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MEMBERSHIP INTEREST PURCHASE AGREEMENT 
This Membership Interest Purchase Agreement (this “Agreement”) is entered into as of November 
17, 2021 (the “Effective Date”), by and between NuLeaf, Inc., a Nevada corporation (“Buyer”), and Medifarm III, LLC, a Nevada limited liability company (“Seller”). Buyer and Seller are each individually referred to herein as a “Party” and collectively as the “Parties.” 
R E C I T A L S 
A.Seller owns fifty percent (50%) of the outstanding membership interests of NuLeaf Reno Production, LLC (the “NuLeaf Reno Interests”) and fifty percent (50%) of the outstanding membership interests of NuLeaf Sparks Cultivation, LLC (the “NuLeaf Sparks Interests”, and together with the NuLeaf Reno Interests, the “Company Interests”).  
B.Buyer and Seller wish to enter into a transaction pursuant to which Buyer will purchase the Company Interests from the Seller upon the terms and conditions set forth herein (the “Transaction”). 
NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows: 
AGREEMENT 
												
				
				
			

Section 1.         Definitions

DefinitionsDefinitions  

“Adverse Consequences” means any Claim, Order, Lien or Liability and all attorney’s fees and other costs, fees and expenses incurred in connection with any of the foregoing. 
“Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act. 
“Agreement” has the meaning set forth in the preface to this Agreement. 
“Applicable Law” or “Applicable Laws” means any and all laws, ordinances, constitutions, regulations, statutes, treaties, rules, codes, licenses, certificates, franchises, permits, requirements and injunctions adopted, enacted, implemented, promulgated, issued or entered by or under the authority of any Governmental Authority having jurisdiction over a specified Person or any of such Person’s properties or assets, including but not limited to the Nevada Cannabis Laws. Notwithstanding the foregoing, neither “Applicable Law” nor “Applicable Laws” shall include the Federal Cannabis Laws. 
“Applications” means any applications, materials and other correspondences (including, without limitation, attachments, exhibits, variances and appendices) submitted to the CCB, the City of Las Vegas, the City of Reno, the City of Sparks, the City of Incline Village, Clark County, Washoe County or any other Governmental Authority in connection with the Nevada Cannabis Laws. 
“Buyer” has the meaning set forth in the preface to this Agreement. 
“Buyer Excluded Representations” has the meaning set forth in Section 8(a)(ii). 
“Buyer Maximum Indemnification Liability” has the meaning set forth in Section 8(d)(iii). 
Buyer Parties” has the meaning set forth in Section 8(b). 
Buyer SL Representations” has the meaning set forth in Section 8(a)(ii). 
Cannabis Licenses” means the Cultivation Licenses and the Production Licenses. 
“CCB” has the meaning set forth in the Recitals to this Agreement.  

“Claim” means any claim, action, cause of action, demand, lawsuit, arbitration, notice of deficiency, audit, charge, notice of violation, compliant, proceeding, injunction, hearing, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity. 
“Closing” has the meaning set forth in Section 2(c). 
“Closing Date” has the meaning set forth in Section 2(c). 
“Code” means the Internal Revenue Code of 1986, as amended. 
“Company” or “Companies” has the meaning set forth in Section (4)(c) to this Agreement. 
“Company Interests” has the meaning set forth in the Recitals to this Agreement. 
“Confidential Information” has the meaning set forth in Section 6(e). 
“Effective Date” has the meaning set forth in the preface to this Agreement. 
“Enforceability Limitations” mean (a) bankruptcy, insolvency, reorganization, moratorium or similar Law now or hereafter in effect relating to creditors’ rights, (b) the discretion of the appropriate court with respect to specific performance, injunctive relief or other terms of equitable remedies, and (c) limitations regarding the enforceability of contracts in violation of the Federal Cannabis Laws. 
“Federal Cannabis Laws” means any U.S. federal laws, civil, criminal or otherwise, as such relate, either directly or indirectly, to the cultivation, harvesting, production, distribution, sale and possession of cannabis, marijuana or related substances or products containing or relating to the same, including, without limitation, the prohibition on drug trafficking under 21 U.S.C. § 841(a), et seq., the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another’s felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and federal money laundering statutes under 18 U.S.C. §§ 1956, 1957, and 1960 and the regulations and rules promulgated under any of the foregoing, and all laws which are violated as a result of or relating to a violation of the foregoing. 
“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently applied. 
“Governmental Authority” means any federal, state, commonwealth, provincial, municipal, local or foreign government, or any political subdivision thereof, or any court, agency or other entity, body, organization or group, exercising any executive, legislative, judicial, quasi-judicial, regulatory or administrative function of government, or any supranational body, arbitrator, court or tribunal of competent jurisdiction. 
Indemnification Notice” has the meaning set forth in Section 8(e). 
Indemnified Party” has the meaning set forth in Section 8(e). 
Indemnifying Party” has the meaning set forth in Section 8(e). 
“Independent Accountant” has the meaning set forth in Section 9(a). 
“Knowledge” means the actual knowledge of any director, senior officer or manager, after due inquiry. 
“Liability” or “Liabilities” means any liability or obligation of whatever kind or nature (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including, without limitation, all losses, damages, dues, penalties, fines, costs and expenses (including court costs and reasonable attorneys’ fees and expenses), amounts paid in connection with a settlement, compromise or judgement, and Taxes.  
“Lien” means any mortgage, pledge, lien (statutory or other), encumbrance, easement, encroachment, right of way, right of first refusal, option, charge, or other security interest. 
“Material Adverse Effect” or “Material Adverse Change” means, with respect to any Person, any effect or change that would be (or would reasonably be expected to be) materially adverse to the business, assets, condition (financial or otherwise), operating results or operations of such Person, or to the ability of such Person to consummate the Transaction contemplated hereby. 
“Nevada Cannabis Laws” means chapters 678A, 678B, 678C and 678D of the Nevada Revised Statutes, the Nevada Cannabis Compliance Regulations issued by the CCB pursuant thereto, and any additional rules and regulations promulgated by the CCB or any other state, local or county Governmental Authority with respect to cannabis. 
“NuLeaf Reno” means NuLeaf Reno Production, LLC, a Nevada limited liability company. 

“NuLeaf Sparks” means NuLeaf Sparks Cultivation, LLC, a Nevada limited liability company.  
“Order” means any order, writ, assessment, decision, injunction, decree, judgment, ruling, award, settlement or stipulation issued, promulgated or entered into by or with any Governmental Authority. 
“Party” or “Parties” has the meaning set forth in the preface to this Agreement. 
“Permit” means any permit, license, franchise certificate, consent, accreditation or other authorization of a Governmental Authority, including without limitation the Cannabis Licenses and all other state and local licenses necessary to lawfully operate within the State of Nevada and its local jurisdictions. 
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other business entity, or a governmental entity (or any department, agency, or political subdivision thereof). 
“Pre-Closing Financial Statements” has the meaning set forth in Section 5(c). 
Post-Closing Straddle Period” has the meaning set forth in Section 9(c). 
Pre-Closing Straddle Period” has the meaning set forth in Section 9(c). 
Pre-Closing Tax Periods” has the meaning set forth in Section 9(a). 
“Purchase Price” has the meaning set forth in Section 2(b). 
“Representative” means any director, officer, shareholder, manager, member, partner, principal, employee, contractor, attorney, accountant, agent or other representative of any Person. 
“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 
“Seller” has the meaning set forth in the preface to this Agreement. 
“Seller Releasing Parties” has the meaning set forth in Section 11(s)(i). 
“Seller’s Excluded Representations” has the meaning set forth in Section 8(a)(i). 
“Seller’s Fundamental Representations” has the meaning set forth in Section 8(a)(i). 
“Seller Maximum Indemnification Liability” has the meaning set forth in Section 8(d)(ii). 
“Seller SL Representations” has the meaning set forth in Section 8(a)(i). 
“Party” or “Parties” means Buyer and Seller.   
“Straddle Period” has the meaning set forth in Section 9(c). 
“Tax” or “Taxes” means any federal, state, local, or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax Liability of any other Person. 
“Tax Dispute” has the meaning set forth in Section 9(a). 
“Tax Matter” has the meaning set forth in Section 9(f). 
“Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
“Third-Party Claim” has the meaning set forth in Section 8(e). 
“Threshold” has the meaning set forth in Section 8(d)(i). 
“Transaction” has the meaning set forth in the Recitals to this Agreement.  

Transaction Documents” means this Agreement and all other documents or agreements executed in connection with the Transaction. 
“Transfer Fees” has the meaning set forth in Section 6(g). 
“Treasury Regulation” means the United States Treasury regulations promulgated under the Code. 
                Section 2.         Purchase and Sale of Company Interests. 
a.Basic Transaction. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from the Seller, and the Seller agrees to sell to Buyer, all of the Company Interests, free and clear of any Liens, for the consideration specified in this Section 2. 

b.Consideration. As consideration for the sale, conveyance, transfer, assignment and 
delivery of the Company Interests by the Seller, and subject to adjustment as provided in this Agreement, on the Closing Date Buyer shall pay Seller aggregate consideration of Six Million Five Hundred Thousand Dollars ($6,500,000) in immediately available funds (the “Purchase Price”). 
a.Closing. The closing of the Transaction (the “Closing”) will take place remotely 
via the electronic exchange of documents and signatures as soon as practicable following the satisfaction or waiver of the applicable conditions set forth in Section 7, or on such other date as Buyer and the Seller may mutually determine in writing (the “Closing Date”). The Closing will be deemed to have occurred at 11:59 p.m., Eastern Standard Time, on the Closing Date. 
a.Deliveries at Closing. At the Closing: (i) the Seller shall deliver to Buyer the 
various certificates, instruments, and documents referred to in Section 7(a), and (ii) Buyer shall deliver to the Seller the Purchase Price (as adjusted in accordance with the terms hereof) and the various certificates, instruments, and documents referred to in Section 7(b).  
a.Withholding. Buyer shall be entitled to deduct and withhold from the Purchase Price all Taxes that Buyer may be required to deduct and withhold under any provision of Applicable Law. All such withheld amounts shall be treated as delivered to the Seller hereunder. 
Section 3. Representations and Warranties of Buyer. Buyer represents and warrants to the Seller that the statements contained in this Section 3 are correct and complete as of the Effective Date and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the Effective Date throughout this Section 3). 
a.Organization. Buyer is a corporation duly organized, validly existing, and in good 
standing under the laws of the State of Nevada. Buyer has full corporate power and authority to conduct its business as presently being conducted and to own and lease its properties and assets. 
a.Authorization of Transaction. Buyer has full corporate power and authority and 
has taken all action necessary to authorize, execute and deliver the Transaction Documents and to perform its obligations thereunder, except as may be limited by the Enforceability Limitations. The Transaction Documents to which it is a party have been duly executed and delivered by Buyer and constitute legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, except as such enforcement may be limited by the Enforceability Limitations. 
a.No Conflict or Violation. The execution and delivery of the Transaction Documents, the consummation of the Transactions and the performance by Buyer of its obligations thereunder do not, and will not, result in or constitute: (i) a violation of or a conflict with any provision of the organizational documents of Buyer, (ii) a breach of, a loss of rights under, or constitute an event, occurrence, condition or act which is or, with the giving of notice, the lapse of time or the happening of any future event or condition, would become, a material default under, any term or provision of any contract or agreement to which Buyer is a party, or (iii) a violation by Buyer of any Applicable Law.  
b.Consents and Approvals. Except as otherwise set forth herein, no consent, approval 
or authorization of, or declaration, filing or registration with, any third party is required to be made or obtained by Buyer in connection with the execution, delivery and performance of the Transaction Documents and the consummation of the Transaction. 
a.Brokers’ Fees. Buyer does not have any Liability to pay any fees or commissions 
to any broker, finder, or agent with respect to the Transactions. Buyer is responsible for the entire amount of Liabilities owed to Buyer’s Broker in connection with the Transactions. 
Section 4. Representations and Warranties of Seller. Seller represents and warrants to Buyer that the statements contained in this Section 4 are correct and complete as of the Effective Date and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the Effective Date of this Agreement throughout this Section 4), subject only to matters expressly permitted herein.  
a.Organization. The Seller is a limited liability company duly organized, validly 
existing and in good standing under the laws of the State of Nevada. The Seller is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required. The Seller has full limited liability company power and authority to conduct its business as 

presently being conducted and to own and lease its properties and assets and, subject only to the terms and conditions of this Agreement, to consummate the Transactions. 
a.Authorization of Transaction. The Seller has full limited liability company power 
and authority and has taken all action necessary to authorize, execute and deliver this Agreement and to perform its obligations hereunder, except as may be limited by the Enforceability Limitations. This Agreement has been duly executed and delivered by each Seller and constitutes a legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforcement may be limited by the Enforceability Limitations. 
a.No Conflict or Violation. The execution and delivery of this Agreement, the 
consummation of the Transactions, and the performance by the Seller of its obligations hereunder do not, and will not, result in or constitute: (i) a violation of or conflict with any provision of the organizational or other governing documents of the Seller, (ii) a breach of, a loss of rights under, or an event, become, a material default under, or result in the acceleration of any obligations under, any term or provision of any material contract, or a violation by Seller of any Applicable Law, or (iii) an imposition of any Lien (other than a Permitted Liens) on any of the Company Interests or any asset of NuLeaf Reno and NuLeaf Sparks. NuLeaf Reno and NuLeaf Sparks are each individually referred to herein as a “Company” and collectively as the “Companies.” 
a.Consents and Approvals. Subject to the satisfaction of all conditions precedent 
hereunder to transfer the Company Interests to Buyer on the Closing Date (i) the Seller has, or will have on or before the Closing Date, the full and unrestricted power to sell, convey, assign, transfer and deliver the Company Interests to Buyer on the Closing Date, and (ii) no consent, approval or authorization of, or declaration, filing or registration with, any Person is required to be made or obtained by the Seller or either Company in connection with the execution, delivery and performance of this Agreement and the consummation of the Transactions, or will be necessary to ensure the continuing validity and effectiveness immediately following the Closing of any Permit or material contract of either Company. 

a.Ownership Free and Clear. The Seller owns the Company Interests free and clear 
of any restrictions on transfer (other than any restrictions under Securities Laws), Taxes and Liens. The Company Interests have been duly authorized, validly issued in compliance with applicable securities laws and are fully paid and nonassessable.  
a.Brokers’ Fees. The Seller does not have any Liability to pay any fees or 
commissions to any broker, finder, or agent with respect to the Transactions.  
a.Pre-Closing Financial Statements.  The Pre-Closing Financial Statements (as 
defined herein) have been prepared in accordance with GAAP, present fairly the financial condition of each of NuLeaf Reno and NuLeaf Sparks as of such dates and the results of operations of NuLeaf Reno and NuLeaf Sparks for such periods, are correct and complete, and are consistent with the books and records of NuLeaf Reno and NuLeaf Sparks (which books and records are correct and complete); provided, however, that the Pre-Closing Financial Statements do not contain notes and are subject to normal year-end adjustments (which will not be material individually or in the aggregate). 
Section 5. Pre-Closing Covenants. The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing: 
a.General. Each of the Parties will use his, her, or its reasonable best efforts to take 
all actions and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including satisfaction, but not waiver, of the Closing conditions set forth in Section 7). 
a.Permits, Notices and Consents. 
i.In connection with the Transaction, (A) each Seller and each Company 
shall, within five (5) business days of the Effective Date, or as soon thereafter as practicable, submit a written change of ownership and control request to the CCB and similar requests to the cities of Reno and  Sparks and Washoe county, as necessary, for a change of ownership of the associated Permits, relaying to such Governmental Authorities that Buyer will become the one hundred percent (100%) “owner” of the Companies pursuant to this Agreement; (B) the Seller and each Company shall cooperate with all Governmental Authorities in filing any and all necessary documentation to accomplish change of ownership and control contemplated herein; and (C) each Party will take all steps necessary to affect such change of ownership and control, all as required under the Nevada Cannabis Laws.  

i.Without limiting the provisions of Section 5(b)(i), each Party will 
cooperate with the other Parties and: (A) promptly take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable under this Agreement, the ancillary documents referenced in this Agreement and Applicable Law to consummate and make effective the Transaction, including responding to any informational requests, supplemental disclosure requirements, or other correspondence from the CCB and, to the extent permitted by the CCB, keep all other Parties hereto fully and promptly informed as to any such requests, requirements, or correspondence, preparing and filing all documentation notices, petitions, statements, registrations, submissions of information, applications and other documents, (B) use commercially reasonable efforts to obtain all approvals, consents, registrations, Permits, authorizations and other confirmations required to be obtained from any third party and/or Governmental Authority necessary, proper or advisable to consummate the Transaction, and (C) execute and deliver such documents, certificates and other papers as a Party may reasonably request to evidence another Party’s satisfaction of its obligations hereunder. Subject to Applicable Laws relating to the exchange of information, the Parties will have the right to review in advance, and, to the extent practicable, each will consult the others on, any information relating to the Seller, the Companies and/or their Affiliates, on the one hand, or Buyer and its Affiliates, on the other hand, that appears in any filing made with, or written materials submitted to, any third party and/or any Governmental Authority in connection with the Transaction.  
a.Pre-Closing Financial Statements.  The Seller shall deliver to Buyer within 
thirty (30) days of the end of each calendar month, a true and complete unaudited balance sheet and statement of income, change in member’s equity, and cash flow, for each of NuLeaf Reno and NuLeaf Sparks for the immediately preceding calendar month, prepared in accordance with GAAP as adjusted for intercompany eliminations); provided, however, that the Pre-Closing Financial Statements shall not contain notes and are subject to normal year-end adjustments (which will not be material individually or in the aggregate) (the “Pre-Closing Financial Statements”). 
Section 6.         Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing: 
a.General. In case at any time after the Closing any further actions are necessary or 
desirable to carry out the purposes of this Agreement, each of the Parties will take such further actions (including the execution and delivery of such further instruments and documents) as any other Party may reasonably request, all at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor under Section 8). Without limiting the generality of the foregoing, to the extent that any additional filings are required by the CCB or any other Governmental Authority in connection with the change of ownership of either Company, Buyer and the Seller shall cooperate to prepare and make such filings within the time period required by such Governmental Authority. 
a.Litigation Support. In the event and for so long as any Party is actively contesting 
or defending against a third party any Claim in connection with: (i) the Transaction or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction occurring on or prior to the Closing Date involving either Company, each of the other Parties will: (i) cooperate with the Party (and such Party’s counsel) contesting or defending such third party Claim; (ii) make available its personnel; and (iii) provide such testimony and access to its books and records as shall be necessary in connection with the contest or defense, all at the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is entitled to indemnification therefor under Section 8). Any information shared by a Party pursuant to this Section 6(b) shall be the Confidential Information of the disclosing Party, and shall not be used or disclosed by the receiving party, its Affiliates or any of their respective Representative for any reason except to the extent necessary to contest or defend the applicable Claim. The disclosing Party may condition the disclosure of any confidential information provided pursuant to this Section 6(b) upon receipt of an Order from a Governmental Authority or other assurance from the recipient of such information that confidential treatment will be accorded to such information. 
a.Non-Disparagement. Each Party covenants and agrees that it will not make, or 
permit its Affiliates or any of their respective Representatives, successors or assigns to make, any false, misleading, derogatory or disparaging statements concerning the other Parties, their Affiliates, or any of their respective Representatives, successors or assigns. Nothing in this Section 6(c) shall limit a Party’s, its Affiliates’ or any of their respective Representatives’ ability to make true and accurate statements or 

communications in connection with any disclosure such Party, Affiliate or Representative is required pursuant to Applicable Law (including without limitation pursuant to any Securities Law or securities exchange rule or regulation). 
a.Transition. The Seller shall not, and shall cause its Affiliates and all of their 
respective Representatives not to, take any action that is designed or intended to have the effect of discouraging any lessor, licensor, contractor, customer, supplier, or other business associate of either Company from maintaining the same business relationships with such Company after the Closing as it maintained with such Company prior to the Closing.  
a.Confidentiality. Seller has had access to, and has gained knowledge with respect 
to, confidential and proprietary information of the Companies, including without limitation, trade secrets, existing or prospective product offerings, processes and formulas, know-how and other operating information, existing or prospective customers, suppliers and vendors and historical and current financial statements, financial projections and budgets (the “Confidential Information”). Seller acknowledges that unauthorized disclosure or misuse of the Confidential Information, whether before or after the Closing, could cause irreparable damage to each Company, Buyer and/or Buyer’s Affiliates after to the Closing. The Parties also agree that covenants by Seller not to make unauthorized disclosures of the Confidential Information are essential to the growth and stability of either Company's  and Buyer’s and its other Affiliates businesses after Closing. Accordingly, Seller agrees that, beginning on the Closing Date and continuing until the one (1) year anniversary of the Closing Date, it will not, and will cause its Affiliates and all of their respective Representatives not to, use or disclose any Confidential Information obtained in the course of their past ownership or other connection with either Company. Notwithstanding the foregoing, Seller, its Affiliates and all of their respective Representatives may disclose the Confidential Information to the extent required by Applicable Law or any Governmental Authority, or in connection with the defense or enforcement of Seller’s rights and obligations under this Agreement, or to the extent such Confidential Information becomes publicly available through no breach of this Agreement or other fault of the Seller, its Affiliates or any of their respective Representatives. If Seller, an Affiliate of Seller or any of their respective Representatives is requested or required by Applicable Law or Governmental Authority to disclose any Confidential Information, such Person will notify Buyer promptly of the request or requirement so that Buyer may seek an appropriate protective Order at its sole expense or waive compliance with the provisions of this Section 6(e). If in the absence of a protective Order or the receipt of a waiver hereunder, such Person is, on the advice of counsel, compelled to disclose any Confidential Information to any Governmental Authority or else stand liable for contempt, such Person may disclose such Confidential Information to such Governmental Authority; provided, however, that the disclosing party will use commercially reasonable efforts to obtain, at the request and sole expense of Buyer, an Order or other assurance that confidential treatment will be accorded to such portion of the Confidential Information required to be disclosed as Buyer may designate.  
a.Injunctive Relief. Seller acknowledges and agrees that: (i) a remedy at law for 
failure to comply with its covenants contained in this Agreement may be inadequate; and (ii) Buyer will be entitled to seek from a court having jurisdiction, in its sole discretion, specific performance, an injunction, a restraining Order or any other equitable relief in order to enforce any such provision without the need to post a bond. The right to obtain such equitable relief will be in addition to any other remedy to which Buyer is entitled under Applicable Law (including, but not limited to, monetary damages). Each Party acknowledges that it has had an opportunity to consult with counsel regarding this Agreement, has fully and completely reviewed this Agreement with such counsel and fully understands the contents hereof. Seller agrees that the territorial, time and other limitations contained in this Agreement are reasonable and properly required for the adequate protection of the business and affairs of Buyer, and in the event that any one or more of such territorial, time or other limitations is found to be unreasonable by a court of competent jurisdiction, Seller agrees to submit to the reduction of said territorial, time or other limitations to such an area, period or otherwise as the court may determine to be reasonable. In the event that any limitation under this Agreement is found to be unreasonable or otherwise invalid in any jurisdiction, in whole or in part, Seller acknowledges and agrees that such limitation will remain and be valid in all other jurisdictions. 
a.Transfer Fees and Taxes. All transfer, documentary, sales, use, stamp, registration, 
value added, change of control and application costs, fees and/or Taxes (including any penalties and interest) incurred, imposed or assessed in connection with the Transaction and the documents and agreements to be delivered hereunder (“Transfer Fees”) shall be borne fifty percent (50%) by Seller and 

fifty percent (50%) by Buyer. Buyer shall timely pay any Transfer Fees and timely file any Tax Return or other document with respect to such costs, fees and/or Taxes (and Seller shall, and shall cause each Company to, cooperate with respect thereto as necessary).  Upon payment in full of any Transfer Fees by Buyer, the Purchase Price shall be reduced by fifty percent (50%) of the amount of such Transfer Fees paid by Buyer.  
                Section 7.         Conditions to Obligation to Close. 
a.Conditions to Buyer’s Obligation. Buyer’s obligation to consummate the 
Transactions is subject to satisfaction of the following conditions: 
i.The representations and warranties of Seller set forth in Section 4 shall be 
true and correct in all material respects at and as of the Closing Date, except to the extent that such representations and warranties are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case such representations and warranties (as so written, including the term “material” or “Material”) shall be true and correct in all respects at and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); 
i.Seller shall have performed and complied in all material respects with all 
of their respective covenants hereunder that are required to be performed or complied with at or prior to Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case Seller shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects at or prior to Closing;  
i.The Parties shall have obtained all regulatory approvals necessary to 
consummate the Transaction, including, without limitation, approval from the CCB and such other Governmental Authorities as may be required to approve the transfer of ownership of the Companies to Buyer; 
i.The Transaction shall have been approved by the managers/members, as 
applicable, of the Seller;  
i.No Governmental Authority shall have enacted, issued, promulgated, 
enforced or entered any Order which is in effect and has the effect of: (A) making the Transaction contemplated by this Agreement or any part thereof illegal (excepting illegality arising out of the Federal Cannabis Laws); (B) restraining or prohibiting consummation of the Transaction or any part thereof; (C) or causing the Transaction or any part thereof to be rescinded following consummation; 
i.The Seller shall have delivered to Buyer a certificate., executed by or on 
behalf of Seller, representing that each of the conditions specified in Section 8(a)(i), Section 8(a)(ii) and Section 8(a)(iii) above are satisfied in all respects as of the Closing Date; 
i.Buyer shall have received, free and clear of all Liens, an assignment with 
respect to the Company Interests, in each case in form and substance satisfactory to Buyer in its reasonable discretion; 
i.From the Effective Date, there shall not have occurred any Material Adverse Effect or Material Adverse Change to either Company or its businesses, or to Seller’s or either Company’s ability to consummate the Transaction, nor shall any event or series or related events have occurred that, individually or in the aggregate, with or without the lapse of time, would reasonably be expected to result in a Material Adverse Effect or Material Adverse Change to either Company or its businesses taken as a whole, or any Seller’s or either Company’s ability to consummate the Transaction;  
ii.The transactions (the “Merger Transactions”) contemplated by that 
certain Agreement and Plan of Merger of even date herewith by and among  Jushi Holdings Inc., certain subsidiaries of Jushi Holdings Inc., NuLeaf Capital Investors Group, LLC, NuLeaf Operators, LLC, NuLeaf CLV Capital Investors, LLC, Buyer and NuLeaf CLV Inc., shall have been consummated;  
i.No Claim involving Seller shall be pending or threatened before any court 
or quasi-judicial or administrative agency of any federal, state, local, or non-U.S. jurisdiction or before any arbitrator wherein an unfavorable Order would: (A) prevent consummation of any of the Transaction or any part thereof; or (B) cause the Transaction or any part thereof to be rescinded following consummation; and 
i.All other actions to be taken by Seller in connection with consummation 

of the Transaction and all certificates, opinions, instruments, and other documents required to effect the Transaction shall be delivered to Buyer, and shall be in form and substance satisfactory to Buyer in its reasonable discretion. 
Buyer may waive any condition specified in this Section 7(a) if it executes a writing so stating at or prior to the Closing. 
a.Conditions to Seller’s Obligation. The obligation of Seller to consummate the Transaction is subject to satisfaction of the following conditions: 
i.The representations and warranties of Buyer set forth in Section 3 shall be 
true and correct in all material respects at and as of the Closing Date, except to the extent that such representations and warranties are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case such representations and warranties (as so written, including the term “material” or “Material”) shall be true and correct in all respects at and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); 
i.Buyer shall have performed and complied in all material respects with all 
of Buyer’s covenants hereunder that are required to be performed or complied with at or prior to Closing, except to the extent that such covenants are qualified by the term “material,” or contain terms such as “Material Adverse Effect” or “Material Adverse Change,” in which case Buyer shall have performed and complied with all of such covenants (as so written, including the term “material” or “Material”) in all respects at or prior to Closing,  
i.The Transaction shall have been approved by the Board of Directors of Buyer;  
ii.The Parties shall have obtained all regulatory approvals necessary to 
consummate the Transaction, including, without limitation, approval from the CCB and such other Governmental Authorities as may be required to transfer ownership of the Cannabis Licenses and all other Permits from each Company to Buyer; 
i.No Claim involving Buyer shall be pending or threatened before any court 
or quasi-judicial or administrative agency of any federal, state, local, or non-U.S. jurisdiction or before any arbitrator wherein an unfavorable Order would: (A) prevent consummation of any of the Transaction or any part thereof; or (B) cause the Transaction or any part thereof to be rescinded following consummation; 
i.No Governmental Authority shall have enacted, issued, promulgated, 
enforced or entered any Order which is in effect and has the effect of: (A) making the Transaction contemplated by this Agreement or any part thereof illegal (excepting illegality arising out of the Federal Cannabis Laws); (B) restraining or prohibiting consummation of the Transaction or any part thereof; (C) or causing the Transaction or any part thereof to be rescinded following consummation; 
i.Buyer shall have delivered to the Seller a certificate, executed by Buyer, 
representing that each of the conditions specified in Section 8(b)(i), Section 8(b)(ii), Section 8(b)(iii) and 
Section 8(b)(iv) above are satisfied in all respects as of the Closing Date; 
i.Buyer shall have delivered the Purchase Price to Seller;  
ii.All actions to be taken by Buyer in connection with consummation of the Transaction and all certificates, opinions, instruments, and other documents required to effect the Transaction will be delivered to the Seller and in form and substance reasonably satisfactory to the Seller; 
Seller may waive any condition specified in this Section 7(b) if it execute a writing so stating at or prior to the Closing. 
                Section 8.         Remedies for Breaches of This Agreement. 
a.Survival of Representations and Warranties.  
i.The Parties, intending to shorten the applicable statute of limitation period, 
agree that all representations and warranties of Seller contained in Section 4 of this Agreement will survive until the first (1st) anniversary of the Closing Date (or, in the case of termination, the effective date of such termination); except that the representations and warranties in Section 4(a) (Organization), Section 4(b) (Authorization of Transaction), Section 4(e) (Free and Clear), Section 4(f) (Brokers’ Fees) (collectively, the “Seller’s Fundamental Representations”) will survive indefinitely, and the representations and warranties made in Section 4(c) (No Conflict or Violation); and Section 4(d) 

(Consents and Approvals) (collectively, the “Seller SL Representations” and together with Seller’s Representations, the “Seller’s Excluded Representations”) will survive the Closing Date (or, in the case of termination, the effective date of such termination) until sixty (60) days following the expiration of all applicable statutes of limitations (giving effect to any waiver, or extension thereof). All covenants and agreements made by Seller contained in this Agreement that by their nature contemplate survival beyond the Closing Date or termination of this Agreement (including the indemnification obligations set forth in this Section 8) will survive the Closing Date (or, in the case of termination, the effective date of such termination) until fully performed or discharged. Any Claim by Buyer for a breach of a representation, warranty or covenant by Seller contained in this Agreement must be delivered to the Seller in writing prior to the applicable expiration date set forth in this Section 8(a), and if not so delivered shall be irrevocably barred. All of the representations and warranties of Seller contained in this Agreement will not be limited or diminished in any respect by any past or future inspection, investigation, examination or possession on the part of Buyer, its Affiliates or any of their respective Representatives. Notwithstanding the foregoing or anything contained herein to the contrary, any Claim by Buyer based on a Seller’s, their Affiliates’ or any of their respective Representatives’ fraud will survive indefinitely. 
i.The Parties, intending to shorten the applicable statute of limitation period, 
agree that all representations and warranties of Buyer contained in Section 3 of this Agreement will survive until the first (1st) anniversary of the Closing Date (or in the event of termination, the effective date of such termination); except that the representations and warranties in Section 3(a) (Organization), Section 3(b) (Authorization of Transaction), Section 3(e) (Brokers’ Fees) (collectively, the “Buyer Excluded Representations”) will survive indefinitely, and the representations and warranties made in Section 3(c) (No Conflict or Violation), Section 3(d) (Consents and Approvals) (collectively, the “Buyer SL Representations”) will survive the Closing Date (or, in the case of termination, the effective date of such termination) until sixty (60) days following the expiration of all applicable statutes of limitations (giving effect to any waiver, or extension thereof). All covenants and agreements made by Buyer contained in this Agreement that by their nature contemplate survival beyond the Closing Date or termination of this Agreement (including the indemnification obligations of Buyer set forth in this Section 8) will survive the Closing Date (or, in the case of termination, from the effective date of such termination) until fully performed or discharged. Any Claim by the Seller for a breach of a representation, warranty or covenant by Buyer contained in this Agreement must be delivered in writing to Buyer prior to the above-referenced applicable expiration date, and if not so delivered shall be irrevocably barred. Notwithstanding the foregoing or anything contained herein to the contrary, any Claim by the Seller based on Buyer’s, its Affiliates or any of their respective Representatives’ fraud will survive indefinitely. 
i.Written notice of any Claim for breach of representation, warranty or 
covenant delivered to the Party against whom such indemnification is sought prior to the above referenced applicable expiration date will survive thereafter and, as to any such Claim, such expiration, if any, will not affect the rights to indemnification under this Section 8 of the Party bringing such Claim. 
a.Indemnification by Seller. In the event a Seller or a Company breaches (or in the 
event any third party alleges facts that, if true, would mean a Seller has breached) any of its representations, warranties or covenants contained herein, and provided Buyer provides the Seller with timely written notice of a Claim for which Buyer is seeking indemnification pursuant to Section 8(a)(i) hereof, Seller shall be obligated to indemnify, defend and hold Buyer, its Affiliates and all their respective Representatives (collectively, the “Buyer Parties”) harmless from and against the entirety of any Adverse Consequences a Buyer Party may suffer (including any Adverse Consequences a Buyer Party may suffer after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by such breach (or alleged breach), subject to Section 8(d) below. For the avoidance of doubt, this Section 8(b) shall survive the Closing (or, in the case of termination, the effective date of such termination). 
a.Indemnification by Buyer. In the event Buyer breaches (or in the event any third 
party alleges facts that, if true, would mean Buyer has breached) any of its representations, warranties or covenants contained herein, and provided the Seller provides Buyer with timely written notice of a Claim for which Seller is seeking for indemnification pursuant to Section 8(a)(ii) hereof, Buyer shall be obligated to indemnify, defend and hold Seller harmless from and against the entirety of any Adverse Consequences Seller may suffer (including any Adverse Consequences such Seller may suffer after the end of any applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused 

by the breach (or alleged breach). For the avoidance of doubt, this Section 8(c) shall survive the Closing (or, in the case of termination, the effective date of such termination). 
a.Limitations on Indemnification. 
i.For purposes of this Section 8(d), the term “Threshold” means a dollar 
amount equal to $65,000. 
i.No Seller shall be liable for any Adverse Consequences pursuant to Section 8(b) until the aggregate amount of all Adverse Consequences suffered by the Buyer Parties exceeds the Threshold, in which case, subject to Seller Maximum Indemnification Liability, the Buyer Parties will be entitled to recover all Adverse Consequences paid, incurred, suffered or sustained by the Buyer Parties (including, for the avoidance of doubt, the Threshold amount). For purposes hereof, the “Seller Maximum Indemnification Liability” shall be equal to fifty percent (50%) of the Purchase Price. Notwithstanding the foregoing, with respect to any Claim by Buyer Party arising out of, relating to, in the nature of, or caused by: (A) the Seller’s Excluded Representations; or (B) a Seller’s, their Affiliates’ or any of their respective Representatives’ intentional misrepresentation or fraud, the Seller shall be responsible for all Adverse Consequences without application of the Threshold up to a maximum amount equal to one hundred percent (100%) of the Purchase Price. 
ii.Buyer shall not be liable for any Adverse Consequences pursuant to Section 8(c) until the aggregate amount of all Adverse Consequences suffered by the Seller exceeds the Threshold, in which case, subject to the Buyer Maximum Indemnification Liability, the Seller will be entitled to recover all Adverse Consequences paid, incurred, suffered or sustained by the Seller (including, for the Threshold amount). For purposes hereof, the “Buyer Maximum Indemnification Liability” shall be equal to fifty percent (50%) of the Purchase Price. Notwithstanding the foregoing, with respect to any Claim by the Seller arising out of, relating to, in the nature of, or caused by: (A) a Buyer Excluded Representation, or (B) Buyer’s, its Affiliates’ or any of their respective Representatives’ intentional misrepresentation or fraud, Buyer shall be responsible for all Adverse Consequences without application of the Threshold up to a maximum amount equal to one hundred percent (100%) of the Purchase Price. 
b.Notification of Claims. In the event that any Person (the “Indemnified Party”) 
becomes entitled to indemnification pursuant to this Agreement, the Indemnified Party may deliver to the Party responsible for the indemnification (the “Indemnifying Party”) a signed certificate (an “Indemnification Notice”), which certificate will: (i) state that a Claim for indemnification is being made; (ii) specify the section(s) of this Agreement that have been breached by the Indemnifying Party or any other Person for whom the Indemnifying Party is responsible to provide indemnification hereunder, (iii) state that Adverse Consequences have occurred or are reasonably likely to occur; and (iii) to the extent possible, specify in reasonable detail each individual Adverse Consequence including the amount thereof and the date such Adverse Consequence was incurred. In addition, each Indemnified Party will give notice to the Indemnifying Party promptly following its receipt of service of any Claim initiated by an unaffiliated third party which pertains to a matter for which indemnification may be sought hereunder (a “Third-Party Claim”); provided, however, that the failure to give such notice will not relieve the Indemnifying Party of its obligations hereunder if the Indemnifying Party has not been prejudiced thereby. 
a.Defense of Third-Party Claims. 
i.An Indemnifying Party will have the right to defend the Indemnified Party 
against the Third-Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party so long as: (A) the Indemnifying Party notifies the Indemnified Party in writing within fifteen (15) days after the Indemnified Party has given notice of the Third-Party Claim that the Indemnifying Party will indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim; (B) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend against the Third-Party Claim and fulfill its indemnification obligations hereunder; (C) the Third-Party Claim involves only money damages and does not seek an injunction or other equitable relief; (D) 

settlement of, or an adverse judgment with respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to establish a precedential custom or practice materially adverse to the continuing business interests or the reputation of the Indemnified Party or its Affiliates; (E) the Indemnifying Party conducts the defense of the Third-Party Claim with reasonable diligence; and (F) settlement of, or an adverse judgment with respect to, the Third Party Claim is not, in the good faith judgment of the Indemnified Party, likely to result in criminal proceedings against the Indemnified Party or its Affiliates. 
i.So long as the Indemnifying Party is conducting the defense of the Third- Party Claim in accordance with Section 8(f)(i): (A) the Indemnified Party may retain separate co-counsel at his, her, or its sole cost and expense and participate in the defense of the Third-Party Claim; (B) the Indemnified Party will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without the prior written consent of the Indemnifying Party (not to be unreasonably withheld, conditioned or delayed); and (C) the Indemnifying Party will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld) and without the Indemnified Party receiving an unconditional release of such Third-Party Claims. 
ii.In the event any of the conditions in Section 8(f)(i) above is or becomes 
unsatisfied, however: (A) the Indemnified Party may defend against, and consent to the entry of any judgment on or enter into any settlement with respect to, the Third-Party Claim in any manner it may reasonably deem appropriate (provided that the Indemnified Party shall consult with the Indemnifying Party with respect to the defense of the Third-Party Claim, and shall not agree to any settlement thereof without the consent thereto of the Indemnifying Party, such consent not to be un reasonably withheld, conditioned or delayed); (B) the Indemnifying Party will reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third-Party Claim (including reasonable attorneys’ fees and expenses); and (C) the Indemnifying Party will remain responsible for any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim to the fullest extent provided in this Section 8. 
a.Direct Claims. In the event of a Claim for indemnification under this Agreement 
for which an Indemnified Party has provided notice of such Claim to an Indemnifying Party under this Section 8 (but excluding any Third-Party Claim) and the Indemnifying Party receiving such notice disputes all or any part of such Claim, then Buyer and Seller will first attempt to resolve such Claim through direct negotiations in good faith. No settlement reached in such negotiations under this Section 8(g) will be binding until reduced to a writing signed by all of the applicable Parties. If the dispute is not resolved within twenty (20) business days after the date of delivery of such Claim, then such dispute will be resolved in accordance with Section 11(c). Nothing in this Section 8(g) will prevent any Party from seeking injunctive or other equitable relief in accordance with this Agreement. 
a.Other Indemnification Matters.  
b.All indemnification payments made pursuant to this Section 8 will be 
treated as an adjustment to the Purchase Price unless otherwise required by Applicable Law. 
i.The foregoing indemnification provisions are in addition to, and not in 
derogation of, any statutory, equitable, or common law remedy any Party may have with respect to the Transaction.  
i.Seller hereby agrees that Seller will not make any demand for 
indemnification, reimbursement, contribution or any other amount whatsoever from either Company in connection with Seller’s indemnification obligations set forth in this Section 8, and neither Company shall have any obligation to indemnify, reimburse, contribute or pay any amount to any Seller or any other Person in connection with Seller’s indemnification obligations under this Section 8. 
Section 9. Tax Matters. The following provisions shall govern the allocation of responsibility as between Buyer and Seller for certain tax matters following the Closing Date: 
a.The Seller will prepare or cause to be prepared and will file or cause to be filed all Tax Returns for each Company for all Tax periods ending prior to the Closing Date (the “Pre-Closing Tax Periods”). Each Tax Return referred to in this Section 9(a) will be prepared in a manner consistent with past practices of the applicable each Company and without a change of any election, accounting method or convention (in each case except as otherwise required by 

Applicable Law). At least thirty (30) days prior to the date on which each such Tax Return is due (with applicable extensions), the Seller will submit such Tax Return to Buyer for review, and comment, and approval (not to be unreasonably withheld, conditioned or delayed). Buyer will provide any written comments to the Seller no later than fifteen (15) days after receiving any such Tax Return and, if Buyer does not provide any written comments within fifteen (15) days, Buyer will be deemed to have accepted such Tax Return. Seller and the Buyer will attempt in good faith to resolve any dispute with respect to any such Tax Return. If Buyer and the Seller are unable to resolve any such dispute at least five (5) days before the due date (with applicable extensions) for any such Tax Return (“Tax Dispute”), the matter will be referred to an impartial nationally recognized firm of independent certified public accountants as may be mutually selected by Buyer and Seller (the “Independent Accountant”). The Independent Accountant may, in its discretion, obtain the services of any third party necessary to assist it in resolving the Tax Dispute. The Seller and Buyer shall instruct the Independent Accountant to furnish notice to each the Seller and Buyer of its resolution of the Tax Dispute as soon as practicable, but in any event no later than 30 calendar days after its acceptance of the matter for resolution. Any such resolution by the Independent Accountant will be binding on the Parties and the Seller and Buyer shall take, or cause to be taken, any action necessary to implement the resolution. All fees and expenses of the Independent Accountant shall be borne fifty percent (50%) by the Seller and fifty percent (50%) by the Buyer. 
b.Buyer will prepare or cause to be prepared and will file or cause to be filed all Tax Returns of each Company that are required to be filed after the Closing Date with respect to any Straddle Period. Each Tax Return referred to in this Section 9(b) will be prepared in a manner consistent with past practices of the applicable Company and without a change of any election, accounting method or convention (in each case except as otherwise required by Applicable Law).  
c.For purposes of this Section 9, the portion of Tax with respect to the income, 
property or operations of each Company that is attributable to any Tax period that begins on or before the Closing Date and ends on or after the Closing Date (a “Straddle Period”) will be apportioned between the period of the Straddle Period that extends before the Closing Date through the day immediately prior to the Closing Date (the “Pre-Closing Straddle Period”) and the period of the Straddle Period that extends from the Closing Date to the end of the Straddle Period (the “Post-Closing Straddle Period”) in accordance with this Section 9(c). The portion of such Tax attributable to the Pre-Closing Straddle Period will: (i) in the case of any Taxes other than sales or use taxes, value-added taxes, employment taxes, withholding taxes, and any Tax based on or measured by income, receipts or profits earned during a Straddle Period, be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction, the numerator of which is the number of days in the Pre-Closing Straddle Period and the denominator of which is the number of days in the Straddle Period; and (ii) in the case of any sales or use taxes, value-added taxes, employment taxes, withholding taxes, and any Tax based on or measured by income, receipts or profits earned during a Straddle Period, be deemed equal to the amount that would be payable if the Straddle Period ended on and excluded the Closing Date. The portion of a Tax attributable to a Post-Closing Straddle Period will be calculated in a corresponding manner.  
a.The Seller shall be Liable for fifty percent (50%) of all Taxes owed with respect 
to any Tax Return for any Pre-Closing Tax Period and, in the case of a Tax Return for a Straddle Period, all Taxes attributable to the Pre-Closing Straddle Period together with any reasonable out-of-pocket fees and expenses (including attorneys’ and accountants’ fees) incurred in connection therewith. The Seller shall pay to Buyer within fifteen (15) days after the date on which any Seller receives written notice that Taxes are paid with respect to such periods or transactions in an amount equal to the portion of such Taxes which relates to the portion of such Pre-Closing Tax Period or Pre-Closing Straddle Period, as the case may be, for which Seller is responsible hereunder. 
a.The Seller and Buyer will cooperate fully in connection with the filing of Tax Returns pursuant to this Section 9 and any audit, litigation, or other proceeding with respect to Taxes. Such cooperation will include (upon the other Person’s request) the provision of records and information that are available and reasonably relevant to any such audit, litigation, or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Seller and Buyer further agree, upon the request of the other Person, to use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may 

be necessary to mitigate, reduce, or eliminate any Tax that could be imposed (including, but not limited to, with respect to the Transaction). 
b.Notwithstanding Section 8 or anything contained herein to the contrary, to the 
extent of any inconsistences between Section 8 and this Section 9(f), this Section 9(f) will control any inquiries, assessments, proceedings or similar events with respect to Taxes. Buyer will promptly notify the Seller: (i) upon receipt by Buyer or any Affiliate of Buyer of any notice of any audit or examination of any Tax Return of any Company relating to any Pre-Closing Tax Period or Straddle Period and any other proposed change or Claim related to Taxes from any Tax authority relating to any Pre-Closing Tax Period or Straddle Period (a “Tax Matter”); or (ii) prior to Buyer or any Company initiating any Tax Matter with any Tax authority relating to any Pre-Closing Tax Period or Straddle Period. The Seller, at the Seller’s sole cost and expense, may participate in the defense of any such Tax Matter; provided that the failure of Buyer to provide notices as required under this Section 9(f) will not negate Buyer’s right to indemnification under this Section 9 and Section 8 with respect to Tax Liabilities resulting from such Tax Matter except to the extent that the Seller is prejudiced as a result of such failure. Buyer shall have the right, at its own expense, to exercise control at any time over any Tax Matter regarding any Tax Return of either Company (including the right to settle or otherwise terminate any contest with respect thereto). 
a.Fifty percent (50%) of any refunds for Taxes (including any interest in respect 
thereof actually received from a Governmental Authority), net of reasonable expenses and net of any income Taxes of Buyer, either Company or any of their respective Affiliates attributable to such refund, actually received by Buyer or either Company, and any amounts credited against Taxes to which Buyer, either Company, or any of their respective Affiliates become entitled and that reduce or could reduce the Taxes otherwise payable by Buyer, either Company, or any of their respective Affiliates (including by way of any amended Tax return), related to, or resulting or arising, directly or indirectly from Taxes of either Company for any Pre-Closing Tax Period or Pre-Closing Straddle Period shall be for the benefit of Seller (excluding any refund or credit attributable to any loss in a tax year (or portion of a Straddle Period) beginning on or after the Closing Date applied (e.g., as a carryback) to income in a tax year (or portion of a Straddle Period) ending on or before the Closing Date).  
a.Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 9 will survive for the full period of all applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof) plus sixty (60) days and, except to the extent specifically set forth in Section 9(f) above, any indemnification obligations arising pursuant to this Section 9 will be subject to the provisions of Section 8 hereof. 
                Section 10.       Termination. 
a.Termination of Agreement. This Agreement may be terminated, and the Transaction may be abandoned at any time prior to the Closing Date: 
i.By mutual written consent of Buyer and the Seller; 
ii.By either Buyer or the Seller if a Governmental Authority will have issued 
an Order or taken any other action (excluding any Order or action arising under, relating to or in connection with the Federal Cannabis Laws), in each case that has become final and non-appealable and that restrains, enjoins or otherwise prohibits the Transaction or any part of it; provided, that the right to terminate this Agreement under this Section 10(a) will not be available to any Person whose failure to fulfill any material obligation under this Agreement has resulted in the issuance of such Order or caused such action; 
i.By Buyer upon written notice to the Seller at any time prior to Closing if: (A) Seller has breached any representation, warranty or covenant contained in this Agreement in any material respect and (1) the breach cannot be cured, or (2) Buyer has notified the Seller of the breach in writing, and the breach has continued without cure for a period of thirty (30) days after receipt by the Seller of the written notice of breach; (B) Buyer determines in there has been, or is likely to be, a failure of a condition precedent to Buyer’s obligation to consummate the Transaction; (C) Buyer determines there has been, or is reasonably likely to be, a Material Adverse Effect on, or a Material Adverse Change to, the Companies taken as a whole, or that the Merger Transaction has been terminated or otherwise will not be consummated; (D) the Closing has not occurred by the eighteen (18) month anniversary of the Effective 
Date; or 

i.By the Seller upon written notice to Buyer at any time prior to Closing if: (A) Buyer has breached any representation, warranty or covenant contained in this Agreement in any material respect and (1) the breach cannot be cured, or (2) the Seller has notified Buyer of the breach in writing, and the breach has continued without cure for a period of thirty (30) days after receipt by Buyer of the written notice of breach, (B) Seller determines in there has been, or is likely to be, a failure of a condition precedent to Seller’s obligation to consummate the Transaction; or (C) the Closing has not occurred by the eighteen (18) month anniversary of the Effective Date. 
b.Effect of Termination. If this Agreement is terminated and the Transaction
contemplated herein is abandoned prior to Closing pursuant to Section 10(a), this Agreement will forthwith become void, without Liability on the part of any Party hereto (except for the provisions of this Section 10(b) and Section 8, Section 11(b), Section 11(c), Section 11(d) and Section 11(q), and such other provisions herein that contemplate survival beyond termination of this Agreement, all of which shall all survive such termination), and all rights and obligations of each Party will cease and be of no further force or effect, except that nothing in this Section 10(b) will relieve any Party from Liability imposed upon such Party pursuant to any Section of this Agreement that survives termination. 
                Section 11.       Miscellaneous. 
a.Further Assurances. Following the Closing Date, each Party will cooperate in good 
faith with each other Party and will take all commercially reasonable actions which may be reasonably necessary or advisable to carry out and consummate the Transactions. 
a.Notices. Unless otherwise provided in this Agreement, any agreement, notice,
request, instruction or other communication to be given hereunder will be in writing and: (i) delivered personally (such delivered notice to be effective on the date it is delivered), (ii) deposited with a reputable overnight courier service for next business day delivery (such couriered notice to be effective one (1) business day after the date it is sent by courier), or (iii) sent by e-mail (with electronic confirmation of delivery or receipt; to be effective upon receipt during normal business hours, or on the next business day if received after normal business hours), as follows: 
If to the Seller (which shall constitute notice to each Seller): 
Telephone: Email: 
If to Buyer: 
Telephone: Email:  
With copies to: 
Telephone:  
Fax:  
Email:  
and 
Telephone: Email:
Buyer or the Seller may, upon written notice to the other Person, designate any other physical or email address to which, and any other Person to whom or which, a copy of any such notice, request, instruction or other communication should be sent. 
a.Governing Law; Dispute Resolution.
i.All issues and questions concerning the application, construction, validity,
interpretation, and enforcement of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada, without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Nevada. 
i.Each Party hereby agrees that any Claim seeking to enforce any provision
of, or based on any matter arising out of or in connection with, this Agreement or the Transaction, whether in contract, tort, or otherwise, shall be brought exclusively in the state courts of the State of Nevada located in Clark County. Each Party hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action, or proceeding and irrevocably waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding in any such court or that any such suit, action, or proceeding which is brought in any such court has been brought in an inconvenient forum. 
i.EACH PARTY WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL

BY JURY OF ANY CAUSE OF ACTION BASED UPON OR ARISING OUT OR RELATED TO THIS AGREEMENT IN ANY CLAIM OF ANY TYPE BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY OR ANY AFFILIATE OF ANY OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH PARTY AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH PARTY FURTHER AGREES THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY CLAIM, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 
a.Expenses. Except to the extent expressly provided to the contrary in this
Agreement: (i) the Seller will pay all legal, accounting and other expenses of Seller related to this Agreement; and (ii) Buyer will pay all legal, accounting and other expenses of Buyer related to this Agreement. 
a.Titles. The headings of the articles and sections of this Agreement are inserted for
convenience of reference only and will not affect the meaning or interpretation of this Agreement. 
a.Waiver. No failure of any Party to require, and no delay by any Party in requiring,
any other Party to comply with any provision of this Agreement will constitute a waiver of the right to require such compliance. No failure of any Party to exercise, and no delay by any Party in exercising, any right or remedy under this Agreement will constitute a waiver of such right or remedy. No waiver by any Party of any right or remedy under this Agreement will be effective unless made in writing. Any waiver by a Party of any right or remedy under this Agreement will be limited to the specific instance and will not constitute a waiver of such right or remedy in the future.  
a.Effective; Binding. This Agreement will be effective upon the due execution hereof
by each Party. Upon becoming effective, this Agreement will be binding upon each Party and its successors and permitted assigns, and will inure to the benefit of, and be enforceable by, each Party and its successors and permitted assigns.  
a.Assignment. Seller may not assign any right or obligation arising pursuant to this
Agreement without first obtaining the written consent of Buyer, which may be granted or withheld in Buyer’s sole discretion. Buyer may not assign any right or obligation arising pursuant to this Agreement without first obtaining the written consent of the Seller, which may be granted or withheld in the Seller’s sole discretion, provided that Buyer may assign all or any of its rights or obligations under this Agreement to one or more Affiliates of Buyer upon prior written notice to Seller (but without the consent of Seller), provided that Buyer will remain liable hereunder for the obligations of the assignee notwithstanding any such assignment.  
a.Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter of this Agreement and supersedes each course of conduct previously pursued, accepted or acquiesced in, and each written or oral agreement and representation previously made, by the Parties with respect to the subject matter of this Agreement. 
b.Modification. No course of performance or other conduct hereafter pursued,
accepted or acquiesced to, and no oral agreement or representation made in the future, by any Party, whether or not relied or acted upon, and no usage of trade, whether or not relied or acted upon, will modify, amend or terminate this Agreement, impair or otherwise affect any obligation of any Party pursuant to this Agreement or otherwise operate as a waiver of any such right or remedy. No modification or amendment of this Agreement will be effective unless made in writing duly executed by the Seller and Buyer. 
a.Counterparts. This Agreement may be executed in one or more counterparts, each
of which will be deemed an original and all of which taken together will constitute one and the same instrument. Any Party may execute this Agreement by facsimile (or other means of electronic transmission, such as by electronic mail in “.pdf” form) signature and the other Parties will be entitled to rely on such facsimile (or other means of electronic transmission) signature as evidence that this Agreement has been duly executed by such Party. 
a.Time is of the Essence. It is understood by each Party that time is of the essence
hereof in connection with all obligations under this Agreement. 
a.Usage of Terms. Except where the context otherwise requires, words importing the

singular number will include the plural number and vice versa. Use of the word “including” means “including, without limitation.” 
a.References to Sections. All references in this Agreement to Sections (and other
subdivisions) and Appendices refer to the corresponding Sections (and other subdivisions) of this Agreement, unless the context expressly, or by necessary implication, otherwise requires. The Recitals and Appendices identified in this Agreement are incorporated herein by reference and made a part hereof. 
a.No Third-Party Beneficiaries. Except to the extent expressly provided to the
contrary in this Agreement, this Agreement shall not confer any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns.  
a.Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
a.Attorneys’ Fees. In the event of any controversy arising under this Agreement or
and ancillary agreement, each Party hereto shall bear its own respective costs, expenses, and attorneys’ fees with respect to such controversy. 
a.Specific Performance. Each Party acknowledges and agrees that the other Parties
would be damaged irreparably in the event any provision of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so that a Party shall be entitled to seek injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in addition to any other remedy to which such Party may be entitled at law or in equity. In particular, the Parties acknowledge and agree that in the event Seller breaches this Agreement, money damages would be inadequate and Buyer would have no adequate remedy at law, so that Buyer shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and the other Parties’ obligations hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable relief. 
a.GENERAL RELEASE AND DISCHARGE.
i.SELLER’S RELEASE. BY VIRTUE OF SELLER’S EXECUTION AND
DELIVERY OF THIS AGREEMENT, AS OF THE CLOSING AND THEREAFTER, SELLER, FOR AND ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, BENEFICIARIES, ADMINISTRATORS, AND AFFILIATES (THE “SELLER RELEASING PARTIES”) DO HEREBY FULLY AND IRREVOCABLY REMISE, RELEASE AND FOREVER DISCHARGE EACH COMPANY, AND EACH COMPANY’S CURRENT AND FORMER OFFICERS, MEMBERS, AFFILIATES, EMPLOYEES, AGENTS, ATTORNEYS, ACCOUNTANTS, SUCCESSORS AND ASSIGNS FROM ANY AND ALL CLAIMS (AS DEFINED HEREIN) AND LIABILITIES (AS DEFINED HEREIN) OF EVERY KIND, EITHER IN LAW OR IN EQUITY, WHETHER CONTINGENT, MATURE, KNOWN OR UNKNOWN, OR SUSPECTED OR UNSUSPECTED, INCLUDING, WITHOUT LIMITATION, ANY CLAIMS ARISING UNDER ANY APPLICABLE LAW, WHETHER ARISING IN CONTRACT OR IN TORT, THAT THE SELLER RELEASING PARTIES EVER HAD, NOW HAVE OR MAY HAVE, FOR OR BY REASON OF ANY CAUSE, MATTER OR THING WHATSOEVER, FROM THE BEGINNING OF THE WORLD TO THE DATE HEREOF. NOTWITHSTANDING THE FOREGOING, THE SELLER RELEASING PARTIES DO NOT WAIVE OR RELEASE ANY RIGHTS OF ANY SELLER CREATED PURSUANT TO THE TERMS OF THIS AGREEMENT AND ANY AGREEMENT ENTERED IN CONNECTION WITH THIS AGREEMENT, OR TO THE BENEFIT OF ANY INSURANCE COVERAGE OF OR INDEMNIFICATION OBLIGATIONS UNDER THE ORGANIZATIONAL DOCUMENTS OF EITHER COMPANY. 
a.Regulatory Compliance. This Agreement is subject to strict requirements for
ongoing regulatory compliance by the Parties, including, without limitation, requirements that the Parties take no action in violation of the Nevada Cannabis Laws or the requirements, guidance or instruction of the CCB. The Parties acknowledge and understand that the Nevada Cannabis Laws and/or the requirements, guidance or instruction of the CCB are subject to change and are evolving as the marketplace for statecompliant cannabis businesses continues to evolve. If necessary or desirable to comply with the requirements of the Nevada Cannabis Laws and/or the requirements, guidance or instruction of the CCB, the Parties hereby agree to promptly (and agree to cause their Affiliates and all of their respective Representatives to) use their respective commercially reasonable efforts to take all actions 

reasonably requested to ensure approval of the CCB for the transfer of the Permits in compliance with the Nevada Cannabis Laws and/or the requirements, guidance or instruction of the CCB, including, without limitation, negotiating in good faith to amend, restate, amend and restate, supplement, or otherwise modify this Agreement to reflect terms that most closely approximate the Parties’ original intentions but are responsive to and compliant with the requirements of the Nevada Cannabis Laws and/or the requirements, guidance or instruction of the CCB. 
[Signature Page Follows]Exhibit 4.1

 

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

 

	Principal Amount: $165,000.00	Issue Date: April 6, 2022
	Actual Amount of Purchase Price: $148,500.00	 

 

PROMISSORY NOTE

 

FOR VALUE
RECEIVED, KISSES FROM ITALY INC., a Florida corporation (hereinafter called the “Borrower” or the “Company”)
(Trading Symbol: KITL), hereby promises to pay to the order of Talos Victory Fund, LLC, a Delaware limited liability company, or
registered assigns (the “Holder”), in the form of lawful money of the United States of America, the principal sum of $165,000.00
(the “Principal Amount”), of which $148,500.00 is the actual amount of the purchase price (the “Consideration”)
hereof plus an original issue discount in the amount of $16,500.00 (the “OID”) (subject to adjustment herein) (the “Principal
Amount”) and to pay interest on the unpaid Principal Amount hereof at the rate of twelve percent (12%) (the “Interest Rate”)
per annum (with the understanding that the first twelve months of interest (equal to $19,800.00) shall be guaranteed and earned in full
as of the Issue Date, provided, however, that if the Note is extinguished in the entirety prior to October 6, 2022, then the interest
owed shall be accrued (and not guaranteed) and computed on the basis of a 365-day year and the actual number of days elapsed) from the
date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment
or otherwise, as further provided herein. The maturity date shall be twelve (12) months from the Issue Date (the “Maturity Date”),
and is the date upon which the Principal Amount (which includes the OID) and any accrued and unpaid interest and other fees, shall be
due and payable.

 

This Note may be prepaid or repaid in whole or in part as
provided in this Note.

 

Any Principal
Amount or interest on this Note which is not paid when due shall bear interest at the rate of the lesser of (i) sixteen percent (16%)
per annum and (ii) the maximum amount permitted by law from the due date thereof until the same is paid (“Default Interest”).
Default Interest shall be computed on the basis of a 365-day year and the actual number of days elapsed.

 

All payments
due hereunder (to the extent not converted into shares of common stock, $0.001 par value per share, of the Borrower (the “Common
Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be
made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this
Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall
instead be due on the next succeeding day which is a business day.

 

Each capitalized
term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement, dated
as of the Issue Date, pursuant to which this Note was originally issued (the “Purchase Agreement”). As used in this Note,
the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of
New York, New York are authorized or required by law or executive order to remain closed. As used herein, the term “Trading Day”
means any day that shares of Common Stock are listed for trading or quotation on the Principal Market (as defined in the Purchase Agreement),
provided, however, that if the Common Stock is not then listed or quoted on any Principal Market, then any calendar day.

This Note
is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights
or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The following terms shall also apply to this Note:

 

 

    	 	1	 

     

    

 

ARTICLE I. CONVERSION RIGHTS

 

1.1 Conversion Right. The Holder shall have the right, on any Trading Day, at any time on or following
the Issue Date, to convert all or any portion of the then outstanding and unpaid Principal Amount and interest (including any Default
Interest) into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital
stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified, at the Conversion Price
(as defined below) determined as provided herein (a “Conversion”); provided, however, that notwithstanding anything
to the contrary contained herein, the Holder shall not have the right to convert any portion of this Note, pursuant to Section 1 or otherwise,
to the extent that after giving effect to such issuance after conversion as set forth on the applicable Notice of Conversion, the Holder
(together with the Holder’s affiliates (the “Affiliates”), and any other Persons (as defined below) acting as a group
together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder and Attribution Parties shall include the number of shares of Common Stock issuable upon
conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (i) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any
of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the
Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 1.1,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Holder is solely responsible for any schedules required to be filed in accordance
therewith. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 1.1, in determining the number
of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.
Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates or Attribution
Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding at the time of the respective calculation hereunder. “Person”
and “Persons” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity and any governmental entity or any department or agency thereof. The limitations contained
in this paragraph shall apply to a successor holder of this Note. The number of Conversion Shares to be issued upon each conversion of
this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on
the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”),
delivered to the Borrower or Borrower’s transfer agent by the Holder in accordance with Section 1.4 below; provided that the Notice
of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the
Borrower or Borrower’s transfer agent before 11:59 p.m., New York, New York time on such conversion date (the “Conversion
Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the Principal
Amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any,
on such Principal Amount at the Interest Rate to the Conversion Date, plus (3) at the Holder’s option, Default Interest,
if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2).

 

 

 

 

    	 	2	 

     

    

 

		1.2	Conversion Price.

 

(a) 
Calculation of Conversion Price. The per share conversion price into which Principal Amount and interest (including any
Default Interest) under this Note shall be convertible into shares of Common Stock hereunder (the “Conversion Price”) shall
equal $0.05, subject to adjustment as provided in this Note. If at any time the Conversion Price as determined hereunder for any conversion
would be less than the par value of the Common Stock, then at the sole discretion of the Holder, the Conversion Price hereunder may equal
such par value for such conversion and the Conversion Amount for such conversion may be increased to include Additional Principal, where
“Additional Principal” means such additional amount to be added to the Conversion Amount to the extent necessary to cause
the number of conversion shares issuable upon such conversion to equal the same number of conversion shares as would have been issued
had the Conversion Price not been adjusted by the Holder to the par value price. Holder shall be entitled to deduct $1,000.00 from the
conversion amount in each Notice of Conversion to cover Holder’s fees associated with each Notice of Conversion. All such Conversion
Price determinations are to be appropriately adjusted for any stock dividend, stock split, stock combination, rights offerings, reclassification
or similar transaction that proportionately decreases or increases the Common Stock. If the Company, at any time while this Note is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock
or any Common Stock Equivalents, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a
reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding
immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after
such event. Any adjustment made pursuant to the immediately preceding sentence shall become effective immediately after the record date
for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re-classification. “Common Stock Equivalents” means any securities
of the Company or the Company’s subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

1.3  
Authorized and Reserved Shares. The Borrower covenants that at all times until the Note is satisfied in full, the Borrower
will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for
the issuance of a number of Conversion Shares equal to the greater of: (a) 3,696,000 shares of Common Stock or (b) the sum of (i) the
number of Conversion Shares issuable upon the full conversion of this Note (assuming no payment of Principal Amount or interest) at the
time of such calculation (taking into consideration any adjustments to the Conversion Price as provided in this Note) multiplied by
(ii) one and a half (1.5) (the “Reserved Amount”). The Borrower represents that upon issuance, the Conversion Shares
will be duly and validly issued, fully paid and non-assessable. The Borrower (i) acknowledges that it has irrevocably instructed its
transfer agent to issue certificates for the Conversion Shares or instructions to have the Conversion Shares issued as contemplated by
Section 1.4(f) hereof, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who
are charged with the duty of executing stock certificates or cause the Company to electronically issue shares of Common Stock to execute
and issue the necessary certificates for the Conversion Shares or cause the Conversion Shares to be issued as contemplated by Section
1.4(f) hereof in accordance with the terms and conditions of this Note.

 

		1.4	Method of Conversion.

 

(a) 
Mechanics of Conversion. This Note may be converted by the Holder in whole or in part, on any calendar day, at any time
on or following the Issue Date, by submitting to the Borrower or Borrower’s transfer agent a Notice of Conversion (by facsimile,
e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 11:59 p.m., New York, New York time). Any
Notice of Conversion submitted after 11:59 p.m., New York, New York time, shall be deemed to have been delivered and received on the next
Trading Day.

 

 

    	 	3	 

     

    

 

(b)  
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire
unpaid Principal Amount is so converted. The Holder and the Borrower shall maintain records showing the Principal Amount so converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to
require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Holder
shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion
of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note
to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered
as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid
Principal Amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions
of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted Principal Amount of this Note represented
by this Note may be less than the amount stated on the face hereof.

 

(c) 
Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that
of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property
unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the
Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established
to the satisfaction of the Borrower that such tax has been paid.

 

(d) 
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower or Borrower’s transfer agent from the Holder
of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements
for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the
order of the Holder certificates for the Conversion Shares (or cause the electronic delivery of the Conversion Shares as contemplated
by Section 1.4(f) hereof) within two (2) Trading Days after such receipt (the “Deadline”) (and, solely in the case of conversion
of the entire unpaid Principal Amount and interest (including any Default Interest) under this Note, surrender of this Note). If the Company
shall fail for any reason or for no reason to issue to the Holder on or prior to the Deadline a certificate for the number of Conversion
Shares or to which the Holder is entitled hereunder and register such Conversion Shares on the Company’s share register or to credit
the Holder’s balance account with DTC (as defined below) for such number of Conversion Shares to which the Holder is entitled upon
the Holder’s conversion of this Note (a “Conversion Failure”), then, in addition to all other remedies available to
the Holder, (i) the Company shall pay in cash to the Holder on each day after the Deadline and during such Conversion Failure an amount
equal to 2.0% of the product of (A) the sum of the number of Conversion Shares not issued to the Holder on or prior to the Deadline and
to which the Holder is entitled and (B) the closing sale price of the Common Stock on the Trading Day immediately preceding the last possible
date which the Company could have issued such Conversion Shares to the Holder without violating this Section 1.4(d); and (ii) the Holder,
upon written notice to the Company, may void all or any portion of such Notice of Conversion; provided that the voiding of all or any
portion of a Notice of Conversion shall not affect the Company’s obligations to make any payments which have accrued prior to the
date of such notice. In addition to the foregoing, if on or prior to the Deadline the Company shall fail to issue and deliver a certificate
to the Holder and register such Conversion Shares on the Company’s share register or credit the Holder’s balance account with
DTC for the number of Conversion Shares to which the Holder is entitled upon the Holder’s exercise hereunder or pursuant to the
Company’s obligation pursuant to clause (ii) below, and if on or after such Trading Day the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable
upon such exercise that the Holder anticipated receiving from the Company, then the Company shall, within two (2) Trading Days after the
Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s
total purchase price (including brokerage commissions and other reasonable and customary out-of-pocket expenses, if any) for the shares
of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate
(and to issue such Conversion Shares) or credit such Holder’s balance account with DTC for such Conversion Shares shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Conversion Shares or credit
such Holder’s balance account with DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price
over the product of (A) such number of shares of Common Stock, times (B) the closing sales price of the Common Stock on the date of exercise.
Nothing shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity, including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates
representing the Conversion Shares (or to electronically deliver such Conversion Shares) upon the conversion of this Note as required
pursuant to the terms hereof.

 

 

    	 	4	 

     

    

 

(e)  
Obligation of Borrower to Deliver Common Stock. At the time that the Holder submits the Notice of Conversion to the Borrower
or Borrower’s transfer agent, the Holder shall be deemed to be the holder of record of the Conversion Shares issuable upon such
conversion, the outstanding Principal Amount and the amount of accrued and unpaid interest (including any Default Interest) under this
Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights
with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or
other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion
as provided herein, the Borrower’s obligation to issue and deliver the certificates for the Conversion Shares (or cause the electronic
delivery of the Conversion Shares as contemplated by Section 1.4(f) hereof) shall be absolute and unconditional, irrespective of the absence
of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment
against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower
to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder
of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower
to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date
so long as the Notice of Conversion is sent to the Borrower or Borrower’s transfer agent before 11:59 p.m., New York, New York time,
on such date.

 

(f)  
Delivery of Conversion Shares by Electronic Transfer. In lieu of delivering physical certificates representing the Conversion
Shares issuable upon conversion hereof, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer or Deposit/Withdrawal at Custodian programs, upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically
transmit the Conversion Shares issuable upon conversion hereof to the Holder by crediting the account of Holder’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission system.

 

1.5  
Concerning the Shares. The Conversion Shares issuable upon conversion of this Note may not be sold or transferred unless
(i) such shares are sold pursuant to an effective registration statement under the 1933 Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of counsel (which opinion shall be the Legal Counsel Opinion (as defined in the Purchase Agreement))
to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or
(iii) such shares are sold or transferred pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption, or (iv) such shares
are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares
only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise
provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the Conversion Shares have
been registered under the 1933 Act or otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption
without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for
the Conversion Shares that has not been so included in an effective registration statement or that has not been sold pursuant to an effective
registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as
appropriate:

 

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

 

 

    	 	5	 

     

    

 

The legend
set forth above shall be removed and the Company shall issue to the Holder a certificate for the applicable Conversion Shares without
such legend upon which it is stamped or (as requested by the Holder) issue the applicable Conversion Shares by electronic delivery by
crediting the account of such holder’s broker with DTC, if, unless otherwise required by applicable state securities laws: (a) such
Conversion Shares are registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold
pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption without any restriction as to the number of securities as
of a particular date that can then be immediately sold, or (b) the Company or the Holder provides the Legal Counsel Opinion (as contemplated
by and in accordance with Section 4(m) of the Purchase Agreement) to the effect that a public sale or transfer of such Conversion Shares
may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected.
The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. The Holder agrees
to sell all Conversion Shares, including those represented by a certificate(s) from which the legend has been removed, in compliance with
applicable prospectus delivery requirements, if any. In the event that the Company does not accept a standard opinion of counsel provided
by the Holder with respect to the transfer of Conversion Shares pursuant to an exemption from registration, such as Rule 144, Rule 144A,
Regulation S, or other applicable exemption, at the Deadline, notwithstanding that the conditions of Rule 144, Rule 144A, Regulation S,
or other applicable exemption, as applicable, have been met and opined by counsel in said opinion, it will be considered an Event of Default
under this Note.

 

		1.6	Effect of Certain Events.

 

(a)   
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower, or the consolidation, merger or other business combination of the Borrower with or into any other Person
(as defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default pursuant to
which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal
to the Default Amount (as defined in this Note) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean
any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b)  
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of this Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another
class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially
all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this
Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which
the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction
(without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect
to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions
for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable,
as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower
shall not effectuate any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, at least thirty
(30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting
of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization,
reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b)
the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b).
The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c)    
Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend
or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after
the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been
payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such
shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

 

    	 	6	 

     

    

 

(d)  
Purchase Rights. If, at any time when all or any portion of this Note is issued and outstanding, the Borrower issues any
convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata
to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the
date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(e)   
Dilutive Issuance. If the Borrower, at any time while this Note or any amounts due hereunder are outstanding, issues, sells
or grants (or has issued, sold or granted as of the Issue Date, as the case may be) any option to purchase, or sells or grants any right
to reprice, or otherwise disposes of, or issues (or has sold or issued, as the case may be, or announces any sale, grant or any option
to purchase or other disposition), any Common Stock or other securities convertible into, exercisable for, or otherwise entitle any person
or entity the right to acquire, shares of Common Stock (including, without limitation, upon conversion of this Note, and any convertible
notes or warrants outstanding as of or following the Issue Date), in each or any case at an effective price per share that is lower than
the then Conversion Price (such lower price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive
Issuance”) (it being agreed that if the holder of the Common Stock or other securities so issued shall at any time, whether by operation
of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on
such date of the Dilutive Issuance), then the Conversion Price shall be reduced, at the option of the Holder, to a price equal to the
Base Conversion Price. Such adjustment shall be made whenever such Common Stock or other securities are issued. By way of example, and
for the avoidance of doubt, if the Company issues a convertible promissory note (including but not limited to a Variable Rate Transaction),
and the holder of such convertible promissory note has the right to convert it into Common Stock at an effective price per share that
is lower than the then Conversion Price (including but not limited to a conversion price with a discount that varies with the trading
prices of or quotations for the Common Stock), then the Holder has the right to reduce the Conversion Price to such Base Conversion Price
(including but not limited to a conversion price with a discount that varies with the trading prices of or quotations for the Common Stock)
in perpetuity regardless of whether the holder of such convertible promissory note ever effectuated a conversion at the Base Conversion
Price. In the event of an issuance of securities involving multiple tranches or closings, any adjustment pursuant to this Section 1.6(e)
shall be calculated as if all such securities were issued at the initial closing.

 

(f)    
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the
events described in Section 1.6 of this Note, the Borrower shall, at its expense and within one (1) calendar day after the occurrence
of each respective adjustment or readjustment of the Conversion Price, compute such adjustment or readjustment and prepare and furnish
to the Holder a certificate setting forth (i) the Conversion Price in effect at such time based upon the Dilutive Issuance, (ii) the number
of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion
of the Note, (iii) the detailed facts upon which such adjustment or readjustment is based, and (iv) copies of the documentation (including
but not limited to relevant transaction documents) that evidences the adjustment or readjustment. In addition, the Borrower shall, within
one (1) calendar day after each written request from the Holder, furnish to such Holder a like certificate setting forth (i) the Conversion
Price in effect at such time based upon the Dilutive Issuance, (ii) the number of shares of Common Stock and the amount, if any, of other
securities or property which at the time would be received upon conversion of the Note, (iii) the detailed facts upon which such adjustment
or readjustment is based, and (iv) copies of the documentation (including but not limited to relevant transaction documents) that evidences
the adjustment or readjustment. For the avoidance of doubt, each adjustment or readjustment of the Conversion Price as a result of the
events described in Section 1.6 of this Note shall occur without any action by the Holder and regardless of whether the Borrower complied
with the notification provisions in Section 1.6 of this Note.

 

1.7  
[Intentionally Omitted].

 

 

 

    	 	7	 

     

    

 

1.8   
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the Conversion Shares covered thereby
(other than the Conversion Shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion
of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights
as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such
shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure
by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all
shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any
portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying
the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the
Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its
records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and
remedies for the Borrower’s failure to convert this Note.

 

1.9  
Prepayment. At any time prior to the date that an Event of Default occurs under this Note (the “Prepayment Period”),
the Borrower shall have the right, exercisable on seven (7) Trading Days prior written notice to the Holder of the Note, to prepay the
outstanding Principal Amount and interest then due under this Note in accordance with this Section 1.9. Any notice of prepayment hereunder
(an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state:
(1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be seven (7) Trading Days
from the date of the Optional Prepayment Notice (the “Optional Prepayment Date”). The Holder shall have the right, during
the period beginning on the date of Holder’s receipt of the Optional Prepayment Notice and until the Holder’s actual receipt
of the full prepayment amount on the Optional Prepayment Date, to instead convert all or any portion of the Note pursuant to the terms
of this Note, including the amount of this Note to be prepaid by the Borrower in accordance with this Section 1.9. On the Optional Prepayment
Date, the Borrower shall make payment of the amounts designated below to or upon the order of the Holder as specified by the Holder in
writing to the Borrower. If the Borrower exercises its right to prepay the Note in accordance with this Section 1.9, the Borrower shall
make payment to the Holder of an amount in cash equal to the sum of: (w) 100% multiplied by the Principal Amount then outstanding plus
(x) accrued and unpaid interest on the Principal Amount to the Optional Prepayment Date.

 

If the Borrower delivers an
Optional Prepayment Notice and fails to pay the applicable prepayment amount due to the Holder of the Note as provided in this Section
1.9, then the Borrower shall forever forfeit its right to prepay any part of the Note pursuant to this Section 1.9.

 

1.10  
Repayment from Proceeds. If, at any time prior to the full repayment or full conversion of all amounts owed under this Note,
the Company receives cash proceeds from any source or series of related or unrelated sources, including but not limited to, from payments
from customers, the issuance of equity or debt, the conversion of outstanding warrants of the Borrower, the issuance of securities pursuant
to an equity line of credit of the Borrower or the sale of assets, the Borrower shall, within one (1) business day of Borrower’s
receipt of such proceeds, inform the Holder of or publicly disclose such receipt, following which the Holder shall have the right in its
sole discretion to require the Borrower to immediately apply up to 10% of such proceeds to repay all or any portion of the outstanding
Principal Amount and interest (including any Default Interest) then due under this Note. Failure of the Borrower to comply with this provision
shall constitute an Event of Default. Notwithstanding the foregoing, this Section 1.10 shall not apply to the cash proceeds received by
the Borrower with respect to Borrower’s issuance of promissory note(s) in the principal amount of up to $850,000 in the aggregate
(including this Note) (the “March Notes”), so long as such promissory note(s) contain the same exact terms and conditions
as contained in this Note.

 

ARTICLE II. RANKING AND
CERTAIN COVENANTS

 

2.1  
Ranking and Security. This Note shall have priority over all unsecured indebtedness of the Borrower, except that this Note
shall be pari passu with respect to the March Notes.

 

2.2  
Other Indebtedness. So long as the Borrower shall have any obligation under this Note, the Borrower shall not (directly
or indirectly through any Subsidiary or affiliate) incur or suffer to exist or guarantee any unsecured indebtedness that is senior to
or pari passu with (in priority of payment and performance) the Borrower’s obligations hereunder, except that this Note shall be
pari passu with respect to the March Notes.

 

 

    	 	8	 

     

    

 

2.3  
Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether
in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of
additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect
of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s
disinterested directors.

 

2.4  
Restriction on Stock Repurchases and Debt Repayments. So long as the Borrower shall have any obligation under this Note,
the Borrower shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange
for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of
the Borrower or any warrants, rights or options to purchase or acquire any such shares, or repay any pari passu or subordinated indebtedness
of Borrower.

 

2.5   
Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any
consent by the Holder to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

2.6    
Advances and Loans; Affiliate Transactions. So long as the Borrower shall have any obligation under this Note, the Borrower
shall not, without the Holder’s written consent, lend money, give credit, make advances to or enter into any transaction with any
person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates
of the Borrower, except loans, credits or advances (a) in existence or committed on the Issue Date and which the Borrower has informed
Holder in writing prior to the Issue Date, (b) in regard to transactions with unaffiliated third parties, made in the ordinary course
of business or (c) in regard to transactions with unaffiliated third parties, not in excess of $100,000. So long as the Borrower shall
have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, repay any affiliate (as defined
in Rule 144) of the Borrower in connection with any indebtedness or accrued amounts owed to any such party.

 

2.7 
3(a)(10) Transaction. So long as this Note is outstanding, the Borrower shall not enter into any transaction or arrangement
structured in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10)
Transaction”). In the event that the Borrower does enter into, or makes any issuance of Common Stock related to a 3(a)(10) Transaction
while this note is outstanding, a liquidated damages charge of 25% of the outstanding principal balance of this Note, but not less than
$25,000, will be assessed and will become immediately due and payable to the Holder at its election in the form of a cash payment or added
to the balance of this Note (under Holder's and Borrower's expectation that this amount will tack back to the Issue Date).

 

2.8 
Preservation of Business and Existence, etc. So long as the Borrower shall have any obligation under this Note, the Borrower
shall not, without the Holder’s written consent, (a) change the nature of its business;

(b) sell, divest, change the
structure of any material assets other than in the ordinary course of business; (c) enter into a Variable Rate Transaction; or (d) enter
into any merchant cash advance transactions. In addition, so long as the Borrower shall have any obligation under this Note, the Borrower
shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become
or remain, and cause each of its Subsidiaries (other than dormant Subsidiaries that have no or minimum assets) to become or remain, duly
qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary.

 

2.9 
Noncircumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate or
Articles of Incorporation or Bylaws, or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Note, and will at all times in good faith carry out all the provisions of this Note and take all action as may be required
to protect the rights of the Holder.

 

2.10   
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall
execute and deliver to the Holder a new Note.

 

 

    	 	9	 

     

    

 

ARTICLE III. EVENTS OF
DEFAULT

 

It shall be considered an event of
default if any of the following events listed in this Article III (each, an “Event of Default”) shall occur:

 

3.1  
Failure to Pay Principal or Interest. The Borrower fails to pay the Principal Amount hereof or interest thereon when due
on this Note, whether at maturity, upon acceleration or otherwise, or fails to fully comply with Section 1.10 of this Note (provided,
however, that with respect to the failure to comply with Section 1.10 of this Note only, there shall be a cure period of five (5) Trading
Days).

 

3.2 
Conversion and the Shares. The Borrower (i) fails to issue Conversion Shares to the Holder (or announces or threatens in
writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance
with the terms of this Note, (ii) fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated
form) any certificate for the Conversion Shares issuable to the Holder upon conversion of or otherwise pursuant to this Note as and when
required by this Note, (iii) fails to reserve the Reserved Amount at all times, (iv) the Borrower directs its transfer agent not to transfer
or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate
for the Conversion Shares issuable to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any
restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued
to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement,
statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for two (2)
Trading Days after the Holder shall have delivered a Notice of Conversion, and/or (v) fails to remain current in its obligations to its
transfer agent (including but not limited to payment obligations to its transfer agent). It shall be an Event of Default of this Note,
if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the
option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced
funds shall be added to the principal balance of the Note.

 

3.3   
Breach of Agreements and Covenants. The Borrower breaches any material covenant, agreement, or other term or condition contained
in the Purchase Agreement, this Note, Irrevocable Transfer Agent Instructions, Warrant (as defined in the Purchase Agreement) (the “Warrant”),
RRA (as defined in the Purchase Agreement) (the “RRA”), or in any agreement, statement or certificate given in writing pursuant
hereto or in connection herewith or therewith, and such material breach is not remedied within five (5) Trading Days from the date that
notice is provided to the Borrower by Holder.

 

 

3.4  
Breach of Representations and Warranties. Any material representation or warranty of the Borrower made in the Purchase Agreement,
this Note, Irrevocable Transfer Agent Instructions, Warrant, RRA, or in any agreement, statement or certificate given in writing pursuant
hereto or in connection herewith or therewith shall be false or misleading in any material respect when made and the breach of which has
(or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase
Agreement, and such material breach is not remedied within five (5) Trading Days from the date that notice is provided to the Borrower
by Holder.

 

3.5    
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such
a receiver or trustee shall otherwise be appointed.

 

3.6  
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $100,000, and shall remain unvacated, unbonded or unstayed for a
period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7    
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary
of the Borrower.

 

 

    	 	10	 

     

    

 

3.8  
Failure to Comply with the 1934 Act. At any time after the Issue Date, the Borrower shall fail to comply with the reporting
requirements of the 1934 Act and/or the Borrower shall cease to be subject to the reporting requirements of the 1934 Act.

 

3.9  
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10  
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to
pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11   
Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property
or other assets which are necessary to conduct its business (whether now or in the future).

 

3.12  
Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any
date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding.

 

3.13   
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially
delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock
in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.14  
Cross-Default. The declaration of an event of default by any lender or other extender of credit to the Company under any
notes, loans, agreements or other instruments of the Company evidencing any indebtedness of the Company (including those filed as exhibits
to or described in the Company’s filings with the SEC), after the passage of all applicable notice and cure or grace periods.

 

3.15  
Variable Rate Transactions. The Borrower consummates a Variable Rate Transaction at any time on or after the Issue Date.

 

3.16  
Inside Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose,
or any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public
information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing
of a Form 8-K pursuant to Regulation FD on that same date.

 

3.17  
Unavailability of Rule 144. If, at any time on or after the date that is six (6) calendar months after the Issue Date, the
Holder is unable to, due to action or omission by the Company, (i) obtain a standard “144 legal opinion letter” from an attorney
reasonably acceptable to the Holder, the Holder’s brokerage firm (and respective clearing firm), and the Borrower’s transfer
agent in order to facilitate the Holder’s conversion of any portion of the Note into free trading shares of the Borrower’s
Common Stock pursuant to Rule 144, and/or (ii) thereupon deposit such shares into the Holder’s brokerage account.

 

3.18  
Delisting, Suspension, or Quotation of Trading of Common Stock. If, at any time on or after the Issue Date, the Borrower’s
Common Stock (i) is suspended from trading, (ii) halted from trading, and/or (iii) fails to be quoted or listed (as applicable) on a Principal
Market.

 

3.19   
Registration Statement Failures. The Borrower fails to (i) file a registration statement covering the Holder’s resale
at prevailing market prices (and not fixed prices) of all of the Common Stock (the “Registration Statement”) underlying the
Note, all of the Common Stock underlying the Warrant, and the Commitment Shares within ninety (90) calendar days following the Issue Date,
(ii) cause the Registration Statement to become effective within one hundred eighty (180) calendar days following the date that the Registration
Statement is initially filed, (iii) cause the Registration Statement to remain effective until the Note is extinguished in its entirety,
the Warrant is exercised in the entirety, and the Holder no longer owns any of the Commitment Shares, (iv) comply with the provisions
of the RRA in all respects, or (v) immediately amend the Registration Statement or file a new Registration Statement (and cause such Registration
Statement to become effective as provided in the RRA) if there are no longer sufficient shares registered under the initial Registration
Statement for the Holder’s resale at prevailing market prices (and not fixed prices) of all of the Common Stock underlying the Note,
Common Stock underlying the Warrant, and the Commitment Shares.

 

 

    	 	11	 

     

    

 

3.20   
Rights and Remedies Upon an Event of Default. Upon the occurrence of any Event of Default specified in this Article III,
this Note shall become immediately due and payable, and the Borrower shall pay to the Holder, in full satisfaction of its obligations
hereunder, an amount equal to the Principal Amount then outstanding plus accrued interest (including any Default Interest) through the
date of full repayment multiplied by 125% (collectively the “Default Amount”), as well as all costs, including, without limitation,
legal fees and expenses, of collection, all without demand, presentment or notice, all of which hereby are expressly waived by the Borrower.
Holder may, in its sole discretion, determine to accept payment part in Common Stock and part in cash. For purposes of payments in Common
Stock, the conversion formula set forth in Section 1.2 shall apply as well as all other provisions of this Note. The Holder shall be entitled
to exercise all other rights and remedies available at law or in equity.

 

ARTICLE IV. MISCELLANEOUS

 

4.1  
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privileges. All rights and remedies of the Holder existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2   
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall
be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective
(a) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received),
or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice
is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed
to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Borrower, to:

 

KISSES FROM ITALY INC.

80 SW 8th St., Suite 2000

Miami, FL 33130

Attention: Michele Di Turi

e-mail: michael@kissesfromitaly.com

 

If to the Holder:

 

Talos Victory Fund, LLC

348 Cambridge Street #101

Woburn, MA 01801

e-mail: admin@talosvf.com

 

4.3  
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or supplemented.

 

 

    	 	12	 

     

    

 

4.4  
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. The Borrower shall not assign this Note or any rights or obligations hereunder without the
prior written consent of the Holder. The Holder may assign its rights hereunder to any “accredited investor” (as defined in
Rule 501(a) of the 1933 Act) in a private transaction from the Holder or to any of its “affiliates”, as that term is defined
under the 1934 Act, without the consent of the Borrower. Notwithstanding anything in this Note to the contrary, this Note may be pledged
as collateral in connection with a bona fide margin account or other lending arrangement. The Holder and any assignee, by acceptance of
this Note, acknowledge and agree that following conversion of a portion of this Note, the unpaid and unconverted principal amount of this
Note represented by this Note may be less than the amount stated on the face hereof.

 

4.5  
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6  
Governing Law; Venue; Attorney’s Fees. This Note shall be governed by and construed in accordance with the laws of
the State of Delaware without regard to principles of conflicts of laws. Any action brought by either party against the other concerning
the transactions contemplated by this Note or any other agreement, certificate, instrument or document contemplated hereby shall be brought
only in the Court of Chancery of the State of Delaware or, to the extent such court does not have subject matter jurisdiction, the United
States District Court for the District of Delaware or, to the extent that neither of the foregoing courts has jurisdiction, the Superior
Court of the State of Delaware. The Borrower hereby irrevocably waives any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE BORROWER
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTIONS CONTEMPLATED HEREBY. Each party hereby irrevocably waives personal
service of process and consents to process being served in any suit, action or proceeding in connection with this Note or any other agreement,
certificate, instrument or document contemplated hereby or thereby by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law. The prevailing party in any action or dispute brought in connection with
this the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby shall be entitled to recover
from the other party its reasonable attorney’s fees and costs.

 

4.7  
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding Principal
Amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest,
the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult
to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate
the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired
upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder
hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt
of a cash payment without the opportunity to convert this Note into shares of Common Stock.

 

4.8  
Purchase Agreement. The Company and the Holder shall be bound by the applicable terms of the Purchase Agreement and the
documents entered into in connection herewith and therewith.

 

4.9  
Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with
prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information sent to shareholders).
In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled
to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way
of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive
any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any change in control or any
proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20)
days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever
is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event,
and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such
time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously
with the notification to the Holder in accordance with the terms of this Section 4.9.

 

 

    	 	13	 

     

    

 

4.10  
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy
at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by
the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or
in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach
of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without
any bond or other security being required.

 

4.11 
Construction; Headings. This Note shall be deemed to be jointly drafted by the Company and all the Holder and shall not
be construed against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part
of, or affect the interpretation of, this Note.

 

4.12 
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at
any time hereafter in force, in connection with any action or proceeding that may be brought by the Holder in order to enforce any right
or remedy under this Note. Notwithstanding any provision to the contrary contained in this Note, it is expressly agreed and provided that
the total liability of the Company under this Note for payments which under the applicable law are in the nature of interest shall not
exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing,
in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums which under the applicable
law in the nature of interest that the Company may be obligated to pay under this Note exceed such Maximum Rate. It is agreed that if
the maximum contract rate of interest allowed by applicable law and applicable to this Note is increased or decreased by statute or any
official governmental action subsequent to the Issue Date, the new maximum contract rate of interest allowed by law will be the Maximum
Rate applicable to this Note from the effective date thereof forward, unless such application is precluded by applicable law. If under
any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Holder with respect to indebtedness
evidenced by this the Note, such excess shall be applied by the Holder to the unpaid principal balance of any such indebtedness or be
refunded to the Company, the manner of handling such excess to be at the Holder’s election.

 

4.13  
Severability. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule
of law (including any judicial ruling), then such provision shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision of this Note.

 

4.14   
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries
of any security, or amendment to a security that was originally issued before the Issue Date, with any term that the Holder reasonably
believes is more favorable to the holder of such security or with a term in favor of the holder of such security that the Holder reasonably
believes was not similarly provided to the Holder in this Note, then (i) the Borrower shall notify the Holder of such additional or more
favorable term within one (1) business day of the issuance and/or amendment (as applicable) of the respective security, and (ii) such
term, at Holder’s option, shall become a part of the transaction documents with the Holder (regardless of whether the Borrower complied
with the notification provision of this Section 4.14). The types of terms contained in another security that may be more favorable to
the holder of such security include, but are not limited to, terms addressing prepayment rate, interest rates, and original issue discounts.

 

4.15   
Dispute Resolution. In the case of a dispute as to the determination of the Conversion Price, Conversion Amount, any prepayment
amount or Default Amount, Issue, Closing or Maturity Date, the closing bid price, or fair market value (as the case may be) or the arithmetic
calculation of the Conversion Price or the applicable prepayment amount(s) (as the case may be), the Borrower or the Holder shall submit
the disputed determinations or arithmetic calculations via facsimile (i) within one (1) Trading Day after receipt of the applicable notice
giving rise to such dispute to the Borrower or the Holder or (ii) if no notice gave rise to such dispute, at any time after the Holder
learned of the circumstances giving rise to such dispute. If the Holder and the Borrower are unable to agree upon such determination or
calculation within one (1) Trading Day of such disputed determination or arithmetic calculation (as the case may be) being submitted to
the Borrower or the Holder, then the Borrower shall, within one (1) Trading Day, submit (a) the disputed determination of the Conversion
Price, the closing bid price, the or fair market value (as the case may be) to an independent, reputable investment bank selected by the
Borrower and approved by the Holder or (b) the disputed arithmetic calculation of the Conversion Price, Conversion Amount, any prepayment
amount or Default Amount, to an independent, outside accountant selected by the Holder that is reasonably acceptable to the Borrower.
The Borrower shall cause at its expense the investment bank or the accountant to perform the determinations or calculations and notify
the Borrower and the Holder of the results no later than one (1) Trading Day from the time it receives such disputed determinations or
calculations. Such investment bank’s or accountant’s determination or calculation shall be binding upon all parties absent
demonstrable error.

 

 

    	 	14	 

     

    

 

4.16   
Right of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital or
financing from any 3rd party, that the Borrower intends to act upon, then the Borrower must first offer such opportunity to the Holder
to provide such capital or financing to the Borrower on the same terms as each respective 3rd party’s terms. Should the Holder be
unwilling or unable to provide such capital or financing to the Borrower within five (5) Trading Days from Holder’s receipt of written
notice of the offer (the “Offer Notice”) from the Borrower, then the Borrower may obtain such capital or financing from that
respective 3rd party upon the exact same terms and conditions offered by the Borrower to the Holder, which transaction must be completed
within 30 days after the date of the Offer Notice. If the Borrower does not receive the capital or financing from the respective 3rd party
within 30 days after the date of the respective Offer Notice, then the Borrower must again offer the capital or financing opportunity
to the Holder as described above, and the process detailed above shall be repeated. The Offer Notice must be sent via electronic mail
to admin@talosvf.com.

 

 

 

 

[signature page follows]

 

    	 	15	 

     

    

 

 

IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by its duly authorized officer on April 6, 2022.

 

KISSES
FROM ITALY INC.

 

 

	By: /s/ Michele Di Turi                                
	Name: Michele Di Turi
	Title: Chief Executive Officer

 

 

 

 

 

    	 	16	 

     

    

 

 

EXHIBIT A -- NOTICE OF CONVERSION

 

The undersigned
hereby elects to convert $ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued
pursuant to the conversion of the Note (“Common Stock”) as set forth below, of KISSES FROM ITALY INC., a Florida corporation
(the “Borrower”), according to the conditions of the promissory note of the Borrower dated as of April 6, 2022 (the “Note”),
as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

	☐  	The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 
	 	Name of DTC Prime Broker:
	 	Account Number:

 

	☐  	
    The undersigned hereby
requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers
are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary,
on an attachment hereto:

 

 

 

	 	Date of Conversion:	 	 
	 	Applicable Conversion Price:	$	 
	 	
    Number of Shares of Common Stock to be

    Issued
    Pursuant to Conversion of the Note:
	
     

     
	 
	 	Amount of Principal Balance Due remaining

                                                                           Under the Note after this conversion:
	
     

     
	 

 

	 	 
	 	By:
	 	Name:
	 	Title:
	 	Date:

 

Social security or employer identification number: __________________

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