Document:

ex10p2expimpcragr200930b

                                                              EXECUTION VERSION    AMENDMENT NO. 1 TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT, SECOND      AMENDED AND RESTATED SECURITY AGREEMENT AND SECOND AMENDED AND                      RESTATED SUBSIDIARY SECURITY AGREEMENT                                      September 30, 2020                This Amendment No. 1 (this “Amendment”), dated as of September 30, 2020 is entered  into by and among United States Steel Corporation (the “Borrower”), U.S. Steel Seamless Tubular  Operations, LLC (“USSSTO”), United States Steel International, Inc. (“USSI”), U.S. Steel Oilwell  Services, LLC (“USSOS”), U. S. Steel Tubular Products, Inc. (“USSTP”), USS-POSCO Industries (“UPI”  and, together with USSTO, USSI, USSOS and USSTP, the “Subsidiary Guarantors”; the Subsidiary  Guarantors together with the Borrower, the “Credit Parties”), JPMorgan Chase Bank, N.A., as  Administrative Agent (the “Administrative Agent”) and Collateral Agent (the “Collateral Agent”) and  the Lenders party hereto with respect to (i) the Fifth Amended and Restated Credit Agreement dated as of  October 25, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified prior  to the date hereof, the “Credit Agreement”) among the Borrower,  the Lenders party thereto  (the  “Lenders”), the LC Issuing Banks party thereto, the Administrative Agent, the Collateral Agent, and the  other parties from time to time party thereto, (ii) the Second Amended and Restated Security Agreement  (as amended, restated, amended and restated, supplemented or otherwise modified prior to the date hereof,  the “Borrower Security Agreement”), dated as of October 25, 2019 between the Borrower and the  Collateral Agent and (iii) the Second Amended and Restated Subsidiary Security Agreement (as amended,  restated, amended and restated, supplemented or otherwise modified prior to the date hereof , the  “Subsidiary Security Agreement” and, together with the Borrower Security Agreement, the “Security  Agreements”), dated as of October 25, 2019, between the Subsidiary Guarantors and the Collateral Agent.                WHEREAS, pursuant to Section 9.02(b) of the Credit Agreement, the Borrower has  requested that the Required Lenders agree to amend certain provisions of the Credit Agreement and the  Security Agreements as set forth herein; and                WHEREAS, the Required Lenders, the Administrative Agent and the Collateral Agent  have agreed upon the terms and subject to the conditions set forth herein, to amend such provisions of the  Credit Agreement and the Security Agreements as set forth herein.                NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of  which are hereby acknowledged, the parties hereto (which Lenders party hereto constitute the Required  Lenders), intending to be legally bound hereby, agree as follows:                SECTION 1.  Defined Terms.  Unless otherwise defined herein, capitalized terms which  are defined in the Credit Agreement are used herein as therein defined.                  SECTION 2.  Amendments.  Effective as of the Amendment No. 1 Effective Date (as  defined below):                (a) The Credit Agreement is hereby amended as follows:                      (i)   Section 1.01 of the Credit Agreement is hereby amended by inserting the              following defined terms in alphabetical order: 

 

“Amendment No. 1” means that certain Amendment No. 1 to Fifth Amended and Restated Credit  Agreement, Second Amended and Restated Security Agreement and Second Amended and Restated  Subsidiary Security Agreement, dated as of September 30, 2020 by and among the Borrower, the Subsidiary  Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.   “Amendment No. 1 Effective Date” has the meaning set forth in Amendment No. 1.   “Specified Financing” means a financing evidenced by Specified Financing Documents.   “Specified Financing Documents” means (i)(x) that certain Export-Import Transaction Specific Loan and  Security Agreement, dated as of September 30, 2020 by and among the Borrower, USSI, the lenders from  time to time parties thereto and PNC Bank, National Association, as Agent (the “ExIm Loan Agreement”  and (y) the “Other Documents” as defined in the ExIm Loan Agreement and (ii) the documentation for any  financing transaction that amends, amends and restates, supplements, modifies, extends, replaces, renews,  restates or refinances the financing provided for under the Specified Financing Documents described in  clause (i) (such financing described in clause (i), the “Initial Specified Financing”), so long as (x) the  Receivables securing such Specified Financings are attributable solely to Specified Financing Eligible  Account Debtors and (y) the material terms of such financing transaction (other than amounts, yield, fees  or other compensatory economics, maturity, advance rates and other economic terms) are substantially  consistent with the material terms of the Initial Specified Financing; provided that a certificate of the  Borrower certifying in good faith that the material terms of such financing transaction are substantially  consistent with the material terms of the Initial Specified Financing shall satisfy the requirements of this  clause (y).   “Specified Financing Eligible Account Debtor” means (i) [REDACTED], (ii) [REDACTED] or (iii)  [REDACTED]; provided, the Borrower may make a one-time election to replace such Account Debtor set  forth in this clause (iii) upon at least three Business Days’ prior written notice to the Administrative Agent  with another Account Debtor identified in such notice (the “Specified Financing Replacement Account  Debtor”) and subject to the requirements set forth in Section 6.05(b).   “Specified Financing Replacement Account Debtor” has the meaning set forth in the definition of  Specified Financing Eligible Account Debtor.                       (ii)  The first sentence of the definition of “Permitted Supply Chain Financing”              set forth in Section 1.01 of the Credit Agreement is hereby amended by inserting the text               “(i)” between the words “means” and “any” and inserting the text “and (ii) the Specified               Financing” immediately prior to the period at the end of such sentence.                       (iii) Article 6 of the Credit Agreement is hereby amended by inserting the              following Section 6.05 at the end thereof:   “Section 6.05. Specified Financings. The Borrower will not, and will not permit any Credit Party to, (a)  permit any amount constituting proceeds of a collection on a Transferred Receivable (as defined in the  Security Agreement) in respect of any Specified Financing to be deposited in any deposit account that  constitutes a Collection Account (as defined in the Security Agreement), and allow such deposited amount  to remain in such Collection Account for longer than ten (10) business days (or such greater period  acceptable to the Collateral Agent in its reasonable discretion) from the date such amount was deposited in  such Collection Account and (b) permit the aggregate amount of Receivables attributable to the Specified 

 

Replacement Account Debtor securing any Specified Financings that would otherwise constitute Tranche  A Available Receivables or Tranche B Available Receivables to materially exceed, in the aggregate, the  sum of the Tranche A Receivables and Tranche B Receivables of the Specified Financing Eligible Account  Debtor set forth in clause (iii) of the definition thereof at the time such Specified Financing Eligible Account  Debtor’s Receivables first secure any Specified Financing.”.                       (iv)   Clause (d) of Article 7 of the Credit Agreement is hereby amended by              inserting the text ” (other than Section 6.05(a))” immediately prior to the period at the end               of such sentence.                       (v)    Clause (e) of Article 7 of the Credit Agreement is hereby amended by              replacing the word “or” with “,” immediately prior to the text “(ii)” and inserting the text               “or (iii) any covenant or agreement contained in Section 6.05(a) and such failure shall               continue for 5 business days” immediately prior to the period at the end of such sentence.                (b) Each of the Borrower Security Agreement and the Subsidiary Security Agreement are hereby amended as follows:                       (i)    Section 1 of each Security Agreement is hereby amended by inserting the              following defined term in alphabetical order:   “Amendment No. 1” means that certain Amendment No. 1 to Fifth Amended and Restated Credit  Agreement, Second Amended and Restated Security Agreement and Second Amended and Restated  Subsidiary Security Agreement, dated as of September 30, 2020 by and among the Borrower, the Subsidiary  Guarantors, the Administrative Agent, the Collateral Agent and the Lenders party thereto.                       (ii)   The definition of “Transferred Receivables” set forth in Section 1 of each              Security Agreement is hereby amended by inserting the text “, or on which an Eligible               Transferee has been granted a Lien or other security interest (whether then existing or               thereafter arising), in each case” between the words “Transferee” and “in”.                       (iii)  Section 2(b) of each Security Agreement is hereby amended and restated              in their entireties as follows:   “(b)   The Collateral shall not include (i) Transferred Receivables or (ii) with respect to a Specified  Financing and the Transferred Receivables in respect thereof, (w) the Contracts relating to such Transferred  Receivables described in the applicable Specified Financing Documents, (x) supporting obligations,  existing and future, in respect of such Transferred Receivables and in respect of any Contracts relating  thereto (including assignment of the proceeds of any drawings on letters of credit supporting such  Contracts), (y) books and records (including customer lists, credit files, computer programs, printouts and  other computer materials and records) of the Credit Parties relating to such Transferred Receivables or (z)  Proceeds of the Transferred Receivables in respect of such Specified Financing or of the foregoing clauses  (w) through (y)”               SECTION 3. Effectiveness; Specified Financing.  This Amendment shall become  effective on the date (the “Amendment No. 1 Effective Date”) on which the Administrative Agent (or its  counsel) shall have received (a) executed signature pages to this Amendment from the Administrative  Agent, the Required Lenders, the Borrower and the Subsidiary Guarantors, (b) for the account of each  Lender that has executed and delivered a signature page to this Amendment at or prior to 5:00 p.m. (New  York time) on August 7, 2020 (the “Consent Deadline”), a fee equal to 0.025% of the Commitment  of 

 

such Lender as of the Consent Deadline and (c) evidence of effectiveness of that certain Export-Import  Transaction Specific Loan and Security Agreement, dated as of September 30, 2020 by and among the  Borrower, USSI, the lenders from time to time parties thereto and PNC Bank, National Association, as  Agent (the “Specified Financing Agreement”, and the financing evidenced thereby, the “Specified  Financing”); provided, that if the condition set forth in this clause (c) is not satisfied on or prior to  December 31, 2020, the Amendment No. 1 Effective Date shall not occur.                  SECTION 4. Effect of Amendment.  Each of the Administrative Agent, the Collateral  Agent and each Lender party hereto acknowledges and agrees that, upon the occurrence of the Amendment  No. 1 Effective Date, (a) the Transaction Liens on (x) all of those certain Receivables (whether then existing  or thereafter arising) owing by any Specified Financing Eligible Account Debtor on which a Lien or security  interest shall be granted in favor of PNC Bank, National Association, pursuant to and to secure the Specified  Financing (the “Specified Receivables”) (which Specified Receivables shall constitute Transferred  Receivables on the Amendment No. 1 Effective Date) shall be automatically released pursuant to Section  12(b) of each of the Borrower Security Agreement and the Subsidiary Security Agreement with no further  action by any Person and (y)(I) all Contracts relating to such Specified Receivables, (II) supporting  obligations, existing and future, in respect of such Specified Receivables and in respect of any Contracts  relating thereto (including assignment of the proceeds of any drawings on letters of credit supporting such  Contracts), which Contracts include the Specified Financing Agreement, (III) books and records (including  customer lists, credit files, computer programs, printouts and other computer materials and records) of the  Credit Parties relating to such Specified Receivables and (IV) Proceeds of the Specified Receivables or of  the foregoing clauses (I)-(III), in each case, shall be automatically released with no further action by any  Person (all of the assets and property described in the foregoing clauses (x) and (y), the “Specified  Financing Collateral”), (b) the Specified Receivables shall cease to constitute Pledged Receivables under  each Security Agreement (and accordingly, any deposit account into which proceeds of collections on such  Specified Receivables (and not any proceeds of collections on Pledged Receivables) are deposited shall not  constitute a Collection Account), and (c) for the avoidance of doubt, all Liens on any of the Specified  Financing Collateral securing the Specified Financing shall constitute Liens permitted under Section 6.01  of the Credit Agreement, and none of the provisions of Section 4(e) of the Security Agreements shall apply  to any of the Specified Financing Collateral.  Except as expressly set forth herein, this Amendment shall  not (i) by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and  remedies of the Lenders, the Administrative Agent or the Collateral Agent under the Credit Agreement, any  Security Agreement or any other Loan Document or (ii) alter, modify, amend or in any way affect any of  the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, any Security  Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall  continue in full force and effect. Nothing herein shall be deemed to entitle any Credit Party to consent to,  or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations,  covenants or agreements contained in the Credit Agreement, any Security Agreement or any other Loan  Document in similar or different circumstances. This Amendment shall constitute a Loan Document for  purposes of the Credit Agreement.  From and after the Amendment No. 1 Effective Date, all references to  the Credit Agreement in any other Loan Document, all references to either Security Agreement in any other  Loan Document, and all references in the Credit Agreement or either Security Agreement to “this  Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement or either such  Security Agreement, as applicable, shall, unless expressly provided otherwise, refer to the Credit  Agreement, the Borrower Security Agreement and/or the Subsidiary Security Agreement as amended by  this Amendment.                SECTION 5. Representations and Warranties.  The Borrower hereby represents and  warrants as of the date hereof that the following statements are true and correct:     

 

             (a)    the representations and warranties of the Borrower contained in Section 3 of the Credit Agreement are true and correct on and as of the date hereof, except to the extent that such  representations and warranties specifically refer to an earlier date in which case they shall be true and  correct as of such earlier date; and                (b)    no Default or Event of Default has occurred and is continuing.               SECTION 6. Miscellaneous Provisions. The provisions of Sections 9.01, 9.02, 9.03, 9.07,  9.08, 9.10 and 9.11 of the Credit Agreement shall apply to like effect, mutatis mutandis, to this Amendment.   The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect  the meaning hereof.  This Amendment may be executed in any number of counterparts and by different  parties hereto on separate counterparts, each of which when taken together shall constitute a single  instrument.  Any signature to this Amendment may be delivered by facsimile, electronic mail (including  “.pdf”) or any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York  Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall  be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest  extent permitted by applicable law.  For the avoidance of doubt, the foregoing also applies to any  amendment, extension or renewal of this Amendment.  Each of the parties hereto represents and warrants  to the other parties that, to the extent it executes this Amendment through electronic means, it has the  corporate capacity and authority to so execute this Amendment through electronic means and there are no  restrictions on doing so in such party’s constitutive documents.                      [The remainder of this page is intentionally left blank.] 

 

             IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly  executed and delivered by their proper and duly authorized officers as of the  day and year first above  written.                                     UNITED STATES STEEL CORPORATION, as                                    the Borrower                                     By:   /s/ Arne Jahn                                        Name: Arne Jahn                                         Title: Vice President – Treasurer and Chief                                         Risk Officer                                     U. S. STEEL SEAMLESS TUBULAR                                    OPERATIONS, LLC, as a Credit Party                                     By:   /s/ Arne Jahn                                        Name: Arne Jahn                                         Title: Treasurer                                     UNITED STATES STEEL INTERNATIONAL,                                    INC., as a Credit Party                                     By:   /s/ Arne Jahn                                        Name: Arne Jahn                                         Title: Treasurer                                     U. S STEEL OILWELL SERVICES, LLC, as a                                   Credit Party                                    By:   /s/ Arne Jahn                                        Name: Arne Jahn                                         Title: Treasurer                              [Signature Page to Amendment No. 1] 

 

        U. S. STEEL TUBULAR PRODUCTS, INC., as          a Credit Party           By:   /s/ Arne Jahn              Name: Arne Jahn               Title: Treasurer           USS-POSCO INDUSTRIES, as a Credit Party           By:               Name:                Title:     [Signature Page to Amendment No. 1] 

 

        U. S. STEEL TUBULAR PRODUCTS, INC., as          a Credit Party           By:               Name: Arne Jahn               Title: Treasurer           USS-POSCO INDUSTRIES, as a Credit Party                 /s/ Cory Anderson         By:               Name:  Cory Anderson              Title: Secretary & General Counsel   [Signature Page to Amendment No. 1] 

 

    JPMORGAN CHASE BANK N.A., as         Administrative Agent and Lender              /s/ James Shender     By:         Name: James Shender         Title: Executive Director   [Signature Page to Amendment No. 1]

 

    Bank of America, N.A., as a Lender and LC Issuing Bank        By:  /s/ Matthew Bourgeois         Name: Matthew Bourgeois          Title: Senior Vice President    [Signature Page to Amendment No. 1]

 

    Wells Fargo Bank, National Association, as a         Lender and as an LC Issuing Bank       By:  /s/ Roberto M. Ruiz         Name: Roberto M. Ruiz          Title:  Director    [Signature Page to Amendment No. 1]

 

        Barclays Bank PLC, as a Lender            By:   /s/ Arvind Admal              Name: Arvind Admal               Title: Vice President   [Signature Page to Amendment No. 1] 

 

    BMO Harris Bank, N.A., as a Lender and as an         LC Issuing Bank       By:   /s/ Ran Li         Name: Ran Li          Title:  Authorized Signatory    [Signature Page to Amendment No. 1]

 

        PNC BANK, NATIONAL ASSOCIATION, as          a lender          By:   /s/ Joseph McElhinny              Name: Joseph McElhinny               Title: Vice President           If a second signature is required           By:               Name:                Title:     [Signature Page to Amendment No. 1] 

 

        Truist Bank, as a Lender           By:   /s/ Joseph A. Massaroni              Name: Joseph A. Massaroni               Title: Director          If a second signature is required           By:               Name:                Title:     [Signature Page to Amendment No. 1] 

 

    FIFTH THIRD BANK, NATIONAL          ASSOCIATION as a Lender         By:             /s/ Jason Rockwell          Name: Jason Rockwell           Title: Vice President        If a second signature is required:       By:           Name:           Title:            Classification: Internal Use  [Signature Page to Amendment No. 1]

 

        CREDIT SUISSE AG, CAYMAN ISLANDS          BRANCH, as a lender          By:   /s/ Judith Smith              Name: Judith Smith               Title: Authorized Signatory                 /s/ Jessica Gavarkovs         By:                Name:  Jessica Gavarkovs                Title:  Authorized Signaturory   [Signature Page to Amendment No. 1] 

 

        CITIBANK, N.A, as a Lender           By:   /s/ Brendan Mackay              Name: Brendan Mackay               Title: Vice President & Director   [Signature Page to Amendment No. 1] 

 

        Goldman Sachs Bank USA, as a Lender            By:   /s/ David K. Gaskell              Name: David K. Gaskell               Title: Authorized Signer   [Signature Page to Amendment No. 1] 

 

DocuSign Envelope ID: 1BB5FC1D-E45B-431F-84B4-F5870AB34F95                                         Morgan Stanley Senior Funding, Inc., as a                                           Lender                                         By:   /s/ Tim Kok                                            Name: Tim Kok                                             Title: Vice President                                         If a second signature is required:                                         By:                                             Name:                                             Title:                                      [Signature Page to Amendment No. 1]

 

DocuSign Envelope ID: 1BB5FC1D-E45B-431F-84B4-F5870AB34F95                                         Morgan Stanley Bank, N.A., as a Lender                                         By:   /s/ Tim Kok                                            Name: Tim Kok                                             Title: Authorized Signatory                                         If a second signature is required:                                         By:                                             Name:                                             Title:                                      [Signature Page to Amendment No. 1]

 

        Citizens Bank, N. A., as Lender and as an LC          Issuing Bank          By:   /s/ James G. Zamborsky              Name: James G. Zamborsky               Title: Vice President   [Signature Page to Amendment No. 1] 

 

    ING Capital LLC, as a Lender       By:  /s/ Jeff Chu         Name: Jeff Chu          Title: Director        By:   /s/ Michael Chen         Name: Michael Chen          Title: Director    [Signature Page to Amendment No. 1]

 

        U.S. Bank National Association, as a Lender           By:   /s/ Aaron Sceva              Name: Aaron Sceva               Title: Vice President   [Signature Page to Amendment No. 1] 

 

        THE HUNTINGTON NATIONAL BANK,         a national banking association, as a lender           By:   /s/ Roger F. Reeder              Name: Roger F. Reeder               Title: Vice President   [Signature Page to Amendment No. 1]Exhibit 10.1

 

 

SHARE
EXCHANGE AGREEMENT

by
and between

MARIJUANA COMPANY OF AMERICA, INC. and

CANNABIS
GLOBAL, INC.

Dated
as of September 30, 2020

 

 

SHARE EXCHANGE
AGREEMENT (this “Agreement”) dated as of September 30, 2020 (“Effective Date”) by and between Marijuana
Company of America, Inc., a Utah corporation (“MCOA”) and Cannabis Global, Inc., a Nevada corporation (“CBGL”).

 

WHEREAS, Cannabis
Global, Inc. is a contract manufacturer and product developer for Marijuana Company of America’s proprietary line of HempSmart
premium broad-spectrum hemp products, and in turn, Marijuana Company of America, Inc. is a distributor and marketer of Cannabis
Global, Inc.'s technology and products; and

 

WHEREAS, Marijuana
Company of America, Inc. and Cannabis Global, Inc. are common shareholders in a

marijuana
distribution and manufacturing company called Natural Plant Extract of California Inc. (“NPE”) and are working together
to develop that business, and work together to promote their trademarked brands of services and products; and

 

WHEREAS, Marijuana
Company of America, Inc. and Cannabis Global, Inc. seek to take further steps to deepen the strategic partnership between them,
in order to fully leverage on the respective favorable resources of both parties in response to the diverse market demand for their
product; and

 

WHEREAS, the
Board of Directors of Marijuana Company of America, Inc., and the Board of Directors of Cannabis Global, Inc. have unanimously
determined that long-term strategic value can be created by building on the strategic cooperation between the companies through
a mutual investment to unlock long-term value for the respective shareholders;

 

NOW, THEREFORE,
MCOA desires to issue and sell the number of shares of MCOA common stock, par value $0.001, equal in value to $650,000 based on
the closing price for the trading day immediately preceding the effective date of this Agreement (the “Shares”),
in exchange for the number of shares of CBGL common stock, par value $0.001, equal in value to $650,000 based on the closing price
for the trading day immediately preceding the effective date of this Agreement (the “Exchange Shares”), on the
terms and subject to the conditions set forth herein

(the “Exchange”).

 

In
consideration of the mutual covenants and agreements contained in this Agreement, the receipt and

sufficiency
of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

 

ARTICLE
I

THE
SHARES AND THE EXCHANGE SHARES

 

Section 1.1
The Shares. The Shares shall be issued to CBGL, and the Exchange Shares shall be issued to MCOA, pursuant to Article
II hereof.

 

 

 

    	1  

    	 

    

 

ARTICLE
II

SHARE
EXCHANGE

 

Section 2.1
Share Exchange. Upon the terms and subject to the conditions of this Agreement, MCOA agrees to issue and sell to CBGL, the
Shares, and in exchange therefor at the Share Exchange Closing, CBGL shall issue to MCOA the Exchange Shares.

 

Section 2.2 Share Exchange
Closing.

 

		(a)	The Shares and the Exchange Shares will be issued on the books and records of the respective parties’
transfer agents in book-entry form. MCOA will deliver a confirmation from its transfer agent evidencing the issuance of the Shares
registered in the name of CBGL, and CBGL will deliver a confirmation from its transfer agent evidencing the issuance of the Exchange
Shares and registered in the name of MCOA. MCOA and CBGL may designate their wholly owned subsidiary as holder of the Shares and
the Exchange Shares. Subject to the satisfaction of the conditions set forth in Article VI, the time and date of such deliveries
shall be 10:00 a.m., Pacific time, on a date and at a place to be specified by the parties (the “Share Exchange Closing”),
which date shall be no later than the day after satisfaction or waiver of the latest to occur of the conditions set forth in Article
VI.

 

		(b)	The documents to be delivered at the Share Exchange Closing by or on behalf of the parties hereto
pursuant to this Article II and any additional documents requested by CBGL pursuant to Section 8.2, will be delivered at
the Share Exchange Closing.

 

Section 2.3
Share Exchange Adjustment. For a period of two years following the Effective Date, at the closing of each fiscal quarter,
should the per-share closing price of the common shares of the same class as the Shares or the Exchange Shares, as quoted by the
OTC Markets for the last day of the relevant fiscal quarter, decrease below original issuance value with the effect that the aggregate
value of the Shares or the Exchange Shares at the fiscal quarter close would be lower than $650,000, then either MCOA, in the case
of the Shares, or CBGL, in the case of the Exchange Shares, shall issue the other party the number of shares of common stock necessary
to cause the aggregate value of the Shares or the Exchange Shares, as applicable, be $650,000 as of the end of the relevant fiscal
quarter. The parties shall irrevocably instruct their respective transfer agents to reserve and maintain authorized and unissued
common stock in a reserve account designated for the purpose of issuing such shares pursuant to this share exchange adjustment
provision. Such share reserve accounts shall be maintained with a number of authorized and unissued common stock not less than
three (3) times the number of Shares or Exchange Shares, as the case may be, that are issued pursuant to the Share Exchange Closing.

 

Section 2.4.
Quarterly Financial Data Disclosures. For so long following the Share Exchange Closing as a party hereto remains an investee
of the other party and in the holding party’s judgment, applicable Securities and Exchange Commission financial reporting
significance tests and thresholds require the disclosure of the investee’s financial statements with the holding party’s
financial statements, the investee party shall provide to the holding party, on a quarterly basis no later than 30 days following
the close of the relevant fiscal quarter or fiscal year, the investee party’s audited financial statements for the holding
party’s reporting purposes. The failure by a party hereto to provide such financial statements in a timely manner shall be
a material provision of this Agreement and the parties agree that a breach of these Section 2.4 requirements shall be considered
an actionable default under this Agreement.

 

 

    	2  

    	 

    

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF MCOA

 

MCOA represents
and warrants to CBGL as of the date hereof that:

 

Section 3.1
Existence and Power. MCOA is a corporation duly incorporated, validly existing and in good standing under the laws of the
State of Utah. MCOA has the requisite corporate power and authority to own or lease all of its properties and assets and to carry
on its business as it is now being conducted, and is duly licensed or qualified to do business in each jurisdiction in which the
nature of the business conducted by it or the character or location of the properties and assets owned or leased by it makes such
licensing or qualification necessary.

 

Section 3.2
Authorization. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action
on the part of MCOA, and this Agreement is a valid and binding obligation of MCOA, enforceable against it in accordance with their
terms.

 

Section 3.3
Board Approvals. The transactions contemplated by this Agreement, including without limitation the issuance of the Shares
and the compliance with the terms of this Agreement, have been unanimously adopted, approved and declared advisable unanimously
by the Board of Directors of MCOA.

 

Section 3.4
Valid Issuance. The Shares have been duly authorized by all necessary corporate action. When issued and sold against receipt
of the consideration therefor, the Shares will be validly issued, fully paid and nonassessable, will not subject the holders thereof
to personal liability and will not be issued in violation of preemptive rights. The voting rights provided for in the terms of
the Shares are validly authorized and shall not be subject to restriction or limitation in any respect.

 

Section 3.5
Non-Contravention. The execution, delivery and performance of this Agreement, and the consummation by MCOA of the transactions
contemplated hereby, will not conflict with, violate 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 would constitute a default) under, or result in the termination of or accelerate
the performance required by, or result in a right of termination or acceleration under, any provision of the Articles of Incorporation
or Bylaws of MCOA or the articles of incorporation, charter, bylaws or other governing instrument of any Subsidiary of MCOA.

 

Section 3.6
Purchase for Own Account. MCOA is acquiring the Exchange Shares for its own account and not with a view to the distribution
thereof in violation of the Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange Commission
(the “SEC”) promulgated thereunder (the “Securities Act”).

 

Section 3.7
Private Placement. MCOA understands that (i) the Exchange Shares have not been registered under the Securities Act or any
state securities laws, by reason of their issuance by CBGL in a transaction exempt from the registration requirements thereof,
under Rule 506(b) of Regulation D, and (ii) the Exchange Shares may not be sold unless such disposition is registered under the
Securities Act and applicable state securities laws or is exempt from registration thereunder. MCOA represents that it is a sophisticated
investor (as described in Rule 506(b)(2)(ii) of Regulation D), and has such experience in business and financial matters that it
is capable of evaluating the merits and risks of an investment in the Shares. MCOA acknowledges that an investment in the Shares
is speculative and involves a high degree of risk.

 

Section 3.8
Legend. Each certificate representing an Exchange Share will bear a legend to the following effect unless CBGL determines
otherwise in compliance with applicable law:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND NEITHER THIS SHARE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.”

 

 

 

    	3  

    	 

    

 

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF CBGL

 

CBGL represents
and warrants to MCOA as of the date hereof that:

 

Section 4.1
Existence and Power. CBGL is duly organized and validly existing under the laws of the state of Nevada and has all requisite
power and authority to enter into and perform its obligations under this Agreement.

 

Section 4.2
Authorization. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action
on the part of CBGL, and this Agreement is a valid and binding obligation of CBGL, enforceable against it in accordance with its
terms.

 

Section 4.3
Board Approvals. The transactions contemplated by this Agreement, including without limitation the issuance of the Shares
and the compliance with the terms of this Agreement, have been unanimously adopted, approved and declared advisable unanimously
by the Board of Directors of CBGL.

 

Section 4.4
Valid Issuance. The Exchange Shares have been duly authorized by all necessary corporate action. When issued and sold against
receipt of the consideration therefor, the Exchange Shares will be validly issued, fully paid and nonassessable, will not subject
the holders thereof to personal liability and will not be issued in violation of preemptive rights.

 

Section 4.5
Non-Contravention. The execution, delivery and performance of this Agreement will not conflict with, violate 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 would constitute
a default) under, or result in the termination of or accelerate the performance required by, or result in a right of termination
or acceleration under, any provision of the organizational or governing documents of CBGL.

 

Section 4.6
Purchase for Own Account. CBGL is acquiring the Shares for its own account and not with a view to the distribution thereof
in violation of the Securities Act.

 

Section 4.7
Private Placement. CBGL understands that (i) the Exchange Shares have not been registered under the Securities Act or any
state securities laws, by reason of their issuance by MCOA in a transaction exempt from the registration requirements thereof,
under Rule 506(b) of Regulation D, and (ii) the Exchange Shares may not be sold unless such disposition is registered under the
Securities Act and applicable state securities laws or is exempt from registration thereunder. CBGL represents that it is a sophisticated
investor (as described in Rule 506(b)(2)(ii) of Regulation D), and has such experience in business and financial matters that it
is capable of evaluating the merits and risks of an investment in the Exchange Shares. CBGL acknowledges that an investment in
the Exchange Shares is speculative and involves a high degree of risk.

 

Section 4.8
Legend. Each certificate representing a Share will bear a legend to the following effect unless MCOA determines otherwise
in compliance with applicable law:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND NEITHER THIS SHARE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.”

 

 

    	4  

    	 

    

 

ARTICLE
V

LOCK
UP LEAK OUT

 

Section 5.1
Lock-up Agreement. The Shares and the Exchange Shares shall be locked up for twelve (12) months after the Share Exchange
Closing pursuant to the terms of the lock-up agreement which shall be substantially in the form of Exhibit A attached hereto
(“Lock-Up Agreement”), which is fully incorporated and integrated herein. MCOA and CBGL shall not sell, transfer or
otherwise dispose of the Shares or the Exchange Shares except as set forth in the Lock-Up Agreement.

 

ARTICLE
VI

CONDITIONS
TO SHARE EXCHANGE CLOSING

 

Section 6.1
Conditions to Each Party’s Obligation To Effect the Exchange. The respective obligations of the parties hereunder
to effect the Exchange shall be subject to the following conditions:

 

		(a)	No Injunctions or Restraints; Illegality. No order, injunction or decree issued by any court
or agency of competent jurisdiction or other law preventing or making illegal the consummation of the Exchange shall be in effect.

 

		(b)	Lock-Up; Leak-Out. The parties shall have executed and delivered each to the other a Lock-Up
Agreement in the form annexed hereto as Exhibit A.

 

ARTICLE
VII

		TERMINATION	

 

Section 7.1
Injunction; Illegality. This Agreement may be terminated by either party at any time prior to the Share Exchange Closing.

 

ARTICLE
VIII

		MISCELLANEOUS	

 

Section 8.1
Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing
and shall be deemed to have been given if delivered personally or by facsimile or seven days after having been sent by certified
mail, return receipt requested, postage prepaid, to the parties to this Agreement at the following address or to such other address
either party to this Agreement shall specify by notice to the other party:

 

(a)
if to MCOA, to:

 

Marijuana
Company of America, Inc.

1340
West Valley Parkway, Suite 205

Escondido,
CA 92029

Attention:
Mr. Jesus Quintero

 

 

(b)
if to CBGL, to:

 

Cannabis
Global, Inc.

520
S. Grand Avenue, Ste. 320

Los
Angeles, CA 90071

Attention:
Mr. Arman Tabatabaei

 

    	5  

    	 

    

 

 

Section 8.2
Further Assurances. Each party hereto shall do and perform or cause to be done and performed all further acts and shall
execute and deliver all other agreements, certificates, instruments and documents as any other party hereto reasonably may request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

Section 8.3
Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver
is in writing and is duly executed and delivered by MCOA and CBGL. No failure or delay by any party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by law.

 

Section 8.4
Fees and Expenses. Each party hereto shall pay all of its own fees and expenses (including attorneys’ fees) incurred
in connection with this Agreement and the transactions contemplated hereby.

 

Section 8.5
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, provided that neither party may assign, delegate or otherwise transfer any
of its rights or obligations under this Agreement without the consent of the other party hereto.

 

Section 8.6
Governing Law. This Agreement shall be governed and construed in accordance with the internal laws of the State of Nevada
applicable to contracts made and wholly performed within such state, without regard to any applicable conflicts of law principles.
The parties hereto agree that any suit, action or proceeding brought by either party to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal
or state court located in the State of Nevada. Each of the parties hereto submits to the jurisdiction of any such court in any
suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of, or in connection with, this
Agreement or the transactions contemplated hereby and hereby irrevocably waives the benefit of jurisdiction derived from present
or future domicile or otherwise in such action or proceeding. Each party hereto irrevocably waives, to the fullest extent permitted
by law, any objection that it may now or hereafter have to the laying of venue of any such suit, action or proceeding in any such
court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

Section 8.7
Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 8.8
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties and/or their
affiliates with respect to the subject matter of this Agreement.

 

Section 8.9
Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction
hereof.

 

    	6  

    	 

    

 

 

 

Section 8.10
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision
shall be deemed to be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision
were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by law.

 

Section 8.11
Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures were upon the same instrument. No provision of this Agreement shall confer
upon any person other than the parties hereto any rights or remedies hereunder.

 

Section 8.12
Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled
to seek specific performance of the terms hereof, this being in addition to any other remedies to which they are entitled at law
or equity.

 

 

[Remainder
of page intentionally left blank]

[Signature page to follow] 

 

 

 

    	7  

    	 

    

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day
and year first above written.

 

 

	 	MARIJUANA COMPANY OF AMERICA, INC.
	Date:  September 30, 2020	 
	 	By: 	/s/ Jesus Quintero
	 	Name:

        Title:       
	Jesus Quintero
Chief Executive Officer

 

 

	 	CANNABIS GLOBAL, INC.
	Date:  September 30, 2020	 
	 	By: 	/s/ Arman
Tabatabaei
	 	Name:

        Title:       
	Arman
Tabatabaei
Chief Executive Officer

 

 

 

 

 

 

[Share
Exchange Agreement Signature Page] 

 

    	8  

    	 

    

EXHIBIT
A

 

LOCK-UP/LEAK-OUT
AGREEMENT

 

LOCK-UP/LEAK-OUT
AGREEMENT (the “Lock-Up Agreement”) dated as of September 30, 2020 (the “Closing Date”), by and between
Marijuana Company of America, Inc., a Utah corporation (“MCOA”) and Cannabis Global, Inc., a Nevada corporation
(“CBGL”).

 

WHEREAS,
as of the Closing Date, MCOA and CBGL have entered into that certain Share Exchange Agreement as of even date herewith (“Share
Exchange Agreement”); and

 

WHEREAS,
pursuant to Section 5.1 of the Share Exchange Agreement, MCOA and CBGL shall not sell, transfer or otherwise dispose of the Shares
or the Exchange Shares except as set forth in this Lock-Up Agreement;

 

NOW, THEREFORE,
in consideration of the foregoing and the terms, conditions and mutual covenants appearing in this Lock-Up Agreement, the parties
hereto hereby agree as follows:

 

SECTION
1. (a) The resale of the Shares and Exchange Shares shall be according to the following schedule: Beginning on the Closing Date
and for twelve (12) months thereafter, unless registered with the SEC sooner and following SEC review, the parties may not sell
any Shares or Exchange Shares (the “Initial Lock-Up Period”) and thereafter shall be limited to sell not more than
the quantity of shares equaling an aggregate maximum sale value of $20,000 per week, or $80,000 per month until all Shares and
Exchange Shares are sold.

 

		(b)	Sales of Shares and Exchange Shares shall be by means of “in-the-market” transactions.
“In the market” shall mean a brokered sale made on the OTC Market, or any subsequent primary trading market, or customary
trading channels and/or, with the mutual consent of the parties, a private offering, which consent shall not be unreasonably withheld,
conditioned or delayed. If sold to a purchaser in a private offering, such purchaser shall agree to comply with all the terms and
conditions of the Lock-Up Agreement.

 

		(c)	Any sales of Shares and Exchange Shares in violation of this Lock-Up Agreement by either party shall
constitute an event of default under this Lock-Up Agreement and an equal number of Shares or Exchange Shares shall be forfeited
by the selling party.

 

		(d)	Notwithstanding the foregoing, the parties may, at the other party’s request, and at non-selling
party’s sole discretion, release all or any number of Shares or Exchange Shares from the terms of this Lock-Up Agreement,
by means of a written consent authorized by such consenting party’s board of directors.

 

		(e)	The parties acknowledge that their breach or impending violation of any of the provisions of this
Lock-Up Agreement may cause irreparable damage to the other party, for which remedies at law would be inadequate. The parties further
acknowledge that the provisions set forth herein are essential terms and conditions of the Share Exchange Agreement and this Lock-Up
Agreement. The parties therefore agree that the non-defaulting party shall be entitled to a decree or order by any court of competent
jurisdiction enjoining such impending or actual violation of any of such provisions. Such decree or order, to the extent appropriate,
shall specifically enforce the full performance of any such provision by MCOA and CBGL, each of which hereby consents to the jurisdiction
of any such court of competent jurisdiction, state or federal, sitting in the State of Nevada. This remedy shall be in addition
to all other remedies available to the parties at law or equity. If any portion of this Section 1 is adjudicated to be invalid
or unenforceable, this Section 1 shall be deemed amended to delete there from the portion so adjudicated, such deletion to apply
only with respect to the operation of this Section 1 in the jurisdiction in which such adjudication is made.

 

		(f)	Shares and Exchange Shares shall not at any time be used to cover “short” sales of the
common stock of either MCOA or CBGL.

 

 

    	9  

    	 

    

 

 

SECTION 2.
Subject to Section 5 hereunder, this Lock-Up Agreement shall inure to the benefit of and be binding upon both MCOA and CBGL, their
successors and assigns.

 

SECTION 3. Should
any part of this Lock-Up Agreement, for any reason whatsoever, be declared invalid, illegal, or incapable of being enforced in
whole or in part, such decision shall not affect the validity of any remaining portion, which remaining portion shall remain in
full force and effect as if this Lock-Up Agreement had been executed with the invalid portion thereof eliminated, and it is hereby
declared the intention of the parties hereto that they would have executed the remaining portion of this Lock-Up Agreement without
including therein any portion which may for any reason be declared invalid.

 

SECTION 4. This
Lock-Up Agreement shall be construed and enforced in accordance with the laws of the State of Nevada applicable to agreements made
and to be performed in such State without application of the principles of conflicts of laws of such State.

 

SECTION 5.
This Lock-Up Agreement and all rights hereunder are personal to the parties and shall not be assignable, and any purported assignments
in violation thereof shall be null and void.

 

SECTION 6. All
notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed
to have been given if delivered personally or by facsimile or seven days after having been sent by certified mail, return receipt
requested, postage prepaid, to the parties to this Agreement at the following address or to such other address either party to
this Agreement shall specify by notice to the other party:

 

(a)
if to MCOA, to:

 

Marijuana
Company of America, Inc.

1340
West Valley Parkway, Suite 205

Escondido,
CA 92029

Attention:
Mr. Jesus Quintero

 

 

(b)
if to CBGL, to:

 

Cannabis
Global, Inc.

520
S. Grand Avenue, Ste. 320

Los
Angeles, CA 90071

Attention:
Mr. Arman Tabatabaei

 

 

SECTION 7. The
failure of either party to insist upon the strict performance of any of the terms, conditions and provisions of this Lock-Up Agreement
shall not be construed as a waiver or relinquishment of future compliance therewith, and said terms, conditions and provisions
shall remain in full force and effect. No waiver of any term or condition of this Lock-Up Agreement on the part of either party
shall be effective for any purpose whatsoever unless such waiver is in writing and signed by such party.

 

[Remainder
of page intentionally left blank]

[Signature page to follow] 

 

 

 

 

    	10  

    	 

    

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Lock-Up Agreement to be duly executed by their respective authorized officers as of
the day and year first above written.

 

	 	MARIJUANA COMPANY OF AMERICA, INC.
	 	 
	 	By: 	/s/ Jesus Quintero
	 	Name:

        Title:       
	Jesus Quintero
Chief Executive Officer

 

 

	 	CANNABIS GLOBAL, INC.
	 	 
	 	By: 	/s/ Arman
Tabatabaei
	 	Name:

        Title:       
	Arman
Tabatabaei
Chief Executive Officer

 

 

[Lock-Up
Agreement Signature Page]

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