferences and limitations of the shares of each series. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Common Stock. The issuance of preferred stock, while providing flexibility in connection with possible future financings and acquisitions and other corporate purposes, could, under certain circumstances, have the effect of restricting dividends on our Common Stock, diluting the voting power of our Common Stock, impairing the liquidation rights of our Common Stock, or delaying, deferring or preventing a change in control of the company, which might harm the market price of our common stock. See also "*Certain Anti-Takeover Provisions of our Certificate of Incorporation and By-Laws*".

Our board of directors will make any determination to issue such shares based on its judgment as to the company's best interests and the best interests of our stockholders. We have no shares of preferred stock outstanding.

#### Repurchases
We may seek to repurchase our outstanding securities from time to time in market or private transactions.

#### Dividends
We have not paid any cash dividends on our shares of Common Stock to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements and general financial condition and will be within the discretion of our board of directors. It is the current intention of our board of directors to retain all earnings, if any, for use in our business operations and, accordingly, our board of directors does not anticipate declaring any dividends in the foreseeable future.

#### Our Transfer Agent
The transfer agent for our securities is .

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#### Exchange Act Registration
Our Common Stock is not currently registered under the Securities Exchange Act of 1934, as amended ("Exchange Act"). We will seek to have our Common Stock registered under Section 12(b) of the Exchange Act promptly following qualification with the Commission of the offering statement of which this Offering Circular is a part.

#### Certain Anti-Takeover Provisions of our Certificate of Incorporation and By-laws
*Special meeting of stockholders*

Our by-laws provide that special meetings of our stockholders may be called at any time by our board of directors, the Chief Executive Officer, or by the stockholders entitled to at least one-third of the vote which all stockholders are entitled to cast at the particular meeting.

*Preferred stock*

Our certificate of incorporation provides authorizing the issuance of "blank check" preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval.

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#### SHARES ELIGIBLE FOR FUTURE SALE
Immediately after this Offering, we will have shares of Common Stock outstanding. Of these shares, the shares of Common Stock sold in this Offering will be freely tradable without restriction or further registration under the Securities Act, except for the shares of Common Stock purchased in this Offering by one of our affiliates within the meaning of Rule 144 under the Securities Act. All of our remaining shares are restricted securities under Rule 144 since they were issued in private placements not involving a public offering. Such restricted shares would be available for sale in the public markets subject to Rule 144 and the contractual lock-up agreements described below. Taking into account these lock-up agreements, our remaining 21,495,001 shares will be saleable in the public markets beginning on the first business day following the three-year anniversary date of the initial trading date of our securities on an exchange or through a quotation service that requires the shares to be registered under the Securities Act, subject to any releases from such contractual lock-up agreements.

#### Rule 144
A person who has beneficially owned restricted shares of common stock or warrants for at least six months would be entitled to sell their securities under Rule 144 provided that (i) such person is not deemed to have been an affiliate of the subject company at the time of, or at any time during the three months preceding, a sale and (ii) the subject company is subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale. Persons who have beneficially owned restricted shares of Common Stock for at least six months but who are an affiliate of the subject company at the time of, or any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period a number of shares that does not exceed the greater of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of our common stock then outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of our common stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

Sales under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about the subject company.

#### Lock-Up Agreements
The shares of Common Stock we issued prior to this Offering are each subject to transfer restrictions set forth in agreements among us and the holders of such securities. These transfer restrictions generally provide that such securities are not transferable or salable until the first business day following the three-year anniversary date of the initial trading date of our securities on an exchange or through a quotation service that requires the shares to be registered under the Securities Exchange Act of 1934, as amended, subject to certain limited exceptions. We also may elect to release such holders from this lock-up at any time or from time to time for any reason or no reason with respect to any or all of the securities held by such holder.

In connection with the establishment of any trading market for our shares of Common Stock, certain of our executive officers, directors and/or employees may enter into written trading plans that are intended to comply with Rule 10b5-1 under the Exchange Act. Sales under any such trading plans would not be permitted until the expiration or waiver of the lock-up restriction applicable thereto.

#### Registration Statements on Form S-8
Upon completion of this Offering, we intend to file a registration statement on Form S-8 under the Securities Act to register all of the shares of Common Stock issued or reserved for issuance under the 2022 Plan and the 2023 Plan. Shares of Common Stock covered by this registration statement will be eligible for sale in the public market, upon the expiration or release from the terms of the lock-up agreements and subject to vesting of such shares.

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#### PLAN OF DISTRIBUTION
We are offering the shares of Common Stock at an offering price of $ per share. The offering price was determined by us. This determination was done without reference to our book value or asset values or by the application of any customary, established models for valuing companies or securities. Accordingly, the offering price may not be indicative of any amounts you might receive should you seek to sell your shares or should there be a liquidation of our company. In addition, such prices are not necessarily indicative of any prices at which our securities may trade, or any value that might be ascribed to our company after the completion of the offering.

We and our management are directly offering the shares of Common Stock on a "best efforts" basis. No commissions or other compensation will be paid to the company management with respect to sales initiated by them.

The company may engage commissioned sales agents, placement agents or underwriters in the future. If the company engages any such FINRA-registered broker dealers going forward to assist in distributing this Offering, the company will file an amendment to this Offering Circular.

None of our securities are being offered or sold by any of our current stockholders pursuant to this Offering Circular.

There is no minimum amount of shares of Common Stock that must be sold in connection with this Offering. This Offering will close upon the earlier of (1) the sale of the maximum number of shares of Common Stock, (2) one year from the date this Offering begins or (3) a date prior to one year from the date this Offering begins that is so determined by our board of directors. The company will have immediate access to the proceeds of the offering as soon as shares of Common Stock are issued.

#### Investment Amount Limitations
Investors must answer certain questions set forth in a subscription agreement to determine compliance with the investment limitation set forth in Rule 251(d)(2)(i)(C) under the Securities Act of 1933, which states that in offerings such as this one, where the securities will not be listed on a registered national securities exchange upon qualification, the aggregate purchase price to be paid for the securities by an investor who is not an accredited investor cannot exceed 10% of the greater of the investor's annual income or net worth. In the case of an investor who is not a natural person, revenues or net assets for the investor's most recently completed fiscal year are used instead. The investment limitation does not apply to accredited investors, as that term is defined in Rule 501 under the Securities Act of 1933. An individual is an accredited investor if he/she meets one of the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;• a natural person whose individual net worth, or joint net worth with the undersigned's spouse, excluding the "net value" of his or her primary residence, at the time of this purchase exceeds $1,000,000 and having no reason to believe that net worth will not remain in excess of $1,000,000 for the foreseeable future, with "net value" for such purposes being the fair value of the residence less any mortgage indebtedness or other obligation secured by the residence, but subtracting such indebtedness or obligation only if it is a liability already considered in calculating net worth; or

&nbsp;&nbsp;&nbsp;&nbsp;• a natural person who has individual annual income in excess of $200,000 in each of the two most recent years or joint annual income with that person's spouse in excess of $300,000 in each of those years and who reasonably expects an income in excess of those levels in the current year.

For the purposes of calculating your net worth, it is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of shares of our common stock.

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An entity other than a natural person is an accredited investor if it falls within any one of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;• an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended, (i) if the decision to invest is made by a plan fiduciary which is either a bank, savings and loan association, insurance company, or registered investment adviser; (ii) if such employee benefit plan has total assets in excess of $5,000,000; or (iii) if it is a self-directed plan whose investment decisions are made solely by accredited investors;

&nbsp;&nbsp;&nbsp;&nbsp;• a tax-exempt organization described in Section 501 (c)(3) of the Internal Revenue Code, a corporation, a Massachusetts or similar business trust or a partnership, which was not formed for the specific purpose of acquiring the securities offered and which has total assets in excess of $5,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;• a trust, with total assets in excess of $5,000,000, which was not formed for the specific purpose of acquiring the securities offered, whose decision to purchase such securities is directed by a "sophisticated person" as described in Rule 506(b)(2)(ii) under Regulation D; or

&nbsp;&nbsp;&nbsp;&nbsp;• certain financial institutions such as banks and savings and loan associations, registered broker-dealers, insurance companies, and registered investment companies.

#### Right to Reject Subscriptions
After we receive your complete, executed subscription agreement and the funds required under the subscription agreement, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deductions.

#### Acceptance of Subscriptions
Upon our acceptance of a subscription agreement and receipt of full payment, we will countersign the subscription agreement and return a copy to you.

Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request a refund of monies paid. All accepted subscription agreements are irrevocable, even if you subsequently learn information about the company that you consider to be materially unfavorable.

#### Investors' Tender of Funds
We will commence the sale of the shares of Common Stock as of the date on which the Offering Statement of which this Offering Circular is a part is declared qualified by the Commission. The Company may close the entire Offering at one time or may have multiple closings. Throughout this Offering Circular, we have assumed multiple closings and refer to the "initial closing" as the first such closing and the "final closing" as the last such closing. Additional closings, if any, will occur on a rolling basis throughout the offering period. The maximum Offering period is 12 months from the date of commencement, but we reserve the right to terminate this Offering for any reason at any time prior to the initial closing. Each time the company accepts funds is defined as a "closing." We intend that the funds tendered in cash by potential investors will be received directly by Continental Stock Transfer & Trust Company (the "Escrow Agent") and will be transferred to the company upon closing.

There is no minimum offering amount and the Company anticipates undertaking closings on a monthly basis without qualifications for such closings until such time as the maximum offering amount is reached. Prior to a closing, investor's funds will be held in escrow and such investor will not have any rights as a shareholder of the Company, including the right to receive distributions and vote the shares. Funds held in escrow are not refundable and the Company may direct a closing regardless of the amount which is being held in escrow at such time. After each such closing, funds tendered by investors will be available to the Company and investors will become shareholders of the Company with the same rights as other holders of the Company's common stock.

#### Transfer Agent, Book-Entry Only
All securities sold in this Offering will be issued by our transfer agent, Continental Stock Transfer & Trust Company, to investors in book-entry only format and will be represented by a stock transfer ledger, maintained by our transfer agent.

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#### **TABLE OF CONTENTS**
Investors in the shares of Common Stock will not be entitled to have certificates registered in their names and will not receive or be entitled to receive physical delivery of the shares in definitive form. Transfers of shares of Common Stock will be facilitated through the transfer agent. As a result, you will not be entitled to receive a certificate representing your interest in the shares of Common Stock you purchase. Your ability to pledge shares of Common Stock that you purchase, and to take other actions, may be limited because you will not possess a physical certificate that represents your interests. Investors will receive written confirmation from the transfer agent upon closing of their purchases. Transfers of the securities will be recorded on the stock transfer ledger maintained by the transfer agent. We have no responsibility for any aspect of the actions of the transfer agent. In addition, we have no responsibility or liability for any aspect of the records kept by the transfer agent relating to, or payments made on account of investors in, the shares, or for maintaining, supervising or reviewing any records relating to ownership of shares. We also do not supervise the systems of the transfer agent.

#### Offer Restrictions Outside the United States
Other than in the United States, no action has been taken by us that would permit a public offering of the Common Stock offered by this Offering Circular in any jurisdiction where action for that purpose is required. The Common Stock offered by this Offering Circular may not be offered or sold, directly or indirectly, nor may this Offering Circular or any other offering material or advertisements in connection with the offer and sale of any such Common Stock be distributed or published in any jurisdiction outside of the U.S., except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this Offering Circular comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this Offering Circular. This Offering Circular does not constitute an offer to sell or a solicitation of an offer to buy any Common Stock offered by this Offering Circular in any jurisdiction in which such an offer or a solicitation is unlawful.

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#### **TABLE OF CONTENTS**

#### LEGAL MATTERS
The validity of the securities offered in this Offering Circular are being passed upon for us by Loeb & Loeb LLP.

#### EXPERTS
The financial statements of Tesseract Collective, Inc. as of December 31, 2021 and for the period then ended included in this Offering Circular and elsewhere in the offering statement have been so included in reliance upon the report (which contains an explanatory paragraph relating to the company's ability to continue as a going concern as discussed in Note 1 to the financial statements) of Wolf & Company, P.C. independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed with the Commission a Regulation A Offering Statement on Form 1-A, which includes exhibits, schedules and amendments, under the Securities Act, with respect to this offering of securities. Although this Offering Circular, which forms a part of the Form 1-A, contains all material information included in the Form 1-A, parts of the Form 1-A have been omitted as permitted by rules and regulations of the Commission. We refer you to the Form 1-A and its exhibits for further information about us, our securities and this Offering. The Commission maintains a website at http://www.sec.gov, which contains the Form 1-A and other reports, proxy and information statements and information regarding issuers that file electronically with the Commission.

After qualification of this Regulation A Offering Statement, we intend to file a registration statement on Form 8-A to become subject to the information and periodic reporting requirements of the Exchange Act and, accordingly, would be required to file annual reports containing financial statements audited by an independent public accounting firm, quarterly reports containing unaudited financial data, current reports, proxy statements and other information with the Commission.

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#### **TABLE OF CONTENTS**

#### INDEX TO FINANCIAL STATEMENTS

---

| | |
|:---|:---|
| **Table of Contents** | **Page** |
| Condensed Financial Statements (Unaudited):<br>|  |
| &nbsp;&nbsp;&nbsp;[Condensed Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021](#tCBS) | &nbsp;&nbsp;[F-2](#tCBS) |
| [Condensed Statement of Operations for the Six Months Ended June 30, 2022 (unaudited)](#tCSO) | &nbsp;&nbsp;[F-3](#tCSO) |
| [Condensed Statement of Changes in Stockholders' Equity (Deficit) for the Six Months Ended June 30, 2022 (unaudited)](#tCSC) | &nbsp;&nbsp;[F-4](#tCSC) |
| [Condensed Statement of Cash Flows for the Six Months Ended June 30, 2022 (unaudited)](#tCSCF) | &nbsp;&nbsp;[F-5](#tCSCF) |
| [Notes to Unaudited Condensed Financial Statements](#tNOTES) | &nbsp;&nbsp;[F-6](#tNOTES) |
| Financial Statements:<br>|  |
| &nbsp;&nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm](#tRIR) | [F-13](#tRIR) |
| &nbsp;&nbsp;&nbsp;[Balance Sheet as of December 31, 2021](#tBSD) | [F-15](#tBSD) |
| &nbsp;&nbsp;&nbsp;[Statement of Operations for the period from November 29, 2021 (inception) to December 31, 2021](#tSOP) | [F-16](#tSOP) |
| &nbsp;&nbsp;&nbsp;[Statement of Changes in Stockholders' Equity (Deficit) for the period from November 29, 2021 (inception) to December 31, 2021](#tSOC) | [F-17](#tSOC) |
| &nbsp;&nbsp;&nbsp;[Statement of Cash Flows for the period from November 29, 2021 (inception) to December 31, 2021](#tSCF) | [F-18](#tSCF) |
| &nbsp;&nbsp;&nbsp;[Notes to Financial Statements](#tNOTES2) | [F-19](#tNOTES2) |

---

F-1<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT INC. <br>

#### CONDENSED BALANCE SHEET

---

| | | |
|:---|:---|:---|
|  | **June 30, 2022** | **December 31, 2021** |
|  | (Unaudited) |  |
| **Assets**<br>|  |  |
| Current assets:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Cash  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$10607 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$81510 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51964  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;599 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;147564 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;Stock subscriptions receivable – related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260  |
| Total current assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$210135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$82369  |
| **Liabilities and Stockholders' Equity**<br>|  |  |
| Current liabilities:<br>|  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$402714 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2100 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;272500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;Refundable stock subscriptions – related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80054  |
| &nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2269 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;973 |
| Total current liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;677483 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83127  |
| Commitments and Contingencies (Note 4)<br>|  |  |
| Stockholders' Deficit: <br>|  |  |
| &nbsp;&nbsp;Preferred stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Common stock, $0.0001 par value; 80,000,000 shares authorized; 20,000,001 and 17,460,001 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1746 |
| Additional paid-in-capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;499800 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Accumulated deficit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(969148) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2504) |
| Total stockholders' deficit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(467348) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(758) |
| Total Liabilities and Stockholders' Deficit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$210135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$82369 |

---

See notes to unaudited condensed financial statements.<br>

F-2<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT INC.<br>

#### CONDENSED STATEMENT OF OPERATIONS<br>

#### FOR THE SIX MONTHS ENDED JUNE 30, 2022<br>
(Unaudited)

---

| | |
|:---|:---|
| **Operating Expenses:**<br>|  |
| &nbsp;&nbsp;&nbsp;Cost of sales | &nbsp;&nbsp;&nbsp;&nbsp;$138889 |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;234203 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;593552  |
| Net loss | $(966644) |
| Weighted average Common stock shares outstanding | &nbsp;&nbsp;19382052  |
| &nbsp;&nbsp;Basic and diluted net loss per share (see Note 2) | $(0.05) |

---

See notes to unaudited condensed financial statements.<br>

F-3<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC.<br>

#### CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT<br>

#### FOR THE SIX MONTHS ENDED JUNE 30, 2022<br>
(Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional** <br>**Paid-in** <br>**Capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Shareholders'** <br>**Deficit** |
|  | **Shares** | **Amount** | **Additional** <br>**Paid-in** <br>**Capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Shareholders'** <br>**Deficit** |
| Balance - December 31, 2021 | 17460001 | $1746 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$— | &nbsp;&nbsp;&nbsp;$(2504) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(758) |
| Issuance of Common stock | &nbsp;&nbsp;2460000 | &nbsp;&nbsp;&nbsp;&nbsp;246 | &nbsp;&nbsp;479808 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;480054 |
| Common stock issued for services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 | &nbsp;&nbsp;&nbsp;19992 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;20000 |
| Net loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;(966644) | &nbsp;&nbsp;(966644) |
| Balance - June 30, 2022 | 20000001 | $2000 | $499800 | $(969148) | $(467348) |

---

See notes to unaudited condensed financial statements.<br>

F-4<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC.<br>

#### CONDENSED STATEMENT OF CASH FLOWS<br>

#### FOR THE SIX MONTHS ENDED JUNE 30, 2022<br>
(Unaudited)

---

| | |
|:---|:---|
| **Cash flows from operating activities**<br>|  |
| Net loss | $(966644) |
| Adjustments to reconcile net loss to net cash used in operating activities:<br>|  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation for services | &nbsp;&nbsp;&nbsp;&nbsp;20000 |
| Changes in current assets and liabilities:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | &nbsp;&nbsp;&nbsp;(51365) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | &nbsp;&nbsp;&nbsp;253050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | &nbsp;&nbsp;&nbsp;272500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1296 |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | &nbsp;&nbsp;(471163) |
| **Cash flows from financing activities**<br>|  |
| Refund of Common stock subscriptions - related party | &nbsp;&nbsp;&nbsp;(80054) |
| Proceeds from issuance of Common stock | &nbsp;&nbsp;&nbsp;480314  |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | &nbsp;&nbsp;&nbsp;400260 |
| Net change in cash | &nbsp;&nbsp;&nbsp;(70903) |
| Cash - beginning of period | &nbsp;&nbsp;&nbsp;&nbsp;81510 |
| &nbsp;&nbsp;Cash - end of period | $10607 |
| **Non-cash financing activities** <br>|  |
| Deferred offering costs included in accounts payable and accrued expenses | $147564 |

---

See notes to unaudited condensed financial statements.<br>

F-5<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)

1. **NATURE OF OPERATIONS AND BASIS OF PRESENTATION**

#### Business
Tesseract Collective, Inc. (the "Company") was incorporated under the laws of the State of Delaware on November 29, 2021 (inception), with its headquarters located in New York, New York. The Company was formed for the purpose of building a digital artworks library derived from iconic personalities or iconic works from the physical art and collectibles markets and generating revenues from licensing of the digital artwork. The Company will secure global master licenses for all rights, excluding non-fungible token ("NFT(s)") rights, in perpetuity, to the intellectual property underlying the digital art (a "Non-NFT Perpetual Global Master License"). The Company will organize events in partnership with media organizations and cultural institutions. Since its inception, the Company has devoted its resources to its formation, business planning, and capital raising efforts.

#### Going concern and liquidity
Since its inception, the Company has devoted substantially all its efforts to its formation, business planning, and raising capital. The future profitability of the Company's business is unproven. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company's cost structure. As of June 30, 2022, the Company had $10,607 of cash and negative working capital of $467,348. Since its inception, the Company has experienced net losses and negative cash flows from operating activities and has an accumulated deficit of $969,148 as of June 30, 2022. The Company plans to fund its activities from operations and through equity offerings and debt financings. There can be no assurance as to the availability of such future equity and debt financings, or if available, on terms acceptable to the Company. If the Company is not able to secure adequate additional funding or generate sufficient revenue, the Company may be forced to make reductions in spending, suspend, or curtail operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business.

#### Risks and uncertainties
The Company is subject to a number of risks similar to other companies in its industry, including rapid technological change, competition from established market participants, and dependence on key personnel.

The extent of the impact of the Coronavirus ("COVID-19") pandemic on the Company's business is highly uncertain and difficult to predict, as the responses that the Company, other businesses, and governments are implementing continue to evolve. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a lasting national and/or global economic recession. Policymakers around the globe have responded with fiscal policy actions to support small businesses and the economy as a whole. To date, the Company has not experienced any substantial negative effects arising from the COVID-19 pandemic. However, there is no guarantee that there will be no negative effects arising from COVID-19 in the future on the Company's operations.

#### Basis of presentation
The accompanying unaudited condensed financial statements of the Company have been prepared on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company's condensed financial position as of June 30, 2022, its results of operations for the six-month period ended June 30, 2022, changes in stockholders deficit and cash flows for the period presented. The results disclosed in

F-6<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

the unaudited condensed statement of operations for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2021.

2. **SIGNIFICANT ACCOUNTING POLICIES** 

The following is a summary of significant accounting policies adopted by the Company in preparation of its unaudited condensed financial statements.

#### Use of estimates
The preparation of the Company's unaudited condensed financial statements requires the use of estimates and assumptions that affect the amounts we report as assets, liabilities, revenues and expenses and our disclosures in these unaudited condensed financial statements. Due to the inherent uncertainty involved in making estimates, actual results can differ from those estimates.

#### Cash
Cash includes cash in the Company's bank accounts and deposits which are unrestricted as to withdrawal. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses as a result of the use of uninsured deposit accounts.

#### Stock subscriptions receivable – related party
The stock subscriptions receivable – related party balance as of December 31, 2021 includes cash to be received from an executive employee for Common stock shares issued prior to December 31, 2021, in connection with the Founders' Round (Note 5). The amount of $260 was received in January 2022.

#### Digital assets
Digital Assets which will be held by the Company consist solely of digital artwork, including Collaborative Original Digital Artworks ("CODAs").

Digital artworks are deemed to be indefinite-lived intangible assets under ASC 350 and will be included in current assets if held for sale. The rights to the CODAs created in collaboration with the third-party artists will transfer to the Company upon the receipt of the original digital image from the artist. Digital assets are initially recorded at cost and are subsequently carried at cost, net of any impairment losses.

Indefinite-lived intangible assets are not subject to amortization. Instead, they are tested for impairment on an annual basis and more frequently if events or circumstances change that indicate that it's more likely than not that the asset is impaired. As a result, the Company will only recognize decreases in the value of its Digital Assets, and any increase in value will be recognized upon disposition.

The impairment indicators in relation to the digital artwork will include the lack of sales of or interest for similar CODAs or sales below the cost of the digital artwork on the Company's balance sheet.

As of June 30, 2022 and December 31, 2021, and during the six months ended June 30, 2022, the Company carried no Digital Assets.

#### Refundable stock subscriptions – related party
The Company did not have any refundable stock subscriptions as of June 30, 2022. The balance as of December 31, 2021 includes cash received from two directors, who are also executive employees, in relation to future equity financings. These balances were returned to the related parties in January 2022.

F-7<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

#### Revenue recognition
The Company expects to derive revenues from the licensing out of the rights to digital artwork, including CODAs, to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories. The Company is also expected to generate revenues from the sale of tickets and sponsorship fees related to the events organized in partnership with media organizations and cultural institutions.

Revenue is recognized in accordance with FASB ASC Topic 606, Revenue Recognition. Under ASC 606, the Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs a five-step process. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when (or as) the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company only applies the five-step process to contracts when it is probable that the entity will collect consideration it expects to be entitled to in exchange for the goods or services it transfers to the customer.

The Company evaluates contingent payments to estimate the amount which is not probable of a material reversal to include in the transaction price using the most likely amount method. Future payments that are not within the control of the Company, are not considered probable of being achieved until the contingencies are resolved.

As it relates to the sale of license rights, CODAs are considered symbolic intellectual property because the digital images do not have significant standalone functionality. The Company will recognize the consideration from the sale of license rights on a straight-line basis as the benefit to the customer often transfers ratably throughout a license period. The recognition will commence on the date when the customer is first able to benefit from the license.

Revenue generated from event production will include booth space sales, registration fees and sponsorship fees. Fees are typically invoiced and collected in full prior to the event and deferred until the event takes place and all promised services have been provided and performance obligations have been met. Similarly, attendees register and are typically qualified for attendance prior to the show staging. Attendee registration revenues are also collected prior to the event and deferred until the event stages. Revenue is recognized when our customer receives the benefit of the promised services and all performance obligations are met. Revenue is recognized at an amount that reflects the consideration we expect to receive in exchange for those services.

The Company recognizes the incremental costs of obtaining a contract as expense when incurred since the recovery period for such costs is less than one year. The costs related to the event production are deferred and recognized when the event is held.

Differences between the timing of billings and the recognition of revenue are recognized as either unbilled revenue (a component of accounts receivable) or deferred revenue on the balance sheet. The deferred revenues are expected to generally consist of booth space sales, registration fees and sponsorship fees that are invoiced prior to the event. The Company has not generated any revenues from inception through June 30, 2022.

F-8<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

#### License costs
The Company enters into agreements to secure all necessary rights in artwork with a licensor to create digital artwork and CODAs. These licensing agreements may require the payment of a minimum guarantee plus royalty payments if royalties derived from sub-licensee sales exceed the minimum. Minimum guarantee payments, if any, will be 100% recoupable against aggregate royalty payments arising from all sub-licensees. These royalty fees are expensed upon the sale of the related digital assets and presented as the cost of sale on the Company's statement of operations.

Licensing agreements may require upfront payments and minimum royalty commitments. The upfront payments and minimum royalty payments are capitalized and reflected in prepaid expenses on the Company's balance sheet in accordance with the guidance in ASC 340 Other Assets and Deferred Costs. License costs are amortized over the period of use on a straight-line basis which reflects the pattern in which the Company benefits from the intellectual property rights. Amortization of the capitalized costs is recorded in cost of sales in the statement of operations. If it is determined that it is probable that the expected revenue will not allow for the recoverability of these costs, the Company will write off the amount against the prepaid asset for the non-recoverable portion. The Company will continue to evaluate whether this prepaid asset is recoverable over the term of the license agreement. In situations where a minimum commitment is not expected to be met based on expected revenues, the Company will record to the expense equal to the minimum amount when it is reasonably certain that revenues generated will not meet the minimum commitment.

#### Advertising costs
Advertising costs are expensed as incurred and are included within sales and marketing expenses in the accompanying unaudited condensed statement of operations. These include costs incurred on public relations, website and logo design, advertising, field marketing, and market research services. The Company incurred advertising costs of $234,203 during the six-month period ended June 30, 2022.

#### Segment reporting
Management has determined that the Company has one operating segment, which is principally the business of creating and sub-licensing digital artwork from the licenses of iconic, one-of-a-kind assets.

#### Net loss per share
Net loss per share is computed by dividing the Company's net loss by the weighted average number of shares of Common stock outstanding during the six months ended June 30, 2022. At June 30, 2022, the Company did not have any dilutive securities and other contracts that could potentially be exercised or converted into shares and then share in the earnings of the Company. As a result, diluted net loss per share is the same as basic net loss per share for the six months ended June 30, 2022.

#### Recently issued accounting standards
The Company has evaluated recent accounting pronouncements issued but not yet effective and has determined that upon adoption, none of these standards will have a material impact on the Company's unaudited condensed financial statements.

3. **RELATED PARTY TRANSACTIONS**

The Due to related party balance of $2,269 and $973 as of June 30, 2022 and December 31, 2021, respectively, represents general and administrative expenses paid by two stockholders on behalf of the Company. This balance accrues no interest and is payable upon demand.

In December 2021, in connection with the Founders' Round (Note 5), the Company issued 12,600,000 shares of Common stock to the Company's two directors, who are also executive employees, for cash consideration of $1,260, of which $260 is included in stock subscriptions receivable – related party in the accompanying balance sheet as of December 31, 2021. The amount of $260 was received in January 2022.

F-9<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

In December 2021, the Company initiated a private placement of Common stock at the price of $0.25 per share. Pursuant to the private placement, the Company collected $80,000 in December 2021 from the two directors, who are also executive employees. The private placement was subject to the acceptance of the subscription agreements by the Company. In January 2022, the Company refunded the $80,000 of the stock subscription amounts (for 320,000 shares of Common stock) as the terms of his private placement were not accepted by the Company.

In January 2022, in connection with the April 2022 Private Placement (Note 5), the Company issued 600,000 shares of Common stock to the Company's two directors, who are also executive employees, for cash consideration of $150,000.

In July 2022, in connection with an ongoing private placement of Common stock for $0.50 per share (the "Ongoing Private Placement"), the Company issued 200,000 shares to the Company's two directors, who are also executive employees, for cash consideration of $100,000.

4. **COMMITMENTS AND CONTINGENCIES**

The Company may be involved in legal actions in the ordinary course of business. In the opinion of management, there are no legal proceedings pending against or involving the Company whose outcome is likely to have a material adverse effect on the Company's financial position or results of operations.

#### License agreement
In January 2022, the Company entered into an exclusive license agreement with Société de Gestion et d'Exploitation des Droits Dérivés de l'Œuvre d'Antoine de Saint- Exupéry ("SOGEX"), and amended that agreement on June 20, 2022 (as amended, the "SOGEX License Agreement"). Pursuant to the SOGEX License Agreement, SOGEX granted the Company the exclusive right to use the title "Le Petit Prince", texts in short quotes, original artwork, sketches, designs, drawings, pictures, paintings and characters which appear in the masterwork "Le Petit Prince" book (the "Licensed Assets") to: (i) develop digital art pieces based on and inspired by the Licensed Assets; (ii) encode the digital art pieces with blockchain and other technologies to allow the digital art pieces to be sold as NFTs; (iii) use certain presentation materials in relation to the marketing and sale of the digital art pieces; (iv) create and manufacture merchandise, such as apparel and accessories, to be sold in conjunction with the NFTs; and (v) grant sub-licenses and form other legal relationships in our discretion to carry out these objectives. Any copyrights or other similar rights in any digital art pieces that are derivative works incorporating elements of both the Licensed Assets and creative expression or work of a collaborative (i.e., CODAs), are owned equally among the Company, SOGEX, and the Collaborator, while any copyrights or other similar rights digital art pieces of the Licensed Asset's original artwork will remain with SOGEX. Under the terms of the SOGEX License Agreement, the Company is obligated to pay earned royalties based on a percentage of net profits, as defined in the SOGEX License Agreement. As the Company has no intention of engaging in the business of creating, licensing or selling NFT, the Company does not expect to incur any royalty obligations. The SOGEX License Agreement has an original term of three years, with an option to renew for an additional three years at the Company's option should certain criteria be met, as defined within the SOGEX License Agreement. The Company is required to pay minimum royalty payments totaling $150,000, $400,000, and $450,000 during the years ended December 31, 2022, 2023, and 2024, respectively.

The License Agreement expires on January 31, 2025, but may be renewed for one additional three-year term at our option upon 90 days prior notice if we are in good standing with the Delaware Secretary of State, have paid all sums due and owing to the licensor, are not in breach of the license agreement at the time of the exercise of the renewal, and have achieved gross receipts of at least $2.5 million. Further renewals are not provided for in the License Agreement and would require further negotiations between the parties. The parties to the License Agreement have not agreed to any future renewals as of the date hereof.

The Company is in process of renegotiating the license agreement with SOGEX such that the Company's rights are focused on development and marketing of digital artworks and exclude any rights related to NFTs.

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

The Company made the first minimum royalty payment of $150,000 in February 2022. The total minimum royalty payments of $1,000,000 are capitalized into prepaid expenses and recognized on a straight-line basis over the three-year term of the SOGEX License Agreement. During the six months ended June 30, 2022, the Company recognized $138,889 of expenses, included in cost of sales expenses in the accompanying unaudited condensed statement of operations. As of June 30, 2022, prepaid expenses related to the SOGEX License Agreement totaled $11,111, included in prepaid expenses in the accompanying unaudited condensed balance sheet. As of June 30, 2022, the Company deemed this prepaid asset recoverable over the term of the license agreement.

5. **STOCKHOLDERS' EQUITY**

#### Preferred stock
The Company's Certificate of Incorporation authorizes the issuance of 20,000,000 shares of Preferred stock with a par value of $0.0001. Significant terms, rights, liquidation preferences, and limitations of the Preferred stock shall be designated by the Company's board of directors when or as the Preferred stock issuance resolutions are adopted. As of June 30, 2022 and December 31, 2021, no Preferred stock was issued or outstanding, and no resolutions were adopted by the Company's board of directors.

#### Common stock
The Company's Certificate of Incorporation authorizes the issuance of 80,000,000 shares of Common stock with a par value of $0.0001. Each holder of Common stock shall be entitled to one vote for each share of Common stock held of record by such holder on all matters in which stockholders generally are entitled to vote. As of June 30, 2022 and December 31, 2021, 20,000,001 and 17,460,001 shares of Common stock were issued and outstanding, respectively.

In December 2021, pursuant to a securities purchase agreement for Common stock, the Company issued 17,460,000 shares of Common stock to various individual investors (the "Founders' Round"). Gross cash proceeds from the Founders' Round totaled $1,746, of which $1,486 was collected prior to December 31, 2021, and $260 was received in January 2022, included in stock subscriptions receivable – related party as of December 31, 2021. In January 2022, the Company issued an additional 540,000 shares of Common stock under the Founders' Round for gross cash proceeds of $54.

From January through April 2022, pursuant to securities purchase agreements for Common stock, the Company issued 2,000,000 shares of Common stock to various individual investors and the Company's two directors, who are also executive employees (see Note 3) (the "April 2022 Private Placement"). Net cash proceeds from the April 2022 Private Placement totaled $480,000. Included in the 2,000,000 shares issued in connection with the April 2022 Private Placement were 80,000 shares issued in exchange for services with a fair value of $20,000.

As partial consideration for legal services provided to the Company from a legal services provider, and for reduced hourly billing rates to be provided during 2022, the Company agreed to, subject to the approval of the Company's board of directors, issue warrants (the "Warrants") within thirty (30) days of the date of the closing of the public equity financing. The Company and the vendor will enter into a separate warrant agreement to provide for specific terms, including: (i) the Warrants will vest in 12 equal monthly installments commencing on January 1, 2022 such that the Warrants will be fully exercisable by year-end 2022, or upon notification of an earlier Financing (as defined below); (ii) the Warrants may be exercised by the vendor in connection with a public offering, SPAC transaction, Series A or later round financing, or a sale of the Company (pursuant to a merger, sale of stock, sale of assets or otherwise) (the "Financing"); and (iii) the Warrants will have an exercise price of $0.01 per share of Common stock and the vendor will have the right to acquire 30,000 total shares of Common stock. There were no warrants issued under this arrangement to date. The Company recorded $7,376 liability related to the services performed through June 30, 2022, to be settled in Warrants, and included in general and administrative expenses on the unaudited condensed statement of operations.

F-11<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Condensed Financial Statements<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
(Unaudited)<br>

In January 2022, the Company engaged a vendor to provide the Company with creative advertising services. In lieu of cash payment, the Company has agreed to issue shares of Common stock immediately following the qualification of the Company's Form 1-A. The number of shares issuable to the vendor is based on the amount of fees invoiced as of the date of qualification of the Company's Form 1-A, multiplied by $0.75 per share. During the six months ended June 30, 2022, the Company incurred expenses for these services totaling $79,962 and it is included in Accounts payable and accrued expenses as of June 30, 2022.

In exchange for marketing services provided to the Company in February 2022, the Company agreed to issue 32,000 Common stock shares to a vendor after the close of the July 2022 Private Placement. During the six months ended June 30, 2022, the Company incurred expenses for these services totaling $16,000, equal to the fair value of the shares issuable to the vendor at $0.50 per share, which has been included in Accounts payable and accrued expenses as of June 30, 2022.

From July through December 2022, in connection with the Ongoing Private Placement of common stock for $0.50 per share, the Company issued 1,495,000 shares of common stock for net proceeds of $747,500, of which 200,000 shares to the Company's two directors, who are also executive employees, for cash consideration of $100,000.

HCFP/Strategy Advisors LLC ("HCFP Strategy Advisors"), an affiliated entity, has agreed to provide strategic advisory services to the Company for a monthly service fee of $25,000 beginning January 1, 2022 and for the six months ended June 30, 2022, the Company incurred expenses of $150,000. The costs are included in General and administrative expenses in the accompanying condensed statement of operations for the six months ended June 30, 2022. Amounts payable to HCFP/Strategy Advisors as of June 30, 2022 totaled $50,000, included in "Accounts payable and accrued expenses" in the accompanying condensed balance sheet as of June 30, 2022.

6. **SUBSEQUENT EVENTS**

Other than what is disclosed in Note 5 to the unaudited condensed financial statements, there are no material subsequent events requiring additional disclosure.

On November 11, 2022, the Company entered into an agreement with Ted Conferences LLC ("TED") to produce and film an event hosted by TED ("Event") in 2024 in London, England. Under the terms of the agreement, the Company is engaged to pay $2,200,000 to TED for its services related to the Event curation and production. The Company will be responsible for the Event coordination and costs of the production of the Event themselves. The initial $20,000 non-refundable payment was made upon the execution of the agreement. The Company is obligated to make monthly payments of $220,000 between March and November 2023.

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#### **TABLE OF CONTENTS**
![](ny20004683x6_header.jpg)<br>

#### Report of Independent Registered Public Accounting Firm
To the Board of Directors of Tesseract Collective, Inc.:

#### Opinion on the Financial Statements
We have audited the accompanying balance sheet of Tesseract Collective, Inc. (the "Company") as of December 31, 2021, and the related statements of operations, changes in stockholders' deficit and cash flows for the period from November 29, 2021 (inception) through December 31, 2021, and the related notes to the financial statements (collectively, the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the period then ended in conformity with accounting principles generally accepted in the United States of America.

#### Emphasis of a Matter Regarding Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has recurring losses from operations and an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters also are described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

![](ny20004683x6_footer.jpg)<br>

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#### **TABLE OF CONTENTS**

#### Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the board of directors and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Wolf & Company, P.C.

We have served as the Company's auditor since 2022. <br>

Boston, Massachusetts<br>

May 5, 2022

F-14<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC. <br>

#### BALANCE SHEET<br>

#### AS OF DECEMBER 31, 2021

---

| | |
|:---|:---|
| **Assets**<br>|  |
| Current assets<br>|  |
| &nbsp;&nbsp;&nbsp;Cash  | $81510 |
| &nbsp;&nbsp;&nbsp;Stock subscriptions receivable – related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;599  |
| **Total current assets** | $82369  |
| **Liabilities and Stockholders' Equity**<br>|  |
| Current liabilities:<br>|  |
| &nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;&nbsp;&nbsp;$973 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | &nbsp;&nbsp;&nbsp;2100 |
| &nbsp;&nbsp;&nbsp;Refundable stock subscriptions – related party | &nbsp;&nbsp;80054  |
| **Total current liabilities** | &nbsp;&nbsp;83127  |
| **Commitments and Contingencies (Note 4)**<br>|  |
| **Stockholders' Equity (Deficit):**<br>|  |
| Preferred stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Common stock, $0.0001 par value; 80,000,000 shares authorized; 17,460,001 issued and outstanding | &nbsp;&nbsp;&nbsp;1746 |
| Accumulated deficit | &nbsp;&nbsp;(2504) |
| **Total stockholders' deficit** | &nbsp;&nbsp;&nbsp;&nbsp;(758) |
| **Total Liabilities and Stockholders' Deficit** | $82369 |

---

See report of independent registered public accounting firm and accompanying notes to financial statements.<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC.<br>

#### STATEMENT OF OPERATIONS<br>

#### FOR THE PERIOD FROM NOVEMBER 29, 2021 (INCEPTION) THROUGH DECEMBER 31, 2021

---

| | |
|:---|:---|
| General and administrative expenses | $2504  |
| **Net loss** | $(2504) |
| **Weighted average shares outstanding of Common stock** | &nbsp;&nbsp;8465456  |
| **Basic and diluted net loss per share (see Note 2)** | $(0.00) |

---

See report of independent registered public accounting firm and accompanying notes to financial statements.<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC.<br>

#### STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)<br>

#### FOR THE PERIOD FROM NOVEMBER 29, 2021 (INCEPTION) THROUGH DECEMBER 31, 2021

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional** <br>**Paid-in** <br>**Capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Shareholders'** <br>**Equity (Deficit)** |
|  | **Shares** | **Amount** | **Additional** <br>**Paid-in** <br>**Capital** | **Accumulated** <br>**Deficit** | **Total** <br>**Shareholders'** <br>**Equity (Deficit)** |
| **Balance - November 29, 2021 (Inception)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**—** | &nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;**$—** | &nbsp;&nbsp;&nbsp;&nbsp;**$—** |
| Issuance of Common stock | 17460001 | &nbsp;&nbsp;1746 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;1746 |
| Net loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;(2504) | &nbsp;&nbsp;&nbsp;&nbsp;(2504) |
| **Balance - December 31, 2021** | **17460001**  | **$1746** | &nbsp;&nbsp;&nbsp;&nbsp;**$—**  | &nbsp;&nbsp;**$(2504)**  | &nbsp;&nbsp;&nbsp;&nbsp;**$(758)** |

---

See report of independent registered public accounting firm and accompanying notes to financial statements.<br>

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#### **TABLE OF CONTENTS**

#### TESSERACT COLLECTIVE, INC.<br>

#### STATEMENT OF CASH FLOWS<br>

#### FOR THE PERIOD FROM NOVEMBER 29, 2021 (INCEPTION) THROUGH DECEMBER 31, 2021

---

| | |
|:---|:---|
| **Cash flows from operating activities**<br>|  |
| Net loss | $(2504) |
| Changes in current assets and liabilities:<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;(599) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | &nbsp;&nbsp;&nbsp;2100 |
| &nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) |
| **Cash flows from financing activities**<br>|  |
| Proceeds from common stock subscriptions - related parties | &nbsp;&nbsp;80054 |
| Proceeds from issuance of common stock | &nbsp;&nbsp;&nbsp;1486  |
| &nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | &nbsp;&nbsp;81540 |
| **Cash - beginning of period** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Cash - end of period** | $81510 |
| **Non-cash financing activities** <br>|  |
| &nbsp;&nbsp;&nbsp;Stock subscription receivable – related party | $260 |

---

See report of independent registered public accounting firm and accompanying notes to financial statements.<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements
1. **NATURE OF OPERATIONS AND BASIS OF PRESENTATION**

#### Business
Tesseract Collective, Inc. (the "Company") was incorporated under the laws of the State of Delaware on November 29, 2021 (inception), with its headquarters located in New York, New York. The Company was formed for the purpose of building a digital artworks library derived from iconic personalities or iconic works from the physical art and collectibles markets and generating revenues from licensing of the digital artwork. The Company will secure global master licenses for all rights, excluding non-fungible token ("NFT(s)") rights, in perpetuity, to the intellectual property underlying the digital art (a "Non-NFT Perpetual Global Master License"). The Company will organize events in partnership with media organizations and cultural institutions. Since its inception, the Company has devoted its resources to its formation, business planning, and capital raising efforts.

#### Going Concern and Liquidity
Since its inception, the Company has devoted substantially all its efforts to its formation, business planning, and raising capital. The future profitability of the Company's business is unproven. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company's cost structure. As of December 31, 2021, the Company had $81,510 of cash and negative working capital of $758. Since its inception, the Company has experienced net losses and negative cash flows from operating activities and has an accumulated deficit of $2,504 as of December 31, 2021. The Company plans to fund its activities from operations and through equity offerings and debt financings. There can be no assurance as to the availability of such future equity and debt financings, or if available, on terms acceptable to the Company. If the Company is not able to secure adequate additional funding or generate sufficient revenue, the Company may be forced to make reductions in spending, suspend, or curtail operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the normal course of business.

#### Risks and Uncertainties
The Company is subject to a number of risks similar to other companies in its industry, including rapid technological change, competition from established market participants, and dependence on key personnel.

The extent of the impact of the Coronavirus ("COVID-19") pandemic on the Company's business is highly uncertain and difficult to predict, as the responses that the Company, other businesses, and governments are implementing continue to evolve. Furthermore, capital markets and economies worldwide have also been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause a lasting national and/or global economic recession. Policymakers around the globe have responded with fiscal policy actions to support small businesses and the economy as a whole. To date, the Company has not experienced any substantial negative effects arising from the COVID-19 pandemic. However, there is no guarantee that there will be no negative effects arising from COVID-19 in the future on the Company's operations.

#### Basis of Presentation
The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

2. **SIGNIFICANT ACCOUNTING POLICIES**

The following is a summary of significant accounting policies adopted by the Company in preparation of its financial statements.

F-19<br>

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements<br>

#### Use of estimates
The preparation of the Company's financial statements requires the use of estimates and assumptions that affect the amounts we report as assets, liabilities, revenues and expenses and our disclosures in these financial statements. Due to the inherent uncertainty involved in making estimates, actual results can differ from those estimates.

#### Cash
Cash includes cash in the Company's bank accounts and deposits which are unrestricted as to withdrawal. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses as a result of the use of uninsured deposit accounts.

#### Stock subscriptions receivable – related party
The stock subscriptions receivable – related party balance as of December 31, 2021 includes cash to be received from an executive employee for common stock shares issued prior to December 31, 2021, in connection with the Founders' Round (Note 5).

#### Digital Assets
Digital Assets which will be held by the Company consist solely of digital artwork, including Collaborative Original Digital Artworks ("CODAs").

Digital artworks are deemed to be indefinite-lived intangible assets under ASC 350 and will be included in current assets if held for sale. The rights to the CODAs created in collaboration with the third-party artists will transfer to the Company upon the receipt of the original digital image from the artist. Digital assets are initially recorded at cost and are subsequently carried at cost, net of any impairment losses.

Indefinite-lived intangible assets are not subject to amortization. Instead, they are tested for impairment on an annual basis and more frequently if events or circumstances change that indicate that it's more likely than not that the asset is impaired. As a result, the Company will only recognize decreases in the value of its Digital Assets, and any increase in value will be recognized upon disposition.

The impairment indicators in relation to the digital artwork will include the lack of sales of or interest for similar CODAs or sales below the cost of the digital artwork on the Company's balance sheet.

As of June 30, 2022 and December 31, 2021, and during the six months ended June 30, 2022, the Company carried no Digital Assets.

#### Refundable stock subscriptions – related party
The balance as of December 31, 2021 includes cash received from two directors and executive employees in relation to future equity financings. These balances were returned to the related parties in January 2022.

#### Revenue Recognition
The Company expects to derive revenues from the licensing out of the rights to digital artwork, including CODAs, to third party licensees in various categories to include fashion, apparel, accessories, home goods, and media, amongst other licensing categories. The Company is also expected to generate revenues from the sale of tickets and sponsorship fees related to the events organized in partnership with media organizations and cultural institutions.

Revenue is recognized in accordance with FASB ASC Topic 606, Revenue Recognition. Under ASC 606, the Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs a five-step process. This process involves

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements<br>
identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when (or as) the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company only applies the five-step process to contracts when it is probable that the entity will collect consideration it expects to be entitled to in exchange for the goods or services it transfers to the customer.

The Company evaluates contingent payments to estimate the amount which is not probable of a material reversal to include in the transaction price using the most likely amount method. Future payments that are not within the control of the Company, are not considered probable of being achieved until the contingencies are resolved.

As it relates to the sale of license rights, CODAs are considered symbolic intellectual property because the digital images do not have significant standalone functionality. The Company will recognize the consideration from the sale of license rights on a straight-line basis as the benefit to the customer often transfers ratably throughout a license period. The recognition will commence on the date when the customer is first able to benefit from the license.

Revenue generated from event production will include booth space sales, registration fees and sponsorship fees. Fees are typically invoiced and collected in full prior to the event and deferred until the event takes place and all promised services have been provided and performance obligations have been met. Similarly, attendees register and are typically qualified for attendance prior to the show staging. Attendee registration revenues are also collected prior to the event and deferred until the event stages. Revenue is recognized when our customer receives the benefit of the promised services and all performance obligations are met. Revenue is recognized at an amount that reflects the consideration we expect to receive in exchange for those services.

The Company recognizes the incremental costs of obtaining a contract as expense when incurred since the recovery period for such costs is less than one year. The costs related to the event production are deferred and recognized when the event is held.

Differences between the timing of billings and the recognition of revenue are recognized as either unbilled revenue (a component of accounts receivable) or deferred revenue on the balance sheet. The deferred revenues are expected to generally consist of booth space sales, registration fees and sponsorship fees that are invoiced prior to the event. The Company has not generated any revenues from inception through June 30, 2022.

#### License costs
The Company enters into agreements to secure all necessary rights in artwork with a licensor to create digital artwork and CODAs. These licensing agreements may require the payment of a minimum guarantee plus royalty payments if royalties derived from sublicensor sales exceed the minimum. Minimum guarantee payments, if any, will be 100% recoupable against aggregate royalty payments arising from all sub-licensees. These royalty fees are expensed upon the sale of the related digital assets and presented as the cost of sale on the Company's statement of operations.

Licensing agreements may require upfront payments and minimum royalty commitments. The upfront payments and minimum royalty payments are capitalized and reflected in prepaid expenses on the Company's balance sheet in accordance with the guidance in ASC 340 Other Assets and Deferred Costs. License costs are amortized over the period of use on a straight-line basis which reflects the pattern in which the Company benefits from the intellectual property rights. Amortization of the capitalized costs is recorded in cost of sales in the statement of operations. If it is determined that it is probable that the expected revenue will not allow for the recoverability of these costs, the Company will write off the amount against the prepaid asset for the non-recoverable portion. The Company will continue to evaluate whether this prepaid asset is recoverable over the term of the license agreement. In situations where a minimum commitment is not expected to be met based on expected revenues, the Company will record to the expense equal to the minimum amount when it is reasonably certain that revenues generated will not meet the minimum commitment.

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#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements<br>

#### Segment reporting
Management has determined that the Company has one operating segment, which is principally the business of creating and sub-licensing digital artwork from the licenses of iconic, one-of-a-kind assets.

#### Net loss per share
Net loss per share is computed by dividing the Company's net loss by the weighted average number of shares of Common Stock outstanding during the period from November 29, 2021 (inception) to December 31, 2021. At December 31, 2021, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares and then share in the earnings of the Company. As a result, diluted net loss per share is the same as basic net loss per share for the period from November 29, 2021 (inception) to December 31, 2021.

#### Income taxes
The Company follows the asset and liability method of accounting for income taxes under ASC 740 "Income Taxes" ("ASC 740"). Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases as well as tax operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2021, and for the period from November 29, 2021 (inception) through December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviations from its positions taken. The Company is subject to income tax examinations by major taxing authorities since inception.

The provision for income taxes was de minimis for the period from November 29, 2021 (inception) through December 31, 2021.

#### Recently Issued Accounting Standards
The Company has evaluated recent accounting pronouncements issued but not yet effective and has determined that upon adoption, none of these standards will have a material impact on the Company's financial statements.

3. **RELATED PARTY TRANSACTIONS**

The Due to related party balance of $973 as of December 31, 2021, represents general and administrative expenses paid by a stockholder on behalf of the Company. This balance accrues no interest and is payable upon demand.

On November 29, 2021 (inception), one share of common stock was issued to a director for consideration of $0.01.

In December 2021, in connection with the Founders' Round (Note 5), the Company issued 12,600,000 shares of common stock to the Company's directors and officers for cash consideration of $1,260, of which $260 is included in stock subscriptions receivable – related party in the accompanying balance sheet as of December 31, 2021. The amount of $260 was received in January 2022.

In December 2021, the Company initiated a private placement of common stock at the price of $0.25 per share. Pursuant to the private placement, the Company collected $80,000 in December 2021 from the two directors and

F-22<br>

------

#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements<br>
executive employees. The private placement was subject to the acceptance of the subscription agreements by the Company. In January 2022, the Company refunded the $80,000 of the stock subscription amounts (for 320,000 shares of common stock) as this private placement was not accepted by the Company.

In January 2022, in connection with the April 2022 Private Placement (Note 6), the Company issued 600,000 shares of common stock to the Company's directors and officers for cash consideration of $150,000.

In July 2022, in connection with the Ongoing Private Placement (Note 6), the Company issued 200,000 shares of common stock to two of the Company's directors and officers for cash consideration of $100,000.

4. **COMMITMENTS AND CONTINGENCIES**

The Company may be involved in legal actions in the ordinary course of business. In the opinion of management, there are no legal proceedings pending against or involving the Company whose outcome is likely to have a material adverse effect on the Company's financial position or results of operations.

5. **STOCKHOLDERS' EQUITY**

#### Preferred stock
The Company's Certificate of Incorporation authorizes the issuance of 20,000,000 shares of preferred stock with a par value of $0.0001. Significant terms, rights, liquidation preferences, and limitations of the preferred stock shall be designated by the Company's board of directors when or as the Preferred Stock issuance resolutions are adopted. As of December 31, 2021, no preferred stock is issued or outstanding, and no resolutions have been adopted by the Company's board of directors.

#### Common stock
The Company's Certificate of Incorporation authorizes the issuance of 80,000,000 shares of common stock with a par value of $0.0001. Each holder of common stock shall be entitled to one vote for each share of common stock held of record by such holder on all matters in which stockholders generally are entitled to vote.

On November 29, 2021 (inception), one share of common stock was issued to the incorporating investor for consideration of $0.01.

In December 2021, pursuant to a securities purchase agreement for common stock, the Company issued 17,460,000 shares of common stock to various individual investors (the "Founders' Round"). Gross cash proceeds from the Founders' Round totaled $1,746, of which $1,486 was collected prior to December 31, 2021, and $260 was received in January 2022, included in stock subscriptions receivable – related party as of December 31, 2021.

In December 2021, the Company initiated a private placement of common stock at the price of $0.25 per share. Pursuant to the private placement, the Company collected $80,000 in December 2021 from the two directors and executive employees. The private placement was subject to the acceptance of the subscription agreements by the Company. In January 2022, the Company refunded the $80,000 of the stock subscription amounts (for 320,000 shares of common stock) as this private placement was not accepted by the Company.

In January 2022, the Company issued an additional 540,000 shares of common stock under the Founders' Round for gross cash proceeds of $54.

6. **SUBSEQUENT EVENTS**

Other than what is disclosed below, or elsewhere in these notes to the financial statements, there are no material subsequent events requiring additional disclosure through the date the financial statements were available for issuance.

In January 2022, the Company entered into an exclusive license agreement (the "SOGEX License Agreement") with Société de Gestion et d'Exploitation des Droits Dérivés de l'Œuvre d'Antoine de Saint- Exupéry ("SOGEX"), relating to the title "Le Petit Prince", texts in short quotes, original artwork, sketches, designs, drawings, pictures,

F-23<br>

------

#### **TABLE OF CONTENTS**

#### Tesseract Collective, Inc.<br>

#### &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

#### Notes to Financial Statements<br>
paintings and characters which appear in the masterwork "Le Petit Prince" book (the "Licensed Assets"). The Company obtained the exclusive right to use the Licensed Assets for the creation of encrypted digital art pieces that are offered to the public for purchase via an online platform in the emerging area of digital commerce known as non-fungible tokens ("NFTs"). Under the terms of the SOGEX License Agreement, the Company is obligated to pay earned royalties based on a percentage of net profits, as defined in the SOGEX License Agreement. The Company is required to pay minimum royalty payments totaling $150,000, $400,000, and $450,000 during the years ended December 31, 2022, 2023, and 2024, respectively. The SOGEX License Agreement has an original term of three years, with an option to renew for an additional three years at the Company's option should certain criteria be met, as defined within the SOGEX License Agreement. The Company is in process of renegotiating the license agreement with SOGEX such that the Company's rights are focused on development and marketing of digital artworks and exclude any rights related to NFTs. As the Company has no intention of engaging in the business of creating, licensing or selling NFT, the Company does not expect to incur any royalty obligations.

In April 2022, pursuant to securities purchase agreements for common stock, the Company issued 2,000,000 shares of common stock to various individual investors (the "April 2022 Private Placement"). Net cash proceeds from the April 2022 Private Placement totaled $500,000.

Pursuant to an agreement with Ferdinand IP Law Group, the Company's outside intellectual property counsel ("Ferdinand IP"), as partial consideration for legal services and reduced hourly billing rates to be provided during 2022, the Company agreed to, subject to the approval of the Company's board of directors, issue warrants (the "Ferdinand IP Warrants") within thirty (30) days of the date of the closing of the public equity financing. The Company and Ferdinand IP will enter into a separate warrant agreement to provide for specific terms, including: (i) the Ferdinand IP Warrants were to vest in 12 equal monthly installments commencing on January 1, 2022 such that the Warrants will be fully exercisable upon their issuance at the closing of the Offering; (ii) the Ferdinand IP Warrants may be exercised by Ferdinand IP in connection with a public offering, SPAC transaction, Series A or later round financing, or a sale of the Company (pursuant to a merger, sale of stock, sale of assets or otherwise) (the "Financing"); and (iii) the Ferdinand IP Warrants will have an exercise price of one cent ($.01) and Ferdinand IP will have the right to acquire 30,000 total shares of common stock. There were no warrants issued to Ferdinand IP to date.

In January 2022, the Company engaged Leagas Delaney Limited ("Leagas Delaney") to perform creative advertising services. In lieu of cash payment, the Company has agreed to issue shares of common stock at $0.75 per share immediately following the qualification of the Company's Form 1-A, based on the amount of fees invoiced as of that date. From November 29, 2021 (inception) through December 31, 2021, no expenses were incurred by the Company for services provided by Leagas Delaney.

From July through December 2022, in connection with an ongoing private placement of common stock for $0.50 per share (the "Ongoing Private Placement"), the Company issued 1,495,000 shares of common stock for net proceeds of $747,500, of which 200,000 shares to the Company's two directors, who are also executive employees, for cash consideration of $100,000.

F-24<br>

------

#### **TABLE OF CONTENTS**

#### PART III - EXHIBITS

#### Index to Exhibits.

---

| | |
|:---|:---|
| 2.1 | Certificate of Incorporation of the Registrant\*\* |
| 2.2 | By-laws of Registrant\*\* |
| 3.1 | Form of Common Stock Certificate\* |
| 4.1 | Form of Subscription Agreement (Private Placement) |
| 4.2 | Form of Subscription Agreement\*  |
| [6.1](ny20004683x6_ex6-1.htm) | License Agreement between SOGEX, the Registrant and Sub-Agent, dated as of January 31, 2022. |
| [6.2](ny20004683x6_ex6-2.htm) | Amendment to License Agreement between SOGEX, the Registrant and Sub-Agent, dated as of June 20, 2022. |
| 6.3 | Form of Indemnification Agreement\* |
| [6.4](ny20004683x6_ex6-4.htm) | Form of 2022 Equity Incentive Plan |
| [6.5](ny20004683x6_ex6-5.htm) | Employment agreement with David Todrin |
| 8.1 | Form of Escrow Agreement\* |
| 10.1 | Power of Attorney (included on the signature page hereto)\* |
| 11.1 | Consent of Wolf & Company, P.C.\* |
| 12.1 | Legal opinion of Loeb & Loeb LLP as to the legality of the securities being qualified\* |

---

\*<br> To be filed by amendment.

\*\*<br> Previously filed.

+<br> Portions of this exhibit have been omitted because it both (i) is not material and (ii) would be competitively harmful if publicly disclosed.

------

#### **TABLE OF CONTENTS**

#### SIGNATURES
Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on , 2023.

---

| | |
|:---|:---|
| TESSERACT COLLECTIVE, INC.  | TESSERACT COLLECTIVE, INC.  |
| By: |  |
|  | Richard Seet  |
|  | Chief Executive Officer  |
|  | (Principal Executive Officer) |

---

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Richard Seet as his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including all pre-qualification and post-qualification amendments) to this Form 1-A offering statement and to file the same, with all exhibits thereto and other documents in connection therewith, with the Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that each of said attorney-in-fact and agent or his substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Form 1-A has been signed by the following persons in the capacities and on the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Signature** | **Date** |
| Richard Seet | Chief Executive <br>Officer and Director<br>(Principal Executive Officer) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| Charles Riotto | President |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023  |
| David Todrin | Chief Financial Officer<br>(Principal Financial Officer and Principal Accounting Officer) |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |

---

## Ex1A-6

**Exhibit 6.1**

---

| | |
|:---|:---|
| ![](ny20004683x6ex6-1_image01.jpg) | ![](ny20004683x6ex6-1_image02.jpg) |

---

**Licensee Agreement**

**THIS AGREEMENT** is made this January 31, 2022

BETWEEN:

(1) **Société de Gestion et d'Exploitation des Droits Dérivés de l'Œuvre d'Antoine de Saint-Exupéry** (**SOGEX**), a French company with its head office at 13, Boulevard Edgar Quinet , 75014 Paris , France, registered in the French ID companies register under n° SIRET 393 781
 992 00044, hereinafter referred to as "**SOGEX**" and/or 'the **Licensor'**, duly represented by **Mr. Thomas Rivière.** 

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Tesseract Collective, Inc.,** a Delaware corporation with its principal place of business at 45 Rockefeller Plaza, 20<sup>th</sup> Floor, New York, New York 10111, U.S.A., hereinafter "the Licensee", duly represented by **Mr. Richard Seet**.

And in the presence of:

&nbsp;&nbsp;&nbsp;&nbsp;(3) **Caravanserai Partners SL** 

a Spanish company

Registered in the Spanish ID company, under the number B67301341

With its head office in Avda De La Generalitat, 216 4°1, 08174 Sant Cugat, Barcelona Spain

Hereinafter called the "Sub-Agent", duly represented by Guillem Rey.

**PREAMBLE**

---

| | |
|:---|:---|
| 1- | SOCIETE CIVILE POUR L'OEUVRE ET LA MEMOIRE D'ANTOINE DE SAINT-EXUPERY - SUCCESSION SAINT-EXUPERY - D'AGAY, a French Company with head office at Château d'Agay-AGAY - Saint-Raphaël – 83700 – FRANCE, has been incorporated by the successors and beneficiaries of the Saint-Exupéry legacy to manage its global rights such as: Intellectual Property rights, copyrights, derivated rights, as well as the Industrial Property rights (amongst them the trademarks filed and registered worldwide) and all the rights which may relate to the Antoine de Saint Exupéry works created during his life (1900-1944) amongst them : LE PETIT PRINCE (THE LITTLE PRINCE-1943), COURRIER SUD (1929), VOL DE NUIT (1931), TERRE DES HOMMES (1939), PILOTE de GUERRE (1942), and to his name and image. |

---

---

| | |
|:---|:---|
| 2- | SOCIETE CIVILE POUR L'OEUVRE ET LA MEMOIRE D'ANTOINE DE SAINT-EXUPERY - SUCCESSION SAINT-EXUPERY - D'AGAY has established a French commercial subsidiary, **SOGEX,** to manage the **derivated rights** related to the above cited works in the countries where they are still under copyright protection, with full power for SOGEX to use on its behalf its copy rights and its trade marks in these countries, including dealing and signing any licensing agreement with third parties for merchandising or services applications and collecting the royalties paid by the Licensees. |

---

3- SOGEX had appointed the Sub-Agent as its non-exclusive Sub-Agent for the licensing and merchandising rights in the Territory as defined in schedule 1 to help the development of its business in French and English speaking territory.

**WHEREAS**

&nbsp;&nbsp;&nbsp;&nbsp;A. The Licensor is the owner of or otherwise entitled to license and exploit the copyrights, goodwill, design rights, trademarks and other rights in the artwork characters and other matter described as "the Property" in
 the Schedule hereto;

&nbsp;&nbsp;&nbsp;&nbsp;B. Licensor has the right to grant licences to others to create, manufacture, market, sell, distribute, promote and/or publish (*inter alia*) the products, articles, or other merchandise or services more
 particularly described in the Schedule hereto as the **licensed "Encrypted Digital Art Pieces** "; and

Licensee Agreement SOGEX – Tesseract Collective, Inc. 1/16

01/31/2022

------

&nbsp;&nbsp;&nbsp;&nbsp;C. The Licensee wishes to acquire the exclusive rights to use the Property for the creation of Digital Art Pieces that when encrypted shall become Encrypted Digital Art Pieces that are offered to the public for purchase
 via an online platform in the emerging area of digital commerce known as non-fungible tokens ("NFTs") (hereinafter called "the **Rights** ")

**NOW IT IS HEREBY AGREED** as follows:

**<u>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DEFINITIONS</u>**

In this Agreement except so far as the context otherwise requires the following expressions shall have the following meanings:

1.1 the Accounting Dates means 30 April, 30 July, 31 October and 31 January in each year during which sales of Encrypted Digital Art Pieces are permitted under this Agreement

1.2 the Basic Material means basic reference drawings or specifications of the Property

1.3 the Branding means the brand names, trademarks and names specified in the Schedule

1.4 the Guarantee means the guaranteed Royalty payment specified in the Schedule

1.5 the Licence means the <u>exclusive right</u> by way of licence, in the Territory, to use the Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) upon or in connection with the creation, design, development and/or manufacture of Digital Art Pieces based on the Materials that are inspired by and use the Property, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to encode, embed, encrypt, edit, adapt and otherwise associate the Digital Art Pieces with blockchain, security, infringement management software, code and other technologies to create <u>Encrypted Digital Art Pieces</u> to enable them to be sold to third-party purchasers on Platforms as NFTs and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to use the Presentation Materials in relation to the marketing promotion, advertising and sale of Encrypted Digital Art Pieces in all media channels, including traditional media, digital media and social media, and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to create, design, manufacture, market, promote and sell merchandise, such as apparel and accessories, that are sold on the Platforms in conjunction with the NFTs (the "NFT Related Merchandise"), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the right to grant sub-licenses and/or form other legal relationships in Licensee's discretion as appropriate with third-parties to enable Licensee to carry out the objectives of the Rights, including agreements with NFT developers and/or NFT Platforms.

1.6 the Licence Period means the term of the licence granted by this Agreement, as defined in the Schedule

1.7 the Encrypted Digital Art Pieces means the items licensed by this Agreement as defined in the Schedule

1.8 the Materials means the library of original artwork and sketches owned or controlled by Licensor and a style guide to be provided by Licensor

1.9 the Digital Art Pieces means digital artwork created, designed and produced from the Basic Material and Materials, and based on the Property

1.10 the Presentation Materials means material used in connection with the sale and marketing of items of Encrypted Digital Art Pieces including packaging, swing tags and other labels, signs, outers and other point of sale material, as well as any
 advertising or publicity materials including, without limiting the foregoing, catalogues

Licensee Agreement SOGEX – Tesseract Collective, Inc. 2/16

01/31/2022

------

1.11 the Property means the copyright, goodwill, trademarks, design right and other rights in the artwork, characters or other matter described in the Schedule

1.12 the Rights means the rights in the Property granted in this Agreement

1.13 the Royalties means the sums payable by the Licensee to the Sub-Agent (acting on behalf of the Licensor) in respect of sales of Encrypted Digital Art Pieces as defined in Schedule 1.

1.14 the Samples means true and accurate samples of any digital Materials to be produced under this Agreement

1.15 the Territory means the countries in which the Rights are exercisable, as listed in the Schedule

1.16 the Granted Language means the languages defined in Schedule 1.

1.17 Charity Contribution means Intentionally deleted

1.18. Marketing Contribution means Intentionally deleted.

1.19. Initial NFT Drop Date means one (1) year from the execution of this Agreement; and Licensee shall have a further obligation to secure an NFT drop of Encrypted Digital Art Pieces based on original illustrations of the Property within eighteen
 (18) months from the Execution of this Agreement.

**<u>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; GRANT OF RIGHTS</u>**

In consideration of the sums paid or to be paid in accordance with Clauses 4 and 5 and subject to compliance by the Licensee with its obligations hereunder the Licensor hereby grants to the Licensee the exclusive license for the period specified in the Schedule attached hereto subject to earlier termination by the Licensor pursuant to Clauses 9.7, 11.7, 13.2, 13.3, 17 and 25 hereof.

**<u>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LICENCE TERRITORY</u>**

3.1 The Licence here granted shall be exercised by the Licensee only within the Territory and in the Granted Language.

3.2 Intentionally deleted.

**<u>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTEE</u>**

The Licensee shall pay to the Sub-Agent on behalf of the Licensor on the signing of this Agreement (together with any applicable Value Added Tax) the sum(s) more particularly shown in the Schedule hereto which are to be advance payments of Royalties and which shall not be repayable in whole or in part or in any event but which shall be recoupable and creditable against earned Royalties("the **Guarantee**"). It is agreed that in the event no royalties shall become payable the aforesaid sum shall in no circumstances become repayable to the Licensee.

**<u>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ROYALTIES</u>**

5.1 The Licensee shall pay to the Sub-Agent on behalf of the Licensor a royalty in an amount equal to the rates specified in the Schedule hereto in respect of each unit of the Encrypted Digital Art Pieces sold by the
 Licensee or on its behalf and calculated upon the Net Profits of the Encrypted Digital Art Pieces, inclusive of all first sales on Platforms and resales on Platforms. The Parties acknowledge that: (i) resales of Encrypted Digital Art Pieces on
 Platforms, meaning secondary (subsequent) sales by purchasers, could occur in perpetuity; and (ii) Licensee's obligation to pay Royalties to Licensor shall continue for as long as Licensee continues to realize revenues from resales on Platforms.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 3/16

01/31/2022

------

The term "Net Profits" shall mean the Licensee's gross receipts realized from sales of Encrypted Digital Art Pieces (received, settled and verified), less direct third-party expenses, including (i) transaction processing charges and related fees; (ii) taxes; (iii) returns; (iv) payments to third-party payment processors; (v) currency conversion; (vi) exchange fees; (vii) fees due and owing to auction marketplace Platforms; (viii) other verified third-party fees and costs; (ix) marketing expenses; and (x) fees paid to collaborators, if any.

5.2 With any Licensee's statement delivered (pursuant to Clause 6.1 below) for a period including a date indicated in the Schedule hereto as involving the "Guarantee", the Licensee shall pay to Sub-Agent the amount, if
 any, by which cumulative Royalties paid with respect to sales in the Territory during any period or periods governed by the Guarantee provision or any Guarantee provision contained in any agreement extending the term hereof, fall short of the
 amount of the Guarantee for such period.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 4/16

01/31/2022

------

5.3 Intentionally deleted.

5.4 Notwithstanding anything hereinabove to the contrary, in the event of the Licensee's material breach of this Agreement (which breach is not cured within thirty (30) days of the Sub-Agent's and Licensor's written
 notice to the Licensee thereof) the Licensee agrees that any and all Guarantees due hereunder shall become immediately due and payable as the Licensor's liquidated damages, regardless of whether the Licensor also exercises its rights hereunder to
 terminate this Agreement because of such breach.

**<u>6</u>**<u>.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ACCOUNTING**</u>

6.1 The Licensee shall within thirty (30) days after each Accounting Date deliver to the Sub-Agent on behalf of the Licensor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 a statement giving particulars of all sales disposals or receipts separately for each item comprising the Encrypted Digital Art Pieces effected by the Licensee during the previous quarter and showing sale prices and
 the total Royalties payable in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 Intentionally deleted

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 payment for the full amount of the Royalties shown as payable together with any further sum required to satisfy any applicable Guarantee.

6.2 Acceptance by the Sub-Agent of any Royalties shall not prevent the Sub-Agent and/or the Licensor at any later date disputing or demanding particulars from the Licensee as to the calculation of the same and neither
 shall acceptance of any sum by the Sub-Agent constitute a waiver of any breach of any term of this Agreement by the Licensee if any such shall have occurred.

6.3 If the Licensee shall fail to render a statement or pay the Royalties due to the Sub-Agent by the dates specified in Clause 6.1 above or pay any Guarantees or other sum due to the Sub-Agent lawfully in connection
 with the Property within thirty (30) days after the same shall become due, then the Sub-Agent shall, in addition to all other remedies of the Sub-Agent provided for herein or at law, be entitled to charge interest on all sums remaining due and
 outstanding with effect from the date when the payment first became due until the date of payment in full at a rate of 1% above the base rate of Banque HSBC applicable on the date when the payment first became due.

6.4 Should the Sub-Agent have occasion to instruct solicitors by reason of the Licensee's failure to render statements and/or the details referred to in sub-clause 6.1 or to pay Royalties the Licensee shall on demand
 indemnify the Sub-Agent in respect of any and all reasonable legal fees incurred as a result on a full indemnity basis.

**<u>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MAINTENANCE AND INSPECTION OF ACCOUNTS</u>**

The Licensee undertakes and agrees:

7.1 to keep proper records and books of accounts relating to all dealings with the Encrypted Digital Art Pieces and to make all such entries therein as may be necessary to enable the amount of Royalties to be
 ascertained. The Licensee shall within a reasonable time following the request of the Sub-Agent and/or Licensor or in any event within three (3) months of the end of each financial year of the Licensee deliver to the Licensor a certificate signed
 by the Licensee's auditors or Finance Director stating that the amount of Royalties paid by the Licensee to the Sub-Agent in the preceding financial year is correct and represents the total Royalties due and payable to the Sub-Agent upon all
 sales of the Encrypted Digital Art Pieces by the Licensee pursuant to the terms and conditions of this Agreement;

7.2 to permit the Sub-Agent and/or Licensor or its duly authorised representatives once per calendar year at all reasonable times at any time during normal business hours and upon fifteen (15) calendar days prior notice,
 and on request to audit and inspect and take copies or extracts from relevant records or accounts and to give them such further information as they may reasonably require to enable the amount of the Royalties to be verified. If any such audit or
 inspection shall reveal an underpayment then the Licensee shall pay such amount immediately to the Sub-Agent together with interest thereon at 2% above the base rate of applicable on the date when payment first became due and if such underpayment
 shall be equal to or exceed five percent (5%) of the amount previously reported by the Licensee in respect of the Accounting Period being the subject of such inspection then the Licensee shall in addition bear all audit and inspection costs of
 the Sub-Agent and/or Licensor ;

7.3 to preserve all relevant records and accounts for a period of not less than five (5) years from the expiration or termination of this Licence or from the delivery to the Sub-Agent and/or the Licensor of the last of
 all Royalty statements due hereunder whichever shall be the later.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 5/16

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**<u>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DIGITAL ART PIECES AND ENCRYPTED DIGITAL ART PIECES</u>**

8.1 On the signing of this Agreement the Sub-Agent shall supply the Materials to the Licensee. All Digital Art Pieces shall be based on the Materials, and shall be supplied by the Licensor or be carried out by the
 Licensee both at the cost of the Licensee. Licensee shall also be responsible, itself or through collaborations with third-parties, to create Encrypted Digital Art Pieces by encoding, embedding, encrypting, editing, adapting and otherwise
 associating the Digital Art Pieces with blockchain, security, infringement management software, code and other technologies. As set forth in Section 11 below, Licensor exclusively owns or exclusively controls all intellectual property rights in
 the Digital Art Pieces and Encrypted Digital Art Pieces.

8.2 The Materials, Digital Art Pieces and all other artwork, drawings, designs, transparencies, texts and other material using or relating to the Property in the hands of the Licensee from time to time shall be returned
 to the Licensor following initial production of the Encrypted Digital Art Pieces upon request therefor by the Licensor and in any event immediately upon expiration or termination of this Agreement.

8.3 Intentionally deleted.

**<u>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; APPROVALS</u>**

The Licensee agrees that the Sub-Agent shall have the right of approval of the materials comprised in the Encrypted Digital Art Pieces and Presentation Materials and the appearance quality and design of the Materials and that no manufacture selling advertising or marketing of the Encrypted Digital Art Pieces shall take place without the prior written consent of the Licensor, which shall not be unreasonably withheld or delayed. The Licensee further agrees and undertakes that:

9.1 Within the first contract year, the Licensee shall forward to the Sub-Agent for its approval rough visual designs of all items comprised in the Encrypted Digital Art Pieces and all Presentation Materials of
 whatsoever kind relating thereto together with such other details or digital samples concerning the composition of the Encrypted Digital Art Pieces as the Sub-Agent may from time to time reasonably request.

9.2 Before commencing the exercise of any of the Rights the Licensee shall provide to the Licensor and to the Licensor's Sub-Agent for its approval one (1) digital Sample of each proposed item of Material. The Sub-Agent
 shall notify the Licensee within ten (10) working days of receipt if supplied by e-mail as to whether the digital Samples are approved. IT IS AGREED that there shall be no exercise of any of the Rights unless and until express written prior
 approval of the Samples shall be given to the Licensee by the Sub-Agent. If the Sub-Agent shall not have indicated approval of the digital Samples within ten (10) working days then the Samples shall be deemed <u>not</u> to have been approved.
 Any rejection of the digital Samples by Licensor must state the reasons with particularity along with the rejection to enable Licensee to address any perceived concerns in a timely manner.

The Samples can't be exploited if they are not approved.

9.3 The Licensee shall at all times ensure that all Materials conform in image style and approach to that of the Sub-Agent in relation to the Property and the Licensee shall consult with the Sub-Agent regarding the
 Licensee's marketing policy and approach to any advertising campaign for the Encrypted Digital Art Pieces.

9.4 The Licensee shall market the Encrypted Digital Art Pieces under the Branding in Licensee's reasonable discretion.

9.5 No film or television commercial featuring the Property or Encrypted Digital Art Pieces shall be made without prior written consent from the Sub-Agent.

9.6 Intentionally deleted.

9.7 The Licensee acknowledges that production, sale or distribution of any Materials or any component thereof prior to approval by the Sub-Agent in accordance with the approvals procedure set out in this Clause 9 or to a
 standard below that required by this Agreement will be deemed a material breach of this Agreement. In such an event the Sub-Agent may demand the immediate withdrawal and destruction of all such non-approved items and the Licensee agrees that, in
 addition to all other remedies of the Sub-Agent provided for herein or generally at law, any and all Guarantees and Royalties due hereunder shall become immediately due and payable as the Sub-Agent's liquidated damages, regardless of whether the
 Sub-Agent and the Licensor also exercises its rights hereunder to terminate this Agreement because of such breach.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 6/16

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**<u>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QUALITY CONTROL</u>**

10.1 Intentionally deleted.

10.2 The Licensee warrants that all Materials manufactured and sold or used under the terms of this Agreement shall conform in all material respects with the digital Samples provided in accordance with Clause 9 above and
 approved by the Sub-Agent.

10.3 The Licensee shall provide digital samples of any amended altered or new Materials to be introduced during the term of this Agreement prior to the release thereof for approval in accordance with Clause 9 above.

10.4 Intentionally deleted.

10.5 Not later than the first day of an NFT drop on a Platform, the Licensee shall deliver to Sub-Agent free of charge one (1) of each Digital Art Piece which shall not be for the purpose of resale and which shall be
 royalty free.

10.6 Intentionally deleted.

10.7 Intentionally deleted.

10.8 Intentionally deleted.

10.9 The Licensor and/or the Sub-Agent shall be entitled, subject to reasonable notice, (but not more frequently than once every six months) to inspect the Licensee's current stock of the Encrypted Digital Art Pieces.

10.10 The Licensee shall put in place commercially reasonable and customary quality control procedures relating to the Materials and ensure their implementation by skilled personnel.

10.11 The Licensee shall notify the Sub-Agent of all complaints received by the Licensee as to the quality of any Materials.

10.12 The Licensee acknowledges that neither the Sub-Agent nor the Licensor are competent to determine whether any of the Materials are safe for sale or dissemination to the public and that any examination or checks made
 by the Sub-Agent are principally to ensure protection of the Property and any approval given by the Sub-Agent shall in no way detract from the Licensee's duties in or obligations under this Agreement.

**<u>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COPYRIGHT AND TRADEMARKS</u>**

11.1 The Licensee agrees that unless otherwise agreed in writing by the Licensor all units of the Materials and trade fair stands (if any) shall bear the credits and copyright and trademark notices or symbols specified in
 the Schedule together with such additional copyright and trademark notices as the Licensor may notify to the Licensee from time to time. On very small items comprised in the Encrypted Digital Art Pieces the Licensee may, with the prior written
 approval of the Licensor, incorporate an abbreviated copyright notice as specified in the Schedule. The Licensee shall be free to utilise its own trade marks or dress in relation to the Encrypted Digital Art Pieces but the Licensee undertakes not
 to associate the Property with any other trade marks or dress so used and not to do or allow any other act which would in any way impair the rights of the Licensor with respect to the Property. Being specified that any abbreviated copyright
 and/or association of the Property with another third-party trade mark shall be subjected to the written prior approval of the Licensor.

11.2 Any existing or future copyright design right or goodwill or other rights resulting from the activities of the Licensee or its agents suppliers or staff which exist in or derive from the Property or the Materials and
 which reproduce or contain features of shape form configuration or pattern corresponding to any part of the Property and all rights other than those granted herein shall belong to and remain vested in the Licensor except for any intellectual
 property rights which may exist in the works of third-party collaborators (e.g. music, video, digital art) that are included along with the Property in the Encrypted Digital Art Pieces; such rights shall remain the exclusive property of the
 original owner. Accordingly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.1 the Licensee hereby assigns with full title guarantee all copyright and other such rights for all purposes in all works which it has created or will in the future create in consequence of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2 the Licensee shall on request from the Sub-Agent and/or the Licensor and at the Licensee's own expense take whatever further steps may be necessary to cause to be assigned to the Licensor such copyright or such other
 rights as aforesaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.3 the Licensee acknowledges Clause 8.1 above but in the event that the Licensee does not itself carry out all or any part of such work on the Digital Art Pieces or Materials the Licensee shall not create or employ a
 third party to create any Digital Art Pieces or Materials unless the Licensee shall prior to the creation of the said Digital Art Pieces or Materials inform and agree in writing with any designer or other person involved in the creative process
 that any copyright design right or other right therein arising shall vest in the Licensor and that all moral rights therein shall be waived absolutely and that the designer shall at the expense of the Licensee execute all such documents and do
 all things necessary to ensure that the said copyright design right or other rights as aforesaid shall vest in the Licensor and that any moral rights are waived.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 7/16

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11.3 The Licensee acknowledges that ownership of all rights in the Property and any trademark or housemark or logo or house or product style of presentation (including but not limited to any specifically designed
 typefaces) relating to the Property including goodwill therein are reserved to the Licensor, that the Licensee shall not acquire any title or interest of whatsoever nature therein as a result of the Licensee's use thereof and all such use by the
 Licensee shall ensure for the sole benefit of and be held on trust for the Licensor.

11.4 The right to apply for registration or any further amendment or re-enactment thereof, of any design the subject of or arising by reason of any exercise of the Rights and the right to register maintain or renew said
 registration or any other trade marks forming part of the Property are strictly reserved to the Licensor. Licensor shall use best efforts to maintain all trademark, copyright, design right, patent or other rights in the Property, to ensure
 Licensee obtains the benefit of the Licence.

11.5 Notwithstanding the foregoing the Licensee agrees to cooperate with the Licensor in the filing, at the cost of the Licensor, of any application for registration of any design or trademark and for recording the
 Licensee as a User or equivalent of any such trademark or the registration of any design utility model or other intellectual property right relating to the Property. The Licensee shall do or execute any act or document, at the cost of Licensor,
 as may be required for any such application as the Licensor may deem necessary or desirable.

11.6 The Licensee agrees to assist the Sub-Agent and Licensor to the extent necessary to protect the copyright, trademark and any other rights licensed hereunder. For that purpose, the Licensor may, if it so desires, but
 at the Licensor's cost, commence and prosecute any infringement suits or other litigation in its own name or, at the Licensor's sole cost, in the name of the Licensee or join the Licensee as a party thereto. The Licensee shall promptly notify the
 Sub-Agent in writing of any infringements or imitations of the Materials that may come to the Licensee's attention and the Licensor shall have the right to determine whether or not any litigation shall be instituted in connection therewith. The
 Licensee shall not institute any suit or take any action relative to any such infringement or imitations without first obtaining the written consent of the Licensor to do so. Except as otherwise agreed, the Licensee shall be entitled to no share
 or interest in the net proceeds, by way of damages or otherwise, of any claim against a suspected infringer of any rights in the Property.

11.7 Should the Licensee at any time during the Licence Period challenge the Licensor's right to grant the Rights to the Licensee or the validity of the Property or Rights the Sub-Agent shall be entitled to terminate this
 Agreement and the Licence forthwith.

**<u>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXTENT AND LIMITATION OF RIGHTS</u>**

12.1 The provisions of this Agreement shall be binding on and shall inure to the benefit of the parties hereto, and their heirs, administrators, successors and permitted assigns.

12.2 This Licence is limited to the Digital Art Pieces, Encrypted Digital Art Pieces and NFT Related Merchandise as defined in the Schedule to be sold in accordance with the terms hereof.

**<u>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BEST ENDEAVOURS</u>**

13.1 Throughout the Territory the Licensee shall use its best endeavours to exploit and promote the sale of the Encrypted Digital Art Pieces to the best advantage.

13.2 All articles comprised in the Encrypted Digital Art Pieces shall be on sale to the public within the Initial NFT Drop Date unless otherwise agreed in writing by the Sub-Agent.

13.3 Intentionally deleted.

13.4 The Licensee undertakes to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.1 manufacture, sell and distribute the Encrypted Digital Art Piecess in an ethical manner and in accordance with the terms and intent of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.2 not create any expenses chargeable to the Licensor without the prior written approval of the Licensor and/or the Sub-Agent;

Licensee Agreement SOGEX – Tesseract Collective, Inc. 8/16

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.3 protect to the best of its ability its right to manufacture, sell and distribute the Encrypted Digital Art Piecess hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.4 comply with all laws and regulations relating or pertaining to the manufacture, sale, advertising or use of the Encrypted Digital Art Pieces and to maintain the highest quality and standards and to comply with any
 regulatory agencies which shall have jurisdiction over the Encrypted Digital Art Pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.5 not attempt to gain any rights in or to the Property that may conflict with the rights of the Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.6 The Licensee declares its full respect of the UNICEF charter relating to the childhood protection and hereby declares having no business relations with company or entity of any kind which would not comply with this
 charter.

**<u>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SPECIAL SALES</u>**

Intentionally deleted.

**<u>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CREATION AND DEVELOPMENT OF ENCRYPTED DIGITAL ART PIECES BY THIRD PARTIES</u>**

15.1 If the Licensee desires to have any Encrypted Digital Art Piecess or components thereof created or developed by a third party, the Licensee must notify the Sub-Agent and/or the Licensor of the name and address of
 such third-party the Encrypted Digital Art Pieces or components involved and the content and terms of the Licensee's proposed agreement with the manufacturer and obtain the Licensor's prior written permission to do so. If the Licensee does not
 obtain the prior written permission of the Licensor, this manufacture could be considered as a breach.

15.2 In the event any such third party manufacturer utilises the Encrypted Digital Art Pieces or the Property for any unauthorised purpose, the Licensee shall without prejudice to the Licensor's right to terminate the
 agreement by reason of such breach, co-operate fully in bringing such utilisation to an immediate halt. Should the actions of the third party manufacturer subject Licensor to any penalty or expense, the Licensee will fully compensate the Licensor
 therefor.

**<u>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXPIRY AND SELLING OFF PERIOD</u>**

16.1 If at the end of the period of this Agreement by effluxion of time the Licensee shall have on hand any stock of the Encrypted Digital Art Pieces then subject to the provisions of Clause 14 above and 16.2 below the
 Licensee shall be entitled to sell the same for a period of one hundred eight (180) days only and the provisions of this Agreement (including the provision relating to the payment of Royalties) shall continue in force for that sole purpose.
 Except as noted in Section 5.1 above with respect to Resales of Encrypted Digital Art Pieces on Platforms, on the expiry of such one hundred eighty (180) days period all such dealings will cease and the Licensee will destroy any remaining stock
 and will at the request of the Licensor execute a certificate of destruction to confirm that such destruction has taken place. The Licensee shall have no right to commence any further manufacturing of the Encrypted Digital Art Pieces after the
 end of the Licence Period.

16.2 Intentionally deleted.

16.3 Intentionally deleted.

**<u>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION</u>**

17.1 In addition to the Sub-Agent's and Licensor's right to terminate this Licence Agreement under Clauses 9.7, 11.7, 13.2 and 13.3 above and 24 below the Sub-Agent and Licensor may forthwith terminate this Agreement by
 giving notice in writing if the Licensee shall fail to make payment of Guarantees or Royalties under this Agreement or payment of any other sum due to the Sub-Agent on behalf of the Licensor lawfully in connection with this Agreement and that
 Licensee shall fail to cure the deficiency within thirty 30) days after receipt of notice from Licensor or Sub-Agent.

17.2 If the Licensee shall become bankrupt or insolvent or shall enter into liquidation (other than voluntary liquidation for the purpose of amalgamation) or shall enter into an arrangement or composition with its
 creditors or shall have a Receiver or Administrator or Administrative Receiver appointed or shall undergo the equivalent procedure in its home country or shall be amalgamated with or become a subsidiary of any other company or be purchased by a
 person, firm, company, corporation or other organisation without the prior written approval of the Licensor, such approval not to be unreasonably withheld or delayed, then this Agreement shall immediately and without notice from the Sub-Agent and
 Licensor absolutely determine and cease to have effect.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 9/16

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17.3 Termination of this Agreement shall be without prejudice to the rights and remedies of the Sub-Agent and Licensor in respect of any antecedent breach by the Licensee of any of its obligations under this Agreement or
 in respect of the payment of Royalties or Guarantees due.

17.4 Intentionally deleted.

**<u>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EFFECT OF EXPIRY AND TERMINATION</u>**

18.1 Upon the expiry of this Agreement or its termination by the Sub-Agent and Licensor the Licensee's right to exercise the Rights in respect of the Encrypted Digital Art Pieces shall immediately cease and have no
 further force or effect save and limited in the event of expiry by effluxion of time only as provided in Clause 16 hereof.

18.2 Upon expiry or termination for whatever reason any unsatisfied Guarantees pursuant to Clause 5.2 hereof shall immediately become payable to the Sub-Agent on behalf of the Licensor in full.

18.3 The Licensee further agrees with the Licensor that following such expiration or termination pursuant to any of the terms hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.1 Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.2 the provisions of Clauses 5, 6, 7, 8, 11, 15, 16, 17, 18, 19, 21, 23, 24, 25 and 26 shall survive such expiry or termination and shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3.3 the Licensee shall cease all use of the Property (save as allowed by Clause 16.1 hereof) and shall consent to the cancellation of each and every registration or recordal of the Licensee as a permitted or registered
 user of the Property or any part thereof.

**<u>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INSURANCE</u>**

19.1 The Licensee shall obtain and maintain, at its own expense, adequate commercial insurance in an amount of not less than the sum specified in the Schedule naming the Licensor as beneficiary and providing protection
 against any and all claims demands suits or causes of action arising out of any alleged defects in the Encrypted Digital Art Pieces or any use thereof. Evidence of such insurance shall be furnished by the Licensee to the Sub-Agent and/or the
 Licensor promptly following execution of this Agreement and prior to the sale or distribution of any Encrypted Digital Art Pieces. Any proposed change in the Licensee's insurance shall be submitted to the Licensor for its prior approval. The
 Licensee shall instruct its insurer in writing with a copy to the Licensor to notify the Licensor directly in the event that the insurance shall cease or lapse. The Licensee shall notify the Licensor of all claims made to it and notified to its
 insurer and relating to the Encrypted Digital Art Pieces. The Licensee shall also notify the Licensor promptly of any circumstances which might reasonably be considered likely to result in a claim.

19.2 Intentionally deleted.

**<u>20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WARRANTIES</u>**

The Licensor hereby warrants to and with the Licensee that it has the full right, power and authority and is entitled to grant the Rights hereunder and copyright in the Property is and will remain valid and subsisting throughout the Territory and does not and will not infringe the copyright of any third party.

The Licensee hereby warrants that he has fully complied, and will fully comply hereafter with the requirements of all applicable laws, regulations, rules and other ordinances issued by any authority related to the subject matter of this Agreement and to the performance of Licensor's obligations.

The Licensee hereby warrants making appear, on or in association with all Encrypted Digital Art Pieces, the copyright and trademark, as well as the logos, subjected to clause 11.1 above.

The licensee makes a commitment to commercialize products of very good quality, non-hazardous, respecting the prestige of the Property.

**<u>21.&nbsp;&nbsp;&nbsp;&nbsp; INDEMNITIES</u>**

The Licensee agrees to indemnify the Sub-Agent and/or the Licensor against all actions, suits, claims, demands, expenses, costs (including legal costs) and damages (direct or indirect) which either or both may incur suffer or sustain as a result of use of the Materials or relating to the exercise by the Licensee of the Rights herein granted and whether arising out of any matter or thing approved by the Sub-Agent and/or the Licensor hereunder or not.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 10/16

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The Licensor agrees to indemnify the Licensee against all actions, suits, claims, demands, expenses, costs (including legal costs) and damages (direct or indirect) that it may incur suffer or sustain as a result of third-party claims arising from or relating to: (i) Licensee's use of the Property; and/or (ii) license grants of the Property to third-parties, including but not limited to Veve.

**<u>22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGENCY</u>**

The Licensor hereby authorises and empowers the Sub-Agent to collect and receive all sums of money payable to the Licensor under the terms of this Agreement and declares that the Sub-Agent's receipt will be a good and valid discharge to all persons paying such monies to the Sub-Agent and that the Sub-Agent will be empowered to act on the Licensor's behalf in all matters arising out of this Agreement unless the Licensee is notified in writing otherwise by the Licensor.

**<u>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WAIVER</u>**

No waiver (whether express or implied) by the Sub-Agent and or the Licensor of any breach by the Licensee of any of its obligations under this Agreement shall be deemed to constitute a waiver or consent to any subsequent or continuing breach by the Licensee of any such obligation.

**<u>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOTICES</u>**

Unless otherwise stated every notice and other communication shall be addressed to the party at its address stated herein or to such addresses as the parties shall each subsequently advise to the other in writing and shall be deemed to have been received on the date upon which in the ordinary course of first class post it would have reached its destination.

**<u>25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONFIDENTIALITY</u>**

The Parties acknowledge that all information exchanged between them that has been identified as "Confidential" in nature as well as the terms of this Agreement are of a confidential nature and has or will have been communicated by the disclosing party in the strictest confidence on terms that require the receiving party not to divulge or permit such information to be divulged to third parties nor to permit such information to be used by third parties and that the receiving party shall not use such information so as to gain any unfair advantage over or compete with the disclosing party at any time whether before or after the expiry or termination of this Agreement.

**<u>26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NON-ASSIGNABILITY</u>**

The Licensee acknowledges that this Agreement does not provide for a joint venture or partnership with the Licensor. The Licensee may not assign or transfer to another subsidiary of the same company group or dispose of any of the rights granted hereunder to any other party without the Licensor's prior written consent except by operation of law or in connection with a transfer of substantially all of the assets of Licensee. Failure to obtain such consent shall be deemed a material breach of this Agreement.

**<u>27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXECUTION OF AGREEMENT</u>**

This Agreement shall be deemed invalid unless signed and returned to the Sub-Agent within thirty (30) days from the date its final form is agreed. It is a strict condition of this Agreement that the Licensee may not commence production of any articles comprising the Encrypted Digital Art Pieces or any Presentation Materials prior to the full execution of this Agreement by both parties hereto. In such an event, any and all Guarantees due hereunder shall become immediately due and payable as the Licensor's liquidated damages, regardless of whether the Licensor also exercises its rights hereunder to terminate this Agreement because of such breach.

**<u>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHOLE AGREEMENT</u>**

This Agreement constitutes the whole agreement between the Licensor, Sub-Agent and the Licensee and there are no promises, terms, conditions, obligations, representations or warranties, oral or written, expressed or implied other than those contained herein. This Agreement supersedes any previous agreement between the parties relating to the Encrypted Digital Art Pieces.

**29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>GOVERNING LAW</u>**

This Agreement shall be governed by and construed in accordance with the laws of France and shall be subject to the jurisdiction of the Court of Paris

Licensee Agreement SOGEX – Tesseract Collective, Inc. 11/16

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**30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>FORCE MAJEURE</u>**

Neither Party shall be in breach of this Agreement nor liable for delay in performing, or failure to perform, any of its obligations under this Agreement, if such delay or failure result from events, circumstances or causes beyond its reasonable control. In such circumstances, the affected Party shall be entitled to a reasonable extension of the time for performing such obligations. If the period of delay or non-performance continues for three months, the Party not affected by such event may terminate this Agreement by giving 30 days' written notice to the affected Party.

**31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>COUNTERPARTS</u>**

This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. A facsimile or other electronically or digitally transmitted copy of a signature on any counterpart will be deemed an original.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 12/16

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**IN WITNESS WHEREOF,** the parties hereto have signed this Agreement in triplicate as of the day and year first above written.

---

| | |
|:---|:---|
| **SOGEX (the licensor)**<br>Name (printed): Mr. Thomas Rivière<br>Title: General manager<br>Date: 2/1/2022<br>Signature: /s/ Mr. Thomas Rivière<br>**CARAVANSERAI PARTNERS SL (the Sub-Agent)**<br>Name (printed): Mr. Guillem Rey<br>Title: Managing Director<br>Date: 2/1/2022<br>Signature: /s/ Guillem Rey  | **Tesseract Collective, Inc.** **(the licensee)**<br>Name (printed): Richard Seet<br>Title: CEO <br>Date: January 31, 2022 <br>Signature: /s/ Richard Seet<br>|

---

Licensee Agreement SOGEX – Tesseract Collective, Inc. 13/16

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**SCHEDULE I**

**Schedules to the Licensee Agreement between SOGEX and** 

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **LICENSEE**: Tesseract Collective, Inc.

2. **DATED**: January 31, 2022

3. **THE PROPERTY IS**: The title "Le Petit Prince", texts in short quotes, original artwork, sketches, designs, drawings, pictures, paintings and characters which appear in the masterwork "Le Petit Prince" book.

4. **THE ENCRYPTED DIGITAL ART PIECES COMPRISES:** 

Digital Art Pieces based on and inspired by the Property that are encoded with and verified by blockchain technology

5. **DISTRIBUTION CHANNELS**:

All NFT Platforms now existing or hereinafter created

6. **THE PERIOD OF THIS LICENCE:** **INITIAL TERM: THREE YEARS** 

YEAR 1: FROM: effective date&nbsp;&nbsp;&nbsp;&nbsp; To: January 31, 2023

YEAR 2: FROM February 1, 2023 To: January 31, 2024

YEAR 3: FROM: February 1, 2024 To: January 31, 2025

**RENEWAL TERM: THREE YEARS**

Licensee shall have the option to renew this Agreement for an additional renewal term of three (3) years provided that: (1) Licensee provides written notice of its intent to renew at least ninety (90) days prior to the expiration of the Initial Term; (2) Licensee is in good standing, has paid all sums due and owing to Licensor and is not in breach of this Agreement at the time of the exercise of the renewal; and (3) Licensee has achieved Gross Receipts of at least $2.5 million USD.

The financial terms of the Renewal Term shall remain as stated for the Initial Term.

7. **THE Initial NFT Drop Date:** One year from effective date of Agreement

8. **THE TERRITORY IS:** Worldwide

9. **THE GRANTED LANGUAGE IS:** All languages

10. **RATES OF ROYALTY PAYABLE** **UNDER CLAUSE 5:** 

CATEGORY 1: Encrypted Digital Art Pieces with no 3<sup>rd</sup> Party Collaborations

Royalty Rate: 50% of Licensee's Net Profits

CATEGORY 2: Encrypted Digital Art Pieces sold or marketed With 3<sup>rd</sup> Party Collaborations to enhance the value of the sale

Royalty Rate: 33% of Licensee's Net Profits

Licensee Agreement SOGEX – Tesseract Collective, Inc. 14/16

01/31/2022

------

11. **THE BRAND NAME SPECIFIED IN ACCORDANCE WITH CLAUSE 9.4:** "Le Petit Prince" and "The Little Prince"

12. **THE GUARANTEE PAYABLE AND SCHEDULE** Contract Year 1: $150,000 USD, payable upon execution of this agreement.

Contract Year 2: $400,000 USD, payable in two equal instalments on 3/31/2023 and 9/30/2023

Contract Year 3: $450,000 USD, payable in two equal instalments on 3/31/2024 and 9/30/2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Intentionally deleted.** 

**14.** **FULL CREDITS AND COPYRIGHT <br> NOTICE TO BE INCLUDED <br> ON LICENSED PROPERTY**: Le Petit Prince <sup>®</sup> The Little Prince <sup>®</sup>©
 Antoine de Saint - Exupéry Estate 2022 Licensed by SOGEX through Caravanserai Partners SL

**15.** **ABBREVIATED COPYRIGHT** LPP <sup>®</sup>© A. de Saint-Exupéry Estate 2022 Or LPP<sup>®</sup>©
 SOGEX 2022

**16.** **NOTICE TO BE INCLUDED ON** **ENCRYPTED DIGITAL ART PIECES WITH PRIOR**

---

| | |
|:---|:---|
| **APPROVAL**: | &nbsp;&nbsp;&nbsp; ![](ny20004683x6ex6-1_image03.jpg) |

---

**17.** **LEGAL LINES:** Licensees shall include in the terms of the Platform for the drop of the Encrypted Digital Art Pieces:

● The title "Le Petit Prince" in the granted language written in the calligraphy used in the book's translation.

● The brand "Le Petit Prince" in French, smaller than the title in the granted language and, if possible, this mention shall be independent of the copyright.

● Next to the copyright, the title "Le Petit Prince" in the granted language and the mention "Le Petit Prince <sup>(R)"</sup>.

**18.** **AMOUNT OF COMMERCIAL <br> INSURANCE:** Remains TBD

**20**. **SPECIAL CONDITIONS**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For the avoidance of doubt, Sub-Agent is appointed as Licensor's Agent for the Property in the Territory. The Sub-Agent shall be responsible for all day to day servicing of this Agreement including royalty and
 guarantee collection and product development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All guarantees and royalties are to be paid in US Dollars.

Licensee Agreement SOGEX – Tesseract Collective, Inc. 15/16

01/31/2022

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Licensee shall be granted a right of first refusal to acquire the exclusive license rights to commercialize the Property in the metaverse. Such right of first refusal must be exercised no later than thirty (30) days
 after Licensor delivers a bona fide thirty party offer for such metaverse rights to Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This license does not include the personal effects, property, or name, image and likeness of <u>Antoine de Saint-Exupéry</u> (the "St. Ex Rights"). The parties shall discuss
 Licensee's acquisition of the exclusive license rights to commercialize the St. Ex Rights for NFTs and in the metaverse based on good faith future negotiations.

**SOGEX (the licensor)** 

Name (printed) Thomas Rivière

Signature: /s/ Thomas Rivière

**Tesseract Collective, Inc. (the licensee)**

Name (printed): Richard Seet

Signature: /s/ Richard Seet

Licensee Agreement SOGEX – Tesseract Collective, Inc. 16/16

01/31/2022

## Ex1A-6

**Exhibit 6.2**

<u>AMENDMENT TO LICENSE AGREEMENT</u>

This Amendment (hereinafter "this Amendment") is made and entered effective as of June 20, 2022 by and between Société de Gestion et d'Exploitation des Droits Dérivés de l'OEuvre d'Antoine de Saint-Exupéry ("SOGEX") and Tesseract Collective, Inc. ("TCI").

<u>RECITALS</u>

Whereas, this is a first amendment to the License Agreement dated January 31, 2022 between SOGEX and TCI with respect to rights related to the "Le Petit Prince" (the "Agreement"); and

Whereas, TCI desires to amend the agreement to facilitate its ability to attract and enter into agreements with third party collaborators to enhance the value of Digital Art Pieces to be created and market under the Agreement as Encrypted Digital Art Pieces.

NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein, the parties hereby agree as follows:

<u>COPYRIGHT OWNERSHIP</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any provisions in the Agreement to the contrary, including without limitation Paragraph 11, any copyrights, moral rights, or other similar rights, including but not limited to the rights of adaptation, reproduction, performance, display, and exploitation, in any Digital Art Pieces that are derivative works incorporating elements of both the Property and creative expression or work of a third party collaborator ("Collaborative Original Digital Artworks" or "CODAs"), shall be owned equally among SOGEX, TCI, and the third party collaborator (i.e., 1/3, 1/3, & 1/3). The parties agree to take whatever further steps may be necessary or appropriate to cause the rights in the CODAs to be owned as provided above. During the Initial Term and any Renewal Term of the Agreement, TCI shall have the right to market, license, sell, use, or otherwise exploit the CODAs and all rights in the CODAs in accordance with the Agreement. Upon expiration or termination of the Initial Term and any Renewal Term of the Agreement, any marketing, licensing, sale, use, or other exploitation of the CODAs or any rights in the CODAs will require the mutual agreement and consent of the parties. For the sake of clarity, this provision is not intended to affect the trademark rights of the parties.

<u>TIMING OF RELEASE OF ENCRYPTED DIGITAL ART PIECES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp; Paragraph 13.2 is amended to provide that Encrypted Digital Art Pieces, including CODAs, may be released throughout the Initial Term and any Renewal Term.

------

<u>WARRANTIES OF AUTHORITY</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp; Each party represents and warrants that it has the power and authority to execute and deliver this Amendment. Each person executing this Amendment on behalf of a corporate entity represents and warrants that he or she has the power and authority to execute this Amendment and that the entry into this Amendment is a duly authorized act of such entity.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as follows:

DATED: <u>6/21/2022</u> Tesseract Collective, Inc.

---

| | |
|:---|:---|
| By:<u> </u> | /s/ Richard Seet |

---

Name: <u>Richard Seet</u>

Its: <u>Chief Executive Officer</u>

DATED: <u>6/21/2022</u> Société de Gestion et d'Exploitation des Droits Dérivés de l'OEuvre d'Antoine de <br>Saint-Exupéry

---

| | |
|:---|:---|
| By: | /s/ Thomas Riviere |

---

Name: <u>Thomas Riviere</u>

Its:<u> </u> <u>General Manager</u>

## Ex1A-6

**Exhibit 6.4**

**TESSERACT COLLECTIVE, INC.**<br> **Equity Incentive Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**PURPOSES OF THE PLAN.** The purpose of this Tesseract Collective, Inc. Equity Incentive Plan is to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants, and to promote the success of the Company's business. The Plan provides for the grant of Restricted Stock, Unrestricted Stock, Restricted Stock Units, Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, and Performance Stock Unit awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**DEFINITIONS.** As used herein, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Acquisition</u> means (a) a dissolution, liquidation or sale of all or substantially all of the assets of the Company; (b) a merger or consolidation in which the Company is not the surviving corporation; or (c) a merger in which the Company is the surviving corporation but the shares of the Company's common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Administrator</u> means the Board or the Committee responsible for conducting the general administration of the Plan, as applicable, in accordance with Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Applicable Law</u> means the requirements relating to the issuance and administration of equity and stock option plans under the states' corporate laws and federal and state securities laws of the United States of America, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Award</u> means an award of Restricted Stock, Unrestricted Stock, Restricted Stock Units, Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights or Performance Stock Units granted to a Service Provider under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Award Agreement</u> means the Option Agreement or other written agreement between the Company and a Service Provider evidencing the terms and conditions of an individual Award. The Award Agreement shall be subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Board</u> means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Cause</u> shall have the meaning ascribed to it in any written employment or service agreement between the Company (or Subsidiary) and the Service Provider. If not otherwise defined, "<u>Cause</u>" shall mean (a) a failure by the Service Provider to perform his or her duties or to comply in material respects with his or her employment or service agreement or other agreement with the Company (or Subsidiary), where such failure is not cured by the Service Provider within thirty (30) days after receiving written notice from the Company (or Subsidiary) specifying in reasonable detail the nature of the failure, (b) any act of fraud, misappropriation or dishonesty against the Company (or Subsidiary) by the Service Provider, (c) conviction of a felony, or (d) any other willful and gross misconduct committed by the Service Provider affecting the Company (or Subsidiary).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Code</u> means the Internal Revenue Code of 1986, as amended, or any successor statute or statutes thereto. Reference to any particular Code section shall include any successor section and any regulations or authorities promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Committee</u> means a committee appointed by the Board in accordance with Section 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Common Stock</u> means the Common Stock of the Company, par value $0.0001 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Company</u> means Tesseract Collective, Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Consultant</u> means any consultant or adviser if: (i) the consultant or adviser renders bona fide services to the Company (or any Subsidiary); (ii) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company's securities; and (iii) the consultant or adviser is a natural person who has contracted directly with the Company or any Subsidiary of the Company to render such services.any nonemployee consultant or adviser that renders bona fide services to the Company (or any Subsidiary).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Director</u> means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Employee</u> means any person, including an Officer or Director, who is an employee (as defined in accordance with Code Section 3401(c)) of the Company (or any Subsidiary). An Employee shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. Neither service as a Director nor payment of a director's fee by the Company shall be sufficient, by itself, to constitute "employment" by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Exchange Act</u> means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto. Reference to any particular Exchange Act section shall include any successor section and any regulations or authorities promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Fair Market Value</u> of a Share means, as of any date, the fair market value determined consistent with the requirements of Code Sections 422 and 409A, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

If the Common Stock is listed on any established stock exchange or a national market system, its Fair Market Value shall be the mean between the highest and lowest quoted selling prices for a share of such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for a share of the Common Stock on the last market trading day prior to the day of determination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator and in a manner that complies with Sections 409A and 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17&nbsp;&nbsp;&nbsp;&nbsp;

<u>Holder</u> means a person who has been granted an Award or who becomes the holder of an Award or who holds Shares acquired pursuant to the exercise of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Incentive Stock Option</u> means an Option (or portion thereof) which qualifies as an incentive stock option within the meaning of Code Section 422 and which is designated as an Incentive Stock Option by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Non-Qualified Stock Option</u> means an Option (or portion thereof) that is not designated as an Incentive Stock Option by the Administrator, or which is designated as an Incentive Stock Option by the Administrator but fails to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Officer</u> means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Option</u> means a stock option granted pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Option Agreement</u> means the written agreement between the Company and a Service Provider evidencing the terms and conditions of an individual Option. The Option Agreement shall be subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Parent</u> means any corporation, other than the Company, whether now or hereafter existing, in an unbroken chain of corporations ending with the Company if each of the corporations other than the last corporation in the unbroken chain owns equity possessing more than fifty percent (50%) of the total combined voting power of all classes of equity in one of the corporations in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Performance Stock Unit</u> or <u>PSU</u> means a right to receive Shares in the future upon completion of specified performance criteria in accordance with Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Plan</u> means this Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26&nbsp;&nbsp;&nbsp;&nbsp;

<u>Public Offering</u> means consummation of an underwritten public offering of the Common Stock registered under the Securities Act.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock</u> means Shares acquired pursuant to a grant of Restricted Stock under Section 8 or pursuant to the exercise of an unvested Option in accordance with Section 7.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock Unit</u> or <u>RSU</u> means a right to receive Shares in the future upon completion of a specified vesting period in accordance with Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Rule 16b-3</u> means that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Section 16(b)</u> means Section 16(b) of the Exchange Act, as such Section may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Securities Act</u> means the Securities Act of 1933, as amended, or any successor statute or statutes thereto. Reference to any particular Securities Act section shall include any successor section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32&nbsp;&nbsp;&nbsp;&nbsp;

<u>Service Provider</u> means an Employee, Director or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33&nbsp;&nbsp;&nbsp;&nbsp;

<u>Share</u> means a share of Common Stock, as adjusted in accordance with Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Stockholders Agreement</u> means an agreement among the stockholders of the Company which a Holder may be required to sign as a condition of the issuance of Shares pursuant to an Award granted under the Plan, as provided in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Stock Appreciation Right</u> or <u>SAR</u> means a stock appreciation right granted in accordance with Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Subsidiary</u> means any corporation, whether now or hereafter existing (other than the Company), in an unbroken chain of corporations beginning with the Company if each of the entities other than the last corporation in the unbroken chain owns equity possessing more than fifty percent (50%) of the total combined voting power of all classes of equity in one of the other entities in such chain or any other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Unrestricted Stock</u> means an Award of fully vested Shares granted in accordance with Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**STOCK SUBJECT TO THE PLAN.** Subject to the provisions of Section 10, the Shares shall be subject to Award grants. The maximum aggregate number of Shares which may be issued pursuant to Awards under the Plan shall be 2,100,000 Shares. The maximum aggregate number of Shares which may be issued pursuant to the exercise of Incentive Stock Options shall be 2,100,000 Shares. If an Award expires, is canceled, becomes unexercisable or is forfeited, without having been exercised or vested in full, the unpurchased or unvested Shares which were subject thereto shall become available for future Awards under the Plan (unless the Plan has terminated). Shares which are delivered by the Holder or withheld by the Company upon the exercise of an Option or receipt of an Award, in payment of the exercise price thereof or tax withholding thereon, may again be awarded hereunder. If Shares issued pursuant to Awards are repurchased by the Company, such Shares shall become available for future Awards under the Plan. For the avoidance of doubt, any substitute Awards granted under the Plan pursuant to Section 4.2(g) shall not count against the Share limitation set forth in this Section 3.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**ADMINISTRATION OF THE PLAN.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Administrator</u>. The Plan shall be administered by the Board or by a Committee to which administration of the Plan, or of part of the Plan, is delegated by the Board. The Board shall appoint and remove members of the Committee in its sole discretion in accordance with Applicable Laws. If necessary, in the Board's sole discretion, to comply with Rule 16b-3 under the Exchange Act, the Committee shall be comprised solely of "non-employee directors" within the meaning of said Rule 16b-3. The foregoing notwithstanding, the Administrator may delegate nondiscretionary administrative duties to such employees of the Company as it deems proper, and the Board, in its sole discretion, may at any time and from time to time exercise any and all rights and duties of the Administrator under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Powers of the Administrator</u>. Subject to the express provisions of the Plan and the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the Administrator shall have plenary authority to the maximum extent permissible by Applicable Law, in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine the Fair Market Value of a Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to select the Service Providers to whom Awards may from time to time be granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine the number of Shares to be covered by each such Award granted hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to approve forms of Award Agreements for use under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine the terms and conditions of any Awards granted hereunder, including but not limited to, the exercise price, the time or times when Awards may vest or be exercised (which may be based on, among other things, the passage of time, specific events or performance criteria), any acceleration (as permissible under Code Section 409A) of such vesting or exercise date, imposition or waiver of forfeiture restrictions, any repurchase provisions, and any restriction or limitation regarding any Shares received upon grant or exercise of an Award, based in each case on such factors as the Administrator, in its sole discretion, shall determine);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine whether to offer to repurchase, replace or reprice a previously granted Award and to determine the terms and conditions of such offer (including whether any purchase price is to be paid in cash or Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine whether and under what conditions options granted under another option plan of the Company, a Subsidiary or an entity which is acquired by or merged into the Company or a Parent or Subsidiary may be converted into Options on Shares granted under and subject to the terms of this Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to determine the amount and timing of withholding tax obligations and to allow Holders to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued pursuant to any Award the number of Shares having a Fair Market Value (which shall be determined on the date that the amount of tax is required to be withheld) equal to the minimum amount, determined by the Administrator in its sole discretion, required to be withheld based on the statutory withholding rates for federal, state and local tax purposes that apply to supplemental taxable income, with all elections by Holders to have Shares withheld for this purpose to be made in such form and under such conditions as the Administrator may deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to exercise its sole discretion in a manner such that Awards which are granted to individuals who are foreign nationals or are employed outside the United States may contain terms and conditions which are different from the provisions otherwise specified in the Plan but which are consistent with the tax and other laws of foreign jurisdictions applicable to the Service Providers and which are designed to provide the Service Providers with benefits which are consistent with the Company's objectives in establishing the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to amend the Plan or any Award granted under the Plan as provided in Section 18; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan and to exercise such powers and perform such acts as the Administrator deems necessary or desirable to promote the best interests of the Company which are not in conflict with the provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Compliance with Code Section 409A</u>. Notwithstanding any other provision of the Plan, the Administrator shall have no authority to issue an Award under the Plan under terms and conditions which would cause such Award to violate the provisions of Code Section 409A. Accordingly, by way of example but not limitation, no Options or Stock Appreciation Rights shall be issued with an exercise price below Fair Market Value and Restricted Stock Units or Performance Stock Units shall be issued and reported as income to the Holder no later than two and one-half (2½) months after the end of the calendar year in which the right to such Shares becomes vested, unless a valid deferral election has been made in compliance with all requirements of Code Section 409A. It is the intent that the Plan and all Award Agreements be interpreted to comply in all respects with Code Section 409A, however, the Company shall have no liability to Service Providers or Holders in the event taxes or excise taxes may ultimately be determined to be applicable to any Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Effect of Administrator's Decision</u>. All decisions, determinations and interpretations of the Administrator shall be final and binding on all Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Liability of Administrator</u>. No member of the Board, Committee or acting Administrator shall be liable for anything whatsoever in connection with the administration of the Plan, except such member's own willful misconduct. Under no circumstances shall any member of the Board or Committee be liable for any act or omission of any other member of the Board or Committee. In the performance of its functions with respect to the Plan, the Board and Committee shall be entitled to rely upon information and advice furnished by the Company's officers, accountants, legal counsel and any other qualified consultant the Administrator determines is necessary to consult for proper administration of the Plan, and no member of the Board or Committee shall be liable for any action taken or not taken in reliance upon any such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**ELIGIBILITY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Eligible Persons</u>. Awards may be granted to all Service Providers; <u>provided</u>, <u>however</u>, that Incentive Stock Options may be granted only to Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Administrative Discretion</u>. If otherwise eligible, a Service Provider who has been granted an Award may be granted additional Awards. In exercising its authority to set the terms and conditions of Awards, and subject only to the limits of Applicable Law, the Administrator shall be under no obligation or duty to treat similarly situated Service Providers or Holders in the same manner, and any action taken by the Administrator with respect to one Service Provider or Holder shall in no way obligate the Administrator to take the same or similar action with respect to any other Service Provider or Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**GRANT OF OPTIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Grant of Options</u>. The Administrator may grant Options to Service Providers, for such number of shares, and subject to such terms and conditions as the Administrator may determine in its sole discretion. Each Option shall be designated by the Administrator in the Option Agreement as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designations, to the extent that the aggregate Fair Market Value of Shares subject to a Holder's Incentive Stock Options and other incentive stock options granted by the Company, any Parent or Subsidiary, which become exercisable for the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such excess Options or other options shall be treated as Non-Qualified Stock Options. For purposes of this Section 6.1, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the time of grant of each Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Term of Option</u>. The term of each Option shall be stated in the Option Agreement; <u>provided</u>, <u>however</u>, that the term shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to an Employee who, at the time the Option is granted, owns (or is treated as owning under Code Section 424) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be no more than five (5) years from the date of grant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>No Stockholder Rights</u>. The Holder of an Option shall have no rights of a stockholder with respect to Shares covered by such Option until the Holder exercises the Option and the Shares are issued to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**OPTION EXERCISE.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Vesting</u>. Except as provided in Section 10, Options granted hereunder shall be vested and exercisable according to the terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless otherwise specified, Options granted under the Plan to a Service Provider other than an Officer or Director or a Consultant shall vest at a rate of at least twenty percent (20%) per year over not more than five (5) years from the date the Option is granted, subject to reasonable conditions such as continued service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Exercise Price</u>. Except as provided in Section 10, the per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator (not less than par value), under the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the per share exercise price for any Incentive Stock Option or Non-Qualified Stock Option granted under that Plan shall be no less (and shall not have the potential to become less at any time) than one hundred percent (100%) of the Fair Market Value per share on the date of grant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

if at the time of grant of an Incentive Stock Option, the Service Provider owns (or is treated as owning under Applicable Law) stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, such Incentive Stock Option granted to such Service Provider shall bear an exercise price of no less than one hundred ten percent (110%) of the Fair Market Value per share on the date of grant.

Notwithstanding the foregoing, pursuant to Section 10, Options may be granted with, or converted at, a per share exercise price other than as required above pursuant to a merger, acquisition or other corporate transaction if consistent with the requirements of Code Section 409A and other Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Consideration</u>. The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator. In the sole discretion of the Administrator, such consideration may consist of (1) cash, (2) check, (3) other Shares which (x) in the case of Shares acquired from the Company, have been owned by the Holder for more than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (4) surrendered Shares then issuable upon exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Option or exercised portion thereof, (5) property of any kind which constitutes good and valuable consideration, (6) to the extent consistent with Applicable Law, delivery of a notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon exercise of the Options and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price, <u>provided</u> that payment of such proceeds is then made to the Company upon settlement of such sale, or (7) any combination of the foregoing methods of payment approved by the Administrator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Deliveries upon Exercise</u>. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

A written or electronic notice complying with the applicable rules established by the Administrator stating that such Option, or a portion thereof, is exercised, which shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Such representations and documents as the Administrator deems necessary or advisable to effect compliance with Applicable Law, including additional actions the Administrator deems appropriate to effect such compliance, including placing legends on Share certificates and issuing stop transfer notices to agents and registrars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

A Stockholders Agreement (or upon the exercise of all or a portion of an unvested Option pursuant to Section 7.5, a Restricted Stock Award Agreement) in a form determined and as required by the Administrator and signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

In the event that the Option shall be exercised by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Early Exercisability</u>. The Administrator may provide in the terms of a Holder's Option Agreement that the Holder may, at any time before the Holder's status as a Service Provider terminates, exercise the Option in whole or in part in exchange for Restricted Stock prior to the full vesting of the Option; <u>provided</u>, <u>however</u>, that Shares acquired upon exercise of an Option which has not fully vested shall be subject to the same forfeiture, transfer or other restrictions as determined by the Administrator and set forth in the Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Buyout Provisions</u>. The Administrator may at any time offer to repurchase for a payment in cash or Shares, an Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Holder at the time that such offer is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Termination of Relationship as a Service Provider</u>. If a Holder ceases to be a Service Provider other than by reason of the Service Provider's disability or death or termination for Cause, unless otherwise provided in the Option Agreement, the Option shall remain exercisable as to the vested portion for the lesser of three (3) months following such cessation or the remaining term of the Option. If, on the date of termination, the Holder is not vested as to the entire Option, unless otherwise provided in the Option Agreement, the Shares covered by the unvested portion of the Option immediately cease to be issuable under the Option. If, after termination, the Holder does not exercise the Option within the applicable time period, the Option shall terminate. If the Holder is terminated for Cause, the Option shall immediately terminate in its entirety upon such termination for Cause.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Disability of Holder</u>. If a Holder ceases to be a Service Provider as a result of the Service Provider's disability, unless otherwise specified in the Option Agreement, the Option shall remain exercisable as to the vested portion for the lesser of twelve (12) months following such cessation or the remaining term of the Option. If such disability is not a "disability" as such term is defined in Code Section 22(e)(3), in the case of an Incentive Stock Option such Incentive Stock Option shall automatically cease to be treated as an Incentive Stock Option and shall be treated for federal income tax purposes as a Non-Qualified Stock Option from and after the day which is three (3) months and one (1) day following such termination. If, on the date of termination, the Holder is not vested as to the entire Option, the Shares covered by the unvested portion of the Option shall immediately cease to be issuable under the Option. If, after termination, the Holder does not exercise the Option within the time specified herein, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Death of Holder</u>. If a Service Provider dies while a Service Provider, unless otherwise specified in the Option Agreement, the Option shall remain exercisable as to the vested portion for the lesser of twelve (12) months following the Service Provider's death or the remaining term of the Option. If, at the time of death, the Holder is not vested as to the entire Option, the Shares covered by the unvested portion of the Option shall immediately cease to be issuable under the Option. The Option may be exercised by the executor or administrator of the Holder's estate or, if none, by the person(s) entitled to exercise the Option under the Holder's will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Regulatory Extension</u>. A Holder's Option Agreement may provide that if the exercise of the Option following the termination of the Holder's status as a Service Provider (other than upon the Holder's death or disability) would be prohibited at any time solely because the issuance of Shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in Section 6.2 or (ii) the expiration of a period of three (3) months (after the termination of the Holder's status as a Service Provider) during which the exercise of the Option would no longer be in violation of such registration requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**EQUITY BASED AWARDS OTHER THAN OPTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Unrestricted Stock Awards</u>. The Administrator may grant Unrestricted Stock Awards to Service Providers under the terms of the Plan, in such amounts, and subject to such terms and conditions as the Administrator may determine, in its sole discretion. The Administrator may require a Service Provider to pay a purchase price to receive Unrestricted Stock at the time the Award is granted, in which case the purchase price shall be paid by the Service Provider prior to the issuance of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock Grant</u>. The Administrator may grant Restricted Stock to Service Providers, in such amounts, and subject to such terms and conditions as the Administrator may determine, in its sole discretion, including restrictions on transferability, which restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, or otherwise. Unless otherwise specified or to the extent required by Applicable Law, restrictions on transferability with respect to a Restricted Stock granted under the Plan to a Service Provider other than an Officer or Director or a Consultant shall lapse at a rate of at least twenty percent (20%) per year over a period of not more than five (5) years.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Award Agreement</u>. Restricted Stock shall be granted under an Award Agreement and shall be evidenced by certificates registered in the name of the Holder and bearing an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. The Company may retain physical possession of any such certificates, and the Company may require a Service Provider awarded Restricted Stock to deliver a stock power to the Company, endorsed in blank, relating to the Restricted Stock for so long as the Restricted Stock is subject to a risk of forfeiture or repurchase by the Company at Fair Market Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.3&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock Purchase</u>. The Administrator may require a Service Provider to pay a purchase price to receive Restricted Stock at the time the Award is granted, in which case the purchase price and the form and timing of payment shall be specified in the Award Agreement in addition to the vesting provisions and other applicable terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.4&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Withholding</u>. The Administrator may require a Service Provider to pay or otherwise provide for any applicable withholding tax determined by the Administrator to be due at the time restrictions lapse or, in the event of an election under Section 83(b), at the time of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.5&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>No Deferral Provisions</u>. Notwithstanding any other provision of the Plan, a Restricted Stock Award shall not provide for any deferral of compensation recognition after vesting with respect to Restricted Stock which would cause the Award to constitute a deferral of compensation subject to Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.6&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Rights as a Stockholder</u>. The Holder of Restricted Stock shall have rights equivalent to those of a stockholder and shall be a stockholder when the Restricted Stock grant is entered upon the records of the duly authorized transfer agent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Stock Appreciation Rights</u>. Two types of Stock Appreciation Rights shall be authorized for issuance under the Plan: (1) stand-alone SARs and (2) stapled SARs. The Award Agreement granting an SAR shall be in such form and shall contain such terms and conditions as the Administrator shall deem appropriate and shall not include terms which cause the Award to be considered non-qualified deferred compensation subject to the provisions of Code Section 409A. The terms and conditions of Stock Appreciation Right Award Agreements need not be identical, but each Award Agreement shall include (through incorporation of provisions hereof by reference in the Award Agreement or otherwise) the substance of each of the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.1&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Stand-Alone SARs</u>. Stand-alone SARs shall cover a specified number of underlying shares of Common Stock and shall be redeemable upon such terms and conditions as the Administrator may establish. Upon redemption of the stand-alone SAR, the Holder shall be entitled to receive a distribution from the Company in an amount equal to the excess, if any, of (i) the aggregate Fair Market Value on the redemption date of the Shares underlying the redeemed right, over, (ii) the aggregate base price of such underlying Shares at the time of grant. The distribution shall be in cash or Shares, as specified in the Award Agreement, unless distribution in Shares is necessary to avoid application of Code Section 409A, in which case the distribution shall be in Shares. The number of Shares underlying each stand-alone SAR and the base price of such Shares shall be determined by the Administrator in its sole discretion at the time the stand-alone SAR is granted. In no event, however, may the base price be less (and shall not have the potential to become less at any time) than one hundred percent (100%) of the Fair Market Value of the underlying Shares on the grant date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.2&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Stapled SARs</u>. Stapled SARs shall only be granted concurrently with an Option to acquire the same number of Shares as the number of such Shares underlying the stapled SARs. Stapled SARs shall be redeemable upon such terms and conditions as the Administrator may establish and shall grant a Holder the right to elect among (i) the exercise of the concurrently granted Option for Shares, whereupon the number of Shares subject to the stapled SARs shall be reduced by an equivalent number, (ii) the redemption of such stapled SARs in exchange for a distribution from the Company in an amount equal to the excess of the Fair Market Value on the redemption date of the number of vested Shares which the Holder redeems over the aggregate base price for such vested Shares, whereupon the number of Shares subject to the concurrently granted Option shall be reduced by any equivalent number, or (iii) a combination of (i) and (ii). The distribution under alternative (ii) shall be in cash or Shares as specified in the Award Agreement unless distribution in Shares is necessary to avoid application of Code Section 409A, in which case the distribution shall be in Shares. The base price of such Shares shall be determined by the Administrator at the time the Option and Stapled SAR is granted; however, in no event may the base price be less (and shall not have potential to become less at any time) than one hundred percent (100%) of the Fair Market Value of the underlying Shares on the grant date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.3&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>No Stockholder or Secured Rights</u>. The Holder of an SAR shall have no rights of a stockholder with respect to Shares covered by the SAR unless and until the SAR is exercised and Shares are issued to the Holder. Prior to receipt of a cash distribution or Shares pursuant to an SAR, such Award shall represent an unfunded unsecured contractual obligation of the Company and the Company shall be under no obligation to set aside any Shares or other assets to fund such obligation. Prior to vesting and exercise, the Holder shall have no greater claim to the Shares underlying such SAR or any other assets of the Company than any other unsecured general creditor and such rights may not be sold, pledged, assigned, transferred or encumbered in any manner other than by will or by the laws of intestate succession as provided in Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Restricted Stock Units and Performance Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.1&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Awards</u>. The Administrator may award Restricted Stock Units entitling recipients to receive Shares upon completion of a specified vesting period or Performance Stock Units entitling recipients to receive Shares upon the attainment of specified performance goals. The Administrator may make RSU or PSU Awards independent of, or in connection with, the granting of any other Award under the Plan. The Administrator, in its sole discretion, shall determine the performance goals applicable under each such Award, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awards of RSUs and/or PSUs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.2&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Award Agreement</u>. RSUs and PSUs shall be granted under an Award Agreement referring to the terms, conditions, and restrictions applicable to such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.3&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>No Deferral Provisions</u>. Notwithstanding anything herein to the contrary, RSUs and PSUs shall provide for prompt issuance of Shares upon vesting of the Award (in all events no later than two and one-half months (2½ months) after the later of the end of the calendar year or the Company's fiscal year in which vesting occurs) and shall not include any deferral of issuance and/or of compensation recognition after vesting which would cause the Award to constitute a deferral of compensation subject to Code Section 409A, unless the Award Agreement shall specifically comply with all requirements for a timely deferral under Code Section 409A. The Administrator may at any time accelerate vesting by waiving any or all of the goals, restrictions or conditions imposed under any RSU or PSU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.4&nbsp;&nbsp;&nbsp;&nbsp;

<u>No Stockholder or Secured Rights</u>. A Holder shall be entitled to receive a stock certificate evidencing the acquisition of Shares under an RSU or PSU only upon satisfaction of all conditions specified in the Award Agreement evidencing the Award. A Holder receiving an RSU or PSU Award shall have no rights of a stockholder as to Shares covered by such Award unless and until such Shares are issued to the Holder under the Plan. Prior to receipt of the Shares underlying such Award, an RSU or PSU Award shall represent no more than an unfunded unsecured contractual obligation of the Company and the Company shall be under no obligation to set aside any assets to fund such Award. Prior to vesting and issuance of the Shares, the Holder shall have no greater claim to the Shares underlying such Award or any other assets of the Company than any other unsecured general creditor and such rights may not be sold, pledged, assigned, transferred or encumbered in any manner other than by will or by the laws of intestate succession as provided in Section 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **CONDITIONS TO RECEIPT OF SHARES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Conditions to Delivery of Share Certificates</u>. The Plan is intended to qualify as a compensation benefit plan within the meaning of Rule 701 of the Securities Act. The Company shall not be required to issue or deliver any certificate or certificates for Shares granted or purchased under and Award or upon the exercise of any Option prior to fulfillment of all of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The receipt by the Company of an executed Stockholders Agreement in a form determined and as required by the Administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The admission of such Shares to listing on all stock exchanges on which such class of stock is then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The completion of any registration or other qualification of such Shares under any state or federal law, or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body which the Administrator shall, in its sole discretion, deem necessary or advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The obtaining of any approval or other clearance from any state or federal governmental agency or compliance with any lock-up period as provided in Section 11, which the Administrator shall, in its sole discretion, determine to be necessary or advisable; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The receipt by the Company of full payment for such Shares, if any, and any applicable withholding tax determined by the Administrator, which in the sole discretion of the Administrator may be in the same form as the consideration used by the Holder to pay for such Shares or the Company may agree to withhold such amounts from the Shares delivered under the Option or other Award, in the sole discretion of the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**ADJUSTMENTS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp; <br>

<u>Corporate Transaction or Capitalization Event</u>. In the event that the Administrator determines, in its sole discretion, that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or event, including an Acquisition, affects the Common Stock such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award, then the Administrator shall, in such manner as it may deem equitable, adjust any or all of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the number and kind of Shares (or other securities or property) with respect to which Awards may be granted (including, but not limited to, adjustments of the limitations in Section 3 on the maximum number and kind of Shares which may be issued and adjustments of the maximum number of Shares that may be purchased by any Holder in any calendar year pursuant to Section 6.1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the number and kind of Shares (or other securities or property) subject to outstanding Awards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the grant, exercise price or base price with respect to any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Administrative Discretion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

In the event of any transaction or event described in Section 10.1, including an Acquisition, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect to any Award granted or issued under the Plan or to facilitate such transaction or event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

To provide for either the purchase of any such Award for an amount of cash equal to the amount that could have been obtained upon the exercise or realization of the Holder's rights under such Award immediately prior to the effectiveness of such transaction or event, or the replacement of such Award with other rights or property selected by the Administrator in its sole discretion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

To provide that such Award shall be exercisable or vested as to all Shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;

To provide that such Award be assumed by the successor or survivor corporation, or a Parent or Subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a Parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;

To make adjustments in the number and kind of Shares (or other securities or property) subject to outstanding Awards and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards or Awards which may be granted in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

To provide that immediately upon the consummation of such event, such Award shall terminate; <u>provided</u>, that for a specified period of time prior to such event, such Award shall be exercisable as to the vested Shares covered thereby or, in the sole discretion of the Administrator, as to all Shares covered thereby, notwithstanding anything to the contrary in the Plan or the provisions of such Award Agreement; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;

To suspend the exercise of Options during the pendency of such transaction or event.

Notwithstanding anything to the contrary herein, the Administrator need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Holders, and the Administrator may take different actions with respect to the vested and unvested portions of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Subject to limitations set forth in the Plan, the Administrator may, in its sole discretion, include such further provisions and limitations in any Award Agreement or certificate, as it may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The existence of the Plan, any Award or Award Agreement hereunder shall not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks, whose rights are superior to or affect the Common Stock or the rights thereof, or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**STOCKHOLDERS AGREEMENT/AWARD RESTRICTIONS**. Delivery of Shares issued pursuant to Awards under this Plan together with any rights, securities or additional stock that have been received pursuant to a stock dividend, stock split, reorganization or other transaction in connection with an Award may be conditioned on the execution by the Holder of a Stockholders Agreement among existing stockholders of the Company, including the terms and conditions with which the stockholders of the Company must comply should such a stockholder propose to sell, pledge or otherwise transfer said Shares or any interest in said Shares to any person or entity. Except as otherwise expressly provided in a Stockholders Agreement or an Award Agreement, grants of Awards and the issuance of Shares pursuant to Awards under this Plan shall be subject to the following restrictions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp; 

<br> <u>Lock-Up Pursuant To Public Offering</u>. Holders shall not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of such securities (other than those included in the registration) for a period specified by the representative of the underwriters of Common Stock (or other securities) of the Company not to exceed one hundred eighty (180) days following the effective date of any registration statement of the Company filed under the Securities Act. As a condition of receipt of an Award under this Plan, Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give further effect thereto. In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, Holder shall provide, within ten (10) days of such request, such information as may be required by the Company or such representative in connection with the completion of any Public Offering. The obligations described in this Section shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Securities Exchange Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the securities subject to the foregoing restriction until the end of said one hundred eighty (180) day period. Holder agrees that any transferee of Options or Shares acquired pursuant to an Award shall be bound by this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Right Of First Refusal</u>. Delivery of Shares issued pursuant to this Plan together with any rights, securities or additional stock that have been received pursuant to a stock dividend, stock split, reorganization or other transaction in connection with an Award shall be subject to a right of first refusal by the Company in the event the Holder of such shares proposes to sell, pledge or otherwise transfer said Shares or any interest in said Shares to any person or entity. Any Holder of Shares (or other securities) acquired under the Plan desiring to transfer such Shares or any interest therein shall give written notice to the Company describing the proposed transfer, including the price of shares proposed to be transferred, the proposed transfer price and terms, and the name and address of the proposed transferee. Unless otherwise agreed by the Company and the Holder of such Shares, repurchases by the Company under this Section shall be at the proposed price and terms specified in the notice to the Company. The Company's rights under this Section shall be freely assignable. If the Company fails to exercise its right of first refusal within thirty (30) days from the date upon which the Company received the Holder's written notice, the Holder may, within the next ninety (90) days, conclude a transfer of the exact number of Shares covered by said notice on terms not more favorable to the transferee than those described in the notice. Any subsequent proposed transfer by such transferee shall again be subject to the Company's right of first refusal. If the Company exercises its right of first refusal, the stockholder shall endorse and deliver to the Company the stock certificates representing the Shares being repurchased, and the Company shall promptly pay the stockholder the total repurchase price as set forth in the terms of the agreement. The Holders of Shares being repurchased pursuant to this Section shall cease to have any rights with respect to such shares immediately upon repurchase. No written notice of a proposed transfer shall be required under this Section and no right of first refusal shall exist with respect to transfers by will or the laws of intestate succession. The right of first refusal set forth in this Section shall terminate upon a Public Offering. The Company may assign its repurchase option under this Section to any person selected by the Company including one or more or the stockholders of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Repurchase Rights On Termination Of Service</u>. In the event of the termination of services of a Service Provider by the Company (or Parent or Subsidiary thereof) for Cause or by the Service Provider for any reason (other than due to death or disability), the Company shall have the right to repurchase all Shares or any vested unexercised Awards held by a related Holder which have been obtained pursuant to the Plan to the extent such Shares or Awards vested during the one year period prior to such termination, together with any rights, securities or additional stock that has been received on account of such Shares or Awards pursuant to a stock dividend, stock split, reorganization or other similar transaction. The repurchase price to be paid for any vested unexercised Award or Shares shall be the lower of (a) the Fair Market Value of such Award or Shares as of the date of repurchase as determined herein and (b) the cost thereof to the Service Provider (which shall be the exercise price in the case of Shares acquired upon the exercise of an Option). The Fair Market Value assigned to any Option shall be the Fair Market Value of the Stock as to which it is exercisable reduced by the exercise price. The parties shall first negotiate in good faith to reach an agreement as to the value of the Award or Shares. Absent an agreement within thirty (30) days, the parties shall select one appraiser to determine the value of the Award or Shares. In the event the parties cannot agree as to an appraiser, then each party shall appoint one appraiser and the two appraisers shall jointly determine a third appraiser. In the event the two appraisers cannot determine a third appraiser, such third appraiser shall be appointed by a Judge of the Delaware Chancery Court. Such appraisers shall make their determination of the fair market value of the Stock, and the average of the two appraisers whose valuations are closest to each other shall control. Any appraiser selected by any party shall be an appraiser experienced in the area of valuing similar stock. The Company and the Holder shall each pay for one-half (50%) of the cost of any such appraisal. If the Company desires to purchase the Shares or Awards held by a Holder as set forth in this Section, then the Company shall provide written notice to such Holder at such Holder's last known address within one hundred twenty (120) days after the termination of such Holder's service. The Administrator may assign the Company's repurchase option under this Section to any person selected by the Company including one or more of the stockholders of the Company. The repurchase option set forth in this Section shall terminate upon a Public Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**NON-TRANSFERABILITY OF AWARDS.** No Award granted under this Plan may be directly or indirectly sold, pledged, assigned, hypothecated, transferred, disposed of or encumbered in any manner whatsoever, other than by will or by the laws of descent or distribution prior to vesting and exercise (if applicable) under the terms of the Award and may be exercised, during the lifetime of the Service Provider, only by the Service Provider. Notwithstanding the foregoing, the Administrator may in its sole discretion grant Non-Qualified Stock Options that may be transferred by instrument to an inter vivos or testamentary trust in which the Options are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift or pursuant to domestic relations orders to any "Immediate Family Member" (as defined below) of the optionee. "<u>Immediate Family Member</u>" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships), any person sharing the optionee's household (other than a tenant or employee), a trust in which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the optionee) control the management of assets, and any other entity in which these persons (or the optionee) own more than fifty percent (50%) of the voting interests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**RESTRICTIVE LEGENDS**. The certificates representing the Shares issued upon exercise of Options granted pursuant to this Plan shall bear appropriate legends giving notice of applicable restrictions on transfer under Applicable Laws, the Plan and any Stockholders Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**NO RIGHT TO CONTINUED EMPLOYMENT OR SERVICE.** Nothing in this Plan shall confer upon any Service Provider any right with respect to continuation of employment by or consultancy to the Company, nor shall it interfere in any way with the Company's or any Subsidiary's right to terminate any Service Provider's employment or consultancy at any time, with or without cause and with or without prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**EFFECTIVE DATE AND DURATION OF THE PLAN**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1&nbsp;&nbsp;&nbsp;&nbsp;

<u>Effective Date</u>. The Plan shall become effective when adopted by the Board and shall continue in effect until it is terminated under Section 17. If stockholder approval of the Plan is not obtained within twelve months after the date of the Board's adoption of the Plan, Incentive Stock Options previously granted under the Plan shall be deemed to be Non-Qualified Stock Options and no Incentive Stock Options shall be granted thereafter. Amendments to the Plan not requiring stockholder approval shall become effective when adopted by the Board. Amendments requiring stockholder approval shall become effective when adopted by the Board, but if stockholder approval is not obtained within twelve months of the Board's adoption of such amendment, any Incentive Stock Options granted pursuant to such amendment shall be deemed to be Non-Qualified Stock Options provided that such Options are authorized by the Plan. Subject to this limitation, Options may be granted under the Plan at any time after the effective date and before the date fixed for termination of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2&nbsp;&nbsp;&nbsp;&nbsp;

<u>Termination</u>. Unless sooner terminated by action of the Board, the Plan shall terminate upon the close of business on the day next preceding the tenth anniversary of the date of its adoption by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**TIME OF GRANTING OF AWARDS.** The date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination granting such Award, or such other date as is determined by the Administrator. Notice of the determination shall be given to each Service Provider to whom an Award is so granted within a reasonable time after the date of such grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**AMENDMENT AND TERMINATION OF THE PLAN.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Amendment and Termination</u>. The Board may at any time wholly or partially amend, alter, suspend or terminate the Plan subject to Section 15.1. However, without approval of the Company's stockholders given within twelve (12) months before or after the action by the Board, no action of the Board may, except as provided in Section 10, increase the limits imposed in Section 3 on the maximum number of Shares which may be issued under the Plan or extend the term of the Plan under Section 15.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2&nbsp;&nbsp;&nbsp;&nbsp;

<u>Stockholder Approval</u>. The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3&nbsp;&nbsp;&nbsp;&nbsp;<u> </u>

<u>Effect of Amendment or Termination</u>. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Holder, unless mutually agreed otherwise between the Holder and the Administrator, which agreement must be in writing and signed by the Holder and the Company; <u>provided</u>, <u>however</u>, that the foregoing shall not limit the authority of the Administrator to exercise all authority and discretion conveyed to it herein or in any Award Agreement. Termination of the Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**INABILITY TO OBTAIN AUTHORITY.** The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**RESERVATION OF SHARES.** The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**GOVERNING LAW.** The validity and enforceability of this Plan shall be governed by and construed in accordance with the laws of the State of Delaware without regard to otherwise governing principles of conflicts of law.

\* \* \* \* \* \* \*

I hereby certify that the Plan was duly adopted by the Board of Directors of the Company on December 20, 2022 (the "Effective Date").

Executed at 45 Rockefeller Plaza, 20th Floor, New York, New York 10111 day of December 20, 2022.

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| | |
|:---|:---|
| By: | /s/ Richard Seet |

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Name: Richard Seet <br> Title: Chief Executive Officer

## Ex1A-6

**Exhibit 6.5**

**<u>EMPLOYMENT AGREEMENT</u>**

EMPLOYMENT AGREEMENT (this "<u>Agreement</u>"), dated as of September 1, 2022, between Tesseract Collective, Inc. (the "<u>Company</u>") and David Todrin ("<u>Executive</u>," together with the Company, the "<u>Parties</u>" and, each, a "<u>Party</u>").

WHEREAS, the Company desires to employ Executive, and Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, on the basis of the foregoing premises and in consideration of the mutual covenants and agreements contained herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Employment; Title; Duties and Location</u>. The Company hereby agrees to employ Executive, and Executive hereby accepts employment with the Company, on the terms and subject to the conditions set forth herein. During the Employment Period (as defined in Section 2 below), Executive shall serve the Company as its Chief Financial Officer and shall report exclusively and directly to the Company's Chief Executive Officer (the "<u>CEO</u>"). Executive shall perform the duties consistent with Executive's title and position and such other duties commensurate with such position and title as shall be specified or designated by the Company from time to time. Subject to Executive's appointment thereto, and without additional compensation, Executive shall hold such other or additional titles and serve, during the Employment Period, in such other or additional capacities to which Executive may be appointed from time to time in the Company and its affiliated companies, provided such titles and additional capacities are consistent with Executive's above-stated position and duties. Executive's employment with the Company shall be on a part-time basis, with the initial expectation that Executive shall perform approximately 50 hours of services hereunder each month, which expectation shall be reviewed and may be adjusted, along with Executive salary, by agreement of the Parties on a quarterly basis. Executive may remotely perform Executive's duties hereunder, although Executive may be required to attend meetings in person and reasonably travel in connection with the performance of Executive's duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Term</u>. Executive's employment hereunder shall commence on September 1, 2022 (the "<u>Commencement Date</u>") and shall continue until terminated pursuant to the terms of Section 6 below (the "<u>Employment Period</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Compensation</u>. During the Employment Period only (unless otherwise expressly provided for herein), Executive shall be entitled to the following compensation and benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Salary</u>. Executive shall receive a base salary (the "<u>Base Salary</u>") payable in substantially equal installments in accordance with the Company's normal payroll practices and procedures in effect from time to time and subject to applicable withholdings and deductions. Executive's starting Base Salary shall be at the monthly rate of $14,200.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp; <u>Discretionary Bonus</u>. With respect to each year ending August 31 (each, a "<u>Contract Year</u>") starting with the Contract Year ending August 31, 2024, Executive shall be eligible to receive a discretionary performance-based bonus (a "<u>Discretionary Bonus</u>") if Executive is employed by the Company on the last day of such Contract Year. A Discretionary Bonus, if any, will be determined and paid at the sole and complete discretion of the Company and may be based on a variety of factors, including, but not limited to, Executive's individual performance and the overall performance of the Company. Any Discretionary Bonus for a given Contract Year shall be paid within two and a half months after the end thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock Options</u>. Shortly after the close of Tesseract's current $0.50/share private placement round, subject to Board approval, Executive shall be issued Incentive Stock Options (the "Options") to purchase 400,000 shares of common stock of the Company subject to the terms and conditions of the Company's 2022 Equity Incentive Plan and applicable Stock Option Agreement. These Options, once vested, shall be exercisable for a period not shorter than ten (10) years. Fifty percent (50%) of the Options shall vest on March 1, 2023, the six-month anniversary of the Commencement Date (the "<u>First Vesting Date</u>"), and the remaining fifty percent (50%) of the Options shall vest in six equal monthly installments commencing on the seven-month anniversary of the Commencement Date and ending on the twelve-month anniversary of the Commencement Date (each, a "<u>Subsequent Vesting Date</u>"), in each case, subject to Executive's employment hereunder on the applicable vesting date or as otherwise provided in Section 7.2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp; <u>Benefits</u>. Executive shall have the right to receive or participate in all employee benefit programs and perquisites generally established by the Company from time to time for employees similarly situated to Executive, subject to the general eligibility requirements and other terms of such programs and perquisites, and subject to the Company's right to amend, terminate or take other similar action with respect to any such programs and perquisites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp; <u>Vacation and Other Paid Time Off</u>. Executive shall be entitled to paid time off in accordance with then current Company policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp; <u>Required Taxes and Withholdings</u>. The Company shall withhold from any payments made to Executive (including, without limitation, those made under this Agreement) all federal, state, local or other taxes and withholdings as shall be required pursuant to any law or governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp; <u>Clawback</u>. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company shall be subject to any clawback policy adopted by the Company from time to time. Further, any such compensation that is subject to recovery under any law, government regulation, or stock exchange listing requirement, shall be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation, or stock exchange listing requirement). In particular, in the event of a restatement of the financial or operating results of the Company, the Company may recover from the Executive incentive compensation that would not otherwise have been paid to the Executive if the correct performance data had been used to determine the amount payable. The provision is intended to support the Company's compliance with applicable laws, including incentive-based compensation recovery requirements set forth in Section 10D of the Securities Exchange Act of 1934, as added by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Lawful and Best Efforts</u>. During the Employment Period, Executive shall (i) in all respects conform to and comply with the lawful directions and instructions given to Executive by the Company; (ii) devote Executive's business time required by this Agreement, energy and skill to Executive's services under this Agreement; (iii) use Executive's best efforts to promote and serve the interests of the Company and to perform Executive's duties and obligations hereunder in a diligent, trustworthy, businesslike, efficient and lawful manner; (iv) comply with all applicable laws and regulations, as well as the policies and practices established by the Company from time to time and made applicable to its employees generally or senior executives; and (v) not engage in any activity that, directly or indirectly, impairs or conflicts with the performance of Executive's obligations and duties to the Company, which, for purposes of this Section 4, will not include Executive continuing to engage in the consulting business in which he engaged immediately prior to the Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Reimbursement for Expenses</u>. Executive is authorized to incur reasonable expenses in the discharge of the services to be performed hereunder in accordance with the Company's expense reimbursement policies, as the same may be modified by the Company from time to time in its sole and complete discretion (the "Reimbursement Policies"). Subject to the provisions of Section 12.2 below (Section 409A Compliance), the Company shall reimburse Executive for all such proper expenses upon presentation by Executive of itemized accounts of such expenditures in accordance with the terms of the Reimbursement Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Death</u>. Executive's employment shall immediately and automatically be terminated upon Executive's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp; <u>Disability</u>. The Company may, subject to applicable law, terminate Executive's employment due to a Disability by providing written notice of such termination and its effective date to Executive. For purposes of this Agreement, "<u>Disability</u>" means a "disability" that entitles Executive to benefits under the applicable Company long-term disability plan covering Executive and, in the absence of such a plan, that Executive shall have been unable, due to physical or mental incapacity, to substantially perform Executive's duties and responsibilities hereunder for 120 days (whether or not consecutive) during the Term. In the event of any question as to the existence, extent or potentiality of Executive's Disability upon which the Company and Executive cannot agree, such question shall be resolved by a qualified, independent physician mutually agreed to by the Company and Executive, the cost of such examination to be paid by the Company. If the Company and Executive are unable to agree on the selection of such an independent physician, each shall appoint a physician and those two physicians shall select a third physician who shall make the determination of whether Executive has a Disability. The written medical opinion of such physician shall be conclusive and binding upon each of the Parties as to whether a Disability exists and the date when such Disability arose. This section shall be interpreted and applied so as to comply with the provisions of the Americans with Disabilities Act (to the extent applicable) and any applicable state or local laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp; <u>For Cause by the Company</u>. The Company may terminate Executive's employment for Cause, at any time, upon written notice reasonably describing the nature of such Cause. For purposes of this Agreement, the term "<u>Cause</u>" means Executive's (i) willful misconduct; (ii) willful or gross neglect of Executive's job duties; (iii) material failure to perform Executive's job duties; (iv) refusal to follow a lawful directive of the Company that is materially related to and consistent with the provisions of Section 1 above; (v) material failure to comply with the Company's material policies and practices; (vi) act of moral turpitude, theft, fraud or dishonesty; (vii) commission of any felony or misdemeanor (other than minor traffic violations or offenses of a comparable magnitude not involving dishonesty, fraud or breach of trust); (viii) breach of any material term of a contractual agreement between Executive and the Company, including, without limitation, this Agreement; (ix) willful act that is (or reasonably would be expected to be) materially damaging or detrimental to the Company; (x) material violation of any federal securities law, rule or regulation or the rule of any securities self-regulatory organization; or (xi) becoming a statutorily disqualified person, as that term is defined in Section 39a)(39) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"); <u>provided</u>, however, that, in the event of conduct described in clauses (iii), (iv), (v) or (viii) that is capable of being cured, Cause shall exist only if the Company provides written notice to Executive reasonably detailing such grounds giving rise to Cause and Executive fails to cure such grounds for Cause to the reasonable satisfaction of the Company within five (5) business days after delivery to Executive of such written notice, if reasonably curable within five (5) business days, or, if not, then within such time as is reasonable under the circumstances, which in no event shall exceed fifteen (15) calendar days, unless despite good faith efforts, elements beyond Executive's control require additional time to cure, in which case the Company may extend this period in additional 5 day increments up to 30 days. Notwithstanding the foregoing, notice and an opportunity to cure an event giving rise to Cause shall not be required for any event that is the same or of similar to an event that was the subject of a prior notice to cure. Executive's date of termination in the event Executive's employment is terminated for Cause shall be the date on which Executive is given notice of termination under this Section 6.3, except, if a notice period is required, Executive's date of termination shall be upon the expiration of said notice period if Executive fails to previously cure the grounds giving rise to Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp; <u>Resignation by Executive for Good Reason</u>. Executive may resign Executive's employment hereunder for Good Reason by written notice of such resignation in compliance with the terms of this Section 6.4. For the purpose of this Agreement, "<u>Good Reason</u>" means (i) a material and substantial diminution in Executive's duties, authority, or responsibilities that would be inconsistent with Executive's position (other than while Executive is temporarily physically or mentally incapacitated, as permitted under this Section 6.4 and Section 8 below, or as required by applicable law), (ii) a material failure by the Company to pay Executive's compensation as provided for herein; or (iii) other material breach by the Company of a material provision of this Agreement or any other agreement between the Company and Executive; <u>provided</u>, however, that such event shall constitute Good Reason only if (x) Executive has provided the Company with written notice reasonably detailing the event giving rise to Good Reason within thirty (30) days after the initial occurrence thereof or, if later, within thirty (30) days after the date upon which Executive first becomes aware of such event, (y) the Company fails to cure such event within thirty (30) days after delivery to it of such written notice; and (z) Executive actually terminates Executive's employment for such uncured Good Reason event, on at least ten (10) days' prior written notice, within thirty (30) days following the expiration of such thirty (30) day period referred to in clause (y) above. Notwithstanding the foregoing, during the Employment Period, in the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder, the Company may, in its sole and absolute discretion, suspend Executive from performing or alter Executive's duties hereunder for a period of up to sixty (60) days, and in such event such suspension shall not constitute an event pursuant to which Executive may terminate this Agreement with Good Reason; <u>provided</u>, <u>however</u>, that no such suspension shall alter the Company's obligations under this Agreement (including, without limitation, its obligations to provide Executive compensation and benefits) during such period of suspension. Executive's date of termination in the event Executive resigns Executive's employment for Good Reason shall be the effective date of Executive's notice of resignation for Good Reason, except that Company may waive all or any part of the above-referenced 10-day notice period or of the 30-day cure period in accordance with Section 8 below, in which event Executive's date of termination shall be the last day of such notice or cure period that has not been waived or, if the entire notice or cure period has been waived, the date that Executive provided notice of the event giving rise to Good Reason or of Executive's resignation for Good Reason.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp; <u>Without Cause or Without Good Reason</u>. The Company may terminate Executive's employment without Cause, at any time, in its sole and complete discretion, by providing written notice of such termination and its effective date to Executive, which notice must be given at least 60 days prior to the Termination Date (as defined in Section 7.1) if the Termination Date is on or after the First Vesting Date (as defined in Section 3.3 above). Likewise, Executive may terminate Executive's employment without Good Reason upon at least sixty (60) days prior written notice to the Company without any liability. Termination of Executive's employment without Cause by the Company or without Good Reason by Executive shall not include termination of Executive's employment due to Executive's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6&nbsp;&nbsp;&nbsp;&nbsp; <u>Resignation from Other Positions</u>. Upon termination of Executive's employment for any reason, Executive shall, upon request of the Company, immediately be deemed to have resigned from all boards, offices and appointments held by Executive in or on behalf of the Company. In furtherance hereof, upon Executive's termination of employment, Executive, at the direction of the CEO or the Board of Directors of the Company, shall immediately submit to the Company letter(s) of resignation for any such boards, offices and appointments. If Executive fails to tender such letter(s) of resignation, then the governing body or person with respect to such boards, offices and appointments will be empowered to remove Executive from such boards, offices and appointments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Effect of Termination of Employment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp; <u>Generally</u>. In the event Executive's employment with the Company terminates, Executive shall have no right to receive any compensation, benefits or any other payments or remuneration of any kind from the Company, except as otherwise provided in this Section 7, as well as in Sections 8 and 10 below, in any separate written agreement between Executive and the Company or as may be required by law. In the event Executive's employment with the Company is terminated for any reason, Executive shall receive the following (collectively, the "<u>Accrued Obligations</u>"): (i) Executive's earned hourly wages through and including the effective date of Executive's termination of employment (the "<u>Termination Date</u>"), which shall be paid on the first regularly scheduled payroll date of the Company following the Termination Date or on or before any earlier date as required by applicable law; (ii) payment of any vested benefit due and owing under any employee benefit plan, policy or program pursuant to the terms of such plan, policy or program; and (iii) payment for unreimbursed business expenses subject to, and in accordance with, the terms of Section 5 above, which payment shall be made within thirty (30) days after Executive submits the applicable supporting documentation to the Company, and in any event no later than on or before the last day of Executive's taxable year following the year in which the expense was incurred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp; <u>Severance Pay</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; <u>Generally</u>. In the event that, prior to the First Vesting Date, Executive's employment is terminated by the Company pursuant to Section 6.5 above (without Cause) or by Executive pursuant to Section 6.4 hereof (Good Reason), in addition to the Accrued Obligations, Executive shall be entitled to receive a lump sum cash payment in the amount of $21,300, subject to and in accordance with the terms of this Section 7.2. The Severance Pay shall be paid within 15 days after the effective date of the Separation Agreement (defined in Section 7.2(b) below), *except* that, if the Separation Agreement may be executed and/or revoked in a calendar year following the calendar year in which the Termination Date occurs, the Severance Pay shall be paid on the first regularly scheduled payroll date of the Company in the calendar year in which the consideration or, if applicable, release revocation period ends to the extent necessary to comply with Section 409A (as defined in Section 12.2 below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; <u>Separation Agreement and Other Conditions for Severance Pay</u>. Payment of the Severance Pay is conditioned on (i) Executive's continued compliance in all material respects with Executive's continuing obligations to the Company, including, without limitation, the terms of this Agreement and of the Confidentiality Agreement (defined in Section 9 below) that survive termination of Executive's employment with the Company, and (ii) Executive signing (without revoking if such right is provided under applicable law) a separation agreement and general release in a form of that provided to Executive by the Company on or about the Termination Date (the "<u>Separation Agreement</u>"). Executive must so execute the Separation Agreement within sixty (60) days following the Termination Date (or such shorter time as may be set forth in the Separation Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp; <u>Termination of References to Current Employment</u>. Beginning on the day following the Termination Date, Executive (i) shall remove any reference to the Company as Executive's current employer from any social media or other web- or cloud-based source Executive either directly or indirectly controls, including, but not limited to, LinkedIn, Facebook and Twitter, and (ii) will not represent that Executive is currently employed by the Company to any person or entity, including, but not limited to, on any social media or other web- or cloud-based source Executive either directly or indirectly controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Notice of Termination</u>. In the event Executive's employment hereunder is terminated by Executive resigning with or without Good Reason under Sections 6.4 and 6.5 above, or by the Company without Cause under Section 6.5 above, the time period covered by any advance notice of termination of employment required by such Sections shall be referred to herein as the "<u>Notice Period</u>." The Company may, in its discretion, waive all or any portion of such Notice Period, provided that, if permitted under applicable law and the terms of any benefit plan, the Company continues to provide all compensation and benefits to the Executive through the end of the Notice Period with respect to any notice of termination given by Executive for Good Reason or by the Company without Cause. The Company may require that, during the Notice Period, or part or parts thereof, Executive does not do any of the following: (i) enter the Company's premises; (ii) perform any work for the Company; (iii) undertake any work for any third party whether paid or unpaid and whether as an employee or otherwise, except that permitted under Section 4 above; (iv) have any contact or communication with any client, customer or supplier of the Company; or (v) have any contact or communication with any employee, officer, director, agent or consultant of the Company, except for the Company CEO. Additionally, during the Notice Period, or any part or parts thereof, the Company may require Executive to do any of the following: (i) perform special projects or perform duties not within Executive's normal duties (provided such duties are commensurate with Executive's position and title) or perform some but not all of Executive's normal duties; and (ii) keep the Company informed of Executive's whereabouts so that Executive can be contacted if the need arises for Executive to perform any duties provided by clause (i) of this sentence. The Company retains the right to terminate Executive's employment under Section 6.3 above during the Notice Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Confidentiality, Restrictive Covenant, Intellectual Property, Return of Company Property and Non-Disparagement</u>. Contemporaneously with their respective execution of this Agreement, the Company and Executive shall each execute the Company's current standard Confidentiality, Restrictive Covenant and Intellectual Property Agreement (the "<u>Confidentiality Agreement</u>"), a copy of which is annexed hereto as <u>Exhibit A</u>. The terms of the Confidentiality Agreement are hereby incorporated by reference into this Agreement, except that, to the extent there is an irreconcilable conflict between the terms of this Agreement and those of the Confidentiality Agreement, the terms of this Agreement shall govern. Executive's execution and compliance with the terms of the Confidentiality Agreement is a material term of this Agreement, upon which Executive's employment and continued employment with the Company is conditioned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Cooperation</u>. During and after the Employment Period, Executive shall assist and cooperate with the Company in connection with the defense or prosecution of any claim that may be made against or by the Company, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings relate to services performed or required to be performed by Executive, pertinent knowledge possessed by Executive, or any act or omission by Executive. Executive will also perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this paragraph. Further, if requested, Executive agrees to provide the Company with reasonable assistance, including, without limitation, providing information, in connection with the transition of Executive's employment duties and responsibilities to others and matters with which Executive was involved during Executive's employment with the Company. In seeking Executive's assistance and cooperation under this Section, the Company shall seek not to unreasonably interfere with Executive's personal and other professional obligations. The Company will reimburse Executive for reasonable expenses Executive incurs in fulfilling Executive's obligations under this Section 10. Additionally, should Executive be required to expend a material amount of time, in excess of five (5) hours, then the Company shall compensate Executive at Executive's then prevailing hourly consulting rate for such time. Notwithstanding the foregoing, this Section shall not be applicable to any claim by the Company against Executive or by Executive against the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Indemnification</u>. The Company shall indemnify Executive to the fullest extent permitted by law, in effect at the time of the subject act or omission, and shall advance to Executive reasonable attorneys' fees and expenses as such fees and expenses are incurred (subject to an undertaking from Executive to repay such advances if it shall be finally determined by a judicial decision which is not subject to further appeal that Executive was not entitled to the reimbursement of such fees and expenses), and Executive will be entitled to the protection of any insurance policies that the Company may elect to maintain generally for the benefit of its directors and officers against all costs, charges and expenses incurred or sustained by Executive in connection with any action, suit or proceeding brought by a third-party to which Executive may be made a party by reason of Executive's being or having been a director, officer or employee of the Company or any of its affiliates, or Executive's serving or having served any other enterprise as a director, officer or employee at the request of the Company (other than any dispute, claim or controversy arising under or relating to this Agreement), provided that he acted within the scope of his duties as a director, officer or employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Miscellaneous Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp; <u>IRCA Compliance</u>. This Agreement, and Executive's employment with the Company, is conditioned on Executive's establishing Executive's identity and authorization to work as required by the Immigration Reform and Control Act of 1986 (IRCA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp; <u>Section 409A Compliance</u>. Unless otherwise expressly provided, any payment of compensation by Company to Executive, whether pursuant to this Agreement or otherwise, shall be made no later than the 15<sup>th</sup> day of the third month (*i.e.*, 2½ months) after the later of the end of the calendar year or the Company's fiscal year in which Executive's right to such payment vests (*i.e*., is not subject to a "substantial risk of forfeiture") for purposes of Section 409A of the Internal Revenue Code of 1986, as amended ("<u>Section 409A</u>"). For purposes of this Agreement, termination of employment shall be deemed to occur only upon "separation from service" as such term is defined under Section 409A. Each payment and each installment of any severance payments provided for under this Agreement shall be treated as a separate payment for purposes of application of Section 409A. To the extent any amounts payable by the Company to Executive constitute "nonqualified deferred compensation" (within the meaning of Section 409A) such payments are intended to comply with the requirements of Section 409A, and shall be interpreted in accordance therewith. Neither party individually or in combination may accelerate, offset or assign any such deferred payment, except in compliance with Section 409A. No amount shall be paid prior to the earliest date on which it is permitted to be paid under Section 409A, including a six (6) month delay of termination payments made to specified employees of a public company, to the extent then applicable. Executive shall have no discretion with respect to the timing of payments except as permitted under Section 409A. Any Section 409A payments which are subject to execution of a waiver and release which may be executed and/or revoked in a calendar year following the calendar year in which the payment event (such as termination of employment) occurs shall commence payment only in such following calendar year as necessary to comply with Section 409A. All expense reimbursement or in-kind benefits subject to Section 409A provided under this Agreement or, unless otherwise specified in writing, under any Company program or policy, shall be subject to the following rules: (i) the amount of expenses eligible for reimbursement or in-kind benefits provided during one calendar year may not affect the benefits provided during any other year; (ii) reimbursements shall be paid no later than the end of the calendar year following the year in which Executive incurs such expenses, and Executive shall take all actions necessary to claim all such reimbursements on a timely basis to permit the Company to make all such reimbursement payments prior to the end of said period, and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. Notwithstanding anything herein to the contrary, no amendment may be made to this Agreement if it would cause the Agreement or any payment hereunder not to be in compliance with Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3&nbsp;&nbsp;&nbsp;&nbsp; <u>Section 280G</u>. If any payment or distribution by the Company to or for the benefit of the Executive under this Agreement or any other plans or arrangements between the parties would be subject to the deduction limitations and excise tax imposed by Sections 280G and 4999 of the Internal Revenue Code (including any applicable interest and penalties, collectively "excise taxes"), then the parties agree to take such action as may be necessary to place the Executive in the best after-tax position taking into account all income, employment, and excise taxes, without regard to the deductibility of any payments by the Company. Thus, for example, any amount deemed to constitute a "parachute payment" under Section 280G, shall be reduced to the extent necessary to avoid excise taxes that would otherwise be imposed if, and only if, such reduction would result in the Executive retaining a larger total after-tax amount of compensation, taking into account all the Executive compensation, benefits, income, employment, and excise taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4&nbsp;&nbsp;&nbsp;&nbsp; <u>Assignability and Binding Effect</u>. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administrators, successors and legal representatives of Executive, and shall inure to the benefit of and be binding upon the Company, the Company Affiliates and their successors and assigns, but the obligations of Executive are personal services and may not be delegated or assigned. Executive shall not be entitled to assign, transfer, pledge, encumber, hypothecate or otherwise dispose of this Agreement, or any of Executive's rights and obligations hereunder, and any such attempted delegation or disposition shall be null and void and without effect. This Agreement may be assigned by the Company to a person or entity that is an affiliate or a successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person or entity. Further, in the event Executive becomes employed by a parent, subsidiary or other affiliate of the Company, this Agreement shall thereupon automatically be assigned to such parent, subsidiary or other affiliate and Executive consents to be bound by the provisions of this Agreement for the benefit of the Company and/or any such parent, subsidiary or other affiliate of the Company without the necessity that this Agreement be re-signed at the time of such transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5&nbsp;&nbsp;&nbsp;&nbsp; <u>Right of Set-Off</u>. To the extent permitted by applicable law, the Company may at any time offset against any amounts owed to Executive hereunder or otherwise due or to become due to Executive, or anyone claiming through or under Executive, any debt or debts due or to become due from Executive to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6&nbsp;&nbsp;&nbsp;&nbsp; <u>Severability and Blue Penciling</u>. If any provision of this Agreement is held to be invalid, the remaining provisions shall remain in full force and effect. However, if any court determines that any covenant in this Agreement, is unenforceable because the duration, geographic scope or restricted activities thereof are overly broad, then such provision or part thereof shall be modified by reducing the overly broad duration, geographic scope or restricted activities by the minimum amount so as to make the covenant, in its modified form, enforceable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7&nbsp;&nbsp;&nbsp;&nbsp; <u>Choice of Law; Dispute Resolution</u>. This Agreement shall be interpreted and enforced in accordance with the laws of the State of New York, without regard to its conflict-of-law principles. Any dispute between the Parties, including, without limitation, any dispute concerning or arising out of this Agreement or Executive's employment hereunder (or termination thereof) shall be governed by the dispute resolution provisions set forth in the Confidentiality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8&nbsp;&nbsp;&nbsp;&nbsp; <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any notice or other communication under this Agreement shall be in writing and shall be delivered by hand, email, facsimile or mailed by overnight courier or by registered or certified mail, postage prepaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp; If to Executive, to Executive's address on the books and records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; If to the Company, to CEO, Tesseract Collective, Inc., 45 Rockefeller Plaza 20th Floor 10111, rxseet@tesseracticons.com, or at such other mailing address, email address or facsimile number as it may have furnished in writing to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any notice so addressed shall be deemed to be given: if delivered by hand or email, on the date of such delivery; if by facsimile, on the date of such delivery if receipt on such day is confirmed and, if not so confirmed, on the next business day; if mailed by overnight courier, on the first business day following the date of such mailing; and if mailed by registered or certified mail, on the third business day after the date of such mailing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9&nbsp;&nbsp;&nbsp;&nbsp; <u>Survival of Terms</u>. All provisions of this Agreement that, either expressly or impliedly, contain obligations that extend beyond termination of Executive's employment hereunder, including without limitation Sections 7, 9, 10, 11 and 12 hereof, shall survive the termination of this Agreement and of Executive's employment hereunder for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10 <u>Interpretation</u>. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and not strictly for or against any Party. The Parties acknowledge that both of them have participated in drafting this Agreement; therefore, any general rule of construction that any ambiguity shall be construed against the drafter shall not apply to this Agreement. In this Agreement, unless the context otherwise requires, the masculine, feminine and neuter genders and the singular and the plural include one another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11 <u>Further Assurances</u>. The Parties will execute and deliver such further documents and instruments and will take all other actions as may be reasonably required or appropriate to carry out the intent and purposes of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12 <u>Voluntary and Knowing Execution of Agreement</u>. Executive acknowledges that (i) Executive has had the opportunity to consult an attorney regarding the terms and conditions of this Agreement before executing it, (ii) Executive fully understands the terms of this Agreement including, without limitation, the significance and consequences of the post-employment restrictive covenants in the Confidentiality Agreement, and (iii) Executive is executing this Agreement voluntarily, knowingly and willingly and without duress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13 <u>Entire Agreement</u>. This Agreement constitutes the entire understanding and agreement of the Parties concerning the subject matter hereof, and it supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements regarding such subject matter. Each Party acknowledges and agrees that such Party is not relying on, and may not rely on, any oral or written representation of any kind that is not set forth in writing in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14 <u>Waivers and Amendments</u>. This Agreement may be altered, amended, modified, superseded or cancelled, and the terms hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party alleged to have waived compliance. Any such signature of the Company must be by an authorized signatory for the Company. No delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15 <u>Counterparts</u>. This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Photographic copies, electronically scanned copies and other facsimiles of this Agreement (including such signed counterparts) may be used in lieu of the originals for any purpose.

[The remainder of this page is intentionally blank; signature page follows.]

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

---

| |
|:---|
| /s/ David Todrin |
| David Todrin |

---

---

| | |
|:---|:---|
| TESSERACT COLLECTIVE, INC. | TESSERACT COLLECTIVE, INC. |
| By: | /s/ Richard Seet |
|  | Name: Richard Seet |
|  | Title: CEO |

---

[Signature page to Employment Agreement.]

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Tesseract Collective, Inc.

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2021

**CIK:** 0001934924

**I.R.S. Employer Identification Number:** 87-3751500

**Primary Standard Industrial Classification Code:** 7330

**Total number of full-time employees:** 3

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 45 ROCKEFELLER PLAZA 20TH FLOOR, —, NEW YORK, NY 10111

**Company Phone:** 917-379-6544

**Person to contact:** Richard Seet

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount      |
|:---|:---|
| Cash and Cash Equivalents                | $10607.00   |
| Investment Securities                    | $0.00       |
| Accounts and Notes Receivable            | $0.00       |
| Property, Plant and Equipment (PP&E)     | $0.00       |
| Total Assets                             | $210135.00  |
| Accounts Payable and Accrued Liabilities | $675214.00  |
| Long-Term Debt                           | $0.00       |
| Total Liabilities                        | $677483.00  |
| Total Stockholders' Equity               | $-467348.00 |
| Total Liabilities and Equity             | $210135.00  |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount      |
|:---|:---|
| Total Revenues                            | $0.00       |
| Costs and Expenses Applicable to Revenues | $0.00       |
| Depreciation and Amortization             | $0.00       |
| Net Income                                | $-966644.00 |
| Earnings Per Share - Basic                | 0.00        |
| Earnings Per Share - Diluted              | 0.00        |

**Auditor Information**

| Metric          | Amount               |
|:---|:---|
| Name of Auditor | Wolf & Company, P.C. |

### Outstanding Securities

| Class        |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Common Stock |      20000001 | 88160Y106 | N/A               |
| N/A          |             0 | 000000000 | N/A               |
| N/A          |             0 | 000000000 | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount   |
|:---|:---|
| Number of securities offered                                    | 1        |
| Number of securities outstanding                                | 21495001 |
| Price per security                                              |  |
| Issuer's aggregate offering price                               | $0.00    |
| Aggregate offering price of securities held by security holders | $0.00    |
| Aggregate price of securities offered concurrently              | $0.00    |
| Total aggregate offering price                                  | $0.00    |

**Anticipated Fees**

| Service Provider   | Name                 | Fees      |
|:---|:---|:---|
| Auditor            | Wolf & Company, P.C. | $45000.00 |
| Legal              |  |  |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** —

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Tesseract Collective, Inc.

**Title of Securities Issued:** Common Stock

**Total Amount of Securities Issued:** 1

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $0.01 of gross proceeds in connection with the sale of shares of common stock for $0.01 per share.

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Private placements of shares of common stock were conducted under Securities Act Rule 506(b) without general solicitation.