Document:

ndvn_ex102.htm

EXHIBIT 10.2
  
 NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO BORROWER. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.
  
 Original Issue Date: __________
  
 Principal Amount: $_________
  
 CONVERTIBLE NOTE
 DUE _______, 2022
  
 THIS CONVERTIBLE NOTE is a duly authorized and validly issued Note of nDivision Inc.., a Nevada corporation, (the “Borrower”), having its principal place of business at 7301 N. State Highway 161, Dallas, TX 75039 (the “Note”).
  
 FOR VALUE RECEIVED, Borrower promises to pay to _______________ or its registered assigns (the “Holder”), with an address at _______________________or shall have paid pursuant to the terms hereunder, the principal sum of ____________ on________, 2022 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid or such later if extended by the Holder as provided hereunder, and to pay interest, if any, to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions hereof.
  
 This Note is subject to the following additional provisions:
  
 Section 1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Subscription Agreement and (b) the following terms shall have the following meanings:
  
 “Alternate Consideration” shall have the meaning set forth in Section 5(d).
  
 “Bankruptcy Event” means any of the following events: (a) Borrower or any Subsidiary thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to Borrower or any Subsidiary thereof, (b) there is commenced against Borrower or any Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) Borrower or any Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) Borrower or any Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) Borrower or any Subsidiary thereof makes a general assignment for the benefit of creditors, (f) Borrower or any Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts or (g) Borrower or any Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.
  
 	 
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 “Beneficial Ownership Limitation” shall have the meaning set forth in Section 4(d).
  
 “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of Texas are required by law or other governmental action to close.
  
 “Change of Control Transaction” means, other than by means of conversion or exercise of this Note, the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of Borrower, by contract or otherwise) of in excess of 50% of the voting securities of Borrower, (b) Borrower merges into or consolidates with any other Person, or any Person merges into or consolidates with Borrower and, after giving effect to such transaction, the stockholders of Borrower immediately prior to such transaction own less than 50% of the aggregate voting power of Borrower or the successor entity of such transaction, (c) Borrower sells or transfers all or substantially all of its assets to another Person and the stockholders of Borrower immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the execution by Borrower of an agreement to which Borrower is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.
  
 “Conversion” shall have the meaning ascribed to such term in Section 4.
  
 “Conversion Date” shall have the meaning set forth in Section 4(a).
  
 “Conversion Price” shall have the meaning set forth in Section 4(b).
  
 “Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the terms hereof.
  
 “Equity Conditions” means, during the period in question, (a) Borrower shall have duly honored all conversions scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Holder on or prior to the dates so requested or required, if any, (b) Borrower shall have paid all liquidated damages and other amounts owing to the Holder in respect of this Note and the Subscription Agreement, (c) there is either (i) an effective registration statement pursuant to which the Holder is permitted to utilize the prospectus thereunder to resell all of the Conversion Shares (and Borrower believes, in good faith, that such effectiveness will continue uninterrupted for the foreseeable future), or (ii) all of the Underlying Shares (and shares issuable in lieu of cash payments of interest) may be resold pursuant to Rule 144 without volume or manner of sale restrictions or current public information requirements, (d) there is a sufficient number of authorized, but unissued and otherwise unreserved, shares of Common Stock for the issuance of all of the shares then issuable, (e) an Event of Default has not occurred, whether or not such Event of Default has been cured, (f) there is no existing event which, with the passage of time or the giving of notice, would constitute an Event of Default, (g) the issuance of the shares in question to the applicable Holder would not exceed the Beneficial Ownership Limitation, and (h) the applicable Holder is not in possession of any information provided by Borrower that constitutes, or may constitute, material non-public information.
   
 	 
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 “Event of Default” shall have the meaning set forth in Section 8(a).
  
 “Fundamental Transaction” shall have the meaning set forth in Section 5(c).
  
 “Notice of Conversion” shall have the meaning set forth in Section 4(a).
  
 “Optional Redemption” shall have the meaning set forth in Section 6.
  
 “Original Issue Date” means the date of the issuance of this Note, regardless of any transfers of this Note and regardless of the number of instruments which may be issued to evidence such Note.
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Share Delivery Date” shall have the meaning set forth in Section 4(c)(ii).
  
 “Subscription Agreement” means the Subscription Agreement, dated as of _________, 2020 among Borrower and the original Holder, as amended, modified or supplemented from time to time in accordance with its terms.
  
 “Successor Entity” shall have the meaning set forth in Section 5(d).
  
 “Trading Day” means a day on which the principal Trading Market is open for trading.
  
 “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing). As of the Original Issue Date, there is no Trading Market for the Company’s shares of common stock. 
  
 Section 2. General.
  
 a) Interest . Interest shall accrue on the Principal Amount of this Note in an amount of Eight Percent (8%) per annum. Interest on this Note shall be calculated on the basis of a 365-day year and the actual number of days elapsed. 
  
 b) Repayment. At the option of the Holder, the Borrower may either (i) pay the interest quarterly in arrears, or (ii) allow the interest to accrue until the Maturity Date, unless the Holder requests that the accrued interest be repaid in cash in full or in part on a date prior to the Maturity Date. In addition, in the Borrower’s sole discretion, the Borrower may either (i) repay the principal amount of this Note on the Maturity Date, or (ii) commencing 12 months from the Issue Date, the Borrower may repay 1/12 of the outstanding Principal Amount of the Note in any given month until the Maturity Date. Regardless of which method of repayment that the Borrower chooses, the Principal Amount and interest of the Note shall be repaid in full on or before __________, 2022. 
  
 	 
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 c) Payment Grace Period. The Borrower shall have a thirty (30) day grace period from the Maturity Date to pay any monetary amounts due under this Note.
  
 d) Conversion Privileges. The Conversion Rights set forth in Section 4 shall remain in full force and effect immediately from the date hereof and until the Note is paid in full regardless of the occurrence of an Event of Default. This Note shall be payable in full on the Maturity Date, unless previously converted into Common Stock in accordance with Section 4 hereof.
  
 e) Manner and Place of Payment. Principal and interest, if any, on this Note and other payments in connection with this Note shall be payable at the Holder’s offices as designated above in lawful money of the United States of America in immediately available funds without set-off, deduction or counterclaim. This Note may be prepaid in accordance with Section 6 of this Note.
  
 (f) Pari Passu. Except as otherwise set forth herein, all payments made on this Note and the additional Notes issued pursuant to the offering described in the Subscription Agreement and all actions taken by the Borrower with respect to this Note and the additional Notes issued pursuant to the offering described in the Subscription Agreement, including but not limited to Optional Redemption, shall be made and taken pari passu with respect to this Note and the other Notes issued pursuant to the offering described in the Subscription Agreement.
  
 (g) Registration Rights. Within 120 days of the date of $1,000,000 being received pursuant to the offering described in the Subscription Agreement, the Borrower shall prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement covering the resale of all of the shares underlying the Notes issued pursuant to the offering described in the Subscription Agreement. The Borrower shall use its best efforts to cause such registration statement to be effective as promptly as possible after the filing thereof, but in any event no later than 180 days from the date of $1,000,000 being received pursuant to the offering described in the Subscription Agreement, and shall use its best efforts to keep such registration statement continuously effective until the date that all of the shares underlying the Notes issued pursuant to the offering described in the Subscription Agreement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Borrower to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Borrower. If the Borrower fails to file a registration statement covering the shares underlying the Notes issued pursuant to the offering described in the Subscription Agreement within 120 days of the date of $1,000,000 being obtained as part of the offering described in the Subscription Agreement, or fails to obtain an effective notice from the SEC within 180 days of the date of $1,000,000 being received pursuant to the offering described in the Subscription Agreement, agrees to provide, through its counsel, a Rule 144 opinion on behalf of the Holder to allow for the resale of the shares underlying this Note at no cost to the Borrower. 
  
 (h) Use of Proceeds. The proceeds received from the Holder of this Note shall be used at the sole discretion of the Borrower. 
   
 	 
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 Section 3. Registration of Transfers and Exchanges.
  
 a) Different Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.
  
 b) Investment Representations. This Note has been issued subject to certain investment representations of the original Holder set forth in the Subscription Agreement and may be transferred or exchanged only in compliance with the Subscription Agreement and applicable federal and state securities laws and regulations.
  
 c) Reliance on Note Register. Prior to due presentment for transfer to Borrower of this Note, Borrower and any agent of Borrower may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither Borrower nor any such agent shall be affected by notice to the contrary.
  
 Section 4. Conversion.
  
 a) Voluntary Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(d) hereof). The Holder shall effect conversions by delivering to Borrower a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein the principal and/or accrued interest amount of this Note to be converted and the date on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to Borrower unless the entire principal and accrued interest amount of this Note has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The Holder and Borrower shall maintain records showing the principal amount(s) converted and the date of such conversion(s). Borrower may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. 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 may be less than the amount stated on the face hereof.
  
 b) Conversion Price. The Note shall be convertible at the option of the Holder into shares of common stock of the Borrower at a conversion price equal to the lesser of (1) $0.40 per share, or (2) a 25% discount to the price per share of the common stock in a Qualified Offering. The term “Qualified Offering” shall mean a debt or equity offering that occurs subsequent to the date of the closing of the offering described in the Subscription Agreement that results in gross offering proceeds to the Borrower of at least Five Million Dollars ($5,000,000) (the “Conversion Price”). The Borrower reserves the right, in its sole discretion, to automatically convert all or a part of this Note in the event of a Qualified Offering at the price per share listed in Section 4(b)(2) above without approval by the Holder. If, at any time during the twelve month period subsequent to the date of this Note, the Borrower sells shares of common stock at a price that is less than $0.40 per share, or issues convertible debt with a conversion price below $0.40 per share (a “Down Round”), the Conversion Price shall be adjusted to the Down Round price per share. It is understood, agreed and acknowledged by the Holder, that any sales of common stock, or convertible debt, subsequent to the initial Down Round, at a price per share, or conversion price, below $0.40 per share, will not result in an additional Down Round Conversion Price adjustment, meaning that there shall be only one Down Round Conversion Price adjustment for the initial Down Round. 
  
 	 
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 c) Mechanics of Conversion.
  
 i. Conversion Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal and/or interest amount of this Note to be converted by (y) the Conversion Price.
  
 ii. Delivery of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery Date”), Borrower shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing the Conversion Shares which, on or after the earlier of (i) the twelve month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading restrictions (other than those which may then be required by the Subscription Agreement) representing the number of Conversion Shares being acquired upon the conversion of this Note. On or after the earlier of (i) the twelve month anniversary of the Original Issue Date or (ii) the Effective Date, Borrower shall use its best efforts to deliver any certificate or certificates required to be delivered by Borrower under this Section 4(c) electronically through the Depository Trust Company or another established clearing corporation performing similar functions.
  
 iii. Failure to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to Borrower at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event Borrower shall promptly return to the Holder any original Note delivered to Borrower and the Holder shall promptly return to Borrower the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.
  
 iv. Obligation Absolute. Borrower’s obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to Borrower or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of Borrower to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by Borrower of any such action Borrower may have against the Holder. In the event the Holder of this Note shall elect to convert any or all of the outstanding principal and/or accrued interest amount hereof, Borrower may not refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion of all or part of this Note shall have been sought and obtained. In the absence of such injunction, Borrower shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for Borrower’s failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. 
  
 	 
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 v. Reservation of Shares Issuable Upon Conversion. Borrower covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder, not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Subscription Agreement) be issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this Note on such principal amount. Borrower covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.
  
 vi. Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, Borrower shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.
  
 vii. Transfer Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that, Borrower shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note so converted and Borrower shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting the issuance thereof shall have paid to Borrower the amount of such tax or shall have established to the satisfaction of Borrower that such tax has been paid. Holder shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion.
  
 d) Holder’s Conversion Limitations. Borrower shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates) 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 its Affiliates 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 are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of Borrower subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to Borrower each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and Borrower shall have no obligation to verify or confirm the accuracy of such determination. 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 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) Borrower’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by Borrower, or (iii) a more recent written notice by Borrower or Borrower’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, Borrower 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 Borrower, including this Note, by the Holder or its Affiliates 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 immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder may decrease the Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to Borrower, may increase the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any such increase will not be effective until the 61st day after such notice is delivered to Borrower. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.
  
 	 
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 Section 5. Certain Adjustments.
  
 a) Stock Dividends and Stock Splits. If Borrower, 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 (which, for avoidance of doubt, shall not include any shares of Common Stock issued by Borrower upon conversion of the Note), (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 Borrower, 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 Borrower) 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 this Section shall become effective immediately after the record date for the determination of stockholders 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.
  
 b) Pro Rata Distributions. During such time as this Note is outstanding, if Borrower shall declare or make any dividend whether or not permitted, or makes any other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).
  
 	 
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 c) Fundamental Transaction. If, at any time while this Note is outstanding, (i) Borrower, directly or indirectly, in one or more related transactions effects any merger or consolidation of Borrower with or into another Person, (ii) Borrower, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by Borrower or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) Borrower, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) Borrower, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation or of Borrower, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(c) on the conversion of this Note). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and Borrower shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. Borrower shall cause any successor entity in a Fundamental Transaction in which Borrower is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of Borrower under this Note and the Subscription Agreement in accordance with the provisions of this Section 5(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the Subscription Agreement referring to the “Company” or the “Borrower” shall refer instead to the Successor Entity), and may exercise every right and power of Borrower and shall assume all of the obligations of Borrower under this Note and the Subscription Agreement with the same effect as if such Successor Entity had been named as Borrower herein.
  
 d) Calculations. All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of Borrower) issued and outstanding.
  
 	 
	9
	

	 

 
  
 e) Notice to the Holder.
  
 i. Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, Borrower shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
  
 ii. Notice to Allow Conversion by Holder. If (A) Borrower shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) Borrower shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) Borrower shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of Borrower shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which Borrower is a party, any sale or transfer of all or substantially all of the assets of Borrower, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) Borrower shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of Borrower, then, in each case, Borrower shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall remain entitled to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.
  
 Section 6. Optional Redemption. Notwithstanding any other provision of this Note, at any time after the original Issue Date of this Note, the Borrower will have the right to prepay in cash all or a portion of the Note (i) at 110% of the principal amount thereof plus any unpaid accrued interest to the date of repayment if repaid during the first twelve months after the Issuance Date and (ii) at 115% of the principal amount thereof plus any unpaid accrued interest to the date of repayment if repayment occurs subsequent to the first twelve months after the Issuance Date. In the event of any such attempt to repay the Note, the Borrower shall provide the Holder with three days’ prior written notice of Borrower’s intention to repay all or a portion of the Note, and the Holder shall have the right to convert all or a portion of the Note prior to the date of any such prepayment pursuant to the conversion provisions set forth in Section 4 of this Note (“Optional Redemption”). 
  
 Section 7. Events of Default.
  
 a) “Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
  
 i. any default in the payment of (A) the principal or interest, if any, amount of this Note as provided in Section 2(b) of this Note which default is not cured within 5 Trading Days after Borrower has become or should have become aware of such default;
  
 ii. Borrower shall fail to observe or perform any other covenant or agreement contained in the Note (other than a breach by Borrower of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed below) which failure is not cured, if possible to cure, within the earlier to occur of (A) 5 Trading Days after notice of such failure sent by the Holder to Borrower and (B) 10 Trading Days after Borrower has become or should have become aware of such failure;
  
 	 
	10
	

	 

 
  
 iii. any representation or warranty made in this Note, or the Subscription Agreement, any written statement pursuant hereto or thereto or any other report, financial statement or certificate made or delivered to the Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made;
  
 iv. Borrower or any Subsidiary shall be subject to a Bankruptcy Event;
  
 v. Borrower shall be a party to any Change of Control Transaction or Fundamental Transaction;
  
 vi. Borrower shall fail for any reason to deliver certificates to a Holder prior to the fifth Trading Day after a Conversion Date pursuant to Section 4(c) or Borrower shall provide at any time notice to the Holder, including by way of public announcement, of Borrower’s intention to not honor requests for conversions of the Note in accordance with the terms hereof;
  
 vii. any monetary judgment, writ or similar final process shall be entered or filed against Borrower, any subsidiary or any of their respective property or other assets for more than $200,000, and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of 90 calendar days;
  
 viii. any dissolution, liquidation or winding up by Borrower or a material Subsidiary of a substantial portion of their business;
  
 ix. cessation of operations by Borrower;
  
 x. any material provision of the Subscription Agreement shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against the Borrower, or the validity or enforceability thereof shall be contested by Borrower, or a proceeding shall be commenced by Borrower or any governmental authority having jurisdiction over Borrower or Holder, seeking to establish the invalidity or unenforceability thereof, or Borrower shall deny in writing that it has any liability or obligation purported to be created under the Subscription Agreement;
  
 b) Remedies Upon Event of Default. If any Event of Default occurs pursuant to this Note, the outstanding principal amount and accrued interest of this Note, shall become, at the Holder’s election, immediately due and payable in cash. Commencing on the Maturity Date and also five (5) days after the occurrence of any Event of Default interest on this Note shall accrue at an interest rate equal to the lesser of 12% per annum or the maximum rate permitted under applicable law.
  
 	 
	11
	

	 

 
  
 Section 8. Miscellaneous.
  
 a) 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, 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 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: (i) if to Borrower, to: nDivision Inc., Inc., 7301 N. State Highway 161, Dallas, TX 75039, Attn: Allan Hixon, CEO, with a copy by fax only to: Ward and Smith, P.A., 127 Racine Drive, Wilmington, NC 28403, Attn: Ken Bart, Fax: (910) 794-4877, and (ii) if to the Holder, to: the address and fax number indicated on the front page of this Note.
  
 b) Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of Borrower, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of Borrower. 
  
 c) Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, Borrower shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to Borrower.
  
 d) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Texas, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by the Subscription Agreement and this Note (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of Dallas (the “Texas Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Texas Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Texas Courts, or such Texas Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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 applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. 
  
 	 
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 e) Waiver. Any waiver by Borrower or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of Borrower or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver by Borrower or the Holder must be in writing.
  
 f) Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.
  
 g) Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive Borrower from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.
  
 h) Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.
  
 i) Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any of the provisions hereof.
  
 j) Amendment. Unless otherwise provided for hereunder, this Note may not be modified or amended or the provisions hereof waived without the written consent of Borrower and the Holder.
  
 k) Facsimile Signature. In the event that the Borrower’s signature is delivered by facsimile transmission, PDF, electronic signature or other similar electronic means, such signature shall create a valid and binding obligation of the Borrower with the same force and effect as if such signature page were an original thereof.
  
 *********************
 (Signature Pages Follow)
  
 	 
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 IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized officer as of the ____ day of _______, 2020.
   
 	 	nDivision Inc.	
	 	   	 	 
		By:		
	  
	  
	Name: Alan Hixon	 
	 	 	Title: Chief Executive Officer	 

 
    
 	 
	14
	

	 

 
 
  
 ANNEX A
  
 NOTICE OF CONVERSION
  
 The undersigned hereby elects to convert principal under the Convertible Note Due ________, 2022 of nDivision Inc., a Nevada corporation (the “Company”), into shares of common stock (the “Common Stock”), of Borrower according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by Borrower in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.
  
 By the delivery of this Notice of Conversion the undersigned represents and warrants to Borrower that its ownership of the Common Stock does not exceed the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.
  
 The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid shares of Common Stock.
  
 Conversion calculations:
  
 	  
	 Date to Effect Conversion: ________________________________

	  
	  

	  
	 Principal Amount of Note to be Converted: $___________________

	  
	  

	  
	 Interest to be Converted: $_________________________________
  
 Conversion Price: $______________________________________
  
 Number of shares of Common Stock to be issued: _______________

	  
	  

	  
	 Signature: _____________________________________________

	  
	  

	  
	 Name: ________________________________________________

	  
	  

	  
	 Address for Delivery of Common Stock Certificates: _____________

	  
	 _____________________________________________________

	  
	  

	  
	 Or

	  
	  

	  
	 DWAC Instructions: ____________________________________

	  
	  

	  
	 Broker No:_________________

	  
	 Account No: _______________

 
   
 	 
	15Exhibit 10.1

 

March 3, 2021

 

Vistas Media Acquisition Company Inc.

30 Wall Street, 8th Floor

New York, NY 10022

 

Anghami

Dubai Internet City, Building 17, 2nd Floor, Office 254

Attn: Edgard Maroun

 

	Re:	Sponsor Agreement

 

Ladies and Gentlemen:

 

This letter (this “Sponsor Agreement”)
is being delivered to you in accordance with that certain Business Combination Agreement, dated as of the date hereof (as amended,
supplemented, restated or otherwise modified from time to time, the “Business Combination Agreement”), by and
among Vistas Media Acquisition Corp., a Delaware corporation (“Vistas”), Anghami, a Cayman Island exempt corporation
(the “Company”), Anghami Inc., a Cayman Islands exempted company and wholly-owned subsidiary of the Company
(“Pubco”), Anghami Vista 1, a Cayman Islands exempted company and wholly-owned subsidiary of Pubco (“Vistas
Merger Sub”) and Anghami Vista 2, a Cayman Islands exempted company and wholly-owned subsidiary of Pubco (“Anghami
Merger Sub”), and certain other parties thereto pursuant to which, among other things, Vistas will be merged with and
into Vistas Merger Sub (the “Vistas Merger”) and Anghami Merger Sub shall be merged with and into the Company
(the “Anghami Merger” and, together with the Vistas Merger, the “Mergers” and together with
the other transactions contemplated by the Business Combination Agreement the “Business Combination”), and hereby
amends and restates in its entirety that certain letter, dated August 6, 2020, from, Vistas Media Sponsor, LLC, a Delaware limited
liability company (the “Sponsor”), and the undersigned entities and individuals (each, an “Insider”
and collectively, the “Insiders”), to Vistas (the “Prior Letter Agreement”). Certain capitalized
terms used herein are defined in paragraph 5 hereof. Capitalized terms used but not otherwise defined herein shall have the respective
meanings ascribed to such terms in the Business Combination Agreement.

 

The Sponsor and certain Insiders are currently,
and as of the Closing will be, the record owners of all of the outstanding Founder Shares and outstanding Private Placement Securities,
with the Sponsor and Insider’s ownership as of the date hereof detailed on Schedule A hereto.

 

In order to induce the Company, Pubco and
Vistas to enter into the Business Combination Agreement and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Sponsor and each Insider hereby agrees with Vistas, at all times prior to the earlier of
any valid termination of the Business Combination Agreement or the consummation of the transactions contemplated by the Business
Combination Agreement, as follows:

 

		1.	The Sponsor and each Insider irrevocably agrees that it, he or she shall:

 

		(a)	vote any Common Stock owned by it, him or her (all
such Common Stock, the “Covered Shares”) in favor of the Business Combination and each other proposal related
to the Business Combination included on the agenda for the special meeting of stockholders relating to the Business Combination;

 

     

     

    

 

		(b)	when such meeting of stockholders is held, appear
at such meeting or otherwise cause the Covered Shares to be counted as present thereat for the purpose of establishing a quorum;

 

		(c)	vote (or execute and return an action by written consent),
or cause to be voted at such meeting (or validly execute and return and cause such consent to be granted with respect to), all
of such Covered Shares against any Business Combination Proposal and any other action that would reasonably be expected to impede,
interfere with, delay, postpone or adversely affect the Mergers or any of the other transactions contemplated by the Business
Combination Agreement, result in a material breach of any covenant, representation or warranty or other obligation or agreement
of Vistas, Pubco, Vistas Merger Sub or Anghami Merger Sub under the Business Combination Agreement, result in any of the conditions
set forth in Article VIII of the Business Combination Agreement not being fulfilled, result in a material breach of any covenant,
representation or warranty or other obligation or agreement of the Sponsor or the Insiders contained in this Sponsor Agreement
or change in any manner the dividend policy or capitalization of, including the voting rights of, any class of capital stock of
Vistas;

 

		(d)	vote (or execute and return an action by written consent), or cause to be voted at such meeting,
or validly execute and return and cause such consent to be granted with respect to, all of such Covered Shares against any change
in business, management or board of directors of Vistas (other than in connection with the Business Combination and the other proposals
related to the Business Combination); and

 

		(e)	not redeem any Covered Shares owned by it, him or her in connection with such stockholder approval.

 

Prior to any valid termination
of the Business Combination Agreement, the Sponsor and each Insider shall take, or cause to be taken, all actions and shall do,
or cause to be done, all things reasonably necessary under applicable Laws to consummate the Business Combination and the other
transactions contemplated by the Business Combination Agreement on the terms and subject to the conditions set forth therein.

 

The obligations of the Sponsor
specified in this paragraph 1 shall apply whether or not the Mergers or any action described above is recommended by the board
of directors of Vistas.

 

		2.	The Sponsor and each Insider hereby agrees and acknowledges that: (a) Vistas and, prior to any
valid termination of the Business Combination Agreement, the Company may be irreparably injured in the event of a breach by the
Sponsor or any Insider of its, his or her obligations under paragraphs 1 and 3, as applicable, of this Sponsor Agreement (b) monetary
damages will not be an adequate remedy for such breach and (c) the non-breaching party shall be entitled to injunctive relief,
in addition to any other remedy that such party may have in law or in equity, in the event of such breach.

 

    2

     

    

 

		3.	Lock-Up.

 

		(a)	The Sponsor and each Insider agrees that it, he or she shall not Transfer any Founder Shares until
the earlier of (A) one year after the completion of the Business Combination and (B) subsequent to the Business Combination, (x)
if the closing price of Class A Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150
days after the Business Combination or (y) the date on which Pubco completes a liquidation, merger, capital stock exchange, reorganization
or other similar transaction that results in all of Pubco’s stockholders having the right to exchange their shares of Class
A Common Stock for cash, securities or other property (the “Founder Shares Lock-up Period”). For the avoidance
of doubt, the Private Placement Securities (and any shares of Class A Common Stock or any other securities issued or issuable upon
the exercise of the Private Placement Securities) or any shares of Class A Common Stock purchased in connection with the Equity
Financing (as such term is defined in the Business Combination Agreement) shall be subject to the provisions of Section 3(b)
below and shall not be subject to the Founder Shares Lock-up Period.

 

		(b)	The Sponsor and each Insider agrees that it, he or she shall not Transfer any Private Placement
Securities (or any securities underlying the Private Placement Securities, including the shares of Common Stock and Private Placement
Warrants included in the Private Placement Units and the shares of Common Stock issued or issuable upon the exercise of the Private
Placement Warrants), until 30 days after the completion of a Business Combination (the “Private Placement Lock-up Period”,
together with the Founder Shares Lock-up Period, the “Lock-up Periods”).

 

		(c)	Notwithstanding the provisions set forth in paragraphs 3(a) and 3(b), Transfers of the Founder
Shares, Private Placement Securities, component securities of Private Placement Securities and shares of Class A Common Stock issued
or issuable upon the exercise or conversion of the Private Placement Warrants or the Founder Shares and that are held by the Sponsor,
any Insider or any of their permitted transferees (that have complied with this paragraph 3(c)), are permitted in the following
circumstances:

 

		(i)	to Vistas’ officers or directors, any affiliate or family member of any of Vistas’
officers or directors or any affiliate of the Sponsor or to any member(s) of the Sponsor or any of their affiliates;

 

    3

     

    

  

		(ii)	in the case of an individual, by gift to a member of such individual’s immediate family or
to a trust, the beneficiary of which is a member of such individual’s immediate family, an affiliate of such individual or
to a charitable organization;

 

		(iii)	in the case of an individual, by virtue of laws of descent and distribution upon death of such
individual;

 

		(iv)	in the case of an individual, pursuant to a qualified domestic relations order;

 

		(v)	by private transfers or transfers made in connection with any contingent forward purchase agreement
or similar arrangement or in connection with the consummation of the Business Combination at prices no greater than the price at
which the shares or warrants were originally purchased;

 

		(vi)	by virtue of the laws of the State of Delaware or the Sponsor’s limited liability company
agreement upon dissolution of the Sponsor;

 

		(vii)	in the event of Pubco’s liquidation, merger, capital stock exchange or other similar transaction
which results in all of Pubco’s stockholders having the right to exchange their shares of common stock for cash, securities
or other property subsequent to the completion of the Business Combination;

 

provided, however,
that in the case of clauses (i) through (v), these permitted transferees must enter into a written agreement with Vistas or Pubco,
as applicable, agreeing to be bound by the transfer restrictions herein and the other restrictions contained in this Agreement
(including provisions relating to voting, the Trust Account and liquidating distributions).

 

		4.	The Sponsor and each Insider has full right and power, without violating any agreement to which
it is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer),
to enter into this Sponsor Agreement.

 

		5.	As used herein:

 

		(a)	“Beneficially Own” has the meaning ascribed to it in Section 13(d) of the Exchange
Act;

 

		(b)	“Founder Shares” shall mean the outstanding shares of Class B Common Stock and
the shares of Class A Common Stock issuable upon conversion of such shares of Class B Common Stock in connection with the Closing;

 

		(c)	“Transfer” shall mean the (i) sale of, offer to sell, contract or agreement
to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly or indirectly,
or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent position
within the meaning of Section 16 of the Exchange Act, and the rules and regulations promulgated thereunder, with respect to, any
security, (ii) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise,
or (iii) public announcement of any intention to effect any transaction specified in clause (i) or (ii);

 

    4

     

    

  

		(d)	“Class A Common Stock” shall mean the Class A common stock, par
value $0.0001 per share, of (i) Vistas prior to the Business Combination and (ii) Pubco following the Business Combination;

 

		(e)	“Class B Common Stock” shall mean (i) the Class B common stock, par value $0.0001
per share and (ii) the common stock of Pubco following the Business Combination;

 

		(f)	“Common Stock” shall mean the Class A Common Stock and the Class B Common Stock;

 

		(g)	“Private Placement Securities” shall mean the Private Placement Units and the
Private Placement Warrants

 

		(h)	“Private Placement Units” shall mean the 220,000 Vistas Units that
the Sponsor purchased for an aggregate purchase price $2,200,000, or $10.00 per Vistas Unit, which Private Placement Units will
be assumed by Pubco in connection with the Closing.

 

		(i)	“Private Placement Warrants” shall mean the 500,000 Vistas Warrants
that (i) the Sponsor purchased for an aggregate purchase price $500,000, or $1.00 per Vistas Warrant, and (ii) are coupled with
the Vistas Warrants underlying the Private Placement Units, which Private Placement Warrants will be assumed by Pubco in connection
with the Closing.

 

		(j)	“Business Combination Proposal” means any action to initiate, solicit, facilitate,
consider, make or encourage or otherwise facilitate the making of any offers or proposals related to, an Alternative Vistas Acquisition,
enter into, engage in or continue any discussions or negotiations with respect to an Alternative Vistas Acquisition with, or provide
any non-public information, data or access to employees to, any Person that has made, or that is considering making, a proposal
with respect to an Alternative Vistas Acquisition or enter into any agreement relating to an Alternative Vistas Acquisition.

 

		6.	This Sponsor Agreement and the other agreements referenced herein constitute the entire agreement
and understanding of the parties hereto in respect of the subject matter hereof and supersede all prior understandings, agreements,
or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter
hereof or the transactions contemplated hereby, including, without limitation, with respect to the Sponsor, each Insider and the
Prior Letter Agreement. This Sponsor Agreement may not be changed, amended, modified or waived (other than to correct a typographical
error) as to any particular provision, except by a written instrument executed by all parties hereto.

 

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		7.	No party hereto may, except as set forth herein, assign either this Sponsor Agreement or any of
its rights, interests or obligations hereunder, other than in conjunction with transfers permitted by paragraph 3, without the
prior written consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual
and shall not operate to transfer or assign any interest or title to the purported assignee. This Sponsor Agreement shall be binding
on the Sponsor, the Company, each Insider and Vistas and their respective successors, heirs, personal representatives and assigns
and permitted transferees.

 

		8.	Nothing in this Sponsor Agreement shall be construed to confer upon, or give to, any person or
corporation other than the parties hereto any right, remedy or claim under or by reason of this Sponsor Agreement or of any covenant,
condition, stipulation, promise or agreement hereof. All covenants, conditions, stipulations, promises and agreements contained
in this Sponsor Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors, heirs, personal
representatives and assigns and permitted transferees.

 

		9.	This Sponsor Agreement may be executed in any number of original, electronic or facsimile counterparts
and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

 

		10.	This Sponsor Agreement shall be deemed
severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability
of this Sponsor Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term
or provision, the parties hereto intend that there shall be added as a part of this Sponsor Agreement a provision as similar in
terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

		11.	This Sponsor Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York. The parties hereto (i) all agree that any action, proceeding, claim or dispute arising out of, or relating
in any way to, this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of New York, and
irrevocably submit to such jurisdiction and venue, which jurisdiction and venue shall be exclusive and (ii) waive any objection
to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION BASED UPON, ARISING OUT OF OR RELATED TO THIS SPONSOR AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

		12.	Any notice, consent or request to be given in connection with any of the terms or provisions of
this Sponsor Agreement shall be in writing and shall be sent or given in accordance with the terms of Section 10.2 of the Business
Combination Agreement to the applicable party at its principal place of business.

 

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		13.	This Sponsor Agreement shall automatically terminate on the expiration of all of the Lock-up Periods.
In the event of a valid termination of the Business Combination Agreement, this Sponsor Agreement shall be of no force and effect
and shall revert to the Prior Letter Agreement. No such termination or reversion shall relieve the Sponsor, each Insider, Vistas
or the Company from any liability resulting from a breach of this Sponsor Agreement occurring prior to such termination or reversion.

 

		14.	The Sponsor and each Insider hereby represents and warrants (severally and not jointly as to itself,
himself or herself only) to Vistas and the Company as follows: (a) if such Person is not an individual, it is duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is organized, and the execution, delivery and performance
of this Sponsor Agreement and the consummation of the transactions contemplated hereby are within such Person’s corporate,
limited liability company or other powers and have been duly authorized by all necessary corporate, limited liability company or
other actions on the part of the Sponsor; (b) if such Person is an individual, such Person has full legal capacity, right and authority
to execute and deliver this Sponsor Agreement and to perform his or her obligations hereunder; (c) this Sponsor Agreement has been
duly executed and delivered by such Person and, assuming due authorization, execution and delivery by the other parties to this
Sponsor Agreement, this Sponsor Agreement constitutes a legally valid and binding obligation of such Person, enforceable against
such Person in accordance with the terms hereof (except as enforceability may be limited by bankruptcy Laws, other similar Laws
affecting creditors’ rights and general principles of equity affecting the availability of specific performance and other
equitable remedies); (d) the execution and delivery of this Sponsor Agreement by such Person does not, and the performance by such
Person of his, her or its obligations hereunder will not, (i) if such Person is not an individual, conflict with or result in a
violation of the organizational documents of such Person, or (ii) require any consent or approval that has not been given or other
action that has not been taken by any third party (including under any Contract binding upon such Person or such Person’s
Founder Shares or Private Placement Securities, as applicable), in each case, to the extent such consent, approval or other action
would prevent, enjoin or materially delay the performance by such Person of his, her or its obligations under this Sponsor Agreement;
(e) there are no Actions pending against such Person or, to the knowledge of such Person, threatened against such Person, before
(or, in the case of threatened Actions, that would be before) any arbitrator or any Governmental Authority, which in any manner
challenges or seeks to prevent, enjoin or materially delay the performance by such Person of its, his or her obligations under
this Sponsor Agreement; (f) except for the fees described on Section 2.4(a)(iii) of the Vistas Disclosure Letter, no financial
advisor, investment banker, broker, finder or other similar intermediary is entitled to any fee or commission from such Person,
Vistas, any of its Subsidiaries or any of their respective Affiliates in connection with the Business Combination Agreement or
this Sponsor Agreement or any of the respective transactions contemplated thereby and hereby, in each case, based upon any arrangement
or agreement made by or, to the knowledge of such Person, on behalf of such Person, for which Pubco, the Company or any of their
respective Affiliates would have any obligations or liabilities of any kind or nature following the consummation of the Business
Combination; (g) such Person has had the opportunity to read the Business Combination Agreement and this Sponsor Agreement and
has had the opportunity to consult with its tax and legal advisors; (h) such Person has not entered into, and shall not enter into,
any agreement that would restrict, limit or interfere with the performance of such Person’s obligations hereunder; (i) such
Person has good title to all such Founder Shares and Private Placement Securities set forth opposite such Person’s name on
Schedule A, and there exist no Encumbrances or any other limitation or restriction (including, without limitation, any restriction
on the right to vote, sell or otherwise dispose of such Founder Shares or Private Placement Warrants (other than transfer restrictions
under the Securities Act)) affecting any such Founder Shares or Private Placement Securities, other than pursuant to (i) this Sponsor
Agreement, (ii) the certificate of incorporation of Vistas, (iii) the Business Combination Agreement, (iv) the Registration Rights
Agreement, dated as of August 6, 2020, by and among Vistas, the Sponsor and certain security holders party thereto (the “Registration
Rights Agreement”), or (v) any applicable securities laws; and (j) the Founder Shares and Private Placement Securities
identified on Schedule A are the only Founder Shares or Private Placement Securities owned of record or Beneficially Owned
by the Sponsor and the Insiders as of the date hereof, and none of such Founder Shares or Private Placement Securities is subject
to any proxy, voting trust or other agreement or arrangement with respect to the voting of such Founder Shares or Private Placement
Securities, except as provided in this Sponsor Agreement.

 

    7

     

    

 

		15.	If, and as often as, (a) there are any changes in Vistas, the Founder Shares or the Private Placement
Securities by way of stock split, stock dividend, combination or reclassification, or through merger, consolidation, reorganization,
recapitalization or business combination, or by any other similar means that result in the Sponsor acquiring new shares of Common
Stock, Vistas Warrants or any other equity securities of Vistas, (b) the Sponsor purchases or otherwise acquires beneficial ownership
of any shares of Common Stock or Vistas Warrants or other equity securities of Vistas after the date of this Sponsor Agreement
or (c) the Sponsor acquires the right to vote or share in the voting of any shares of Common Stock or other equity securities of
Vistas after the date of this Sponsor Agreement (such shares of Common Stock, Vistas Warrants or other equity securities of Vistas,
collectively the “New Securities”), then, in each case, (i) such New Securities acquired or purchased by the
Sponsor shall be subject to the terms of this Sponsor Agreement to the same extent as if they constituted the shares of Common
Stock or Vistas Warrants owned by the Sponsor as of the date hereof and (ii) if applicable, equitable adjustment shall be made
to the provisions of this Sponsor Agreement as may be required so that the rights, privileges, duties and obligations hereunder
shall continue with respect to Vistas, Vistas’ successor or the surviving entity of such transaction, as applicable, the
Founder Shares and Vistas Warrants, including the Private Placement Securities, each as so changed.

 

		16.	Each of the parties hereto agrees to execute and deliver hereafter any further document, agreement
or instrument of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof and as may
be reasonably requested in writing by another party hereto.

 

[Signature Page Follows]

 

    8

     

    

 

	 	Sincerely,
	 	 	 	 
	 	VISTAS MEDIA SPONSOR, LLC, LLC
	 	 	 	 
	 	By:	
	 	 	Name:  	F. Jacob Cherian
	 	 	Title: 	Manager
	 	 	 	 
	 	EXEMPLARY HOLDINGS PTE. LTD
	 	 	 	 
	 	By:	
	 	 	Name: 	Arun Kumar Thapar
	 	 	Title: 	Director & Promotor
	 	 	 	 
	 	PFVI, LLC
	 	 	 	 
	 	By:	
	 	 	Name: 	Abhinav Somani
	 	 	Title: 	Managing Director
	 	 	 	 
	 	
	 	F. Jacob Cherian 
	 	 	 	 
	 	
	 	Benjamin Waisbren
	 	 	 	 
	 	
	 	Marc Iyeki
	 	 	 	 
	 	
	 	Dr. Klass Baks
	 	 	 	 
	 	
	 	Jayesh Parekh
	 	 	 	 
	 	
	 	Daniel Dos Santos
	 	 	 	 
	 	
	 	Gurinder Singh Ahluwalia
	 	 	 	 
	 	
	 	Vipul Shantilal Shah
	 	 
	 	
	 	Sameer Jitendra Parmar
	 	 
	 	
	 	Mishal Sudesh Iyer
	 	 
	 	
	 	Sergei Bespalov

 

Signature Page to Letter Re: Sponsor Agreement

 

     

     

    

 

	Acknowledged and Agreed:	 
	 	 
	VISTAS MEDIA ACQUISITION COMPANY INC. 	 
	 	 	 	 
	
         By:
		 
	 	Name: 	F. Jacob Cherian 	 
	 	Title: 	Chief Executive Officer	 

 

	ANGHAMI	 
	 	 	 
	By:		 
		Name	 
		Title:	 

 

Signature Page to Letter Re: Sponsor Agreement

 

     

     

    

 

Schedule A

 

Sponsor Ownership of Securities

 

	Sponsor	 	Founder Shares	 	 	Private Placement Warrants	 	 	Private Placement Units	 
	Vistas Media Sponsor, LLC	 	 	1,768,500	 	 	 	500,000	 	 	 	220,000	 
	F. Jacob Cherian	 	 	250,000	 	 	 	N/A	 	 	 	N/A	 
	Marc Iyeki	 	 	18,000	 	 	 	N/A	 	 	 	N/A	 
	Benjamin Waisbren	 	 	28,000	 	 	 	N/A	 	 	 	N/A	 
	Klaas Baks	 	 	18,000	 	 	 	N/A	 	 	 	N/A	 
	PFVI, LLC	 	 	225,000	 	 	 	N/A	 	 	 	N/A	 
	Gurinder Ahluwalia	 	 	100,000	 	 	 	N/A	 	 	 	N/A	 
	Exemplary Holdings Pte. Ltd.	 	 	30,000	 	 	 	N/A	 	 	 	N/A	 
	Jayesh Parekh	 	 	22,500	 	 	 	N/A	 	 	 	N/A	 
	Vipul Shah	 	 	10,000	 	 	 	N/A	 	 	 	N/A	 
	Sameer Pamar	 	 	10,000	 	 	 	N/A	 	 	 	N/A	 
	Mishal Iyer	 	 	10,000	 	 	 	N/A	 	 	 	N/A	 
	Sergei Bespalov	 	 	5,000	 	 	 	N/A	 	 	 	N/A	 
	Daniel Santos	 	 	5,000	 	 	 	N/A	 	 	 	N/A	 
	Total	 	 	2,500,000	 	 	 	500,000	 	 	 	220,000

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