Document:

SusGlobal Energy Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

    

    SECURITIES PURCHASE AGREEMENT
 

    This SECURITIES PURCHASE AGREEMENT (the "Agreement"), dated as December 2, 2021, by and between SUSGLOBAL ENERGY CORP., a Delaware corporation, with headquarters located at 200 Davenport Road, Toronto, ONT M5R 1J2, Canada (the "Company"), and AJB CAPITAL INVESTMENTS, LLC, a Delaware limited liability company, with its address at 4700 Sheridan Street, Suite J, Hollywood, FL 33021 (the "Buyer").

    WHEREAS:

    A. The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "1933 Act"); and

    B. Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement the 10% note of the Company, in the form attached hereto as Exhibit A, in the principal amount of US$350,000.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the "Note"), convertible following an Event of Default into shares of common stock, $0.0001 par value per share, of the Company (the "Common Stock"), upon the terms and subject to the limitations and conditions set forth in such Note.

    NOW THEREFORE, the Company and the Buyer hereby agree as follows:

    1. PURCHASE AND SALE OF NOTE.

    a. Purchase of Note.  On the Closing Date (as defined below), the Company shall issue and sell to the Buyer the Note and the Buyer shall purchase the Note from the Company. 

    b. Form of Payment.  On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note in the amount of US$315,000.00 (the "Purchase Price") by wire transfer of immediately available funds to the Company, in accordance with the Company's written wiring instructions, against delivery of the Note, and (ii) the Company shall deliver such duly executed Note and Commitment Fee Shares (as defined herein) on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

    c. Closing Date.  Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 7 and Section 8 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the "Closing Date") shall be 12:00 noon, Eastern Standard Time on the date hereof, or such other mutually agreed upon time.  The closing of the transactions contemplated by this Agreement (the "Closing") shall occur on the Closing Date by remote exchange of documents, or at such location as may be agreed to by the parties.

    

    2. REPRESENTATIONS AND WARRANTIES OF THE BUYER.  The Buyer represents and warrants to the Company that:

    a. Investment Purpose.  As of the date hereof, the Buyer is purchasing the Commitment Fee Shares, the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any, as are issuable (i) on account of interest on the Note (ii) as a result of the events described in Sections 1.3 and 1.4(g) of the Note or (iii) in payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this Agreement, such shares of Common Stock being collectively referred to herein as the "Conversion Shares" and, collectively with the Note, and the Commitment Fee Shares, the "Securities") for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

    b. Accredited Investor Status.  The Buyer is an "accredited investor" as that term is defined in Rule 501(a) of Regulation D (an "Accredited Investor").

    c. Reliance on Exemptions.  The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

    d. Information.  The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors.  The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue to be, afforded the opportunity to ask questions of the Company.  Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.  Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer's right to rely on the Company's representations and warranties contained in Section 3 below.  The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

    
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    e. Governmental Review.  The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

    f. Transfer or Re-sale.  The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an "affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) ("Rule 144")) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144 or other applicable exemption, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) ("Regulation S"), and the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case).  Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.  In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within three (3) business days of delivery of the opinion to the Company, the Company shall pay to the Buyer liquidated damages of one percent (1%) of the outstanding amount (valued based on the closing sales price of the Common Stock on the date of delivery of the opinion to the Company) per trading day in cash or shares at the option of the Buyer ("Standard Liquidated Damages Amount").  If the Buyer elects to be pay the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at the Conversion Price (as defined in the Note) at the time of payment.

    
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    g. Legends.  The Buyer understands that the Note and, until such time as the Conversion Shares and Commitment Fee Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or 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, the Conversion Shares and Commitment Fee Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

    	"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE 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 COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A 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."

     

    The legend set forth above shall be removed and the Company shall issue a certificate or book entry statement without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or 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) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security 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 Buyer agrees to sell all Securities, including those represented by a certificate(s) or a book entry statement(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 the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

    
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    h. Authorization; Enforcement. This Agreement has been duly and validly authorized.  This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

    i. Residency.  The Buyer is organized in the jurisdiction set forth in the preamble.

    3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents and warrants to the Buyer that, except as disclosed in the SEC Documents (as defined below):

    a. Organization and Qualification.  The Company and each of its Subsidiaries (as defined below), if any, is a corporation or other entity duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.  The Company and each of its Subsidiaries is duly qualified as a foreign corporation or other entity to do business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse Effect.  "Material Adverse Effect" means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.  "Subsidiaries" means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.

    b. Authorization; Enforcement.  (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company's Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

    
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    c. Capitalization.  As of the date hereof, the authorized capital stock of the Company consists of: 150,000,000 shares of Common Stock, of which approximately 94,065,404 shares are issued and outstanding, and 10,000,000 shares of Preferred Stock, of which zero shares are issued and outstanding. Except as disclosed in the SEC Documents, no shares are reserved for issuance pursuant to the Company's stock option plans, no shares are reserved for issuance pursuant to securities (other than the Note and any other promissory note issued to the Buyer) exercisable for, or convertible into or exchangeable for shares of Common Stock and 5,000,000 shares are reserved for issuance upon conversion of the Note. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.  No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company.  Except as disclosed in the SEC Documents, as of the effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion Shares.  The Company has filed in its SEC Documents true and correct copies of the Company's Certificate of Incorporation as in effect on the date hereof ("Certificate of Incorporation"), the Company's By-laws, as in effect on the date hereof (the "By-laws"), and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto. 

    d. Issuance of Note and Shares.  The issuance of the Note is duly authorized and, upon issuance in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof.  The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and 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 Company and will not impose personal liability upon the holder thereof. The issuance of the Commitment Fee Shares is duly authorized and, upon issuance in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof.

    
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    e. Acknowledgment of Dilution.  The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note.  The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

    f. No Conflicts.  The execution, delivery and performance of this Agreement and the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its Subsidiaries is a party, or (iii)  result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect).  Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity.  Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement, the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to issue the Conversion Shares upon conversion of the Note.  All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.  The Company is not in violation of the listing requirements of the OTC Pink (the "OTC Pink"), the OTCQB or any similar quotation system, and does not reasonably anticipate that the Common Stock will be delisted by the OTC Pink, the OTCQB or any similar quotation system, in the foreseeable future nor are the Company's securities "chilled" by DTC.  The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. 

    
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    g. SEC Documents; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "1934 Act") since September 30, 2021 (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the "SEC Documents").  The Company has delivered to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents.  As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).  As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during the periods involved  and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).  Except as set forth in the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to September 30, 2021, and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt, filing of the documents required in this Section 3(g) via the SEC's Electronic Data Gathering, Analysis, and Retrieval system ("EDGAR") shall satisfy all delivery requirements of this Section 3(g).

    
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    h. Absence of Certain Changes.  Since September 30, 2021, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

    i. Absence of Litigation.  There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material Adverse Effect.  Schedule 3(i) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect.  The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

    j. Patents, Copyrights, etc.  The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights ("Intellectual Property") necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future). Except as disclosed in the SEC Documents, there is no claim or action by any person pertaining to, or proceeding pending, or to the Company's knowledge threatened, which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company's knowledge, the Company's or its Subsidiaries' current and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing.  The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual Property.

    k. No Materially Adverse Contracts, Etc.  Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company's officers has or is expected in the future to have a Material Adverse Effect.  Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company's officers has or is expected to have a Material Adverse Effect.

    l. Tax Status.  The Company and each of its Subsidiaries has made or filed all material federal, state and foreign income and all other material tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.  The Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax.  None of the Company's tax returns is to the Company's knowledge presently being audited by any taxing authority.

    
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    m. Certain Transactions.  Except for arm's length transactions pursuant to which the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed on Schedule 3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

    n. Disclosure.  All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances under which they were made, not misleading.  No event or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company's reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).

    o. Acknowledgment Regarding Buyer' Purchase of Securities.  The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm's length purchasers with respect to this Agreement and the transactions contemplated hereby.  The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer' purchase of the Securities.  The Company further represents to the Buyer that the Company's decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

    
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    p. No Integrated Offering.  Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer.  The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company's securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

    q. Brokers.  The Company hereby represents and warrants that it has engaged a registered broker dealer ("Broker") in connection with the negotiation, execution or delivery of this Agreement or the transactions contemplated hereunder. The Company covenants and agrees that should any claim be made against Purchaser for any commission or other compensation by the Broker, based upon the Company's engagement of such person in connection with this transaction, the Company shall indemnify, defend and hold Purchaser harmless from and against any and all damages, expenses (including attorneys' fees and disbursements) and liability arising from such claim. The Company shall pay the commission of the Broker, to the attention of the Broker, pursuant to their separate agreement(s) between the Company and the Broker.

    r. Permits; Compliance.  The Company and each of its Subsidiaries is in possession of all material franchises, grants, authorizations, licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its properties and to carry on its business as it is now being conducted (collectively, the "Company Permits"), except where the failure to possess a Company Permit would not reasonably be expected to have a Material Adverse Effect, and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company Permits.  Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.  Since March 31, 2021, neither the Company nor any of its Subsidiaries has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

    s. Environmental Matters.

    (i) There are, to the Company's knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment, actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action pending or, to the Company's knowledge, threatened in connection with any of the foregoing.  The term "Environmental Laws" means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, "Hazardous Materials") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

    
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    (ii) Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company's or any of its Subsidiaries' business.

    (iii) There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are not in compliance with applicable law.

    t. Title to Property.  Except as disclosed in the SEC Documents the Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects or such as would not have a Material Adverse Effect.  Any real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

    u. Internal Accounting Controls.  Except as disclosed in the SEC Documents the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the judgment of the Company's board of directors, to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

    
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    v. Foreign Corrupt Practices.  Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

    w. Solvency.  The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature.  The Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end other than with respect to its ability to continue as a "going concern" and, after giving effect to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might issue a qualified opinion in respect of its current fiscal year (other than with respect to its ability to continue as a "going concern").

    x. No Investment Company.  The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not be an "investment company" required to be registered under the Investment Company Act of 1940 (an "Investment Company").  The Company is not controlled by an Investment Company.

    y.  Insurance.  The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written request the Company will provide to the Buyer true and correct copies of all policies relating to directors' and officers' liability coverage, errors and omissions coverage, and commercial general liability coverage.

    
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    z. Bad Actor.  No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the SEC. 

    aa. Shell Status.  The Company represents that it is not a "shell" issuer and that if it previously has been a "shell" issuer, that at least twelve (12) months have passed since the Company has reported Form 10 type information indicating that it is no longer a "shell" issuer.  Further, the Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability of the Conversion Shares or (ii) accept such opinion from Holder's counsel.

    bb. No-Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

    cc. Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company.

    dd. Sarbanes-Oxley Act. The Company and each Subsidiary is in material compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof.

    ee. Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Company believes that its and its Subsidiaries' relations with their respective employees are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer's employment with the Company or any such Subsidiary. To the knowledge of the Company, no executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

    
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    ff. Breach of Representations and Warranties by the Company.  The Company agrees that if the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement and it being considered an Event of Default under Section 3.5 of the Note, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares of Common Stock at the option of the Company, until such breach is cured.  If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.

    4. COVENANTS.

    a. Best Efforts.  The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions described in Section 7 and 8 of this Agreement. 

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

    c. Use of Proceeds.  The Company shall use the proceeds from the sale of the Note for working capital and other general corporate purposes and shall not, directly or indirectly, use such proceeds for any loan to or investment in any other corporation, partnership, enterprise or other person (except in connection with its currently existing direct or indirect Subsidiaries).

    
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    d. Right of First Refusal.  Unless it shall have first delivered to the Buyer, at least seventy two (72) hours prior to the closing of such Future Offering (as defined herein), written notice describing the proposed Future Offering, including the terms and conditions thereof, and providing the Buyer an option during the seventy two (72) hour period following delivery of such notice to purchase the securities being offered in the Future Offering on the same terms as contemplated by such Future Offering (the limitations referred to in this sentence and the preceding sentence are collectively referred to as the "Right of First Refusal") (and subject to the exceptions described below), the Company will not conduct any equity financing (including debt with an equity component) ("Future Offerings") during the period beginning on the Closing Date and ending nine (9) months following the Closing Date, unless the Maturity Date of the Note has been an extended for an additional three (3) month period in which case the period covered shall end twelve (12) months following the Closing Date.  In the event the terms and conditions of a proposed Future Offering are amended in any material respect after delivery of the notice to the Buyer concerning the proposed Future Offering, the Company shall deliver a new notice to the Buyer describing the amended terms and conditions of the proposed Future Offering and the Buyer thereafter shall have an option during the seventy two (72) hour period following delivery of such new notice to purchase its pro rata share of the securities being offered on the same terms as contemplated by such proposed Future Offering, as amended.  The foregoing sentence shall apply to successive amendments to the terms and conditions of any proposed Future Offering.  The Right of First Refusal shall not apply to any transaction involving (i) issuances of securities in a firm commitment underwritten public offering (excluding a continuous offering pursuant to Rule 415 under the 1933 Act), (ii) issuances to employees, officers, directors, contractors, consultants or other advisors approved by the Board, (iii) issuances to strategic partners or other parties in connection with a commercial relationship, or providing the Company with equipment leases, real property leases or similar transactions approved by the Board (including, issuances to vendors or suppliers of the Company in satisfaction of amounts owed to such vendors or suppliers), (iv) issuances of securities as consideration for a merger, consolidation or purchase of assets, or in connection with any strategic partnership or joint venture (the primary purpose of which is not to raise equity capital), or in connection with the disposition or acquisition of a business, product or license by the Company (each of the foregoing, an "Exempt Issuance").  The Right of First Refusal also shall not apply to the issuance of securities upon exercise or conversion of the Company's options, warrants or other convertible securities outstanding as of the date hereof or to the grant of additional options or warrants, or the issuance of additional securities, under any Company stock option or restricted stock plan approved by the shareholders of the Company. 

    e. Expenses.  The Company shall reimburse Buyer for any and all expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith ("Documents"), including, without limitation, reasonable attorneys' and consultants' fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents.  When possible, the Company must pay these fees directly, including, but not limited to, any and all wire fees, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer.  At Closing, the Company's initial obligation with respect to this transaction is to reimburse $5,250.00 to J.H. Darbie & Co., Inc. and $7,750 to AJB Capital Management LLC for due diligence expenses.

    
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    f. Financial Information.  The Company agrees to send or make available the following reports to the Buyer until the Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available or giving to the shareholders of the Company, copies of any notices or other information the Company makes available or gives to such shareholders.  For the avoidance of doubt, filing the documents required in (i) above via EDGAR or releasing any documents set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this Section 4(f).

    g. Listing.  The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note.  The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC Pink, OTCQB or any equivalent replacement exchange, the Nasdaq Global Select Market, Nasdaq Global Market, or Nasdaq Capital Market (collectively ,"Nasdaq"), the New York Stock Exchange ("NYSE"), or the NYSE American and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority ("FINRA") and such exchanges, as applicable.  The Company shall promptly provide to the Buyer copies of any material notices it receives from the OTC Pink, OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.  The Company shall pay any and all fees and expenses in connection with satisfying its obligation under this Section 4(g).

    h. Corporate Existence.  So long as the Buyer beneficially owns the Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company's assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company's assets, where the surviving or successor entity in such transaction (i) assumes the Company's obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC Pink, OTCQB, Nasdaq, NYSE, or NYSE American.

    i. No Integration.  The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

    
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    j. Failure to Comply with the 1934 Act.  So long as the Buyer beneficially owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act.

    k. Restriction on Activities. Commencing as of the date first above written, and until the sooner of the twelve (12) month anniversary of the date first written above or payment of the Note in full, or full conversion of the Note, the Company shall not, directly or indirectly, without the Buyer's prior written consent, which consent shall not be unreasonably withheld: (a) change the nature of its business; (b) sell, divest, acquire, change the structure of any material assets other than in the ordinary course of business; or (c) solicit any offers for, respond to any unsolicited offers for, or conduct any negotiations with any other person or entity in respect of any variable rate debt transactions (i.e., transactions were the conversion or exercise price of the security issued by the Company varies based on the market price of the Common Stock) with a price per share below $0.10, whether a transaction similar to the one contemplated hereby or  any other investment.

    l. Legal Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at its cost) for promptly supplying to the Company's transfer agent and the Buyer a customary legal opinion letter of its counsel (the "Legal Counsel Opinion") to the effect that the sale of Conversion Shares by the Buyer or its affiliates, successors and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective registration statement) or other applicable exemption. Should the Company's legal counsel fail for any reason to issue the Legal Counsel Opinion, the Buyer may (at the Company's cost) secure another legal counsel to issue the Legal Counsel Opinion, and the Company will instruct its transfer agent to accept such opinion.

    m. Par Value.  If the closing bid price at any time the Note is outstanding falls below $0.0001, the Company shall cause the par value of its Common Stock to be reduced to $0.00001 or less.

    n. Breach of Covenants.  The Company agrees that if the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default under Section 3.4 of the Note, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares of Common Stock at the option of the Buyer, until such breach is cured, or with respect to Section 4(d) above, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or shares of Common Stock, at the option of the Buyer, upon each violation of such provision.  If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.

    
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    o. Commitment Fee Shares. The Company shall pay to Buyer, as a commitment fee, Three Hundred Thousand and No/100 United States Dollars (US$300,000.00) (the "Commitment Fee") by issuing to Buyer that number of shares of the Company's Common Stock equal to such amount at a price per share of $0.35. It is agreed that the number of shares of Common Stock issuable to Buyer under this Section 4(o) shall be 857,143 (the "Commitment Fee Shares"). The Company shall instruct its transfer agent (the "Transfer Agent") to issue one (1) certificate or book entry statement, representing the Commitment Fee Shares issuable to the Buyer immediately upon the Company's execution of this Agreement, and shall cause its Transfer Agent to deliver such certificate or book entry statement to Buyer within five (5) Business Days from the Effective Date. The Buyer shall never be in possession of an amount of Common Stock greater than 4.99% of the issued and outstanding Common Stock of the Company provided, however that this ownership restriction described in this Section may be waived by Buyer, in whole or in part, upon 61 days' prior written notice. In the event such certificate representing the Commitment Fee Shares issuable hereunder shall not be delivered to the Buyer within said five (5) Business Day period, same shall be an immediate default under this Agreement and the other Transaction Documents.  The Commitment Fee Shares, when issued, shall be deemed to be validly issued, fully paid, and non-assessable shares of the Company's Common Stock.  The Commitment Fee Shares shall be deemed fully earned as of the Effective Date, regardless of the amount or number of Loans made hereunder. 

    (i) Adjustments.  It is the intention of the Company and Buyer that the Buyer shall be able to sell (if Buyer so elects, in Buyer's sole and absolute discretion) the Commitment Fee Shares and generate net proceeds (net of all brokerage commissions and other fees or charges payable by Buyer in connection with the sale thereof) from such sale equal to the Commitment Fee.  The Buyer shall use its best efforts to sell the Commitment Fee Shares in the principal trading market of the Company's Common Stock or otherwise, at any time in accordance with applicable securities laws.  At any time the Buyer may elect during the period beginning on the date which is the six (6) month anniversary of the Closing Date and ending on the date which is the Eighteenth (18) month anniversary of the Closing Date (the "Adjustment Period"), the Buyer may deliver to the Company a reconciliation statement showing the net proceeds actually received by the Buyer from the sale of the Commitment Fee Shares (the "Sale Reconciliation").  If, as of the date of the delivery by Buyer of the Sale Reconciliation, the Buyer has not realized net proceeds from the sale of such Commitment Fee Shares equal to at least the Commitment Fee, as shown on the Sale Reconciliation, then the Company shall immediately take all required action necessary or required in order to cause the issuance of additional shares of Common Stock to the Buyer in an amount sufficient such that, when sold and the net proceeds thereof are added to the net proceeds from the sale of any of the previously issued and sold Commitment Fee Shares, the Buyer shall have received total net funds equal to the Commitment Fee.  If additional shares of Common Stock are issued pursuant to the immediately preceding sentence, and after the sale of such additional issued shares of Common, the Buyer still has not received net proceeds equal to at least the Commitment Fee, then the Company shall again be required to immediately take all required action necessary or required in order to cause the issuance of additional shares of Common Stock to the Buyer as contemplated above, and such additional issuances shall continue until the Buyer has received net proceeds from the sale of such Common Stock equal to the Commitment Fee.  In the event additional Common Stock is required to be issued as outlined above, the Company shall instruct its Transfer Agent to issue certificates or book entry statements representing such additional shares of Common Stock to the Buyer immediately subsequent to the Buyer's notification to the Company that additional shares of Common Stock are issuable hereunder, and the Company shall in any event cause its Transfer Agent to deliver such certificates or book entry statements to Buyer within three (3) Business Days following the date Buyer notifies the Company that additional shares of Common Stock are to be issued hereunder.  In the event such certificates or book entry statements representing such additional shares of Common Stock issuable hereunder shall not be delivered to the Buyer within said three (3) Business Day period, same shall be an immediate default under this Agreement and the Note.  Nothing herein contained shall be interpreted to in any way limit the net proceeds from the sale of the Commitment Fee Shares which shall be generated by the Buyer. The Company's obligation to pay the Commitment Fee contemplated by this Section 4(o) thru the sale of Commitment Fee Shares, shall be an obligation hereunder, secured by all transaction documents.

    
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    5. Transaction Expense Amount.  The Transaction Expense Amount shall be offset against the proceeds of the Note and shall be paid to Buyer upon the execution hereof.

    6. Transfer Agent Instructions.  The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of the Note in accordance with the terms thereof (the "Irrevocable Transfer Agent Instructions").  In the event that the Company proposes to replace its transfer agent, the Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to 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 Company and the Company. Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 or other applicable exemption without any restriction as to the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 2(g) of this Agreement.  The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section, and stop transfer instructions to give effect to Section 2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 or other applicable exemption without any restriction as to the number of Securities as of a particular date that can then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement.  Nothing in this Section shall affect in any way the Buyer's obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus delivery requirements, if any, upon re-sale of the Securities.  If the Buyer provides the Company, at the cost of the Company, with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144 or other applicable exemption, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.

    
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    7. CONDITIONS PRECEDENT TO THE COMPANY'S OBLIGATIONS TO SELL.  The obligation of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion:

    a. The Buyer shall have executed this Agreement and delivered the same to the Company.

    b. The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

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

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

    8. CONDITIONS PRECEDENT TO THE BUYER'S OBLIGATION TO PURCHASE.  The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer's sole benefit and may be waived by the Buyer at any time in its sole discretion:

    a. The Company shall have executed this Agreement and delivered the same to the Buyer.

    b. The Company shall have delivered to the Buyer the duly executed Note.

    c. The Company shall have delivered to the Buyer the Commitment Fee Shares in one (1) book entry statement in accordance with Section 1(b) and Section 4(o) above.

    d. The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to a majority-in-interest of the Buyer, shall have been delivered to and acknowledged in writing by the Company's Transfer Agent.

    e. The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.  The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Company's Certificate of Incorporation, By-laws and Board of Directors' resolutions relating to the transactions contemplated hereby.

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

    g. No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

    h. The Conversion Shares shall have been authorized for quotation on the OTC Pink, OTCQB or any similar quotation system and trading in the Common Stock on the OTC Pink, OTCQB or any similar quotation system shall not have been suspended by the SEC or the OTC Pink, OTCQB or any similar quotation system.

    i. The Buyer shall have received an officer's certificate in a form acceptable to Buyer, dated as of the Closing Date.

    9. GOVERNING LAW; MISCELLANEOUS.

    a. Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Wyoming without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby shall be brought only in the state courts located in the State of New York or in the federal courts located in the State of New York.  The parties to this Agreement hereby irrevocably waive 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.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.  The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.  In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, 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 any agreement.  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 Agreement or any other Transaction Document 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 Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

    
        23

    

    

    b. Counterparts; Signatures by Facsimile.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

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

    d. Severability.  In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, 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 provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

    e. Entire Agreement; Amendments.  This Agreement, the Note and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

    f. 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, email, 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 email 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: 

    
        24

    

    

    If to the Company, to:

    SusGlobal Energy Corp.

    200 Davenport Road

    Toronto, ONT M5R 1J2

    Canada

    Attn: CEO

    E-mail:  mhazout@susglobalenergy.com

    If to the Buyer:

    AJB Capital Investments LLC

    4700 Sheridan Street, Suite J

    Hollywood, FL 33021

    Attn: Ari Blaine

    Email: ari@ajbcapitalinvestments.com

    Each party shall provide notice to the other party of any change in address.

    g. Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.  Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other.  Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its "affiliates," as that term is defined under the 1934 Act, without the consent of the Company.

    h. Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

    i. Survival.  The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder not withstanding any due diligence investigation conducted by or on behalf of the Buyer.  The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

    
        25

    

    

    j. Further Assurances.  Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

    k. No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

    l. Remedies.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer 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 Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

    m. Publicity. The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC, OTCQB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make any press release or SEC, OTCQB (or other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations (although the Buyer shall be consulted by the Company in connection with any such press release prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon).

    
        26

    

    

    n. Indemnification.  In consideration of the Buyer's execution and delivery of this Agreement and acquiring the Securities hereunder, and in addition to all of the Company's other obligations under this Agreement or the Note, the Company shall defend, protect, indemnify and hold harmless the Buyer and its stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing persons' agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "Indemnitees") from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements (the "Indemnified Liabilities"), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of this Agreement or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (iii) the status of the Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by this Agreement, other than in the case of this clause (c), as result of the gross negligence, willful misconduct or violation of law by the Buyer or any Indemnitee. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law

    [signature page follows]

    
        27

    

    

    IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

    	SUSGLOBAL ENERGY CORP.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Name:	Marc Hazout	 	 	 
	Title:	Chief Executive Officer	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	AJB Capital Investments, LLC	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	Name:	Ari Blaine	 	 	 
	Title:	Partner	 	 	 

     

     

    
        28

    

    

    Exhibit A

    Form of Make Whole Notice

    COMMITMENT FEE SHARES MAKE WHOLE NOTICE

    Reference is made to that certain Securities Purchase Agreement (the "Purchase Agreement"), dated as of December 2, 2021, among SusGlobal Energy Corp., a Delaware corporation (the "Borrower") and AJB Capital Investments, LLC, a Delaware limited liability company (the "Buyer"). Pursuant to Section 4(o)(i) of the Purchase Agreement, the undersigned hereby directs you to issue that number of shares of Common Stock constituting the "Make Whole Amount" as set forth below, of the Borrower, within two days of the date hereof or the next succeeding business day.  No fee will be charged to the Buyer for any such issuance, except for transfer taxes, if any. 

    Box Checked as to applicable instructions:

    [ ]  The Borrower shall electronically transmit the Common Stock issuable pursuant to this Commitment Fee Shares Make Whole Notice 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:

    Make Whole Amount (number of shares of common stock to be issued) ______________

    
        	AJB Capital Investments, LLC	 	 
	 	 	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 	 	 
	Date:	 	 	 

    

    
         

    

    
        29Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT
(the “Agreement”) is entered into on December 2, 2021, by and between WonderLeaf, LLC, a Colorado limited liability
company (“Seller”), and Bespoke Extracts Colorado, LLC (“Buyer”). Seller and Buyer are sometimes
referred to individually as a “Party” and collectively as the “Parties.”

 

Recitals

 

A. Seller
is in the business of processing, selling, and distributing marijuana concentrates pursuant to the Marijuana Code.

 

B. Buyer
desires to purchase the Business from Seller, and Seller desires to sell the Business to Buyer.

 

NOW THEREFORE, the Parties
agree as follows:

 

Terms

 

ARTICLE I

 

 DEFINITIONS AND CONSTRUCTION 

 

1.1 Definitions.
Capitalized terms have the meanings set forth below unless defined elsewhere in this Agreement.

 

“Affiliate”
means any Person that directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control
with the Person specified. For purposes of this definition, control of a Person means the power, direct or indirect, to direct or cause
the direction of the management and policies of the Person whether through ownership of voting securities or ownership interests, by Contract
or otherwise, and specifically with respect to a corporation, partnership or limited liability company, means direct or indirect ownership
of at least 50% of the voting securities in the corporation or of the voting interest in a partnership or limited liability company.

 

“Application Fees”
means all fees paid to Governmental Authorities associated with the Change of Ownership.

 

“Assets”
means certain assets of Seller, as more fully described on Exhibit A attached hereto.

 

“Business”
means the following owned or held by Seller:

 

(a) The
Licenses;

 

(b) The
Inventory; and

 

(c) The
Assets.

 

     

     

    

 

“Business Day”
means a day other than Saturday, Sunday, or any day on which banks located in the State of Colorado are authorized or obligated to close.

 

“Change of Ownership”
means the transfer of ownership of the Business from Seller to Buyer pursuant to the Marijuana Code.

 

“Charter Documents”
means with respect to any Person, the articles or certificate of incorporation, formation or organization and by-laws, the limited partnership
agreement, the partnership agreement or the limited liability company agreement, or such other organizational documents of the Person,
including those that are required to be registered or kept in the place of incorporation, organization, or formation of the Person and
which establish the legal personality of the Person.

 

“City”
means the City of Aurora, Colorado.

 

“Claim”
means any demand, claim, action, investigation, or Proceeding.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

“Contract”
means any legally binding written or oral contract, lease, license, evidence of indebtedness, mortgage, indenture, purchase order, binding
bid, letter of credit, security agreement, or other legally binding arrangement.

 

“Environmental Law”
means any and all applicable laws regulating the use, treatment, generation, transportation, storage, control, management, recycling or
disposal of any hazardous material, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. §§
9601, et seq.), the Superfund Amendment and Reauthorization Act of 1986 (Public Law 99 499, 100 Stat. 1613), the Resource Conservation
and Recovery Act (42 U.S.C. §§ 6901, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. §§ 1801,
et seq.), the Federal Water Pollution Control Act (33 U.S.C. §§ 1251, et seq.), the Clean Water Act (33 U.S.C.
§§ 1251, et seq.), the Clean Air Act (42 U.S.C. §§ 7401, et seq.), the Toxic Substances Control Act
(15 U.S.C. §§ 2601, et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §§ 136, et.
seq.), the Safe Drinking Water Act (42 U.S.C. §§ 300f, et. seq.), the Surface Mining Control and Reclamation Act
(30 U.S.C. §§ 1201, et. seq.), and/or relating to the protection, preservation, or conservation of the environment.

 

“Escrow Agent”
means 1st Security Escrow Company LLC, a Colorado limited liability company.

 

“Escrow Agreement”
means the Escrow Agreement to be entered into by Seller, Buyer, and the escrow agent mutually chosen by the Parties, substantially in
the form of Exhibit B.

 

“Federal Cannabis Law”
means any U.S. federal law, civil, criminal, or otherwise, that is directly or indirectly related to the cultivation, harvesting, production,
processing, marketing, distribution, sale, transfer, possession, and use of cannabis, marijuana, or related substances or products
containing cannabis, marijuana, or related substances, including without limitation the prohibition on drug trafficking under
the Controlled Substances Act (21 U.S.C. § 801, 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.

 

    2

     

    

 

“Final Governmental
Approval” means the final decisions by the MED and the City in writing approving the Change of Ownership, and such approvals
(a) do not include any responsibility of Buyer or Buyer’s owners for the actions of Seller or Seller’s owners with respect
to an administrative investigation or administrative disciplinary action by the MED or the City and (b) do not subject Buyer or Buyer’s
owner to discipline by the MED or the City for the actions of Seller or Seller’s owner with respect to such an investigation or
disciplinary action.

 

“First Governmental
Approval” means the date and time of the decision by either the MED or the City, whichever is earlier, in writing approving
the Change of Ownership.

 

“Governmental Authority”
means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the United States or any state,
county, city, or other political subdivision or similar governing entity.

 

“Interim Period”
means the time period from the date of this Agreement through and including the Closing.

 

“Inventory”
means Seller’s Regulated Marijuana (as that term is defined in the Marijuana Code) and packaging for Regulated Marijuana at the
Property as of the Closing Date, determined in accordance with Section 2.7(a).

 

“Knowledge”
when used in a particular representation or warranty in this Agreement, means the actual knowledge (as opposed to any constructive or
imputed knowledge) of a Party or its owners, without inquiry.

 

“Laws”
means all laws, statutes, rules, regulations, ordinances, and other pronouncements having the effect of law of a Governmental Authority,
except for Federal Cannabis Laws.

 

“Licenses”
means the following licenses held by Seller:

 

(a) State
of Colorado Marijuana Enforcement Division Retail Marijuana Manufacturing Products Manufacturer License 404R-00162;
and

 

(b) City
of Aurora Retail Marijuana Manufacturing Products Manufacturer License 21-000067-MPL.

 

“Lease”
means that certain lease by and between WL Holdings, Ltd. and Buyer entered into on the date of this Agreement, for the lease of the Property.

 

“Lien”
means any mortgage, pledge, assessment, security interest, lien, or other similar encumbrance.

 

    3

     

    

 

“Loss”
means any and all judgments, losses, liabilities, amounts paid in settlement, damages, fines, penalties, deficiencies, losses and expenses
(including interest, court costs, reasonable fees of attorneys, accountants and other experts or other reasonable expenses of litigation
or other Proceedings or of any Claim, default or assessment), but only to the extent they (a) are not reasonably expected to be covered
by a payment from some third party or by insurance or otherwise recoverable from third parties, and (b) are net of any associated benefits
arising in connection with the loss, including any associated Tax benefits.

 

“Marijuana Code”
means Sections 14 and 16, Article XVIII of the Constitution of the State of Colorado, the Colorado Marijuana Code, §§ 44-10-101,
et seq., C.R.S, as the same may be amended and restated from time to time, and regulations and ordinances promulgated thereunder
by the MED and the City.

 

“Material Adverse
Effect” means any occurrence, condition, change, development, event or effect that is, or
could reasonably be expected to become, individually or in the aggregate, materially adverse to the Business, Assets and the value
of the Assets, properties, condition (financial or otherwise) results of operations of the Business, or the
ability of a Party to consummate the transactions contemplated hereby on a timely basis, taken as a whole; provided, that, a Material
Adverse Effect does not include events, occurrences, facts, conditions, or changes arising out of, relating to, or resulting from: (a)
changes generally affecting the economy, financial, or securities markets; (b) conditions generally affecting the industry in which the
Business operates; (c) any outbreak or escalation of war or any act of terrorism; (d) any epidemic, pandemic, or quarantine affecting
operations; or (e) the announcement of the transactions contemplated by this Agreement; provided
further, however, that any event, occurrence, fact, condition, or change referred to in clauses (a) through (d) immediately above
will be taken into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the
extent that such event, occurrence, fact, condition, or change has a disproportionate effect on the Business compared to other participants
in the industry in which the Business operates.

 

“MED” means
the State of Colorado Department of Revenue Marijuana Enforcement Division.

 

“MED Approval Letter”
means the letter from the MED conditionally approving the Change of Ownership.

 

“Permits”
means all licenses (including the Licenses), permits, certificates of authority, authorizations, approvals, registrations, franchises,
and similar consents granted by a Governmental Authority related to the transactions contemplated by this Agreement.

 

“Person”
means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business
organization, trust, union, association, or Governmental Authority.

 

“Proceeding”
means any complaint, lawsuit, action, suit, or other proceeding at Law or in equity or order or ruling, in each case by or before any
Governmental Authority or arbitral tribunal.

 

“Property”
means the property where the Business is located, 12001 East 33rd Avenue, Aurora, Unit #O Colorado 80010.

 

    4

     

    

 

“Taxes”
means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, documentary,
franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise,
severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties
or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or penalties with respect thereto
and any interest in respect of such additions or penalties.

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other document relating
to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Termination
Date” means June 30, 2022.

 

“VWAP Price” means
a price determined by the daily volume weighted average price of the common stock of Bespoke Extracts, Inc. on its principal market for
the 30 consecutive trading days immediately prior as reported by Bloomberg Financial L.P. or OTC Markets.

 

1.2 Rules
of Construction.

 

(a) All
article, section, subsection, schedules and exhibit references used in this Agreement are to articles, sections, subsections, schedules
and exhibits to this Agreement unless otherwise specified. The exhibits and schedules attached to this Agreement constitute a part of
this Agreement and are incorporated herein for all purposes.

 

(b) If
a term is defined as one part of speech (such as a noun), it has a corresponding meaning when used as another part of speech (such as
a verb). Unless the context of this Agreement clearly requires otherwise, words importing the masculine gender include the feminine and
neutral genders and vice versa. The words “includes” or “including” means “including without limitation,”
the words “hereof,” “hereby,” “herein,” “hereunder” and similar terms in this Agreement
refer to this Agreement as a whole and not any particular section or article in which the words appear, and any reference to a Law includes
any rules and regulations promulgated thereunder. Currency amounts referenced herein are in U.S. dollars. When used herein the singular
includes the plural, and the plural includes the singular.

 

(c) Whenever
this Agreement refers to a number of days, the number refers to calendar days unless Business Days are specified. Whenever any action
must be taken hereunder on or by a day that is not a Business Day, the action may be validly taken on or by the next day that is a Business
Day.

 

(d) Each
Party and its respective attorneys have been given an equal opportunity to negotiate the terms and conditions of this Agreement, and any
rule of construction to the effect that ambiguities are to be resolved against the drafting Party or any similar rule operating against
the drafter of an agreement will not be applicable to the construction or interpretation of this Agreement.

 

    5

     

    

 

ARTICLE II

PURCHASE OF BUSINESS, PAYMENT, AND CLOSING

 

2.1 Purchase
of Business. At the Closing, Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Business, and Buyer shall assume
and agree to pay, perform, and discharge when due any and all liabilities arising out of or related to the Business or the Assets on or
after the Closing (the “Assumed Liabilities”), including, without limitation, the Assigned Contracts (as defined in
Exhibit A).

 

2.2 Excluded
Assets. Other than the Business, Buyer expressly understands and agrees that it is not purchasing or acquiring, and Seller is
not selling or assigning, any other assets or properties of Seller, and all such other assets and properties are excluded from the Assets
(collectively, the “Excluded Assets”). Excluded Assets include, without limitation, any equipment of the Business and
any asset not described in Exhibit A.

 

2.3 Purchase
Price; Payments. The purchase price for the Business is $225,000.00 (altogether, the “Purchase Price”); provided,
however, that the purchase price for Inventory will be paid as set forth in Section 2.8. The Purchase Price is payable as follows:

 

(a) On
the date of this Agreement, Buyer shall deliver 2,500,000 shares of common stock of Bespoke Extracts, Inc. (the “First Deposit”)
to Escrow Agent.

 

(b) No
later than five Business Days after First Governmental Approval, Buyer shall deliver Bespoke Extracts, Inc. common stock with a value
of $150,000 according to the VWAP Price (the “Second Deposit”) to Escrow Agent.

 

(c) At
the Closing, Escrow Agent shall pay the First Deposit and the Second Deposit to Seller.

 

2.4 Escrow
Agreement. On the date of this agreement, Buyer and Seller shall sign the Escrow Agreement in the form attached hereto as Exhibit
B and shall request that Escrow Agent sign the Escrow Agreement. The Escrow Agreement will govern payments and deposits made to Escrow
Agent and payments made by Escrow Agent to the Parties.

 

2.5 Closing.
Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by this Agreement (the “Closing”)
will take place remotely. The Closing will be the date the Parties agree to and submit on schedule A of the MED Approval Letter, provided
that Closing must occur within 30 days after the issuance of the MED Approval Letter and the City’s approval of the Change of Ownership
(the “Closing Date”).

 

2.6 Documents
Deliverable at Closing. At the Closing:

 

(a) Seller
shall provide to Buyer the following documents (“Seller’s Closing Documents”):

 

(i) an
executed Seller’s Officer’s Certificate in the form attached hereto as Exhibit C (“Seller’s Officer’s
Certificate”); and

 

    6

     

    

 

(ii) an
executed bill of sale for the Assets in the form attached hereto as Exhibit E.

 

(b) Buyer
shall provide to Seller an executed Buyer’s Officer’s Certificate in the form attached hereto as Exhibit D (“Buyer’s
Officer’s Certificate”);

 

2.7 Tax
Allocations. In accordance with Section 1060 of the Code, the Parties shall allocate the Purchase Price on a good faith basis among
the various Assets acquired by Buyer (the “Allocation”). Each Party shall file an Internal Revenue Service Form 8594
and all Tax Returns in accordance with the Allocation. Each Party shall, within five Business Days after a request from the other Party,
provide the other with any information required to complete Internal Revenue Service Form 8594. Each Party shall notify and provide the
other with reasonable assistance in the event of an examination, audit, or other proceeding regarding any allocation of the Purchase Price.
Except as required by applicable Law, each Party shall not take any position in any Tax return, Tax Proceeding or audit that is inconsistent
with the Allocation.

 

2.8 Sale
of Inventory.

 

(a) On
the Closing Date, or on such other date as Buyer and Seller may agree in writing, Seller, in consultation and cooperation with Buyer,
shall (i) conduct a physical count of the Inventory in a manner consistent with past procedures and practices of Seller, and (ii) prepare
a statement setting forth the type and amount of Inventory, the wholesale value of the Regulated Marijuana portion of the Inventory
and the packaging corresponding thereto, and the at cost price of any additional packaging on hand (the “Inventory Accounting
Statement”).

 

(b) The
purchase price for Inventory shall be 90% of the wholesale value of the Regulated
Marijuana portion of the Inventory and the packaging corresponding thereto set forth on the Inventory Accounting Statement and
the at cost price of any additional packaging on hand set forth on the Inventory Accounting Statement (altogether, the “Inventory
Purchase Price”).

 

(c) Buyer
shall pay the Inventory Purchase Price to Seller no later than 30 days after the Closing Date.

 

ARTICLE III

SELLER’S REPRESENTATIONS AND WARRANTIES

 

Seller states that the following
statements are true and correct (collectively, “Seller’s Representations and Warranties”):

 

3.1 Seller’s
Organization. Seller is a limited liability company duly formed, validly existing and in good standing under the Laws of the State
of Colorado and has full limited liability company power and authority to own, operate, or lease the properties and assets now
owned, operated, or leased by it and to conduct its business as it is now being conducted.

 

    7

     

    

 

3.2 Authority.
Seller has necessary power and authority to execute and deliver this Agreement and the other instruments to be delivered by Seller at
the Closing, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby,
subject to approvals required by the Marijuana Code. The execution and delivery by Seller of this Agreement and the other instruments
to be delivered by Seller at the Closing, and the performance by Seller of its obligations hereunder and thereunder, have been duly and
validly authorized by all requisite action. This Agreement has been, and the instruments to be delivered by Seller at the Closing will
at the Closing be, duly and validly executed and delivered by Seller and constitute (or, in the case of instruments to be delivered by
Seller at the Closing, will at the Closing constitute) the legal, valid and binding obligation of Seller enforceable against it in accordance
with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, arrangement, moratorium
or other similar Laws relating to or affecting the rights of creditors generally, or by general equitable principles.

 

3.3 No
Conflicts; Consents and Approvals. The execution and delivery of this Agreement by Seller do not, and the performance by Seller of
its obligations under this Agreement does not:

 

(a) conflict
with or result in a violation or result in a breach of, or default under, any provision of the Charter Documents of Seller;

 

(b) require
the consent, notice or other action by any Person or conflict with, result in a violation or breach of, constitute a default or an event
that, with or without notice or lapse of time both, would constitute a default under, result in the acceleration of or create in any Person
the right to accelerate, terminate, modify, or cancel any Contract to which Seller is a party or by which Seller or the Business is bound
or to which any of the Assets are subject;

 

(c) (i)
conflict with or result in a violation or breach of any Law applicable to Seller, except as would not reasonably be expected to materially
interfere with Seller’s ability to perform its obligations hereunder or (ii) require any consent or approval of any Governmental
Authority (other than the MED and the City) under any Law applicable to Seller, other than in each case any such consent or approval which,
if not made or obtained, would not reasonably be expected to materially interfere with Seller’s ability to perform its obligations
hereunder; except, in the cases of clauses (b) and (c), where the violation, breach, conflict, default, acceleration or failure to obtain
consent or give notice would not have a Material Adverse Effect; or

 

(d) result
in the creation or imposition of any Lien on the Assets.

 

3.4 Title
to the Assets. Seller has good and valid title to all of the Assets free and clear of all Liens and restrictions on transfer other
than those arising pursuant to this Agreement and the Marijuana Code and other than those would not have a Material Adverse Effect.

 

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3.5 Condition
of Assets. The tangible personal property included in the Assets
is sufficient for the continued conduct of the Business after the Closing in
substantially the same manner as conducted prior to the Closing and constitutes all of the rights, property and assets necessary
to conduct the Business as currently conducted.

 

3.6 Proceedings.
There is no Proceeding of any nature pending, or to Seller’s Knowledge threatened, against Seller before or by any Governmental
Authority, which seeks a writ, judgment, order, or decree restraining, enjoining, or otherwise prohibiting or making illegal any of the
transactions contemplated by this Agreement or relating to or affecting the Assets, which if determined adversely to Seller would result
in a Material Adverse Effect.

 

3.7 Brokers.
Seller has utilized the services of Young America Capital, an independent broker (the “Broker”), to facilitate
the transactions contemplated by this Agreement. Broker’s fee for such services is [# shares to be provided to YAC]. Buyer is solely
responsible for the payment to Broker. Seller does not have any liability or obligation to pay fees or commissions to any other broker,
finder, or agent with respect to the transactions contemplated by this Agreement for which Buyer or any of its Affiliates could become
liable or obligated.

 

3.8 Compliance
with Laws and Orders. Seller is not in material violation of, or in default under, any Law or order applicable to Seller the effect
of which, in the aggregate, would reasonably be expected to hinder, prevent or delay Seller from performing its obligations hereunder,
except where the failure to be in compliance would not have a Material Adverse Effect; provided, however, that this Section
3.8 does not address matters relating to Permits, which are exclusively addressed by Section 3.9, or matters related to Taxes, which are
exclusively addressed by Section 3.10.

 

3.9 Permits.
Seller possesses all Permits that are required for the ownership and operation of its business in the manner in which it is currently
operated. All Permits described in this Section 3.8 are valid and in full force and effect, and Seller is in compliance with each such
Permit, except where the failure to be in compliance would not have a Material Adverse Effect. All fees and charges with respect to such
Permits as of the date hereof have been paid in full. No event has occurred that, with or without notice or lapse of time or both, would
reasonably be expected to result in the revocation, suspension, lapse, or limitation of any Permit.

 

3.10 Taxes.

 

(a) All
Tax Returns with respect to the Business required to be filed by Seller have been, or will be, timely filed. Such Tax Returns are, or
will be on or before the Closing, true, complete and correct in all material respects. All Taxes due and owing by Seller (whether or not
shown on any Tax Return) have been, or will be on or before the Closing, timely paid. 

 

(b) Seller
has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee of Seller
and complied with all information reporting and backup withholding provisions of applicable Law.

 

(c) No
waivers of statutes of limitations have been given or requested with respect to any Taxes of Seller.

 

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(d) All
deficiencies asserted, or assessments made, against Seller as a result of any examinations by any taxing authority have been fully paid.

 

(e) Seller
is not a party to any Proceeding by any taxing authority. There are no pending or threatened Proceedings by any taxing authority.

 

(f) There
are no Liens for Taxes upon any of the Assets nor, to Seller’s Knowledge, is any governmental authority in the process of imposing
any Liens for Taxes on any of the Assets (other than for current Taxes not yet due and payable).

 

3.11 Environmental
Law. Seller has not caused, allowed to be caused, knowingly failed to prevent, or has been made aware of, an environmental condition
on the Property that required or requires abatement or correction under the Marijuana Code or under an Environmental Law, or has given
or is reasonably likely to give rise to any civil or criminal liability under an Environmental Law, or has created or may create a public
or private nuisance, including the presence of asbestos, PCB’s, hazardous substances, radioactive waste or radon, on, in or affecting
the Property. Seller has not received any citation, directive, letter, or other communication, written or oral, or any notice of any proceeding,
claim or lawsuit relating to any environmental issue arising out of the occupation of the Property, and there is no basis known to Seller
for any such action.

 

3.12 No
Other Representations and Warranties. Except for the representations and warranties contained in this Article III, neither Seller
nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Seller,
including any representation or warranty as to the accuracy or completeness of any information, documents or material regarding the Business
and the Assets furnished or made available to Buyer and its representatives in any form (including any information, documents, or
material delivered to Buyer on behalf of Seller for purposes of this Agreement or any management presentations made in expectation
of the transactions contemplated hereby), or as to the future revenue, profitability, or success of the Business, or any representation
or warranty arising from statute or otherwise in Law.

 

ARTICLE IV

BUYER’S REPRESENTATIONS AND WARRANTIES

 

Buyer states that the following
statements are true and correct (collectively, “Buyer’s Representations and Warranties”):

 

4.1 Buyer’s
Organization. Buyer is a limited liability company duly formed, validly existing and in good standing under the Laws of the State
of Colorado and has full limited liability company power and authority to own, operate, or lease the properties and assets now
owned, operated or leased by it and to conduct its business as it is now being conducted.

 

4.2 Authority.
Buyer has all requisite power and authority to execute and deliver this Agreement and the other instruments to be delivered by Buyer at
the Closing, to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby,
subject to approvals required by the Marijuana Code. The execution and delivery by Buyer of this Agreement and the other instruments to
be delivered by Buyer at the Closing, and the performance by Buyer of its obligations hereunder and thereunder, have been duly and validly
authorized by all necessary company action. This Agreement has been, and the instruments to be delivered by Buyer at the Closing will
at the Closing be, duly and validly executed and delivered by Buyer and constitutes (or, in the case of instruments to be delivered by
Buyer at the Closing, will at the Closing constitute) the legal, valid and binding obligations of Buyer enforceable against Buyer in accordance
with their terms, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, arrangement, moratorium
or other similar Laws relating to or affecting the rights of creditors generally, or by general equitable principles.

 

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4.3 No
Conflicts. The execution and delivery of this Agreement by Buyer do not, and the performance by Buyer of its obligations hereunder
and the consummation of the transactions contemplated hereby does not:

 

(a) conflict
with or result in a violation or result in a breach of, or default under, any provision of the Charter Documents of Buyer; or

 

(b)
(i) conflict with or result in a violation or breach of any Law applicable to Buyer, except as would not reasonably be expected to materially
interfere with Buyer’s ability to perform its obligations hereunder or (ii) require any consent or approval of any Governmental
Authority (other than the MED and the City) under any Law applicable to Buyer, other than in each case any such consent or approval which,
if not made or obtained, would not reasonably be expected to materially interfere with Buyer’s ability to perform its obligations
hereunder.

 

4.4 Proceedings.
There is no Proceeding pending or, to Buyer’s Knowledge threatened, against Buyer before or by any Governmental Authority, which
seeks a writ, judgment, order or decree restraining, enjoining or otherwise prohibiting or making illegal any of the transactions contemplated
by this Agreement.

 

4.5 Solvency;
Sufficiency of Funds. Immediately after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall:
(a) be able to pay its debts as they become due; (b) own property that has a fair saleable value greater than the amounts required to
pay its debts (including a reasonable estimate of the amount of all Liabilities); and (c) have adequate capital to carry on its business.
No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated hereby with
the intent to hinder, delay or defraud either present or future creditors of Buyer or Seller. In connection with the transactions contemplated
hereby, Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured. For purposes
of this Agreement, “Liabilities” means liabilities, obligations or commitments of any nature whatsoever, whether asserted
or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise.

 

4.6 Brokers.
Buyer does not have any liability or obligation to pay fees or commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement for which Seller or any of its Affiliates could become liable or obligated.

 

4.7 Compliance
with Laws and Orders. Buyer is not in material violation of, or in default under, any Law or order applicable to Buyer the effect
of which, in the aggregate, would reasonably be expected to hinder, prevent, or delay Buyer from performing its obligations hereunder.

 

4.8 Independent
Investigation. Buyer has conducted its own independent investigation, review and analysis of the Business and the Assets, and
acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records and other
documents and data of Seller for such purpose. In making its decision to enter into this Agreement and to consummate the transactions
contemplated hereby, Buyer has relied solely upon its own investigation and the express representations and warranties of Seller set forth
in Article III. Neither Seller nor any other Person has made any representation or warranty as to Seller, the Business, the Assets or
this Agreement, except as expressly set forth in Article IV.

 

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ARTICLE V

COVENANTS

 

5.1 Regulatory
and Other Approvals. During the Interim Period:

 

(a) Each
Party shall use reasonable efforts to obtain as promptly as practicable all material consents and approvals that either Party or its respective
Affiliates are required to obtain in order to consummate the transactions contemplated hereby; provided that for purposes of clarification,
and notwithstanding anything to the contrary in this Agreement, the obtaining of the consents and approvals will not be a condition to
the Closing except to the extent set forth in Articles VI or VII, as applicable.

 

(b) Each
Party shall (i) make or cause to be made the filings required of the Person or any of its applicable Affiliates under any Laws applicable
to it with respect to the transactions contemplated by this Agreement and to pay any fees due of it in connection with the filings, as
promptly as is reasonably practicable, provided that for purposes of clarification, and notwithstanding anything to the contrary in this
Agreement, the filings and payments will not be conditions to the Closing except to the extent set forth in Articles VI and VII; (ii)
cooperate with the other Party and furnish the information that is necessary in connection with the other Party’s filings; (iii)
use reasonable efforts to cause the expiration of the notice or waiting periods under any Laws applicable to it with respect to the consummation
of the transactions contemplated by this Agreement as promptly as is reasonably practicable; (iv) promptly inform the other Party of any
communication from or to, and any proposed understanding or agreement with, any Governmental Authority in respect of the filings; (v)
reasonably consult and cooperate with the other Party in connection with any analyses, appearances, presentations, memoranda, briefs,
arguments, and opinions made or submitted by or on behalf of a Party in connection with all meetings, actions or other Proceedings with
Governmental Authorities relating to the filings; (vi) comply, as promptly as is reasonably practicable, with any requests received by
a Party under any Laws for additional information, documents or other materials with respect to the filings; (vii) use reasonable efforts
to resolve any objections as may be asserted by any Governmental Authority with respect to the transactions contemplated by this Agreement;
and (viii) use reasonable efforts to contest and resist any action or other Proceeding instituted (or threatened in writing to be instituted)
by any Governmental Authority challenging the transactions contemplated by this Agreement as violative of any Law. If a Party (or any
of its applicable Affiliates) intends to participate in any meeting with any Governmental Authority with respect to the filings and if
permitted by, or acceptable to, the applicable Governmental Authority, it shall exercise reasonable efforts to give the other Party reasonable
prior notice of, and an opportunity to participate in, the meeting.

 

(c) Each
Party shall provide prompt notification to the other when it becomes aware that any such consent or approval referred to in this Section
5.1 is obtained, taken, made, given or denied, as applicable.

 

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(d) In
furtherance of the foregoing covenants, each Party shall not, and each Party shall cause its respective Affiliates not to, take any action
that could reasonably be expected to adversely affect the approval of any Governmental Authority of any of the filings referred to in
this Section 5.1.

 

(e) Each
of the Parties shall prepare (or exercise its reasonable efforts to cause its Affiliates to prepare), as soon as is practicable, all necessary
filings with Governmental Authorities applicable to it in connection with the transactions contemplated by this Agreement; provided that,
for purposes of clarification, and notwithstanding anything to the contrary in this Agreement, the filings will not be conditions to the
Closing except to the extent set forth in Articles VI and VII. Each of the Parties shall submit the filings applicable to it as soon as
practicable. Each of the Parties shall promptly furnish the other Party with copies of any notices, correspondence or other written communication
received by it from the relevant Governmental Authority, shall promptly make any appropriate or necessary subsequent or supplemental filings
required of it, and shall cooperate in the preparation of the filings as is reasonably necessary and appropriate.

 

(f) If
any of the Licenses will expire prior to the Closing, Seller shall renew such Licenses timely and at Seller’s sole expense.

 

(g) Notwithstanding
the foregoing, the Parties shall file the Change of Ownership with the City and the MED on or before the date that is 30 days following
the date of this Agreement.

 

5.2 Access
of Buyer. During the Interim Period and upon reasonable notice and during normal business hours, and under the supervision of Seller’s
personnel and in such a manner as not to interfere with the conduct of the Business or any other businesses of Seller, Seller shall provide
Buyer and its representatives with access to the Business and shall allow Buyer and its representatives to perform any inspections Buyer
reasonably requests, subject to the Marijuana Code.

 

5.3 Certain
Restrictions. During the Interim Period, except as permitted or required by the other terms of this Agreement, or consented to in
writing by Buyer, which consent or approval will not be unreasonably withheld, conditioned, or delayed, to the extent material to this
Agreement, Seller shall: (i) conduct the Business in the ordinary course of business consistent
with past practice; and (ii) use reasonable efforts to maintain and preserve intact its current
Business organization and operations and to preserve the rights, goodwill and relationships of its employees, customers, lenders, suppliers,
regulators and others having relationships with the Business. Without limiting the foregoing, during the Interim Period, Seller shall:

 

(a) preserve
and maintain all Permits required for the conduct of the Business as currently conducted for the ownership and use of the Assets;

 

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(b) pay
the debts, Taxes and other obligations of the Business when due;

 

(c) maintain
the Assets in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear; and

 

(d) comply
in all material respects with all Laws applicable to the conduct of the Business or the ownership and use of the Assets.

 

5.4 Negative
Covenants. During the Interim Period, Seller shall not, and shall cause its Affiliates not to, undertake any action or make any commitment
to:

 

(a) sell
the Licenses or the Assets; or

 

(b) dissolve
or liquidate Seller.

 

5.5 Further
Assurances. At any time or from time to time after the Closing, at a Party’s request and without further consideration, a Party
shall execute and deliver to the other Party such other instruments of sale, transfer, conveyance, assignment, and confirmation, provide
such materials and information and take such other actions as the Party may reasonably request in order to consummate the transactions
contemplated by this Agreement.

 

5.6 Application
Fees. Buyer shall timely pay the Application Fees.

 

5.7 Stand
Still. During the Interim Period, Seller shall not offer to sell or solicit any offer to purchase or engage in any discussions or
activities of any nature whatsoever, directly or indirectly, involving in any manner the actual or potential sale, transfer, encumbrance,
pledge, collateralization or hypothecation of any of the Assets, or any ownership interests in Seller. Seller shall advise the Buyer of
any contact from any third party regarding the possible acquisition of any of the Assets or any membership interest in Seller, Seller
or other investment in Seller, the acquisition of the Property or the Assets, or of any contact which would relate to the transactions
contemplated by this Agreement.

 

ARTICLE VI

BUYER’S CONDITIONS TO CLOSING

 

The obligation of Buyer to
consummate the Closing is subject to the fulfillment of each of the following conditions (except to the extent waived in writing by Buyer
in its sole discretion):

 

6.1 Representations
and Warranties. Seller’s Representations and Warranties will be true and correct on and as of the date hereof and on and as
of the Closing as though made on and as of such date, except where the failure of such representations and warranties to be true and correct
would not have a Material Adverse Effect.

 

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6.2 Performance.
Seller will have performed and complied in all material respects with the agreements, covenants, conditions, and obligations required
by this Agreement to be performed or complied with by Seller at or before the Closing; provided,
that, with respect to agreements, covenants and conditions that are qualified by materiality, Seller shall have performed such agreements,
covenants and conditions, as so qualified, in all respects.

 

6.3 Seller’s
Closing Documents. Seller will have delivered to Buyer at the Closing Seller’s Closing Documents.

 

6.4 Orders
and Laws. There is no Law or order (except for any such order issued in connection with a Proceeding instituted by Buyer or its Affiliates)
restraining, enjoining, or otherwise prohibiting or making illegal the consummation of the transactions contemplated by this Agreement.

 

6.5 Consents
and Approvals. All approvals, consents, and waivers that are required by this Agreement will
have been received and executed counterparts thereof will have been delivered to Buyer at or prior to the Closing. All terminations
or expirations of waiting periods imposed by any Governmental Authority with respect to this Agreement have occurred; provided,
however, that the absence of any appeals and the expiration of any appeal period with respect to any of the foregoing will not
constitute a condition to the Closing hereunder.

 

6.6 No
Material Adverse Effect. From the date of this Agreement, there will not have occurred any Material
Adverse Effect, nor will any event or events have occurred that, individually or in the aggregate, with or without the lapse of time,
could reasonably be expected to result in a Material Adverse Effect.

 

6.7 Litigation.
No Proceeding will have been commenced against Seller which would prevent the Closing.

 

6.8 Final
Governmental Approval. Final Governmental Approval will have occurred.

 

ARTICLE VII

SELLER’S CONDITIONS TO CLOSING

 

The obligation of Seller to
consummate the Closing is subject to the fulfillment of each of the following conditions (except to the extent waived in writing by Seller
in its sole discretion):

 

7.1 Representations
and Warranties. Buyer’s Representations and Warranties will be true and correct on and as of the date hereof and on and as of
the Closing as though made on and as of such date.

 

7.2 Performance.
Buyer will have performed and complied in all material respects with the agreements, covenants, conditions, and obligations required by
this Agreement to be so performed or complied with by Buyer at or before the Closing; provided,
that, with respect to agreements, covenants and conditions that are qualified by materiality, Buyer shall have performed such agreements,
covenants and conditions, as so qualified, in all respects.

 

7.3 Buyer’s
Officer’s Certificate. Buyer will have delivered to Seller at the Closing Buyer’s Officer’s Certificate.

 

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7.4 Orders
and Laws. There is no Law or order (except for any such order issued in connection with a Proceeding instituted by Seller or its Affiliates)
restraining, enjoining or otherwise prohibiting or making illegal the consummation of the transactions contemplated by this Agreement.

 

7.5 Final
Governmental Approval. Final Governmental Approval will have occurred.

 

ARTICLE VIII

TERMINATION

 

8.1 Termination.
 

 

(a) This
Agreement may be terminated at any time before the Closing for one or more of the following reasons:

 

(i) by
Seller or Buyer, by written notice to the other Party, if any Law or final non-appealable order restrains, enjoins or otherwise prohibits
or makes illegal the sale of the Business as provided in this Agreement;

 

(ii) by
Buyer, by written notice to Seller, if Seller has materially breached its representations or obligations under this Agreement and the
breach would or does result in the failure of any condition set forth in Article VI;

 

(iii) by
Seller, by written notice to Buyer, if Buyer has materially breached its representations or obligations under this Agreement and the breach
would or does result in the failure of any condition set forth in Article VII;

 

(iv) by
Seller or Buyer, by written notice to the other Party, if the Real Estate Contract is terminated for any reason; or

 

(v) by
any Party, after the Termination Date; provided, however, that the right to terminate this Agreement under this Section
8.1(a)(v) will not be available to a Party that has intentionally breached in any material respect any of its obligations under this Agreement
or to either Party if First Governmental Approval has occurred.

 

(b) This
Agreement will automatically terminate if a Governmental Authority denies the Change of Ownership.

 

8.2 Effect
of Termination.

 

(a) If
this Agreement is validly terminated pursuant to Section 8.1, there will be no liability or obligation hereunder on the part of Seller
or any of its Affiliates or Buyer or any of its Affiliates, provided, however, that Article I, Sections 8.2, 9.6, and Article
X will survive any such termination.

 

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(b) If
this Agreement is validly terminated, provided in each case such termination is not the result of any action or inaction of Buyer, pursuant
to Section 8.1(a)(i), (ii), or (iv), or if Buyer validly terminates this Agreement pursuant to Section 8.1(a)(v), Escrow Agent shall disburse
the First Deposit and the Second Deposit, as applicable, to Buyer.

 

(c) If
this Agreement is validly terminated pursuant to Section 8.1(a)(iii) or if Seller validly terminates this Agreement pursuant to Section
8.1(a)(v), Escrow Agent shall disburse the First Deposit and the Second Deposit, as applicable, to Seller.

 

ARTICLE IX

INDEMNIFICATION AND ARBITRATION

 

9.1 Indemnity.
From and after the Closing:

 

(a) Seller
shall indemnify, defend, and hold harmless Buyer, its affiliates and their respective members, managers, officers, and employees from
and against all Losses incurred or suffered by Buyer resulting from:

 

(i) any
inaccuracy of or breach as of the Closing (as though made on and as of the Closing except to the extent a statement of fact is expressly
made as of an earlier date, in which case only as of the earlier date) of Seller’s Representations and Warranties or any document
to be delivered hereunder; and

 

(ii) any
breach or non-fulfillment of any covenant, obligation or agreement of Seller contained in this Agreement or any document to be delivered
hereunder.

 

(b) Buyer
shall indemnify, defend, and hold Seller harmless from and against all Losses incurred or suffered by Seller resulting from:

 

(i) any
inaccuracy of or breach as of the Closing (as though made on and as of the Closing except to the extent a statement of fact is expressly
made as of an earlier date, in which case only as of the earlier date) of Buyer’s Representations and Warranties or any document
to be delivered hereunder; and

 

(ii) any
breach or non-fulfillment of any covenant, obligation or agreement of Buyer contained in this Agreement or any document to be delivered
hereunder; and

 

(iii) any
Assumed Liabilities.

 

9.2 Limitations
of Liability. Notwithstanding anything in this Agreement to the contrary:

 

(a) Seller’s
Representations and Warranties will survive the Closing; provided, however, that no claim for indemnification made in accordance
with Section 9.1(a)(i) or Section 9.1(b)(i) may be made later than one year following the Closing; provided, however, any claim
for indemnification made in accordance with Section 9.1(a)(i) or Section 9.1(b)(i) based upon or arising out of Responding Party’s
(as defined below) gross negligence, willful misconduct, or fraud shall survive for the full period of all applicable statutes of limitations;
provided, further, none of the covenants or other agreements contained in this Agreement will survive the Closing
Date other than those which by their terms contemplate performance after the Closing Date, and each such surviving covenant and agreement will
survive the Closing for the period contemplated by its terms;

 

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(b) Buyer
shall give written notice to Seller within a reasonable period of time after becoming aware of any breach by Seller of any representation,
warranty, covenant, agreement, or obligation in this Agreement, but in any event no later than 30 days after becoming aware of such breach;

 

(c) Seller
shall give written notice to Buyer within a reasonable period of time after becoming aware of any breach by Buyer of any representation,
warranty, covenant, agreement or obligation in this Agreement, but in any event no later than 30 days after becoming aware of such breach;

 

(d) the
Parties have a duty to mitigate any Loss in connection with this Agreement;

 

(e) Seller’s
liability with respect to Section 9.1 is limited to Losses incurred or suffered by Buyer in an amount no more than $200,000.00;

 

(f) Buyer’s
liability with respect to Section 9.1 is limited to Losses incurred or suffered by Seller in an amount no more than $200,000.00; and

 

(g) No
Claiming Party will be liable to any Responding Party for any punitive, incidental, consequential, special or indirect damages, including
loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement,
or diminution of value or any damages.

 

9.3 Procedure
with Respect to Third-Party Claims.

 

(a) If
a Party becomes subject to a pending or threatened Claim of a third party and such Party (the “Claiming Party”) believes
it has a Claim against the other Party (the “Responding Party”), pursuant to Section 9.1, as a result, then the Claiming
Party shall notify the Responding Party in writing of the basis for the Claim setting forth the nature of the Claim in reasonable detail.
The failure of the Claiming Party to so notify the Responding Party will not relieve the Responding Party of liability hereunder except
to the extent that the defense of the Claim is prejudiced by the failure to give the notice.

 

(b) If
any Proceeding is brought by a third party against a Claiming Party and the Claiming Party gives notice to the Responding Party pursuant
to Section 9.3(a), the Responding Party may participate in the Proceeding and, to the extent that it wishes, assume the defense of the
Proceeding, at its sole cost, if (i) the Responding Party provides written notice to the Claiming Party that the Responding Party intends
to undertake the defense, (ii) the Responding Party conducts the defense of the third-party Claim actively and diligently with counsel
reasonably satisfactory to the Claiming Party, and (iii) the Responding Party is a party to the Proceeding, and the Responding Party or
the Claiming Party has not determined in good faith that joint representation would be inappropriate because of a conflict of interest.
The Claiming Party may, in its sole discretion, select and employ separate counsel in any such action and to participate in the defense
thereof, and the Claiming Party shall pay the fees and expenses of its counsel. The Claiming Party shall cooperate with the Responding
Party and its counsel in the defense or compromise of the Claims. If the Responding Party assumes the defense of a Proceeding, no compromise
or settlement of the Claims may be effected by the Responding Party without the Claiming Party’s consent unless (A) there is no
finding or admission of any violation of Law or any violation of the rights of any Person and no effect on any other Claims that may be
made against the Claiming Party, and (B) the sole relief provided is monetary damages that the Responding Party pays in full.

 

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(c) If
notice is given to the Responding Party of the commencement of any third-party Proceeding and the Responding Party does not, within 14
days after the Claiming Party’s notice is given pursuant to Section 9.3(b), give notice to the Claiming Party of its election to
assume the defense of the Proceeding, and any of the conditions set forth in clauses (i) through (iii) of Section 9.3(b) become unsatisfied
or a Claiming Party determines in good faith that there is a reasonable probability that a Proceeding may adversely affect it other than
as a result of monetary damages for which it would be entitled to indemnification from the Responding Party under this Agreement, then
the Claiming Party may (upon notice to the Responding Party) undertake the defense, compromise or settlement of the Claim; provided,
however, that the Responding Party shall reimburse the Claiming Party for the costs of defending against the third-party Claim
(including reasonable attorneys’ fees and expenses) and will remain otherwise responsible for any liability with respect to amounts
arising from or related to the third-party Claim, in both cases to the extent it is ultimately determined that the Responding Party is
liable with respect to the third-party Claim for a breach under this Agreement. The Responding Party may elect to participate in the Proceedings,
negotiations, or defense at any time at its own expense.

 

9.4 Effect
of Investigation. Seller will not be liable under this Article IX for any Losses based upon or arising out of any inaccuracy
in or breach of any of the representations or warranties of Seller contained in this Agreement if Buyer had knowledge of such
inaccuracy or breach prior to the Closing.

 

9.5 Cumulative
Remedies. The rights and remedies provided in this Article IX are cumulative and are in addition to and not in substitution
for any other rights and remedies available at law or in equity or otherwise.

 

9.6 Mandatory
Binding Arbitration.

 

(a) Any
dispute, Claim, interpretation, controversy, or issues of public policy arising out of relating to this Agreement, including the determination
of the scope or applicability of this Section 9.6, will be determined exclusively by binding arbitration held in the City and County of
Denver, Colorado, and will be governed exclusively by the Colorado Revised Uniform Arbitration Act, C.R.S. §§ 13-22-201, et
seq. (the “CRUAA”).

 

(b) The
arbitrator will be selected from the roster of arbitrators at Judicial Arbiter Group, Inc. in Denver, Colorado (“JAG”),
unless the Parties agree otherwise. If the Parties do not agree on the selection of a single arbitrator within ten days after a demand
for arbitration is made, then the arbitrator will be selected by JAG from among its available professionals. Arbitration of all disputes
and the outcome of the arbitration will remain confidential between the Parties except as necessary to obtain a court judgment on the
award or other relief or to engage in collection of the judgment.

 

(c) The
Parties irrevocably submit to the exclusive jurisdiction of the state courts located in Denver, Colorado, with respect to this Section
9.6 to compel arbitration, to confirm an arbitration award or order, or to handle court functions permitted under the CRUAA. The Parties
irrevocably waive defense of an inconvenient forum to the maintenance of any such action or other proceeding. The Parties may seek recognition
and enforcement of any Colorado state court judgment confirming an arbitration award or order in any United States state court or any
court outside the United States or its territories having jurisdiction with respect to recognition or enforcement of such judgment.

 

(d) The
Parties waive (i) any right of removal to the United States federal courts and (ii) any right to compel arbitration, to confirm any arbitration
award or order, or to seek any aid or assistance of any kind in the United States federal courts.

 

    19

     

    

 

ARTICLE X

MISCELLANEOUS

 

10.1 No
Third-Party Beneficiaries. The terms and provisions of this Agreement are intended solely for the benefit of the Parties and their
respective successors or permitted assigns, and it is not the intention of the Parties to confer third-party beneficiary rights upon any
other Person.

 

10.2 Entire
Agreement; Amendment. This Agreement supersedes all prior discussions and agreements between the Parties with respect to the subject
matter hereof and contains the sole and entire agreement between the Parties and their Affiliates with respect to the subject matter hereof.
The Parties may amend any provision of this Agreement only by a written instrument signed by the Parties.

 

10.3 Waiver.
Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver
will be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving the term or condition. No
waiver by a Party of any term or condition of this Agreement, in any one or more instances, will be deemed to be or construed as a waiver
of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by Law,
are cumulative and not alternative.

 

10.4 Succession
and Assignment. This Agreement is binding upon and will inure to the benefit of the Parties and their successors and assigns. Buyer
may assign this Agreement to any party in Buyer’s sole discretion by providing written notice of such assignment to Seller. This
Agreement may not otherwise be assigned by operation of law or otherwise without the written consent of the Parties.

 

10.5 Counterparts;
Electronic or Fax Signatures. This Agreement may be executed in counterparts, each of which will be an original and all of which,
when taken together, will constitute one instrument notwithstanding that all parties have not executed the same counterpart. Signatures
that are transmitted electronically or by fax will be effective as originals.

 

10.6 Headings.
The headings used in this Agreement have been inserted for convenience of reference only and do not modify, define, or limit any of its
terms or provisions.

 

10.7 Notices.
Any notice, request, demand, Claim, or other communication hereunder will be in writing and will be deemed delivered: (a) three Business
Days after it is sent by U.S. mail, certified mail, return receipt requested, postage prepaid; or (b) one Business Day after it is sent
via a reputable nationwide overnight courier or sent via email, in each of the foregoing cases to the intended recipient as set forth
below:

 

		If to Buyer 	Bespoke Extracts Colorado, LLC

Attn: Michael Feinsod

2590 Walnut St.

Denver, CO 80205

Phone: 855-633-3738

E-mail: legal@bespokeextracts.com

 

		With a copy to:	 Fairfield and Woods, P.C.

Attn: Daniel J. Garfield, Esq.

1801 California St., Suite 2600

Denver, CO 80202

Phone: 303-830-2400

Email: dgarfield@fwlaw.com

 

    20

     

    

 

		If to Seller:	 WonderLeaf, LLC

Attn: Roxanne Burns

12001 E. 33rd
Ave., Unit O

Aurora, CO 80010

 

A Party may give any notice,
request, demand, Claim, or other communication hereunder by personal delivery, electronically via email, or fax. A Party may change the
address to which notices, requests, demands, Claims, and other communications hereunder are to be delivered by giving notice to the other
Party in the manner herein set forth.

 

10.8 Governing
Law. This Agreement is governed by and construed and enforced in accordance with the laws of the State of Colorado, without giving
effect to any conflict or choice of law provision that would result in imposition of another state’s Law. THE PARTIES TO THIS AGREEMENT
ACKNOWLEDGE THAT (A) COLORADO HAS PASSED AMENDMENTS TO THE COLORADO CONSTITUTION AND ENACTED CERTAIN LEGISLATION TO GOVERN THE MARIJUANA
INDUSTRY AND (B) THE POSSESSION, SALE, MANUFACTURE, AND CULTIVATION OF MARIJUANA IS ILLEGAL UNDER FEDERAL CANNABIS LAWS. THE PARTIES WAIVE
ANY DEFENSES BASED UPON INVALIDITY OF CONTRACTS FOR PUBLIC POLICY REASONS AND/OR THE SUBSTANCE OF THE CONTRACT VIOLATING FEDERAL LAW.

 

10.9 Waiver
of Right to Trial by Jury. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW TRIAL BY JURY
IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND WITH RESPECT TO ANY COUNTERCLAIM THEREIN.

 

10.10 Attorneys’
Fees. If a Party brings an action to enforce the provisions of this Agreement, the substantially prevailing Party will be entitled
to recover its reasonable attorneys’ fees and expenses incurred in such action from the non-prevailing Party.

 

10.11 Invalid
Provisions. If a dispute between the Parties arises out of this Agreement or the subject matter of this Agreement, the Parties would
want a court or arbitrator to interpret this Agreement as follows:

 

(a) with
respect to any provision held to be unenforceable (including under Federal Cannabis Laws), by modifying that provision to the
minimum extent necessary to make it enforceable or, if that modification is not permitted by law or public policy, by disregarding the
provision;

 

(b) if
an unenforceable provision is modified or disregarded in accordance with this Section 10.11, by holding the rest of the Agreement will
remain in effect as written;

 

    21

     

    

 

(c) by
holding that any unenforceable provision will remain as written in any circumstances other than those in which the provision is held to
be unenforceable; and

 

(d) if
modifying or disregarding the unenforceable provision would result in a failure of an essential purpose of this Agreement, by holding
the entire Agreement unenforceable.

 

Upon the determination that any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced (including under Federal Cannabis Laws), the
Parties shall negotiate in good faith to modify this Agreement so as to affect the original intent of the Parties as closely as possible
in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

10.12 Expenses. Except
as otherwise provided in this Agreement, whether or not the transactions contemplated hereby are consummated, each Party shall pay its
own costs and expenses incurred in anticipation of, relating to and in connection with the negotiation and execution of this Agreement
and the transactions contemplated hereby.

 

10.13 Confidentiality
and Publicity. This Agreement is confidential and may not be disclosed to any third party (other than the Parties’ Affiliates,
attorneys, accountants, auditors, or other advisors, or Governmental Authorities) except as required for tax purposes or as required by
Law; provided, however, that Buyer and its Affiliates may disclose this Agreement to Persons who might make an investment
in, or make a loan to, Buyer or its Affiliates. Except as provided herein, a Party receiving a request for this Agreement shall promptly
notify the other Party to afford it the opportunity to object or seek a protective order regarding this Agreement or information contained
herein. None of the Parties may issue any press release or public announcement of any of the transactions contemplated by this Agreement
except as may be agreed to in writing by the Parties.

 

10.14 Advice
of Counsel. Each Party has had the opportunity to seek the advice of independent legal counsel and has read and understood each
of the terms and provisions of this Agreement.

 

10.15 Reformation.
This Agreement and the transactions contemplated hereby are subject to review by the MED and the City. If the MED or the City determines
that this Agreement must be reformed, the Parties shall negotiate in good faith to so reform this Agreement according to such Governmental
Authority’s requirements while effectuating the original intent of this Agreement as near as possible.

 

[Remainder of Page Intentionally Left Blank;
Signature Page Follows]

 

    22

     

    

 

IN WITNESS WHEREOF, this Agreement
has been duly executed and delivered by the Parties as of the date first above written.

 

	SELLER:	 
	 	 	 
	WONDERLEAF, LLC

	 
	 	 	 
	By:	/s/ Roxanne Burns

	 
	Name:	Roxanne Burns

	 
	Title:

	Manager

	 

 

	BUYER:	 
	 	 	 
	BESPOKE EXTRACTS COLORADo, LLC	 
	 	 	 
	By:	/s/ Michael Feinsod	 
	Name:	Michael Feinsod	 
	Title:	Manager	 

 

     

     

    

 

EXHIBIT A

 

     

     

    

 

EXHIBIT B

 

ESCROW AGREEMENT

 

     

     

    

 

EXHIBIT C

 

SELLER’S OFFICER’S CERTIFICATE

 

     

     

    

 

EXHIBIT D

 

BUYER’S OFFICER’S CERTIFICATE

 

     

     

    

 

EXHIBIT E

 

BILL OF SALE

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