Document:

Exhibit
4.2

 

RESTRICTED
STOCK AGREEMENT

 

This
Restricted Stock Agreement (this “Agreement”) is made effective as of _______________ (the “Effective
Date”), by and between Streamline Health Solutions, Inc., a Delaware corporation (the “Company”),
and 180 Consulting, LLC, a Georgia limited liability company (“180”). Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Master Services Agreement (as defined below).

 

RECITALS

 

WHEREAS,
in connection with the specified compensation terms under that certain Master Services and Non-Disclosure Agreement by and among the
Company and 180, dated ______________ and related statements of work thereunder (collectively, the “Master Services Agreement”),
the Company agreed to issue to 180, ___________ shares of the Company’s common stock (the “Shares”) as
part of the Equity Portion (as defined in the Master Services Agreement) of compensation to 180; and

 

WHEREAS,
the Company and 180 desire to have the Company issue the Shares subject to the restrictions set forth herein and acknowledge and agree
that the Shares shall be subject to the terms and conditions set forth in this Agreement.

 

Now,
therefore, in consideration of the mutual covenants and
representations set forth below, the Company and 180 agree as follows:

 

1.
Restricted Stock Issuance . All Shares issued
hereunder shall be deemed issued to 180 as fully paid and non-assessable shares, and 180 shall have all rights of a stockholder with
respect thereto, subject to Section 2 below. The term “Shares,” in addition to the Shares issued pursuant to this Agreement,
also refers to all new, substituted or additional securities received in replacement of the Shares, as a stock dividend or as a result
of any stock split, recapitalization, merger, reorganization, exchange for other securities, by reclassification, or the like, and all
new, substituted or additional securities or other properties to which 180 is entitled by reason of 180’s ownership of the Shares.

 

2.
Restrictions. No Shares issued to 180 hereunder shall be sold, transferred by gift, pledge, hypothecated, or otherwise transferred
or disposed of by 180.

 

3.
Representations and Warranties of 180. In connection
with the issuance of the Shares hereunder, 180 represents, warrants and acknowledges to the Company that:

 

3.1
180 possesses all requisite capacity, power and authority (corporate and other) to execute and deliver this Agreement and to perform
its obligations hereunder;

 

3.2
the execution and delivery by 180 of this Agreement and the performance by 180 of its obligations in this Agreement contemplated hereby
have been duly and validly authorized by all necessary corporate and other action on the part of 180;

 

3.3
neither the execution and delivery by 180 of this Agreement, nor the performance by 180 of its obligations hereunder will (i) conflict
with or violate any provision of 180’s articles of organization, by-laws, voting agreements or similar documents, instruments or
agreements relating to the organization or governance of 180 (collectively, the “180 Organizational Documents”),
each as amended or restated to date, (ii) require on the part of 180 any notice to or filing with, or any permit, authorization, consent
or approval of, any governmental entity, or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable
to 180 or any of its properties or assets, except in the cases of (ii) and (iii) where any violation or failure to deliver a notice or
submit a filing would not cause a material adverse effect;

 

    	 	 	 

     

    

 

3.4
the Shares to be acquired by 180 pursuant to this Agreement will be acquired for 180’s own account and not with a view to, or intention
of, distribution thereof in violation of the Securities Act of 1933, as amended (the “Act”), or any other applicable
securities laws, and the Shares will not be disposed of in contravention of the Act or any applicable securities laws;

 

3.5
180 is an “accredited investor” within the meaning of Regulation D under the Act; and

 

3.6
the Shares are not registered under the Act on the basis that the issuance of securities hereunder is exempt from registration under
the Act pursuant to Section 4(a)(2) thereof and the rules and regulations promulgated thereunder, and that the Company’s reliance
on such exemption is predicated on the 180’s representations set forth herein.

 

4.
Representations and Warranties of the Company.
In connection with the issuance of the Shares hereunder, the Company represents, warrants and acknowledges to 180 that:

 

4.1
the Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation and
has all requisite power and authority (corporate and other) to carry on the businesses in which it is engaged and to own and use the
properties owned and used by it, and is qualified to do business and is in good standing in every jurisdiction in which the operation
of the business of the Company requires it to be so qualified;

 

4.2
the Company has all requisite capacity, power and authority (corporate or other) to execute and deliver this Agreement, to perform its
obligations hereunder, and to issue the Shares to 180;

 

4.3
the execution and delivery by the Company of this Agreement, the performance by the Company of its obligations in this Agreement, and
the issuance of the Shares contemplated hereby have been duly and validly authorized by all necessary corporate and other action on the
part of the Company;

 

4.4
neither the execution and delivery by the Company of this Agreement, nor the performance by the Company of its obligations hereunder,
nor the issuance of the Shares contemplated hereby, will (i) conflict with or violate any provision of the Company’s articles of
incorporation, by-laws, voting agreements or similar documents, instruments or agreements relating to the organization or governance
of the Company (collectively, the “Organizational Documents”), each as amended or restated to date, (ii) require
on the part of the Company any notice to or filing with, or any permit, authorization, consent or approval of, any governmental entity,
or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Company or any of its properties
or assets, except in the cases of (ii) and (iii) where any violation or failure to deliver a notice or submit a filing would not cause
a material adverse effect;

 

4.5
the Shares subject to issuance pursuant to Section 1 of this Agreement, upon issuance on the terms and conditions specified herein, will
be duly authorized, validly issued, fully paid and non-assessable, free and clear of all liens and restrictions (other than restrictions
on transfer imposed herein and under the Act or any other applicable securities laws), and not subject to or issued in violation of any
purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of
the Delaware General Corporation Law, the Organizational Documents or any agreement to which the Company is a party or is otherwise bound;

 

    	 	2	 

     

    

 

4.6
the Company has filed all registration statements, forms, reports, certifications and other documents (collectively, “SEC
Reports”) required to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”)
and all of the Company’s SEC Reports (i) have been filed on a timely basis, (ii) at the time filed, complied as to form in all
material respects with the requirements of the Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
applicable to such SEC Reports, and (iii) did not, at the time they were filed, contain any untrue statement of a material fact or omit
to state a material fact required to be stated in such SEC Reports or necessary in order to make the statements in such SEC Reports,
in light of the circumstances under which they were made, not misleading, in any material respect; and

 

4.7
the common stock of the Company, par value $0.01 per share, is registered pursuant to Section 12(b) of the Exchange Act, and the Company
has not (i) received any written notification that the SEC is contemplating terminating such registration or (ii) received written notice
from The NASDAQ Stock Market LLC (“Nasdaq”) to the effect that the Company is not in compliance with the listing
or maintenance requirements of such market or exchange.

 

5.
Legends on Certificates. 180 acknowledges and
agrees that the certificate(s) evidencing the Shares shall, in addition to any legend required to be placed thereon by federal or state
securities laws, be endorsed with the legend substantially as follows:

 

THE
SHARES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
STATE SECURITIES LAWS, AND, PURSUANT TO THE TERMS AND CONDITIONS OF THAT CERTAIN RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE
HOLDER, MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF.

 

6.
RESERVED.

 

7.
RESERVED.

 

8.
General Provisions.

 

8.1
Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing (including by email).
Any notice, request, demand, claim or other communication hereunder shall be deemed duly received on the date of receipt by the recipient
thereof if received on a business day in the place of receipt prior to 5:00 p.m. Otherwise, any such notice, request or communication
shall be deemed not to have been received until the next succeeding business day in the place of receipt.

 

If
to the Company, to:

 

Streamline
Health Solutions, Inc.

11800
Amber Park Drive, Suite 125

Alpharetta,
GA 30009

Attention:
Thomas Gibson

Email:
thomas.gibson@streamlinhealth.net

 

    	 	3	 

     

    

 

With
a copy (which shall not constitute notice) to:

 

Morris,
Manning & Martin, LLP

3343
Peachtree Road, N.E.

1600
Atlanta Financial Center

Atlanta,
Georgia 30326

Attention:
Naveen Pogula

Phone:
(404) 504-7756

Facsimile:
(404) 365-9532

E-Mail:
npogula@mmmlaw.com

 

If
to 180, to:

 

180
Consulting, LLC

121
Greenway Blvd.

Carrollton,
GA 30117

Attention:
Justin Park, General Counsel

Email:
jpark@180c.io

 

8.2
Further Assurances. From time to time after the date hereof, upon reasonable notice and without further consideration, 180 and
the Company shall execute and deliver any other document or instrument and shall take any other action as may be necessary in the reasonable
discretion of the Company or any stock transfer agent to give effect to or evidence the provisions of this Agreement.

 

8.3
Assignment. Except as otherwise expressly provided herein, neither party may assign rights or delegate duties arising hereunder
without the prior written consent of the other party. Any assignment or delegation of any right, duty, or claim arising hereunder without
such consent shall be void.

 

8.4
Entire Agreement. This Agreement and the Master Services Agreement constitute the exclusive statement of the agreement of the
Company and 180 concerning the matters set forth herein, including with respect to rights of and restrictions on the Shares and supersedes
all other agreements, oral or written, among or between any of them concerning rights of and restrictions on the Shares. Except for the
Master Services Agreement, which remains in full force and effect, all negotiations among or between any of the Company and 180 are superseded
by this Agreement, and there are no representations, promises, understandings, or other agreements, oral or written, in relation thereto
among or between any of them other than those incorporated herein.

 

8.5
Modification and Waiver. No amendment, modification, or waiver of this Agreement shall be effective unless made in a written instrument
which specifically references this Agreement and which is signed by the Company and 180. Except as expressly provided herein, the failure
of the Company or 180 to enforce at any time, or for any period of time, any provisions of this Agreement shall not be construed as a
waiver of any provision or of the right of any such party to enforce each and every provision of this Agreement.

 

8.6
Binding Effect. This Agreement shall be binding upon and inure to the benefit of 180 and its successors and assigns, shall be
binding upon and inure to the benefit of the Company and its successors and assigns.

 

8.7
Governing Law. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF GEORGIA EXCLUDING
ANY CONFLICT OF LAWS RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION.

 

    	 	4	 

     

    

 

8.8
Waiver of Jury Trial. The parties to this Agreement each hereby waive, to the fullest extent permitted by law, any right to trial
by jury of any claim, demand, action, or cause of action (i) arising under this Agreement or (ii) in any way connected with or related
or incidental to the dealings of the parties hereto in respect of this Agreement or any of the transactions related hereto, in each case
whether now existing or hereafter arising, and whether in contract, tort, equity, or otherwise. The parties to this Agreement each hereby
agree and consent that any such claim, demand, action, or cause of action shall be decided by court trial without a jury and that the
parties to this Agreement may file an original counterpart of a copy of this Agreement with any court as written evidence of the consent
of the parties hereto to the waiver of their right to trial by jury.

 

8.9
Severability and Reformation. If any provision of this Agreement, or the application thereof to any person or circumstance should,
for any reason and to any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such provision
to other persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted by law.

 

8.10
Headings. The headings contained in this Agreement are intended solely for convenience of reference and shall not be considered
in interpreting this Agreement.

 

8.11
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

 

8.12
Third Parties. Nothing expressed or implied in this Agreement is intended or shall be construed to confer on any person, other
than the Company and 180, any rights hereunder.

 

[Signatures
on next page.]

 

    	 	5	 

     

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Restricted Stock Agreement as of the day and year first set forth above.

 

	COMPANY:	STREAMLINE
    HEALTH SOLUTIONS, INC. 
	 	 	 
	 	By:
    	                            
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
		Address: 	 
	 	 	 
	 	 	 

 

	180:	180
    CONSULTING, LLC
	 	 
	 	By:
    	 
	 	Name:
    	                             
	 	Title:
    	 
	 	 	 
		Address: 	 
	 	 	 
	 	 	 

 

[Signature
Page to Restricted Stock Agreement]

 

    	 	6Exhibit 4.1

 

SECURITIES PURCHASE
AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”) is made as of April 27, 2021 by and among SENTIENT BRANDS HOLDINGS INC., a
Nevada corporation (the “Company”), and LEONITE FUND I LLC, a
Delaware limited liability company (the “Purchaser”).

 

Recital

 

A.                
The Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption
from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”),
and/or Regulation D promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities
Act;

 

B.                
The Purchaser desires to purchase from the Company, and the Company desires to issue and sell to
the Purchaser, upon the terms and conditions set forth in this Agreement, a Senior Secured Convertible Promissory Note of the Company,
in the aggregate principal amount of three hundred fifteen thousand seven hundred eighty nine and 47/100 Dollars ($315,789.47) (the “Principal
Amount,”) and together with any note(s) issued in replacement thereof or otherwise with respect thereto in accordance with the
terms thereof, in the form attached hereto as Exhibit A (the “Note”), upon the terms and subject to the limitations
and conditions set forth in such Note;

 

C.                  
The Note carries an original issue discount of fifteen thousand seven hundred eighty nine and 47/100
Dollars ($15,789.47) (the “OID”), to cover the Purchaser’s accounting fees, due diligence fees, monitoring, and/or
other transactional costs incurred in connection with the purchase and sale of the Note, which is included in the principal balance of
the Note. Thus, the purchase price of the Note shall be three hundred thousand Dollars ($300,000), computed by subtracting the OID from
the Principal Amount.

 

D.                 
Company wishes to issue to the Purchaser, as additional consideration for the purchase of the Note,
(i) a Warrant (as defined below) in the form attached hereto as Exhibit B to purchase shares of the Company’s common stock
exercisable for five (5) years at an exercise price of $0.60 per share (the “Warrant”); and (ii) the Equity Interest
(as defined below), both of which shall be issued to Purchaser upon Closing (defined below) as further provided herein. 

 

Agreement

 

Now,
Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below,
the Company and the Purchaser, intending to be legally bound, hereby agree as follows:

 

    1

    

    

 

		1.	Amount and Terms of the Note

 

1.1             
Purchase of the Note. Subject to the terms of this Agreement,
for consideration three hundred thousand Dollars ($300,000) in cash (the “Consideration”) to be paid by Purchaser to
the Company on the Issue Date (as defined in the Note), less ten thousand dollars ($10,000) which Holder shall retain from the Consideration
to cover legal fees, the Purchaser agrees to subscribe for and purchase from the Company on the Closing Date (as hereinafter defined),
and the Company agrees to issue
and sell to the Purchaser, the Note.
The OID shall be earned upon payment of the Consideration.

 

1.2        
Form of Payment. At the Closing (as hereinafter defined),
the Purchaser shall pay the Consideration as set forth in section 1.1 above. 

 

		2.	Closing and Delivery

 

2.1             
Closing Date. Subject to the satisfaction (or written waiver)
of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance and sale of the Note pursuant
to this Agreement (the “Closing Date”) shall be 4:00 PM, Eastern Time on the date first written above of even date
with the Issue Date.

 

2.2             
Closing. The closing of the transactions contemplated by
this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties
(including via exchange of electronic signatures).

 

2.3             
Delivery. At the Closing, or as promptly as commercially
reasonable thereafter, in addition to the delivery by the Purchaser of the Consideration and the delivery by the Company to the Purchaser
of the Note, Company shall issue and deliver to the Purchaser the Warrant and the Equity Interest. 

 

		3.	Representations and Warranties of the Company

 

Except as set forth in the corresponding
section of the Disclosure Schedule (as defined below) delivered to the Purchaser concurrently herewith and attached hereto as Schedule
I (the “Disclosure Schedule”) or as disclosed in the Disclosure Materials (as defined below), the Company, its
Subsidiaries, Officers and Directors hereby makes the following representations and warranties as of the date hereof and as of the Closing
Date to the Purchaser:

 

3.1             
Organization, Good Standing and Qualification. The Company
and each of its Subsidiaries (as defined below) is a corporation or limited liability company duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or organization. Each of the Company and its Subsidiaries has the requisite
corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted.
The Company and each of its Subsidiaries is duly qualified and is authorized to do business and is in good standing as a foreign corporation
in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result
in (i) a material adverse effect on the legality, validity or enforceability of any Subscription Document (as defined below), (ii) a material
adverse effect on the results of operations, assets, business or financial condition of Company and the Subsidiaries, taken as a whole,
or (iii) adversely impair the Company’s ability to perform in any material respect on a timely basis its obligations under any Subscription
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”).

    2

    

    

 

3.2             
Corporate Power. The Company has all requisite corporate
power to execute and deliver this Agreement, and to issue the Note, Warrant, and Equity Interest, and to enter into the security and pledge
agreement of even date herewith (the “Security and Pledge Agreement”) in the form of Exhibit C and the other
instruments, documents and agreements being entered into at the Closing (each a “Subscription Document” and collectively,
the “Subscription Documents”) and to carry out and perform its obligations under the terms of the Subscription Documents.

 

3.3             
Subsidiaries and Affiliates. Section 3.3 of the Disclosure
Schedule sets forth a true and correct description of all of the Company’s Subsidiaries and Affiliates and the capitalization (including
options, warrants and other such equity), pro forma as of the date hereof reflecting all pending acquisitions. For purposes of this Agreement,
the term “Subsidiary” means, with
respect to the Company, any corporation or other entity of which at least a majority
of the outstanding shares of stock or other ownership interests having by the
terms thereof ordinary voting power to elect a majority of the board of directors
(or persons performing similar functions) of such corporation or entity (regardless of whether or not at the time, in the case of
a corporation, stock of any other class or classes of such corporation shall have or might
have voting power by reason of the happening
of any contingency) is at the time directly or indirectly owned or controlled by the Company
or one or more of its Affiliates and the term
“Affiliate” means, as to any person (the “Subject Person”),
any other person that directly or indirectly
through one or more intermediaries controls or is controlled by, or is under
direct or indirect common control with, the Subject Person. For the purposes of this definition,
“control” when used with respect to any person means the power to direct the
management and policies of such person, directly or indirectly,
whether through the ownership of voting securities, through representation on such person’s board of directors or other management
committee or group, by contract or otherwise. All references contained herein to the
terms Subsidiary or Affiliate, shall be applicable to all Subsidiaries and Affiliates whether they existed as of the date hereof or were
created, acquired, or otherwise came to be included in the foregoing terms subsequent to the date hereof. 

 

3.4             
Authorization. All corporate action on the part of the Company,
its directors and its stockholders necessary for the authorization of the Subscription Documents and the execution, delivery and performance
of all obligations of the Company under the Subscription Documents, including, but not limited to, the issuance and delivery of the Note,
Warrant and Equity Interest, and the reservation of the equity securities issuable upon conversion of the Note and upon exercise of the
Warrant (collectively, the “Underlying Securities”) has been taken or will be taken prior to the issuance of such Underlying
Securities. The Subscription Documents, when executed and delivered by the Company, shall constitute valid and binding obligations of
the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the
relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws. The Underlying Securities, when
issued in compliance with the provisions of the Subscription Documents, will be, validly issued, fully paid and non-assessable and free
of any liens, encumbrances, security interests or other adverse claim (a “Lien”) and issued in compliance with all
applicable federal and securities laws.

    3

    

    

 

3.5             
Governmental Consents. Neither Company nor any Subsidiary
is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any
court or other foreign, federal, state, local or other governmental authority or other person in connection with the execution, delivery
and performance by the Company of the Subscription Documents, other than (a) applicable Blue Sky filings, (b) such as have already been
obtained or such exemptive filings as are required to be made under applicable securities laws, (c) such other filings that have been
made pursuant to applicable state securities laws and post-sale filings pursuant to applicable state and federal securities laws which
the Company undertakes to file within the applicable time periods. Subject to the accuracy of the representations and warranties of the
Purchaser set forth in Section 4 hereof, the Company has taken all action necessary to exempt: (i) the issuance and sale of the Note and
the Warrant, (ii) the issuance of the Equity Interest, (iii) the issuance of the Underlying Securities upon due conversion of the Note
and due exercise of the Warrant, and (iv) the other transactions contemplated by the Subscription Documents from the provisions of any
preemptive rights, stockholder rights plan or other “poison pill” arrangement, any anti-takeover, business combination or
control share law or statute binding on the Company or to which the Company or any of its assets and properties may be subject and any
provision of the Company’s Articles of Incorporation or Bylaws, or other organizational documentation, as the case may be, that
is or could reasonably be expected to become applicable to the Purchaser as a result of the transactions contemplated hereby, including
without limitation, the issuance of the Note, the Equity Interest, the Warrant, and the Underlying Securities (collectively, the “Securities”)
and the ownership, disposition or voting of the Securities by the Purchaser or the exercise of any right granted to the Purchaser pursuant
to this Agreement or the other Subscription Documents.

 

3.6             
Compliance with Laws. Neither Company nor any Subsidiary
is in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality
or agency thereof in respect of the conduct of its business or the ownership of its properties, which violation would materially and adversely
affect the business, assets, liabilities, financial condition or operations of Company and its Subsidiaries. 

 

3.7             
Compliance with Other Instruments. Neither Company nor
any of its Subsidiaries is in violation or default of any term of its organizational documents, or of any provision of any mortgage,
indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order or writ, other than such violations
that would not individually or in the aggregate have a Material Adverse Effect on the Company. Except as set forth in Section 3.7 of
the Disclosure Schedule, the execution, delivery and performance of the Subscription Documents, and the consummation of the transactions
contemplated by the Subscription Documents will not result in any such violation or be in conflict with, or constitute, with or without
the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree, order or writ or an
event that results in the creation of any Lien upon any assets of the Company or the suspension, revocation, impairment, forfeiture,
or nonrenewal of any material permit, license, authorization or approval applicable to the Company or any of its Subsidiaries, its business
or operations or any of its assets or properties. The sale of the Note, the issuance of the Warrant and the subsequent issuance of the
Underlying Securities are not and will not be subject to any preemptive rights or rights of first refusal that have not been properly
waived or complied with.

 

    4

    

    

 

3.8             
Offering. Assuming the accuracy of the representations and
warranties of the Purchaser contained in Section 4 hereof, the offer, issue, and sale of Securities are and will be exempt from the
registration and prospectus delivery requirements of the Securities Act, and have been registered or qualified or are exempt from registration
and qualification under the registration, permit, or qualification requirements of all applicable state securities laws. No “bad
actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification Event”)
is applicable to the Company or, to the Company’s knowledge, any person listed in the first paragraph of Rule 506(d)(1) of the Securities
Act, except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.?

 

3.9             
Capitalization. Company has authorized shares as set forth
in Section 3.9 of the Disclosure Schedule. All outstanding shares of capital stock are duly authorized, validly issued, fully paid and
non-assessable and have been issued in compliance with all applicable securities laws. Except for the Equity Interests, the Warrant and
the Underlying Securities or as otherwise listed in Section 3.9 of the Disclosure Schedule, there are no outstanding options, warrants,
script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible
into or exercisable or exchangeable for, or giving any person any right to subscribe for or acquire, any shares of common stock, or contracts,
commitments, understandings or arrangements by which Company or any Subsidiary is or may become bound to issue additional shares of common
stock, or securities or rights convertible or exchangeable into shares of common stock. There are no price based anti-dilution or price
adjustment provisions contained in any security issued by Company (or in any agreement providing rights to security holders) and the
issue and sale of the Securities will not obligate Company to issue shares of common stock or other securities to any person (other than
the Purchaser) and will not result in a right of any holder of Company’s securities to adjust the exercise, conversion, exchange
or reset price under such securities. Except as set forth in Section 3.9 of the Disclosure Schedule, Company owns, directly or indirectly,
all of the capital stock of each Subsidiary free and clear of any Liens, and all the issued and outstanding shares of capital stock of
each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights.

 

3.10         
SEC Reports; Financial Statements. Except as set forth
in Section 3.10 of the Disclosure Schedule, to the best of the Company’s knowledge the Company has filed all reports and registration
statements required to be filed by it under (i) the Securities Act and the Exchange Act of 1934, as amended (the “Exchange Act”),
including pursuant to Section 13(a) or 15(d) of the Exchange Act, or (ii) under the Alternative Reporting Standard as offered by OTC
Markets Group, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material)
(the foregoing materials, including the exhibits thereto, being collectively referred to herein as the “SEC Reports”
and, together with the Disclosure Schedule to this Agreement, the “Disclosure Materials”). As of their respective
dates, to the best of the Company’s knowledge the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed,
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. Except as indicated in Section
3.10 of the Disclosure Schedule, to the best of the Company’s knowledge the financial statements of the Company included in the
SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission or
OTC Markets as applicable, with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and
its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    5

    

    

 

3.11         
Material Changes. Since the date of the latest financial
statements, to the best of the Company’s knowledge (i) there has been no event, occurrence or development that, individually or
in the aggregate, has had or that could result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice
and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed
in filings made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities
to any officer, director or affiliate, except pursuant to existing Company stock-based plans or agreements.

 

3.12         
Litigation. Except as set forth in Section 3.12 of the Disclosure
Schedule, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which: (i) adversely affects or challenges the legality, validity or enforceability of any of the Subscription Documents or the Securities
or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the
Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation
of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by governmental authority, or any litigation civil or otherwise,
involving the Company or any current or former director or officer of the Company or its Subsidiaries. 

 

3.13         
Labor Relations. Neither Company nor any Subsidiary is
a party to or bound by any collective bargaining agreements or other agreements with labor organizations. Neither Company nor any Subsidiary
has violated in any material respect any laws, regulations, orders or contract terms, affecting the collective bargaining rights of employees,
labor organizations or any laws, regulations or orders affecting employment discrimination, equal opportunity employment, or employees’
health, safety, welfare, wages and hours. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect
to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect.

 

    6

    

    

 

3.14         
Regulatory Permits. Company and the Subsidiaries possess
all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary
to conduct their respective businesses, except where the failure to possess such permits would not have or reasonably be expected to result
in a Material Adverse Effect (“Material Permits”), and neither Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit.

 

3.15         
Title to Assets. Except as set forth in Section 3.15 of
the Disclosure Schedule, Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
that is material to the business of Company and the Subsidiaries and good and marketable title in all personal property owned by them
that is material to the business of Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not
materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property
by Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent
nor subject to penalties. Any real property and facilities held under lease by Company and the Subsidiaries are held by them under valid,
subsisting and enforceable leases of which Company and the Subsidiaries are in compliance.

 

3.16         
Taxes. Except as otherwise itemized in Section 3.16 of the
Disclosure Schedule, Company and its Subsidiaries have timely and properly filed all tax returns required to be filed by them for all
years and periods (and portions thereof) for which any such tax returns were due, except where the failure to so file would not have a
Material Adverse Effect; all such filed tax returns are accurate in all material respects; the Company has timely paid all taxes due and
payable (whether or not shown on filed tax returns), except where the failure to so pay would not have a Material Adverse Effect; there
are no pending assessments, asserted deficiencies or claims for additional taxes that have not been paid; the reserves for taxes, if any,
reflected in the financial statements are adequate, and there are no Liens for taxes on any property or assets of the Company and any
of its Subsidiaries (other than Liens for taxes not yet due and payable); there have been no audits or examinations of any tax returns
by any (a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal,
state, local, municipal, foreign or other government; or (c) governmental or quasi-governmental authority of any nature (including any
governmental or administrative division, department, agency, commission, instrumentality, official, organization, unit, body or entity)
and any court or other tribunal (a “Governmental Body”), and the Company or its Subsidiaries have not received any
notice that such audit or examination is pending or contemplated; no claim has been made by any Governmental Body in a jurisdiction where
the Company or any of its Subsidiaries does not file tax returns that it is or may be subject to taxation by that jurisdiction; to the
knowledge of the Company, no state of facts exists or has existed which would constitute grounds for the assessment of any penalty or
any further tax liability beyond that shown on the respective tax returns; and there are no outstanding agreements or waivers extending
the statutory period of limitation for the assessment or collection of any tax. 

 

    7

    

    

 

3.17         
Patents and Trademarks. Company and the Subsidiaries have,
or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses
and other similar rights that are necessary or material for use in connection with their respective businesses and which the failure to
so have could have or reasonably be expected to result in a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). Neither Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by Company
or any Subsidiary violates or infringes upon the rights of any Person. All such Intellectual Property Rights are enforceable. Company
and its Subsidiaries have taken reasonable steps to protect Company’s and its Subsidiaries’ rights in their Intellectual Property
Rights and confidential information (the “Confidential Information”). Each employee, consultant and contractor who
has had access to Confidential Information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective
businesses as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of
such Confidential Information and has executed appropriate agreements that are substantially consistent with the Company’s standard
forms thereof. Except under confidentiality obligations, there has been no material disclosure of any of Company’s or its Subsidiaries’
Confidential Information to any third party.

 

3.18         
Environmental Matters. Neither Company nor any Subsidiary
is in violation of any statute, rule, regulation, decision or order of any Governmental Body relating to the use, disposal or release
of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “Environmental Laws”), owns or operates any real property contaminated with any substance
that is subject to any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any Environmental Laws, or
is subject to any claim relating to any Environmental Laws, which violation, contamination, liability or claim has had or could reasonably
be expected to have a Material Adverse Effect, individually or in the aggregate; and there is no pending or, to the Company’s knowledge,
threatened investigation that might lead to such a claim.

 

3.19         
Insurance. Inventory shall be kept in a bonded warehouse
and the Company will not sell merchandise into the marketplace without first obtaining liability insurance.

 

3.20         
Transactions with Affiliates and Employees. Except as disclosed
in the Company’s audited financial statements or the Disclosure Materials, none of the officers or directors of the Company and,
to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with Company or any Subsidiary
(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 entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, other than (a) for payment of salary or consulting fees for
services rendered, (b) reimbursement for expenses incurred on behalf of the Company and (c) for other employee benefits, including stock
option agreements under any stock option plan of Company. 

 

3.21         
Brokers and Finders. Except as otherwise itemized in Section
3.21 of the Disclosure Schedule, no person will have, as a result of the transactions contemplated by the Subscription Documents, any
valid right, interest or claim against or upon Company, any Subsidiary or the Purchaser for any commission, fee or other compensation
pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Company. 

 

    8

    

    

 

3.22         
Questionable Payments. Neither Company nor any of its Subsidiaries
nor, to the Company’s knowledge, any of their respective current or former stockholders, directors, officers, employees, agents
or other persons acting on behalf of Company or any Subsidiary, has on behalf of Company or any Subsidiary or in connection with their
respective businesses: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating
to political activity; (b) made any direct or indirect unlawful payments to any governmental officials or employees from corporate funds;
(c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries
on the books and records of Company or any Subsidiary; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback or
other unlawful payment of any nature.

 

3.23         
Solvency. The Company has not (a) made a general assignment
for the benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by its
creditors; (c) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (d) suffered the
attachment or other judicial seizure of all, or substantially all, of its assets; (e) admitted in writing its inability to pay its debts
as they come due; or (f) made an offer of settlement, extension or composition to its creditors generally.

 

3.24         
Foreign Corrupt Practices Act. None of Company or any of
its Subsidiaries, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company or any of its Subsidiaries,
has, directly or indirectly: (a) used any funds, or will use any proceeds from the sale of the Securities, for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (b) made any unlawful payment to foreign
or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (c) failed
to disclose fully any contribution made by Company or any of its Subsidiaries (or made by any person acting on their behalf of which the
Company is aware) or any members of their respective management which is in violation of any legal requirement, or (d) has violated in
any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder
which was applicable to Company or any of its Subsidiaries.

 

3.25         
Disclosures. Neither the Company nor any person acting on
its behalf has provided the Purchaser or its agents or counsel with any information that constitutes or might constitute material, non-public
information, other than the terms of the transactions contemplated hereby. The written materials delivered to the Purchaser in connection
with the transactions contemplated by the Subscription Documents do not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made,
not misleading.

 

3.26         
Transfer Agent. Company represents and warrants that it
will not replace its transfer agents without Purchaser’s permission so long as the Note is outstanding. Company acknowledges that
this is extremely material to the Note and the investment is made based on the assumption that this will not happen.

 

    9

    

    

 

3.27         
Shell Company Status. Set forth in Schedule 3.27 of the
Disclosure Schedule is the Company’s representation as to its “Shell Company” status under Rule 144.

 

3.28         
Notice of Material Changes. The Company agrees and acknowledges
that so long as any obligations of the Company under any of the Subscription Documents shall exist, it shall be obligated to provide Notice
to the Purchaser in the event of a material change to any representation or disclosure in any of the Subscription Documents, including
but not limited to, the disclosures on the Disclosure Schedule, and failure to provide such notice shall be a breach of this Agreement
and an Event of Default under Section 4.3 of the Note.

 

		4.	Representations and Warranties of the Purchaser

 

4.1             
Purchase for Own Account. The Purchaser represents that
it is acquiring the Note for its own account. 

 

4.2             
Information and Sophistication. Without lessening or obviating
the representations and warranties of the Company set forth in Section 3, the Purchaser
hereby: (a) acknowledges that it has received all the information it has requested from the Company and it considers necessary or appropriate
for deciding whether to acquire the Note, (b) represents that it has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the Note and to obtain any additional information necessary to verify the
accuracy of the information given the Purchaser and (c) further represents that it has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risk of this investment.

 

4.3             
Ability to Bear Economic Risk. The Purchaser acknowledges
that investment in the Note involves a high degree of risk, and represents that it is able, without materially impairing its financial
condition, to hold the Note for an indefinite period of time and to suffer a complete loss of its investment.

 

4.4             
Accredited Investor Status. The Purchaser is an “accredited
investor” as such term is defined in Rule 501 under the Act.

 

4.5             
Existence; Authorization. The Purchaser is a limited liability
company duly organized, validly existing and in good standing under the laws of the state of its organization, having full power and authority
to own its properties and to carry on its business as conducted. The principal place of business of the Purchaser is as shown on the signature
block below. The Purchaser has the requisite power and authority to deliver this Agreement, perform its obligations set forth herein,
and consummate the transactions contemplated hereby. The Purchaser has duly executed and delivered this Agreement and has obtained the
necessary authorization to execute and deliver this Agreement and to perform his, her or its obligations herein and to consummate the
transactions contemplated hereby. This Agreement, assuming the due execution and delivery hereof by the Company, is a legal, valid and
binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms.

 

    10

    

    

 

4.6             
No Regulatory Approval. The Purchaser understands that no
state or federal authority has scrutinized this Agreement or the Note offered pursuant hereto, has made any finding or determination relating
to the fairness for investment in the Note, or has recommended or endorsed the Note, and that the Note has not been registered or qualified
under the Act or any state securities laws, in reliance upon exemptions from registration thereunder. The Note may not, in whole or in
part, be resold, transferred, assigned or otherwise disposed of unless it is registered under the Act or an exemption from registration
is available, and unless the proposed disposition is in compliance with the restrictions on transferability under federal and state securities
laws.

 

4.7             
Purchaser Received Independent Advice. The Purchaser confirms
that the Purchaser has been advised to consult with the Purchaser’s independent attorney regarding legal matters concerning the
Company and to consult with independent tax advisers regarding the tax consequences of investing in the Company. The Purchaser acknowledges
that Purchaser understands that any anticipated United States federal or state income tax benefits may not be available and, further,
may be adversely affected through adoption of new laws or regulations or amendments to existing laws or regulations. The Purchaser acknowledges
and agrees that the Company is providing no warranty or assurance regarding the ultimate availability of any tax benefits to the Purchaser
by reason of the subscription.

 

4.8             
Legends. The Purchaser understands that until such time
as the Note, Warrant, and, upon the conversion of the Note and the exercise of the Warrant in accordance with its respective terms, the
Underlying Securities, have been registered under the Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities
Act or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold,
the Equity Interest and the Underlying Securities shall 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 CONVERTIBLE OR
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 PURCHASER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR REGULATION S
UNDER SAID ACT. 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.”

 

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		5.	Further Agreements; Post-Closing Covenants

 

5.1             
Warrant. Upon the Closing, the Company shall issue to the
Purchaser a Common Share Purchase Warrants (the “Warrant”), in the form attached hereto as Exhibit B, to acquire
five hundred thousand (500,000) of the Company’s Common Shares. The Warrant shall be exercisable for a period of five (5) years,
at an exercise price of $0.60 per share, and shall contain full-ratchet anti-dilution protection provisions.

 

5.2             
Equity Interest. Upon the Closing, the Company shall issue
to the Purchaser two hundred fifty thousand (250,000) shares of Company’s common stock (the “Equity Interest”).

 

5.3             
Use of Proceeds. Company agrees to use the Consideration
to be paid by Purchaser to the Company on the Closing Date solely for the following purposes: to pursue a Regulation A+ offering of the
Company’s shares and for general working capital.

 

5.4             
Form D; Blue Sky Laws. 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 Purchaser promptly after such filing. Company
shall take such action as Company shall reasonably determine is necessary to qualify the Securities for sale to the Purchaser 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 Purchaser on or prior to the
initial closing.

 

5.5              
Usury. To the extent it may lawfully do so, the Company
hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take
the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any action or proceeding
that may be brought by the Purchaser in order to enforce any right or remedy under the Note. Notwithstanding any provision to the contrary
contained in the Note, it is expressly agreed and provided that the total liability of the Company under the Note for payments which under
Delaware law are in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum
Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when
aggregated with any other sums which under Delaware law in the nature of interest that the Company may be obligated to pay under the Note
exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by Delaware law and applicable to the Note
is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate
of interest allowed by law will be the Maximum Rate applicable to the Note from the effective date thereof forward, unless such application
is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to
the Purchaser with respect to indebtedness evidenced by the Note, such excess shall be applied by the Purchaser to the unpaid principal
balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at the Purchaser’s election.

 

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5.6             
Registration Rights. 

 

(a)               
Piggy-Back Registration. Company shall be required to file a Form 1-A Regulation A Offering
Statement (the “Offering Statement”) within 90 days of the Issue Date to register the Underlying Securities issued
to Purchaser pursuant to this Agreement (provided that the Underlying Securities may legally be registered on a Form 1-A Regulation A
Offering Statement pursuant to applicable U.S. securities laws and regulations). Such registration shall be required to be deemed qualified
within 180 days of the Issue Date of the Note, and shall permit the public offering and sale of the Underlying Securities and the Equity
Interest through the securities exchange, if any, on which the shares of common stock is being sold, provided, however, that where the
Company is not at fault with regards to a failure of the registration to be timely declared qualified by the SEC, such failure shall not
be deemed an Event of Default.

 

(b)              
In the event of a registration pursuant to these provisions, Company shall use its reasonable best
efforts to cause the Underlying Securities and the Equity Interest so registered to be registered or qualified for sale under the securities
or blue sky laws of such jurisdictions as the Purchaser may reasonably request; provided, however, that Company shall not be required
to qualify to do business in any state by reason of this section in which it is not otherwise required to qualify to do business. 

 

(c)               
Company shall keep effective any qualification contemplated by this section and shall from time to
time amend or supplement the Offering Statement for such period of time as shall be required to permit the Purchaser to complete the offer
and sale of the Underlying Securities and the Equity Interest covered thereby.

 

(d)              
In the event of a registration pursuant to the provisions of this section, Company shall furnish
to the Purchaser such reasonable number of copies of the Offering Statement and of each amendment and supplement thereto (in each case,
including all exhibits), of each prospectus contained in such Offering Statement and each supplement or amendment thereto (including each
preliminary prospectus), all of which shall conform to the requirements of the Act and the rules and regulations thereunder, and such
other documents, as the Purchaser may reasonably request to facilitate the disposition of the Underlying Securities and the Equity Interest
included in such registration.

 

(e)               
Company shall notify the Purchaser within three (3) business days after such Offering Statement has
been declared qualified by the SEC or a supplement to any prospectus forming a part of such Offering Statement has been filed.

 

(f)               
Company shall advise the Purchaser within three (3) business days after it shall receive notice or
obtain knowledge of the issuance of any stop order by the Commission suspending the qualification of such Offering Statement, or the initiation
or threatening of any proceeding for that purpose and take action using its reasonable best efforts to prevent the issuance of any stop
order or to obtain its withdrawal if such stop order should be issued. 

 

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(g)              
Company shall within three (3) business days notify the Purchaser at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included
in such Offering Statement, as then in effect, would include an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing,
and at the reasonable request of the Purchaser prepare and furnish to it such number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Underlying Securities and the Equity Interest
or securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made.
The Purchaser shall suspend all sales of the Underlying Securities and the Equity Interest upon receipt of such notice from Company and
shall not re-commence sales until they receive copies of any necessary amendment or supplement to such prospectus, which shall be delivered
to the Purchaser within 30 days of the date of such notice from Company.

 

(h)              
Any references herein to (A) a registration statement shall be deemed to be references to a Form
1-A Regulation A Offering Statement, (B) prospectus shall be deemed to be references to offering circular, and (C) effective date of a
registration statement shall be deemed to be references to qualification date of an offering statement. The Purchaser’s rights under
this Section 5.6 shall automatically terminate once the Purchaser has sold all of the Underlying Securities and the Equity Interest.

 

5.7             
Legal Counsel Opinions. 

 

(a)               
Upon the request of the Purchaser from to time to time, Company shall be responsible (at its cost)
for promptly supplying to Company’s transfer agent and the Purchaser a customary legal opinion letter (the “Legal Counsel
Opinion”) to the effect that the resale of the Underlying Securities by the Purchaser 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 Underlying Securities are not then registered under the 1933 Act for resale pursuant to an effective registration statement).
Should Company fail for any reason to obtain and cause to be issued the Legal Counsel Opinion, the Purchaser may (at Company’s cost)
secure another legal counsel to issue the Legal Counsel Opinion, and Company will instruct its transfer agent to accept such opinion.
Company shall not impede the removal by its stock transfer agent of the restricted legend from any common stock certificate upon receipt
by the transfer agent of a Rule 144 Opinion Letter. COMPANY HEREBY AGREES THAT IT MAY NEVER TAKE THE POSITION THAT IT IS A “SHELL
COMPANY” IN CONNECTION WITH ITS OBLIGATIONS UNDER THIS AGREEMENT.

 

5.8             
Listing. Company will, so long as the Purchaser owns any
of the Securities, maintain the listing and trading of its common stock on OTC Markets or any equivalent trading platform or electronic
quotation system and will comply in all respects with Company’s reporting, filing and other obligations under the bylaws or rules
of the Financial Industry Regulatory Authority, or FINRA, and such exchanges, as applicable, as well as with the SEC. Company shall promptly
provide to the Purchaser copies of any notices it receives from OTC Markets and any other exchanges or electronic quotation systems on
which the common stock is then traded regarding the continued eligibility of the common stock for listing on such trading platforms and
quotation systems.

 

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5.9             
Information and Observer Rights. As long as the Purchaser
owns at least five percent (5%) of the Securities originally purchased hereunder, Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports required to be filed by Company pursuant to the Exchange Act.
As long as the Purchaser owns at least five percent (5%) of the Securities originally purchased hereunder, if Company is not required
to file reports pursuant to such laws, it will prepare and furnish to the Purchaser and simultaneously make publicly available in accordance
with Rule 144(c) such information as is required for the Purchaser to sell the Securities under Rule 144. Company further covenants that
it will take such further action as any holder of Securities may reasonably request, all to the extent required from time to time to enable
the Purchaser to sell the Securities without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144. If Company fails to remain current in its reporting obligations or to provide currently publicly available information in accordance
with Rule 144(c) and such failure extends for a period of more than fifteen Trading Days (the date which such fifteen Trading Day-period
is exceeded, being referred to as “Event Date”), then in addition to any other rights the Purchaser may have hereunder
or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall
not have been cured by such date) until the information failure is cured, Company shall pay to the Purchaser an amount in cash, as partial
liquidated damages and not as a penalty, equal to one percent (1%) of purchase price paid for the Securities held by the Purchaser at
the Event Date. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a
month prior to the cure of an information failure (except in the case of the first Event Date). 

 

5.10         
Confidentiality. The Purchaser agrees that the it will keep
confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) the terms and
conditions of this Agreement or any confidential information obtained from the Company pursuant to the terms of this Agreement (including
notice of Company’s intention to file a registration statement), unless such confidential information (a) is known or becomes known
to the public in general (other than as a result of a breach of this Section 5.10 by the Purchaser), (b) is or has been independently
developed or conceived by the Purchaser without use of the Company’s confidential information, or (c) is or has been made known
or disclosed to the Purchaser by a third party without a breach of any obligation of confidentiality such third party may have to the
Company; provided, however, that the Purchaser may disclose confidential information (i) to its attorneys, accountants, consultants, and
other professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company; (ii)
to any prospective purchaser of any Securities from the Purchaser, if such prospective purchaser agrees to be bound by the provisions
of this Section 5.10; (iii) to any existing or prospective affiliate, partner, member, stockholder, or wholly owned subsidiary of the
Purchaser in the ordinary course of business, provided that the Purchaser informs such person that such information is confidential and
directs such person to maintain the confidentiality of such information; or (iv) as may otherwise be required by law, provided that the
Purchaser notifies the Company within three (3) business days of such disclosure and takes reasonable steps to minimize the extent of
any such required disclosure.

 

5.11         
Restrictions on Activities. Commencing as of the date first
above written, and so long as the Company has an obligation under the Note, the Company shall not, directly or indirectly, without the
Purchaser’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; (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); or (d) accept Merchant-Cash-Advances.

 

    15

    

    

 

5.12         
Other Restrictions. Unless approved by the Purchaser, Company
and each Subsidiary shall not enter into an agreement or amend an existing agreement to effect any
sale of securities involving, or convert any securities previously issued under, a Variable Rate Transaction or a merchant cash advance
transaction in which it sells future receivables at a discount, or a substantially similar transaction. The term “Variable Rate
Transaction” means a transaction in which Company or any Subsidiary (i) issues or sells any convertible securities either (A)
at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of, or quotations for,
the shares of common stock at any time after the initial issuance of such convertible securities, or (B) with a conversion, exercise or
exchange price that is subject to being reset at some future date after the initial issuance of such convertible securities or upon the
occurrence of specified or contingent events directly or indirectly related to the business of Company or the Subsidiary, as the case
may be, or the market for the common stock, other than pursuant to a customary “weighted average” anti-dilution provisions,
or (ii) enters into any agreement (including, without limitation, an “equity line of credit” or an “at-the-market offering”)
whereby Company or any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive”
or “participation” rights). The Purchaser shall be entitled to obtain injunctive relief against Company and its Subsidiaries
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

5.13         
Sale of Assets; Issuance of Equity or Debt. Should Company
sell any material assets, or issue any equity, debt, or other security, including the sale of any Subsidiary, that generate at least $2,000,000
of proceeds to the Company, the Purchaser shall have the right to be repaid on any outstanding amount owed under the Note with up to 100%
of the proceeds of any such sale or offering, provided, however, that this provision is not applicable to (i) asset-based loans or lines
of credit obtained by the Borrower, or (ii) if the transaction generating the future financing proceeds has a specific use of proceeds
requirement that such proceeds are to be used exclusively to purchase the assets or equity of an unaffiliated business in an arm’s
length acquisition. 

 

5.14         
Participation Rights. For a period of eighteen (18) months
from the Closing Date, in the event Company or any Subsidiary proposes to offer and sell its securities, whether in the form of debt,
Equity Financing (defined below), or any other financing transaction (each a “Future Offering”), the Purchaser shall
have the right, but not the obligation, to participate in the purchase of the securities being offered up to an amount equal to the Consideration
in strict accordance with the terms of such Future Offering (the “Participation Right”). For the avoidance of doubt,
an “Equity Financing” shall mean Company’s or its Subsidiary’s sale of its common stock or any securities conferring
the right to purchase Company’s or Subsidiary’s common stock or securities convertible into, or exchangeable for (with or
without additional consideration), shares of the Company’s or Subsidiary’s common stock. In
connection with each Participation Right, Company shall provide written notice to the Purchaser of the terms and conditions of the Future
Offering at least 10 business days prior to the anticipated first closing of such Future Financing (the “FF Notice”).
If the Purchaser shall elect to exercise its Participation Right, it shall notify Company, in writing, of such election at least five
(5) business days prior to the anticipated closing date set forth in the FF Notice (the “Participation Notice”). In
the event the Purchaser does not return a Participation Notice to Company within such five (5) business day period, the Participation
Right granted hereunder shall terminate and be of no further force and effect; provided, however, that such Participation Right shall
be reinstated if the anticipated closing referenced in the FF Notice does not occur prior to 10 business days following the anticipated
first closing date specified in such FF notice.

 

    16

    

    

 

5.15         
Right of First Refusal. If at any time while this Note is
outstanding, the Company or any Subsidiary has a bona fide offer of capital or financing from any third party that the Company or Subsidiary
intends to act upon, then the Company must first offer such opportunity to the Purchaser to provide such capital or financing to the Company
or Subsidiary on the same terms as each respective third party’s terms. Should the Purchaser be unwilling or unable to provide such
capital or financing to the Company within 10 Trading Days from Purchaser’s receipt of written notice of the offer (the “Offer
Notice”) from the Company, then the Company or Subsidiary may obtain such capital or financing from that respective third party.
If the Company does not receive the capital or financing from the respective third party within 60 days after the date of the respective
Offer Notice, then the Company must again offer the capital or financing opportunity to the Purchaser as described above, and the process
detailed above shall be repeated. The Offer Notice must be sent via electronic mail to avi@leonitecap.com Cc: dberger@bergerlawpllc.com.

 

5.16         
Terms of Future Financings. So long as any obligations of
the Company under the Subscription Documents are outstanding, upon any issuance of (or announcement of intent to effect an issuance of)
any security, or amendment to (or announcement of intent to effect an amendment to) any security that was originally issued before the
Issue Date, by the Company or any Subsidiary, with any term that the Purchaser reasonably believes is more favorable to the holder of
such security than, or with a term in favor of the holder of such security that the Purchaser reasonably believes was not similarly provided,
to the Purchaser in the Subscription Documents, then (i) the Company shall notify the Purchaser of such additional or more favorable term
within five (5) business days of the new issuance and/or amendment (as applicable) of the respective security, and (ii) such term, at
Purchaser’s option, shall become a part of the transaction documents with the Purchaser (regardless of whether the Company complied
with the notification provision of this Section 5.16). The types of terms contained in another security that may be more favorable to
the purchaser of such security include, but are not limited to, terms addressing conversion discounts, prepayment rate, conversion lookback
periods, interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage. If Purchaser
elects to have the term become a part of the transaction documents with the Purchaser, then the Company shall immediately deliver acknowledgment
of such adjustment in form and substance reasonably satisfactory to the Purchaser (the “Acknowledgment”) within 30 days of
Company’s receipt of request from Purchaser (the “Adjustment Deadline”), provided that Company’s failure to timely
provide the Acknowledgement shall not affect the automatic amendments contemplated hereby.

 

5.17         
Breach of Covenants. The Company acknowledges and agrees
that if the Company breaches any covenants set forth in this Section, in addition to any other remedies available to the Purchaser pursuant
to this Agreement, it will be considered an Event of Default under Section 4.3 of the Note.

 

    17

    

    

 

5.18         
Transfer Agent
Instructions. Company
shall issue irrevocable instructions to Company’s transfer
agent to issue certificates, registered in the name of the Purchaser or its nominee, upon issuance
of the Equity Interest or exercise of the Warrant, in such amounts as specified from time to time by the Purchaser to Company in
accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that Company proposes
to replace its transfer agent, 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 this Agreement (including but not limited to the
provision to irrevocably reserved shares of common stock in the Reserved Amount (as defined in the Note)) signed by the successor transfer
agent to Company and Company. Prior to registration of the Underlying Securities under the Securities Act or the date on which the Underlying
Securities may be sold pursuant to Rule 144 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 4.8 of this Agreement. Company warrants
that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5.18 will be given by Company
to its transfer agent; (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 Underlying Securities to be issued to the Purchaser
upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; (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 Underlying Securities issued to the Purchaser
upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement, and (iv) it will provide any
required corporate resolutions and issuance approvals to its transfer agent if and as required by its transfer agent. Nothing in this
Section shall affect in any way the Purchaser’s obligations and agreement set forth in Section 5.6 hereof to comply with all applicable
prospectus delivery requirements, if any, upon re-sale of the Underlying Securities. If the Purchaser provides Company, at the cost of
Company, with 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 pursuant to Rule 144, or other exemptions,
and such sale or transfer is effected through an opinion of counsel, the Company shall permit the transfer, and, in the case of the Underlying
Securities, 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 Purchaser. Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Purchaser, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, Company acknowledges
that the remedy at law for a breach of its obligations under this Section 5.18 may be inadequate and agrees, in the event of a breach
or threatened breach by Company of the provisions of this Section, that the Purchaser 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.

 

5.19         
Further Assurances. The Purchaser agrees and covenants that
at any time and from time to time it will execute and deliver to the Company such further instruments and documents and take such further
action as the Company may reasonably require within three (3) business days of any such request in order to carry out the full intent
and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

 

    18

    

    

 

5.20         
Exchange Act Reporting. Failure to remain subject to and
fully compliant with the SEC reporting requirements under the Exchange Act (including but not limited to becoming delinquent in its filings),
shall be an event of default under the Note and this Agreement.

 

		6.	Conditions to the Company’s Obligation
to Sell

 

The obligation of the Company hereunder
to issue and sell the Note to the Purchaser 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 Purchaser shall have executed this Agreement and delivered the same to the Company.

(b)              
The Purchaser shall have delivered the Consideration in accordance with Sections 1.1 and 1.2 above.

 

(c)               
The representations and warranties of the Purchaser 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 Purchaser 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 Purchaser at or prior to the Closing Date.

 

(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.

 

		7.	Conditions to The Purchaser’s Obligation
to Purchase

 

The obligation of the Purchaser
hereunder to purchase the Note, on the Closing Date, is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for the Purchaser’s sole benefit and may be waived by the Purchaser at any time in
its sole discretion:

 

(a)               
The Company shall have executed this Agreement and delivered the same to the Purchaser.

 

(b)              
The Company shall have delivered to the Purchaser the duly executed Note.

 

(c)               
Company shall have delivered to the Purchaser the Warrant.

 

    19

    

    

 

(d)              
Company shall have delivered executed Subscription Documents, or such other instruments as contemplated
by this Agreement.

 

(e)               
Company shall have delivered to the Purchaser the Security Agreement.

 

(f)               
The Company has provided the Purchaser with a current schedule of liabilities.

 

(g)              
Intentionally Omitted.

 

(h)              
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 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.

 

(i)                
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.

 

(j)                
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 Exchange Act reporting status of the Company or the failure of the Company
to be timely in its Exchange Act reporting obligations. 

 

(k)              
Company shall have delivered to the Purchaser (i) a certificate evidencing the formation and good
standing of Company and each of its Subsidiaries in such entity’s jurisdiction of formation issued by the Secretary of State (or
comparable office) of such jurisdiction, as of a date within ten (10) days of the Closing Date; and (ii) resolutions adopted by the Company’s
Board of Directors at a duly called meeting or by unanimous written consent authorizing this Agreement and all other documents, instruments
and transactions contemplated hereby. 

 

(l)                
Intentionally Omitted. 

 

(m)             
Intentionally Omitted. 

 

    20

    

    

 

		8.	Miscellaneous

 

8.1             
Binding Agreement. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, expressed
or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

8.2             
Governing Law; Consent to Jurisdiction. This Agreement shall
be governed by and construed under the laws of the State of Delaware, without giving effect to conflicts of laws principles. Each party
to this Agreement hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in Delaware for
the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof (certified or registered mail, return receipt requested) 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 manner permitted by law.

 

8.3             
Counterparts. This Agreement may be executed in two (2)
or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature) 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.

 

8.4             
Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

8.5             
Notices. All notices required or permitted hereunder shall
be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by
confirmed electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five
days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications
shall be sent to the Company and to the Purchaser at the addresses set forth on the signature page to this Agreement or at such other
addresses as the Company or Purchaser may designate by 10 days’ advance written notice to the other parties hereto.

 

8.6             
Modification; Waiver. No modification or waiver of any provision
of this Agreement or consent to departure therefrom shall be effective only upon the written consent of the Company and the Purchaser.
Any provision of the Note may be amended or waived by the written consent of the Company and the Purchaser.

 

    21

    

    

 

8.7             
Expenses. The Company and the Purchaser shall each bear
its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein.

 

8.8             
Delays or Omissions. It is agreed that no delay or omission
to exercise any right, power or remedy accruing to the Purchaser, upon any breach or default of the Company under the Subscription Documents
shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed
a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character by Purchaser of any breach or default under this Agreement, or any waiver by any Purchaser of any provisions
or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing and that
all remedies, either under this Agreement, or by law or otherwise afforded to the Purchaser, shall be cumulative and not alternative.

 

8.9             
Entire Agreement. This Agreement and the Exhibits hereto
constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be
liable or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set
forth herein.

8.10         
Post Closing Obligations. 

 

(a)               
Within 2 weeks of the Closing Date, Company shall execute and deliver to Purchaser documents evidencing
a security interest and pledge in shares of NUKKLEUS INC. common stock held by Adriatic Advisors LLC, in form and substance agreeable
to the Purchaser. 

 

(b)              
Within 45 days of the Closing Date, the Company shall deliver to Purchaser the Irrevocable Transfer
Agent Instructions, in form and substance satisfactory to the Purchaser, and acknowledged in writing by Company’s Transfer Agent.
Additionally, if the company replaces its current transfer agent, the company will re-execute any documents related to the transaction
contemplated herein that were addressed to the original transfer agent to reflect the new transfer agent.

 

[Signature page follows]

 

    22

    

    

 

In
Witness Whereof, the parties have executed this Securities Purchase Agreement
as of the date first written above.

 

	COMPANY:	 
	 	 	 
	SENTIENT BRANDS HOLDINGS INC.	 
	 	 	 
	By: 	/s/ George Furlan	 
	Name: 	George Furlan	 
	Title: 	Interim Chief Executive Officer	 
	 	 	 
	Address:	555 Madison Avenue, 5th Floor	 
	 	New York, New York 10022	 

 

	PURCHASER:	 
	 	 	 
	LEONITE FUND I LLC	 
	 	 	 
	By: 	/s/ Avi Geller	 
	Name:	 Avi Geller	 
	Title: 	Chief Investment Officer	 
	 	 	 
	Address:	1 Hillcrest Center Dr., Suite 232	 
	 	Spring Valley, NY 110977	 

 

[Securities Purchase Agreement – Signature page]

 

    23

    

    

 

SCHEDULE I

Disclosure Schedule

 

Section 3.3 Subsidiaries and Affiliates

 

Jaguaring Company, d/b/a Cannavolve, a Washington corporation

 

Section 3.7 Compliance with Other Instruments

 

The Company is currently in compliance with all other
instruments.

 

Section 3.9 Capitalization

 

		●	As
                                            of April 26, 2021, there are 50,782,116 shares of common stock of the Company, par value
                                            $0.001 per share, issued and outstanding. A market has not yet been established in the Company’s
                                            common stock. The Company believes that a market will develop in its shares at approximately
                                            a $20M market capitalization based on existing comparables.
	 	 	 
		●	December
                                            2020 Financing: Stock Purchase Warrant to acquire 400,000 shares of common stock of the Company
                                            at an exercise price of $0.01 per share for a period of five years. 
	 	 	 
	 	●	December 2020 Debenture Financing: Convertible Debenture
in the amount of $50,000 with a maturity date of December 3, 2021, and a Stock Purchase Warrant to acquire 400,000 shares of common stock
of the Company at an exercise price of $0.01 per share for a period of five years.
	 	 	 
	 	●	Since the change of control of the Company in May 2018,
we have received advances from Pure Energy 714 LLC, an unaffiliated entity, with an outstanding balance of $156,675 as of December 31,
2018, at which time there was no formal arrangement between the Company and Pure Energy 714 LLC regarding the terms for repayment of
these advances. Following further advances aggregating $84,128 during the year ended December 31, 2019, an amount of $240,803 was outstanding
as of December 31, 2019. On March 15, 2019, specific terms were reached on $70,757 of such advances pursuant to an unsecured convertible
promissory note entered into between the Company and Pure Energy 714 LLC, the terms call for repayment of the advances including interest
on any unconverted principal amount at a rate of 4% per annum and a repayment date on or before August 15, 2022. Additional terms include
a voluntary conversion option, pursuant to which Pure Energy 714 LLC may convert any outstanding balance at $0.05 per share into shares
of common stock. On January 3, 2020, specific terms were reached on the remaining $170,046 of such advances pursuant to an unsecured
demand note entered into between the Company and Pure Energy 714 LLC, the terms call for repayment of the advances including interest
on any unconverted principal amount at a rate of 12% per annum and a repayment date on or before June 3, 2021 at the rate of 12% per
annum. If the demand note is unpaid by June 3, 2021, default interest of 3% monthly will apply. The Company has accrued interest of $36,672
on these notes.

 

    

    

    

 

Section 3.10 SEC Reports; Financial Statements

 

The Company reports its operations using a fiscal
year ending December 31, and the operations reported on its Form 10-K Annual Report are presented on a consolidated basis.

 

The Company files Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, registration statements and other items with the Securities and Exchange Commission
(“SEC”). In the Company’s Annual Report on Form 10-K, the language “this fiscal year” or “current
fiscal year” refers to the 12-month period ended December 31.

 

Purchaser may read and copy any materials the Company’s
files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Purchaser may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet site ( www.sec.gov
) that contains reports, proxy and information statements regarding issuers, like the Company, that file electronically with the SEC.

 

Section 3.12 Litigation

 

None.

 

Section 3.15 Title to Assets

 

Company and the Subsidiaries have and maintain good and
marketable title to their assets.

 

Section 3.16 Taxes

 

Company and its Subsidiaries have timely and properly
filed all tax returns required to be filed by them for all years and periods (and portions thereof) for which any such tax returns were
due.

 

Section 3.21 Brokers and Finders

 

None.

 

Section 3.27 Shell Company Status (check only
one, and insert the relevant dates if applicable)

 

	☐	The Company has never been a Shell Company
    as defined in in paragraph (i)(1)(i) of Rule 144.
	 	 
	☒	1.	As
                                            of February 14, 2020, the Company filed current “Form 10 information” with the
                                            SEC reflecting that it ceased to be a Shell Company as defined in paragraph (i)(1)(i) of
                                            Rule 144;
		2.	As
                                            of September 1, 2010, the Company became subject to the reporting requirements of section
                                            13 or 15(d) of the Exchange Act.

 

    

    

    

 

Section 7(f) Schedule of Liabilities 

 

	Sentient Brands A/Payable Worksheet April 21, 2021	Due
	 	 
	George Furlan Balance Due October through April	49,000
	7 months x 7K per month - Minus 1K 	 
	 	 
	James Mansour Balance Due (approx. 10 months x 5K per month= 50K	50,000
	 	 
	HCT Balance Due for Product	103,911
	 	 
	Evan Costaldo Attorney (as of statement 3-23-21)	47,500
	 	 
	J/V CPA (as of last statement)	8,550
	 	 
	Robert Boyle (auditor) approx 10K (don’t have statement)	10,000
	 	 
	Laura Anthony (former attorney) approx. 30K (don’t have statement)	30,000
	 	 
	Hero Models	13,249
	 	 
	Vstock	1500
	 	 
	Electro Fillings	136
	 	 
	Total	313,846

 

    

    

    

 

Exhibit A

Form of Convertible
Promissory Note

 

(See Attached)

 

    

    

    

 

Exhibit B

Form of Warrant

 

(See Attached)

 

    

    

    

 

Exhibit C

Form of Security
and Pledge Agreement

 

(See Attached)

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