Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT
(the “Agreement”), dated as of March 15, 2022, by and between SMARTMETRIC, INC., a Nevada corporation, with headquarters
located at 3960 Howard Hughes Parkway, Suite 500, Las Vegas, NV 89169 (the “Company”), and Mast Hill Fund, L.P., a
Delaware limited partnership, with its address at 48 Parker Road, Wellesley, MA 02482 (the “Buyer”).

 

WHEREAS:

 

A. The Company and the Buyer are executing and
delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act
of 1933, as amended (the “1933 Act”) and Rule 506(b) promulgated by the United States Securities and Exchange Commission (the
“SEC”) under the 1933 Act; and

 

B. Buyer desires to purchase from the Company,
and the Company desires to issue and sell to the Buyer, upon the terms and conditions set forth in this Agreement, a promissory note of
the Company, in the aggregate principal amount of $250,000.00 (as the principal amount thereof may be increased pursuant to the terms
thereof, and together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, in the form attached hereto as Exhibit A, the “Note”), convertible into shares of common stock,
$0.001 par value per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions
set forth in such Note; and

 

C. The Buyer wishes to purchase, upon the terms
and conditions stated in this Agreement, such principal amount of the Note as is set forth immediately below its name on the signature
pages hereto; and

 

D. The Company wishes to issue a common stock purchase
warrant to purchase 12,500,000 shares of Common Stock (the “Warrant”) as well as the Commitment Shares (as defined below)
to the Buyer as additional consideration for the purchase of the Note, which shall be earned in full as of the Closing Date, as further
provided herein.

 

NOW THEREFORE, in
consideration of the foregoing and of the agreements and covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1. Purchase and Sale of Note.

 

a. Purchase of Note. On the Closing Date
(as defined below), the Company shall issue and sell to the Buyer, and the Buyer agrees to purchase from the Company, the Note, as further
provided herein. As used in this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday, or a
day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed.

 

b. Form of
Payment. On the Closing Date: (i) the Buyer shall pay the purchase price of $225,000.00 (the “Purchase Price”)
for the Note, to be issued and sold to it at the Closing (as defined below), by wire transfer of immediately available funds to the Company,
in accordance with the Company’s written wiring instructions, against delivery of the Note, and (ii) the Company shall deliver such
duly executed Note and Warrant on behalf of the Company, to the Buyer, against delivery of such Purchase Price. On the Closing, the Buyer
shall withhold a non-accountable sum of $6,000.00 from the Purchase Price to cover the Buyer’s legal fees in connection with the
transactions contemplated by this Agreement.

 

c. 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 on the date that the Purchase Price for the Note is paid
by Buyer pursuant to terms of this Agreement.

 

d. 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).

 

e. Warrant; Commitment Shares. On or before
the Closing Date, the Company shall issue the Warrant to the Buyer pursuant to the terms of contained therein, which shall be earned in
full as of the Closing Date. On or before the Closing Date, the Company shall issue 12,500,000 shares of the Company’s common stock
(the “Commitment Shares”) to the Buyer, which shall be earned in full as of the Closing Date.

 

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2. Buyer’s Representations and Warranties.
The Buyer represents and warrants to the Company as of the Closing Date that:

 

a. Investment Purpose. As of the Closing
Date, the Buyer is purchasing the Note and Warrant (the Note, Warrant, Commitment Shares, shares of Common Stock issuable upon conversion
of or otherwise pursuant to the Note (the “Conversion Shares”), and shares of Common Stock issuable upon exercise of or otherwise
pursuant to the Warrant (the “Exercise Shares”) shall collectively be referred to herein as the “Securities”)
for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or
exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does
not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at
any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

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

 

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

 

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

 

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

 

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f. Transfer
or Re-sale. The Buyer understands that (i) the sale or resale of the Securities has not been and is not being registered under
the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold
pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost
of the Company, an opinion of counsel (which may be the Legal Counsel Opinion (as defined below)) that shall be in form, substance
and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the
Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a
successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144 or other applicable
exemption, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation
S”), and the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in
form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the
Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule
and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person
through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance
with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor
any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained
herein to the contrary, the Securities may be pledged in connection with a bona fide margin account or other lending
arrangement secured by the Securities, and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the
Securities hereunder, and the Buyer in effecting such pledge of Securities shall be not required to provide the Company with any
notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or otherwise.

 

g. Legends. The Buyer understands that
until such time as the Note, Warrant, Conversion Shares, and/or Exercise Shares, have been registered under the 1933 Act or may be sold
pursuant to Rule 144, Rule 144A under the 1933 Act, Regulation S, or other applicable exemption without any restriction as to the number
of securities as of a particular date that can then be immediately sold, the Securities may bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of such Securities):

 

“NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE] HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION 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.”

 

The legend set forth above
shall be removed and the Company shall issue a certificate or book entry statement for the applicable shares of Common Stock without such
legend to the holder of any Security upon which it is stamped or (as requested by such holder) issue the applicable shares of Common Stock
to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company (“DTC”),
if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration
statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption
without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) the Company or
the Buyer provides the Legal Counsel Opinion (as contemplated by and in accordance with Section 4(m) hereof) to the effect that a public
sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company
so that the sale or transfer is effected. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated
with any such issuance. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend
has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept
the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such
as Rule 144, Rule 144A, Regulation S, or other applicable exemption at the Deadline (as defined in the Note), it will be considered an
Event of Default pursuant to Section 3.2 of the Note.

 

h. Authorization;
Enforcement. This Agreement has been duly and validly authorized by the Buyer and has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally and except as may be limited by the exercise of judicial discretion in applying principles of
equity.

 

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3. Representations and Warranties of the Company.
The Company represents and warrants to the Buyer as of the Closing Date that:

 

a. Organization and Qualification. The Company
and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate
its properties and to carry on its business as and where now owned, leased, used, operated and conducted. Schedule 3(a), if attached hereto,
sets forth a list of all of the Subsidiaries of the Company and the jurisdiction in which each is incorporated. The Company and each of
its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its
ownership or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure
to be so qualified or in good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material
adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken
as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith.
“Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns,
directly or indirectly, any equity or other ownership interest.

 

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

 

c. Capitalization; Governing Documents.
As of March 15, 2022, the authorized capital stock of the Company consists of: 1,200,000,000 authorized shares of Common Stock, of which
589,033,346 shares were issued and outstanding, and 55,000,000 authorized shares of preferred stock (consisting of 5,000,000 authorized
shares of Series B preferred stock and 50,000,000 authorized shares of Series A preferred stock), of which 610,000 shares were issued
and outstanding (consisting of 610,000 shares of Series B preferred stock). All of such outstanding shares of capital stock of the Company,
the Conversion Shares, and the Exercise Shares are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable.
No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company
or any liens or encumbrances imposed through the actions or failure to act of the Company. As of the effective date of this Agreement,
other than as publicly announced prior to such date and reflected in the SEC Documents of the Company (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital
stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under
which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and
(iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing
rights to security holders) that will be triggered by the issuance of any of the Securities. The Company has furnished to the Buyer true
and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”),
the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible
into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto.

 

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d. Issuance of Conversion Shares and Exercise
Shares. The Conversion Shares and Exercise Shares are duly authorized and reserved for issuance and, upon conversion of the Note and/or
exercise of the Warrant in accordance with its terms, will be validly issued, fully paid and non-assessable, and free from all taxes,
liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e. Issuance of Warrant and Commitment Shares.
The issuance of the Warrant and Commitment Shares are duly authorized and will be validly issued, fully paid and non-assessable, and free
from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

f. Acknowledgment of Dilution. The Company
understands and acknowledges the potentially dilutive effect of the Conversion Shares and Exercise Shares to the Common Stock upon the
conversion of the Note and/or exercise of the Warrant. The Company further acknowledges that its obligation to issue, upon conversion
of the Note and/or exercise of the Warrant, the Conversion Shares and/or Exercise Shares, are absolute and unconditional regardless of
the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

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

 

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h. SEC Documents; Financial Statements.
The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to
the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed
prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits
to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). As of
their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations
of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the
SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. None of the statements
made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as
have been amended or updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of the
Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated
financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations
and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except
as set forth in the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business subsequent to December 31, 2021, and (ii) obligations under contracts
and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected
in such financial statements, which, individually or in the aggregate, are not material to the financial condition or operating results
of the Company. The Company is subject to the reporting requirements of the 1934 Act. The Company has never been a “shell company”
as described in Rule 144(i)(1)(i).

 

i. Absence of Certain Changes. Since December
31, 2021, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties,
operations, financial condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

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

 

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

 

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

 

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

 

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

 

o. Disclosure. All information relating
to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section 2(d)
hereof and otherwise in connection with the transactions contemplated hereby is true and correct in all material respects and the Company
has not omitted to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances
under which they were made, not misleading. No event or circumstance has occurred or exists with respect to the Company or any of its
Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or
regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed (assuming
for this purpose that the Company’s reports filed under the 1934 Act are being incorporated into an effective registration statement
filed by the Company under the 1933 Act).

 

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

 

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

 

    7

     

    

 

r. No Brokers; No Solicitation. Except
with respect to J. H. Darbie & Co., a registered broker-dealer (CRD#: 43520), the Company has taken no action which would give rise
to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions
contemplated hereby. The Company acknowledges and agrees that neither the Buyer nor its employee(s), member(s), beneficial owner(s), or
partner(s) solicited the Company to enter into this Agreement and consummate the transactions described in this Agreement.

 

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

 

t. Environmental Matters.

 

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

 

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

 

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

 

u. Title to
Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in
each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(u), if attached hereto,
or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by the Company and its
Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material
Adverse Effect.

 

    8

     

    

 

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

 

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

 

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

 

y. [Intentionally Omitted].

 

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

 

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

 

bb. No
Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer,
other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405
under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is
subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a
“Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has
exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.

 

    9

     

    

 

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

 

dd. Bank Holding Company
Act. Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”)
and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the Company nor
any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of
any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the
BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence
over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

ee. Illegal or Unauthorized
Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the Company’s knowledge, any of the
officers, directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any other business entity
or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized
any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback
or bribe to any person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office
except for personal political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

 

ff. Breach of Representations
and Warranties by the Company. The Company agrees that if the Company breaches any of the representations or warranties set forth
in this Section 3 and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event
of Default under Section 3.4 of the Note.

 

4. ADDITIONAL COVENANTS, AGREEMENTS AND ACKNOWLEDGEMENTS.

 

a. Best Efforts. The parties shall use their
best efforts to satisfy timely each of the conditions described in Section 6 and 7 of this Agreement.

 

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

 

c. Use of Proceeds. The Company shall use
the proceeds for business development, and not for any other purpose, including but not limited to (i) the repayment of any indebtedness
owed to officers, directors or employees of the Company or their affiliates, (iii) any loan to or investment in any other corporation,
partnership, enterprise or other person (except in connection with the Company’s currently existing operations), (iv) any loan,
credit, or advance to any officers, directors, employees, or affiliates of the Company, or (v) in violation or contravention of any applicable
law, rule or regulation.

 

d. [Intentionally Omitted].

 

    10

     

    

 

e. 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 Buyer in order to enforce any right or remedy under this Agreement, the Note and any
document, agreement or instrument contemplated thereby. Notwithstanding any provision to the contrary contained in this Agreement, the
Note and any document, agreement or instrument contemplated thereby, it is expressly agreed and provided that the total liability of the
Company under this Agreement, the Note or any document, agreement or instrument contemplated thereby for payments which under applicable
law are in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with
any other sums which under applicable law in the nature of interest that the Company may be obligated to pay under this Agreement, the
Note and any document, agreement or instrument contemplated thereby exceed such Maximum Rate. It is agreed that if the maximum contract
rate of interest allowed by law applicable to this Agreement, the Note and any document, agreement or instrument contemplated thereby
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 this Agreement, the Note and any document, agreement or instrument contemplated
thereby 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 Buyer with respect to indebtedness evidenced by this Agreement, the
Note and any document, agreement or instrument contemplated thereby, such excess shall be applied by the Buyer 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 Buyer’s election.

 

f. Restriction on Activities. Commencing
as of the date first above written, and until the earlier of payment of the Note in full or full conversion of the Note, the Company shall
not, directly or indirectly, without the Buyer’s prior written consent, which consent shall not be unreasonably withheld: (a) change
the nature of its business; or (b) sell, divest, acquire, change the structure of any material assets other than in the ordinary course
of business.

 

g. Listing. The Company will, so long as
the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the Principal Market or any equivalent replacement
exchange or electronic quotation system (including but not limited to the Pink Sheets electronic quotation system) and will comply in
all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory
Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices
it receives from the Principal Market 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 exchanges and quotation systems.

 

h. Corporate Existence. The Company will,
so long as the Buyer beneficially owns any of the Securities, maintain its corporate existence and shall not sell all or substantially
all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s
assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the
agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed
for trading or quotation on the Principal Market, any tier of the NASDAQ Stock Market, the New York Stock Exchange or the NYSE MKT.

 

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

 

j. Breach of Covenants. The Company acknowledges
and agrees that if the Company breaches any of the covenants set forth in this Section 4, in addition to any other remedies available
to the Buyer pursuant to this Agreement, it will be considered an Event of Default under Section 3.3 of the Note.

 

    11

     

    

 

k. Compliance with 1934 Act; Public Information
Failures. For so long as the Buyer beneficially owns the Note, Warrant, Conversion Shares, or any Exercise Shares, the Company shall
comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of
the 1934 Act. During the period that the Buyer beneficially owns the Note, if the Company shall (i) fail for any reason to satisfy the
requirements of Rule 144(c)(1), including, without limitation, the failure to satisfy the current public information requirements under
Rule 144(c) or (ii) if the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes such an issuer in the future, and
the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (each, a “Public Information Failure”) then, as
partial relief for the damages to the Buyer by reason of any such delay in or reduction of its ability to sell the Securities (which remedy
shall not be exclusive of any other remedies available pursuant to this Agreement, the Note, or at law or in equity), the Company shall
pay to the Buyer an amount in cash equal to three percent (3%) of the Purchase Price on each of the day of a Public Information Failure
and on every thirtieth day (pro rated for periods totaling less than thirty days) thereafter until the date such Public Information Failure
is cured. The payments to which a holder shall be entitled pursuant to this Section 4(k) are referred to herein as “Public Information
Failure Payments.” Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during
which such Public Information Failure Payments are incurred and (iii) the third business day after the event or failure giving rise to
the Public Information Failure Payments is cured. In the event the Company fails to make Public Information Failure Payments in a timely
manner, such Public Information Failure Payments shall bear interest at the rate of 5% per month (prorated for partial months) until paid
in full.

 

l. Acknowledgement Regarding Buyer’s
Trading Activity. Until the Note is fully repaid or fully converted, the Buyer shall not effect any “short sale” (as such
term is defined in Rule 200 of Regulation SHO of the 1934 Act) of the Common Stock which establishes a net short position with respect
to the Common Stock.

 

m. Disclosure of Transactions and Other Material
Information. By 9:00 a.m., New York time, following the date this Agreement has been fully executed, the Company shall file a Current
Report on Form 8-K (if required) describing the terms of the transactions contemplated by this Agreement in the form required by the 1934
Act and attaching this Agreement, the form of Note (the “8-K Filing”). From and after the filing of the 8-K Filing with the
SEC, the Buyer shall not be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries or
any of their respective officers, directors, employees or agents that is not disclosed in the 8-K Filing. In addition, effective upon
the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees
or agents, on the one hand, and the Buyer or any of its affiliates, on the other hand, shall terminate.

 

n. Legal Counsel Opinions. Upon the request
of the Buyer from to time to time, the Company shall be responsible (at its cost) for promptly supplying to the Company’s transfer
agent and the Buyer a customary legal opinion letter of its counsel (the “Legal Counsel Opinion”) to the effect that the resale
of the Conversion Shares and/or Exercise Shares by the Buyer or its affiliates, successors and assigns is exempt from the registration
requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule 144 are satisfied and provided the Conversion Shares
and/or Exercise Shares are not then registered under the 1933 Act for resale pursuant to an effective registration statement) or other
applicable exemption (provided the requirements of such other applicable exemption are satisfied). In addition, the Buyer may (at the
Company’s cost) at any time secure its own legal counsel to issue the Legal Counsel Opinion, and the Company will instruct its transfer
agent to accept such opinion. The Company hereby agrees that it may never take the position that it is a “shell company” in
connection with its obligations under this Agreement or otherwise.

 

o. Piggyback Registration Rights. The Company
hereby grants to the Buyer the registration rights set forth on Exhibit B hereto.

 

p. Most Favored Nation. While the Note
or any principal amount, interest or fees or expenses due thereunder remain outstanding and unpaid, the Company shall not enter into any
public or private offering of its securities (including securities convertible into shares of Common Stock) with any individual or entity
(an “Other Investor”) that has the effect of establishing rights or otherwise benefiting such Other Investor in a manner more
favorable in any material respect to such Other Investor than the rights and benefits established in favor of the Buyer by this Agreement
or the Note unless, in any such case, the Buyer has been provided with such rights and benefits pursuant to a definitive written agreement
or agreements between the Company and the Buyer.

 

q. Subsequent Variable Rate Transactions.
From the date hereof until such time as the Note is fully converted or fully repaid, the Company shall be prohibited from effecting or
entering into an agreement involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which
the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the
right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price 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 debt or equity 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 debt or equity security or upon the occurrence of specified or contingent events directly or indirectly
related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited
to, an equity line of credit, whereby the Company may issue securities at a future determined price. The Buyer shall be entitled to obtain
injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

    12

     

    

 

r. [Intentionally Omitted].

 

s. Non-Public Information. The Company
covenants and agrees that neither it, nor any other person acting on its behalf will provide the Buyer or its agents or counsel with any
information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto the
Buyer shall have consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company
understands and confirms that the Buyer shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to the Buyer without such Buyer’s consent, the Company
hereby covenants and agrees that such Buyer shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any
of their respective officers, directors, agents, employees or affiliates, not to trade on the basis of, such material, non- public information,
provided that the Buyer shall remain subject to applicable law. To the extent that any notice provided, information provided, or any other
communications made by the Company, to the Buyer, constitutes or contains material non-public information regarding the Company or any
Subsidiaries, the Company shall simultaneously file such notice or other material information with the SEC pursuant to a Current Report
on Form 8-K. In addition to any other remedies provided by this Agreement or the related transaction documents, if the Company provides
any material non-public information to the Buyer without their prior written consent, and it fails to immediately (no later than that
business day) file a Form 8-K disclosing this material non-public information, it shall pay the Buyer as partial liquidated damages and
not as a penalty a sum equal to $3,000 per day beginning with the day the information is disclosed to the Buyer and ending and including
the day the Form 8-K disclosing this information is filed.

 

t. D&O Insurance. Within 30 calendar
days after the Company applies to be listed on Nasdaq, the Company shall purchase director and officer insurance on behalf of the Company's
(including its subsidiary) officers and directors for a period of 18 months after the Closing with respect to any losses, claims, damages,
liabilities, costs and expense in connection with any actual or threatened claim or proceeding that is based on, or arises out of their
status as a director or officer of the Company. The insurance policy shall provide for two years of tail coverage.

 

5. Transfer Agent Instructions. The Company
shall issue irrevocable instructions to the Company’s transfer agent to issue certificates and/or issue shares electronically at
the Buyer’s option, registered in the name of the Buyer or its nominee, upon conversion of the Note and/or exercise of the Warrant,
the Conversion Shares and Exercise Shares, in such amounts as specified from time to time by the Buyer to the Company in accordance with
the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that the Company proposes to replace its transfer
agent, the Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions
in a form as initially delivered pursuant to 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 the Company and the Company.
Prior to registration of the Conversion Shares and/or Exercise Shares under the 1933 Act or the date on which the Conversion Shares and/or
Exercise Shares may be sold pursuant to Rule 144, Rule 144A, Regulation S, or other applicable exemption without any restriction as to
the number of Securities as of a particular date that can then be immediately sold, all such certificates or book entry shares shall bear
the restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section 5 will be given by the Company to its transfer agent and that the Securities shall
otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note;
(ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically
or in certificated form) any certificate for Securities to be issued to the Buyer upon conversion of or otherwise pursuant to the Note
and/or upon exercise of or otherwise pursuant to the Warrant 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 Securities issued to the Buyer upon
conversion of or otherwise pursuant to the Note and/or upon exercise of or otherwise pursuant to the Warrant as and when required by the
Note, Warrant, and/or this Agreement and (iv) it will provide any required corporate resolutions and issuance approvals to its transfer
agent within 3 business days of each conversion of the Note and/or exercise of the Warrant. Nothing in this Section shall affect in any
way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus delivery requirements,
if any, upon re-sale of the Securities. If the Buyer provides the Company, at the cost of the Company, with (i) an opinion of counsel
in form, substance and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities
may be made without registration under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances
that the Securities can be sold pursuant to 144, Rule 144A, Regulation S, or other applicable exemption, the Company shall permit the
transfer, and, in the case of the 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 Buyer. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly,
the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 may be inadequate and agrees, in
the event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition
to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing
economic loss and without any bond or other security being required.

 

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6. Conditions to the Company’s Obligation
to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions thereto, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion:

 

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

 

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

 

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

 

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 Buyer’s Obligation
to Purchase. The obligation of the Buyer 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 Buyer’s sole benefit and
may be waived by the Buyer at any time in its sole discretion:

 

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

 

b. The Company shall have delivered to the Buyer
the duly executed Note in such denominations as the Buyer shall request and in accordance with Section 1(b) above.

 

c. The Company shall have delivered to the Buyer
the Warrant and Commitment Shares.

 

d. The Irrevocable Transfer Agent Instructions,
in form and substance satisfactory to the Buyer, shall have been delivered to and acknowledged in writing by the Company’s Transfer
Agent.

 

e. The representations and warranties of the Company
shall be true and correct in all material respects as of the date when made and as of 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.

 

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

 

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

 

h. Trading in the Common Stock on the Principal
Market shall not have been suspended by the SEC, FINRA or the Principal Market.

 

i. The Company shall have delivered to the Buyer
(i) a certificate evidencing the formation and good standing of the 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.

 

8. Governing Law; Miscellaneous.

 

a. Governing Law; Venue. This Agreement
shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws.
Any action brought by either party against the other concerning the transactions contemplated by this Agreement, the Note, or any other
agreement, certificate, instrument or document contemplated hereby shall be brought only in the state courts located in the Commonwealth
of Massachusetts or in the federal courts located in the Commonwealth of Massachusetts. The parties to this Agreement hereby irrevocably
waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction
or venue or based upon forum non conveniens. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS
CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
costs. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement, the Note, or any other agreement, certificate, instrument or document contemplated hereby or thereby
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law.

 

b. Counterparts. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. A facsimile or .pdf signature
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were
an original, not a facsimile or .pdf signature. Delivery of a counterpart signature hereto by facsimile or email/.pdf transmission shall
be deemed validly delivery thereof.

 

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

 

d. Severability. In the event that any provision
of this Agreement, the Note, or any other agreement or instrument delivered in connection herewith is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any
law shall not affect the validity or enforceability of any other provision of this Agreement, the Note, or any other agreement, certificate,
instrument or document contemplated hereby or thereby.

 

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

 

    15

     

    

 

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

 

If to the Company, to:

 

SMARTMETRIC, INC.

3960 Howard Hughes Parkway, Suite 500

Las Vegas, NV 89169

Attention: Chaya Hendrick

e-mail: ceo@smartmetric.com

 

If to the Buyer:

 

Mast Hill Fund, L.P.

48 Parker Road

Wellesley, MA 02482

e-mail: admin@masthillfund.com

 

g. Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the parties and their successors and assigns. The Company shall not assign this Agreement
or any rights or obligations hereunder without the prior written consent of the Buyer. The Buyer may assign its rights hereunder to any
“accredited investor” (as defined in Rule 501(a) of the 1933 Act) in a private transaction from the Buyer or to any of its
“affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

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

 

i. Survival. The representations and warranties
of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due
diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their
officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the
Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under
this Agreement, including advancement of expenses as they are incurred.

 

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

 

    16

     

    

 

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

 

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

 

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

 

n. Remedies. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction
contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement,
the Note, the Warrant, or any other agreement, certificate, instrument or document contemplated hereby or thereby will be inadequate and
agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, the Note, the Warrant, or any
other agreement, certificate, instrument or document contemplated hereby or thereby, that the Buyer shall be entitled, in addition to
all other available remedies at law or in equity.

 

o. Payment Set Aside. To the extent that
the (i) Company makes a payment or payments to the Buyer hereunder, pursuant to the Note, pursuant to the Warrant, or pursuant to any
other agreement, certificate, instrument or document contemplated hereby or thereby, or (ii) the Buyer enforces or exercises its rights
hereunder, pursuant to the Note, pursuant to the Warrant, or pursuant to any other agreement, certificate, instrument or document contemplated
hereby or thereby, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof (including but not
limited to the sale of the Securities) are for any reason (i) subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, or disgorged by the Buyer, or (ii) are required to be refunded, repaid or otherwise restored to the Company, a
trustee, receiver or any other person or entity under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then (i) to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred and (ii) the Company shall immediately pay to the Buyer a dollar amount equal to the amount that was for any
reason (i) subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, or disgorged by the Buyer,
or (ii) required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person or entity under
any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action).

 

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

 

[Signature Page Follows]

 

    17

     

    

 

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

 

SMARTMETRIC, INC.

 

	By:	 	 
	Name: 	CHAYA HENDRICK	 
	Title: 	CHIEF EXECUTIVE OFFICER	 

 

Mast Hill Fund, L.P.

 

	By:	 	 
	Name: 	PATRICK HASSANI	 
	Title: 	CHIEF INVESTMENT OFFICER	 

 

SUBSCRIPTION AMOUNT:

 

Principal
Amount of Note: $250,000.00

Actual Amount of Purchase Price of Note: $225,000.00

 

    18

     

    

 

EXHIBIT A

 

FORM OF NOTE

 

[attached hereto]

 

    19

     

    

 

EXHIBIT B REGISTRATION
RIGHTS

 

All of the Conversion Shares,
Exercise Shares, and Commitment Shares shall be deemed “Registrable Securities” subject to the provisions of this Exhibit
B. All capitalized terms used but not defined in this Exhibit B shall have the meanings ascribed to such terms in the Securities Purchase
Agreement to which this Exhibit is attached.

 

1. Piggy-Back Registration.

 

1.1 Piggy-Back Rights. If at any time on or
after the date of the Closing the Company proposes to file any Registration Statement under the 1933 Act (a “Registration Statement”)
with respect to any offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible
into, equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company and
by shareholders of the Company), other than a Registration Statement (i) filed in connection with any employee stock option or other benefit
plan on Form S-8, (ii) for a dividend reinvestment plan or (iii) in connection with a merger or acquisition, then the Company shall (x)
give written notice of such proposed filing to the holders of Registrable Securities appearing on the books and records of the Company
as such a holder as soon as practicable but in no event less than ten (10) days before the anticipated filing date of the Registration
Statement, which notice shall describe the amount and type of securities to be included in such Registration Statement, the intended method(s)
of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y) offer to the holders
of Registrable Securities in such notice the opportunity to register the sale of such number of Registrable Securities as such holders
may request in writing within three (3) days following receipt of such notice (a “Piggy-Back Registration”). The Company shall
cause such Registrable Securities to be included in such registration and shall cause the managing underwriter or underwriters of a proposed
underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back Registration on the same terms and
conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable Securities in accordance
with the intended method(s) of distribution thereof (with the understanding that the Company shall file the initial prospectus covering
the Buyer’s sale of the Registrable Securities at prevailing market prices on the same date that the Registration Statement is declared
effective by the SEC).

 

1.2 Withdrawal. Any holder of Registrable
Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities in any Piggy-Back Registration by
giving written notice to the Company of such request to withdraw prior to the effectiveness of the Registration Statement. The Company
(whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual obligations)
may withdraw a Registration Statement at any time prior to the effectiveness of such Registration Statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of Registrable Securities in connection with such Piggy-Back Registration
as provided in Section 1.5 below.

 

1.3 The Company shall notify the holders of Registrable
Securities at any time when a prospectus relating to such holder’s Registrable Securities is required to be delivered under the
1933 Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then existing. At the request of such holder, the
Company shall also prepare, file and furnish to such holder a reasonable 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 the Registrable 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 light of the circumstances then existing. The holders of Registrable Securities shall not to offer or sell any
Registrable Securities covered by the Registration Statement after receipt of such notification until the receipt of such supplement or
amendment.

 

1.4 The Company
may request a holder of Registrable Securities to furnish the Company such information with respect to such holder and such
holder’s proposed distribution of the Registrable Securities pursuant to the Registration Statement as the Company may from
time to time reasonably request in writing or as shall be required by law or by the SEC in connection therewith, and such holders
shall furnish the Company with such information.

 

    20

     

    

 

1.5 All fees and
expenses incident to the performance of or compliance with this Exhibit B by the Company shall be borne by the Company whether or
not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses
of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with the SEC, (B)
with respect to filings required to be made with any trading market on which the Common Stock is then listed for trading, (C) in
compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the
Registrable Securities) and (D) with respect to any filing that may be required to be made by any broker through which a holder of
Registrable Securities intends to make sales of Registrable Securities with the FINRA, (ii) printing expenses, (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) 1933 Act liability insurance, if the
Company so desires such insurance, (vi) fees and expenses of all other persons or entities retained by the Company in connection
with the consummation of the transactions contemplated by this Exhibit B and (vii) reasonable fees and disbursements of a single
special counsel for the holders of Registrable Securities (selected by holders of the majority of the Registrable Securities
requesting such registration). In addition, the Company shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event
shall the Company be responsible for any broker or similar commissions of any holder of Registrable Securities.

 

1.6 The Company and its successors and assigns shall
indemnify and hold harmless the Buyer, each holder of Registrable Securities, the officers, directors, members, partners, agents and employees
(and any other individuals or entities with a functionally equivalent role of a person holding such titles, notwithstanding a lack of
such title or any other title) of each of them, each individual or entity who controls the Buyer or any such holder of Registrable Securities
(within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act) and the officers, directors, members, stockholders, partners,
agents and employees (and any other individuals or entities with a functionally equivalent role of a person holding such titles, notwithstanding
a lack of such title or any other title) of each such controlling individual or entity (each, an “Indemnified Party”), to
the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without
limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or
relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any related prospectus
or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to
any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the
case of any such prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act or any state securities law, or any rule or regulation thereunder,
in connection with the performance of its obligations under this Exhibit B, except to the extent, but only to the extent, that (i) such
untrue statements or omissions are based upon information regarding the Buyer or such holder of Registrable Securities furnished to the
Company by such party for use therein. The Company shall notify the Buyer and each holder of Registrable Securities promptly of the institution,
threat or assertion of any proceeding arising from or in connection with the transactions contemplated by this Exhibit B of which the
Company is aware.

 

1.7 If the
indemnification under Section 1.6 is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for
any Losses, then the Company shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is
appropriate to reflect the relative fault of the Company and Indemnified Party in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of the Company and
Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or
relates to information supplied by, the Company or the Indemnified Party, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a
result of any Losses shall be deemed to include any reasonable attorneys’ or other fees or expenses incurred by such party in
connection with any proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification
provided for in Section 1.6 was available to such party in accordance with its terms. It is agreed that it would not be just and
equitable if contribution pursuant to this Section 1.7 were determined by pro rata allocation or by any other method of allocation
that does not take into account the equitable considerations referred to in the immediately preceding sentence. Notwithstanding the
provisions of this Section 1.7, neither the Buyer nor any holder of Registrable Securities shall be required to contribute, in the
aggregate, any amount in excess of the amount by which the net proceeds actually received by such party from the sale of all of
their Registrable Securities pursuant to such Registration Statement or related prospectus exceeds the amount of any damages that
such party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

 

[End of Exhibit B]

 

    21Document

EXHIBIT 10.23

						
		
	
	NON-NEO EXECUTIVE INCENTIVE COMPENSATION PLAN

	
		

November 29, 2018
(Effective upon FHFA non-objection of EICP)

Policy Information

						
	Document Title:	Non-NEO Executive Incentive Compensation Plan
	Content Owner:	President and Chief Executive Officer (CEO)
	Certification of Compliance Contact:	N/A
	Policy Category:	Management Policy

	FHLBank-Level Approver:	President and CEO
	Board-Level Approver:	N/A
	Review Frequency:	Annually
	Initial Effective Date:	1/1/2012
	Last CEO Approval Date:	11/19/2020
	Next Review Date:	12/2021

NON-NEO EXECUTIVE INCENTIVE COMPENSATION PLAN | November 29, 2018    Page 2 of 16

Table of Contents
															
					
		1.0	Plan Objectives	2	
		2.0	Definitions	3	
		3.0	Eligibility	4	
		4.0	Total Base Opportunity	6	
		5.0	Performance Measures	6	
		6.0	Award Determination	7	
		7.0	Distribution of Awards	8	
		8.0	Plan Communication	8	
		9.0	Administrative Control	9	
		10.0	Miscellaneous Conditions	9	
			Appendices 	15	
					

1.0Plan Objectives
1.1The purpose of the Federal Home Loan Bank of Topeka Non-NEO Executive Incentive Compensation Plan is to:
1.1.1Promote consistently high value creation for FHLBank Topeka members by promoting the long-term growth and profitability of FHLBank Topeka in accordance with the achievement of its long-term strategic objectives and mission;
1.1.2Promote the mission and financial performance of FHLBank Topeka by providing incentives to key employees for accomplishing annual goals that are aligned with FHLBank Topeka’s mission and business objectives;
1.1.3Promote key employee loyalty and dedication to FHLBank Topeka and its strategic objectives by rewarding performance that facilitates the growth and financial stability and success of FHLBank Topeka; and
1.1.4Enhance FHLBank Topeka’s capacity to attract, retain, and motivate key employees by offering competitive short-term and long-term total incentive compensation opportunities, including those Deferred Incentive opportunities provided in Plan Section 2.1.5, to key employees who are also vital to FHLBank Topeka’s future success.
1.2Payments awarded under this Plan, when combined with base salary and other benefits, are designed to provide competitive total compensation to key employees for achieving FHLBank Topeka’s desired strategic objectives. 
1.3The Plan is a cash-based annual incentive plan with a long-term deferral component that establishes individual incentive compensation award opportunities related to achievement of performance objectives by FHLBank Topeka and by Participants during Base or Deferral Performance Periods.
2.0Definitions
2.1When used in this Plan, the following words and phrases shall have the following meaning:

NON-NEO EXECUTIVE INCENTIVE COMPENSATION PLAN | November 29, 2018    Page 3 of 16

2.1.1Base Performance Period means the period over which FHLBank Topeka’s performance is measured based on parameters set forth in the Target Document, and over which a Cash Incentive can be earned and vested;
2.1.2Cash Incentive means the portion of the Total Base Opportunity that is not the Deferred Incentive, and becomes payable to the Participant no later than 2 1⁄2   months following the later of the end of the Base Performance Period upon achievement of the Performance Measures.
2.1.3 Cause has the meaning given to it in Plan Section 10.4.b;
2.1.4CEO means the President and Chief Executive Officer of FHLBank Topeka;
2.1.5Deferred Incentive means 50% of the Total Base Opportunity, which shall be deferred for the Deferral Performance Period and is subject to adjustment as stated in the Target Document;
2.1.6Deferral Performance Period is the three-year period directly following each Base Performance Period;
2.1.7Disability has the meaning given to it in Plan Section 10.4.a;
2.1.8Extraordinary Occurrences means those events that, in the opinion and discretion of the CEO, are outside the significant influence of the Participant or FHLBank Topeka and are likely to have a significant unanticipated effect, whether positive or negative, on FHLBank Topeka’s operating and/or financial results;
2.1.9FHLBank Topeka means the Federal Home Loan Bank of Topeka;
2.1.10Final Deferred Incentive Award means the Deferred Incentive ultimately paid to a Participant under the Plan for a Deferral Performance Period, as otherwise applicable herein;
2.1.11Interest Rate Credit means the interest rate credit applied to a Deferred Incentive before payout, determined by the CEO and as stated in the Target Document, to calculate the Final Deferred Incentive Award.

2.1.12Participant means a person who is eligible to take part in the Plan for the designated Base or Deferral Performance Period as determined by the CEO;
2.1.13Participation Agreement means the agreement between FHLBank Topeka and a Participant, the terms of which govern a Participant’s participation in this Plan, an example of which is set forth in Appendix A;
2.1.14Performance Measure means each performance factor that is taken into consideration under the Plan in determining the value of a Cash Incentive or Final Deferred Incentive Award;

NON-NEO EXECUTIVE INCENTIVE COMPENSATION PLAN | November 29, 2018    Page 4 of 16

2.1.15Plan means the Federal Home Loan Bank of Topeka Non-NEO Executive Incentive Compensation Plan;
2.1.16Retirement means a Participant meeting one of the following criteria: (1) 55 years of age or older with at least 10 years of service; (2) 60 years of age or older with at least 5 years of service; (3) 65 years of age or older regardless of service; or (4) the combination of the Participant’s age and years of service equals or exceeds 80; provided that, in each case, the Participant enters into a non-solicitation agreement in the form required by the FHLBank;
2.1.17Target Document means the document in effect for a Base Performance Period and Deferral Performance Period, as approved by the CEO, that sets forth the Total Base Opportunity, Performance Measures, Interest Rate Credit and other applicable terms and conditions relevant to the operation of this Plan;
2.1.18Termination of Service means the occurrence of any act or failure to act that actually or effectively causes or results in a Participant ceasing, for whatever reason, to be an employee of FHLBank Topeka; and
2.1.19Total Base Opportunity means the percentage of a Participant’s base salary earned during the Base Performance Period that will be provisionally awarded to a Participant as incentive compensation for achieving performance levels under each Performance Measure during the Base Performance Period, 50% of which shall be the Cash Incentive, and 50% of which shall be the Deferred Incentive which is subject to adjustment, and both of which are subject to the other provisions of this Plan.

3.0Eligibility
3.1Individual employees eligible for participation in the Plan for each Base Performance Period and corresponding Deferral Performance Period will be approved by the CEO.
3.2Eligibility shall be limited to a select group of key management or other highly-compensated employees (i.e., key employees), but normally will be further limited to senior officers who are approved as a Participant by the CEO. 
3.3The CEO shall determine each Participant’s level of participation.  
3.4The list of Participants and the level of each Participant for each Base Performance Period and Deferral Performance Period shall be established by the CEO.  
3.5An eligible employee shall become a Participant in the Plan through the signing of a Participation Agreement, and shall cease to be a Participant in the Plan upon Termination of Service, or through a violation of either of the following obligations:
a)Non-disclosure. During and as a result of the Participant’s employment with FHLBank Topeka, Participant is or will be making use of, acquiring knowledge of and/or adding to confidential or proprietary information relating to FHLBank Topeka and its affiliates, including, without limitation, FHLBank Topeka’s systems, procedures, policies, manuals, trade secrets, business plans, financial data, 

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strategies, methods of conducting business, processes, procedures, standards, know-how, manuals, techniques, technology, confidential reports and all other information, knowledge, or data of any kind or nature relating to the products, services, or business of FHLBank Topeka (collectively, “Confidential Information”). As a material inducement to FHLBank Topeka to allow Participant to be eligible under the Plan, Participant shall not, at any time during or following the term of his or her employment with FHLBank Topeka, directly or indirectly, except in accordance with FHLBank Topeka policies, use, disseminate, divulge or disclose, for any purpose whatsoever, any Confidential Information.
b)Non-solicitation. In acknowledgement and recognition of the highly competitive and unique nature of FHLBank Topeka’s business, Participant shall not, during his or her continued employment and for the one-year period following Termination of Service, directly or indirectly, either by himself or herself or through others, as an individual, partner, employee, agent, officer, stockholder, or otherwise:
a)Solicit, divert, take away, or attempt to take away the business of FHLBank Topeka’s present or past customers that otherwise exist at the time of termination, or such customers of any affiliated or related companies; and/or
b)Solicit, hire, employ, or endeavor to employ any of FHLBank Topeka’s employees or independent contractors.
3.6Remedies. By virtue of signing the Participation Agreement, Participant acknowledges and agrees to the terms and conditions of that Participation Agreement and the Plan and further acknowledges that FHLBank Topeka will suffer irreparable damage and injury and will not have an adequate remedy at law in the event of any actual, threatened, or attempted breach by the Participant of any provision of the Plan or the specific provisions of Section 3.5 above. Accordingly, in the event of a threatened, attempted or actual breach by Participant of any provision of the Plan, including but not limited to Section 3.5, in addition to all other remedies to which FHLBank Topeka is entitled at law, in equity or otherwise, Participant shall forfeit any and all further and unpaid Cash Incentive or Deferred Incentive that he or she would otherwise have been entitled to under the Plan, and/or FHLBank Topeka may be entitled to a temporary restraining order and a permanent injunction or a decree of specific performance of any provision of Section 3.5. The foregoing remedies will not be deemed to be the exclusive rights or remedies of FHLBank Topeka for any breach of or noncompliance with the terms of this Plan, or the Participation Agreement signed by the Participant, but will be in addition to all other rights and remedies available to FHLBank Topeka at law, in equity, or otherwise.

4.0Total Base Opportunity
4.1For each Base Performance Period, the CEO or his or her designee will present a Total Base Opportunity to Participants. 
4.2Awards are payable in accordance with Section 6.0.  The Deferred Incentive amount may increase or decrease in accordance with the achievement of Performance Measures as set forth in the Target Document in effect for the Deferral Performance Period. 
5.0Performance Measures
5.1Three achievement levels will be defined for each Performance Measure:
Threshold     The minimum achievement level acceptable for the Performance Measure.

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Target     The expected achievement level for the Performance Measure.
Optimum     The achievement level for the Performance Measure that substantially exceeds the Target level of achievement.
5.2Performance between Threshold - Target, and Target - Optimum shall be calculated by linear interpolation of the achievement point in the applicable performance range, as determined by the CEO.
5.3Performance Measures shall be established by the CEO.
5.4Performance Measures for the Deferred Incentive and for the Cash Incentive shall be set forth in the Target Document then in effect.
6.0 Award Determination
6.1Awards of Cash Incentive and the Deferred Incentive are as set forth in the Target Document and achievement of satisfactory levels of individual performance; provided, however, if FHLBank Topeka fails to achieve performance at or above threshold Performance Measures, the CEO has discretion to reduce or eliminate an award for the Base Performance Period and for any Deferral Performance Period, if otherwise applicable under the circumstances.
6.2 Awards for a Base Performance Period or Deferral Performance Period are determined by the CEO promptly after the Base Performance Period or Deferral Performance Period based upon the CEO’s analysis of all applicable standards set forth herein and consideration of performance that is not captured in the Performance Measures. The CEO may also consider Extraordinary Occurrences when assessing performance results and determining Cash Incentive or Final Deferred Incentive Award and may adjust the Performance Measures and/or amounts to ensure that the purpose of the Plan is served.
6.3The above notwithstanding, the CEO may, in his or her discretion, reduce or eliminate an award for any Base Performance Period or Deferral Performance Period under any of the following circumstances:
a)FHLBank Topeka receives a composite “4” or “5” rating in its FHFA examination in any single year in any single Base Performance Period or Deferral Performance Period;
b)The CEO finds a serious, material safety or soundness problem, or a serious, material risk-management deficiency exists at FHLBank Topeka, or if: (i) operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or to data used to determine incentive payouts; (ii) submission of material information to the SEC, Office of Finance, and/or FHFA is significantly past due, or (iii) FHLBank Topeka fails to make sufficient progress, as determined by the CEO, in the timely remediation of significant examination, monitoring or other supervisory findings;
c)During the most recent examination of FHLBank Topeka by the FHFA, the FHFA identified an unsafe or unsound practice or condition that is material to the financial operation of FHLBank Topeka within the Participant’s area(s) of responsibility and such unsafe or unsound practice or condition is not subsequently 

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resolved in favor of FHLBank Topeka by the last day of the Base Performance Period or Deferral Performance Period; 
d)Specific to each Participant only, such Participant does not achieve satisfactory individual achievement levels during the Deferral Performance Period. For purposes of the Plan, the determination of whether performance is deemed “satisfactory” is in the sole discretion of the CEO.
6.4The Deferred Incentive shall be reduced by one-third for each year during the Deferral Performance Period in which FHLBank Topeka has negative net income, as defined and in accordance with Generally Accepted Accounting Principles.
7.0Distribution of Cash Incentives or Final Deferred Incentive Award
7.1All awards will be paid out in cash and will be subject to appropriate payroll tax withholdings.
7.2No Final Deferred Incentive Award received by a Participant shall be considered as compensation for purposes of determining benefits under any employee benefit plan of FHLBank Topeka, except as otherwise determined by FHLBank Topeka. Cash Incentive awards shall be considered as compensation for purposes of determining benefits under the employee benefit plans of FHLBank Topeka if the plan so provides.
7.3Awards will be made as soon as practical following the end of the Base Performance Period or Deferral Performance Period, but no later than 2 1⁄2 months following the later of the end of the applicable Base Performance Period or Deferral Performance Period, as applicable.
8.0Plan Communication
8.1The CEO or his or her designee shall communicate with Participant(s) regarding the Plan in accordance with the following schedule:
First quarter of the Base Performance Period:    Communicate the Performance Measures and identify the Plan Participants for the Base and Deferral Performance Periods.
First quarter of the Base Performance Period:     Communicate the Performance Measures and the specific hurdles for the Base and Deferral Performance Periods.
Annually:     Interim assessments of the progress towards achieving Performance Measures as set forth in the Target Document.
End of Performance Period:    Final assessment of FHLBank Topeka and individual performance during Base and Deferral Performance Periods.

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9.0Administrative Control
9.1Administration of the Plan shall be provided by the FHLBank Topeka’s CEO, Human Resources and Inclusion (HRI) department, or other employees as applicable.
9.2The CEO has full discretion and authority and is otherwise responsible for interpreting and applying the terms of the Plan. These interpretations and applications shall be final and binding.
10.0Miscellaneous Conditions
10.1Except as provided in Section 10.3, Participants must be employed by FHLBank Topeka on the final day of the Base Performance Period and/or the Deferral Performance Period, and otherwise not in violation of Section 3.5, to receive an award, as applicable.
10.2Employees of FHLBank Topeka who are hired, transferred, or promoted during the first six months of the Base Performance Period may be recommended for: (i) participation in the Plan or (ii) participation in the Plan at a level other than the one originally designated, in accordance with the Target Document then in effect, and receive a prorated Total Base Opportunity calculated as a percentage of the employee’s new base salary and/or level of participation at the time of the promotion.
10.3Notwithstanding the provisions of Section 10.1, the following vesting provisions shall apply if a Participant incurs a Termination of Service (i) due to death, (ii) due to Disability, (iii) due to Retirement, or (iv) due to Termination of Service by FHLBank Topeka without Cause, as defined in Plan Section 10.4 below, during the Base Performance Period or Deferral Performance Period:
a)Pro-Rata Vesting of Total Base Opportunity during Base Performance Period
If a Participant terminates due to death, Disability, Retirement, or termination without Cause, any portion of his or her Total Base Opportunity eligible to be awarded to a Participant during the Base Performance Period in which the termination occurs will, to the extent the Performance Measures for such Base Performance Period are satisfied, be treated as any other payment awarded under this plan made to the Participant or his or her beneficiary (as designated under a completed beneficiary designation, a sample of which is attached in Appendix B), except that the Total Base Opportunity of the Participant shall be prorated equivalent to the period of time during the Base Performance Period that the Participant participated in the Plan. The Cash Incentive for such Base Performance Period shall be paid following the end of the Base Performance Period pursuant to Section 7 of this Plan. The Deferred Incentive shall be paid in accordance with Section 10.3.b.
b)Vesting of Deferred Incentive during Deferral Performance Period
(i)Death or Disability.  If a Participant terminates employment before the end of the Deferral Performance Period on account of death or Disability as defined in Plan Section 10.4.a, the Participant’s Deferred Incentive shall be immediately 100% vested at the Target Performance Measure and shall be paid to the Participant or his or 

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her beneficiary (as designated under a completed beneficiary designation form) no later than 2 1⁄2 months following the end of the year in which death or Disability occurred.
(ii)Retirement or Termination without Cause. If a Participant terminates employment due to Retirement or Termination of Employment by FHLBank Topeka without Cause, the Participant’s Deferred Incentive shall be  paid to the Participant or his or her beneficiary (as designated under a completed beneficiary designation form) based on the Performance Measure achieved at the end of each Deferral Performance Period or the applicable Interest Rate Credit, no later than 2 1⁄2 months following the end of the Deferral Performance Period.
Example 1:
Participant becomes Disabled on September 30 and (a) Participant’s Total Base Opportunity for the Base Performance Period would have been 100% of Participant’s base salary, and (b) Participant has $50,000 in Deferred Incentive opportunities from prior year(s). 
(a) The Total Base Opportunity of 100% of Participant’s base salary is reduced pro rata, to account for nine months of the Base Performance Period: 100% × 75% = 75% of Participant’s base salary paid to Participant on or before March 15 following the Base Performance Period (to include 37.5% of Participant’s base salary in Cash Incentive and 37.5% of Participant’s base salary from accelerated Deferred Incentive).  
(b) The $50,000 Deferred Incentive from the previous Deferral Performance Period is paid to the Participant (reflecting an assumed achievement of the Target Performance Measure) by March 15.
Example 2:
Participant Retires on September 30 and (a) the Participant’s Total Base Opportunity for the full year would have been 100% of Participant’s base salary, and (b) Participant has $100,000 in Deferred Incentive opportunities from prior year(s).
(a) The Total Base Opportunity of 100% of Participant’s base salary is reduced pro rata, to account for nine months of the Base Performance Period: 100% × 75% = 75% of Participant’s Total Base Opportunity, 37.5% of which is the Cash Incentive and 37.5% of which is the Deferred Incentive. The Cash Incentive will be paid to Participant on or before March 15 following the Base Performance Period. The Deferred Incentive will be deferred for the Deferral Performance Period and will be paid as set forth in Section (b) below.   
(b)  The $100,000 Deferred Incentive from the previous Deferral Performance Period(s) is determined based on the actual Performance Measure achieved for each relevant Deferral Performance Period or subject to the Interest Rate Credit, with the payment of the Final Deferred Incentive 

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Award amount being paid on or before March 15 of the following year after the end of each relevant Deferral Performance Period.
c)Forfeiture upon voluntary termination or termination for Cause
In the case of the Participant’s voluntary termination or involuntary termination for Cause prior to the end of the Base Performance Period, 100% of the Total Base Opportunity shall be forfeited.  In the case of the Participant’s involuntary termination for cause prior to the end of the Deferral Performance Period, 100% of the Deferred Incentive shall be forfeited.
10.4For purposes of the Plan and this section the following definitions shall apply:
a)Disability means, as a result of the Participant’s incapacity due to physical or mental illness, the Participant has been absent from his or her duties with FHLBank Topeka for an aggregate of twelve out of fifteen consecutive months and, within thirty calendar days after a written notice of termination is thereafter given by FHLBank Topeka to the Participant, the Participant does not return to the full-time performance of the Participant’s duties.
b)Cause means (1) continued failure of the Participant to perform his or her duties with FHLBank Topeka (other than any such failure resulting from Disability), after a written demand for performance is delivered to the Participant; (2) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses); (3) willful engagement in any misconduct in the performance of his or her duty that materially injures FHLBank Topeka; or (4) removal of the Participant for cause by the FHFA pursuant to 12 U.S.C. 4636a, or by any successor agency to the FHFA pursuant to a similar statute. 
10.5The designation of an employee as a Participant in the Plan does not guarantee employment. Nothing in this Plan will confer on any employee the right to be retained in the service of FHLBank Topeka nor limit the right of FHLBank Topeka to terminate or otherwise deal with any employeer.
10.6The CEO has the right to revise, modify, or terminate the Plan in whole or in part at any time or for any reason without the consent of any Participant.
10.7No benefit or interest available under the Plan will be subject in any manner to anticipation or alienation and no Participant has any direct or indirect right to sell, transfer, assign, pledge, attach, garnish or otherwise encumber any anticipated Cash Incentive or Final Deferred Incentive  Award and any effort(s) to do so shall be void and unenforceable, and FHLBank Topeka shall not be liable in any manner for or subject to the debts, contracts, liabilities, engagements or torts of any person who might anticipate a Cash Incentive or Final Deferred Incentive Award under the Plan.
10.8The Plan shall at all times be entirely unfunded and no provision shall be made at any time with respect to segregating assets of FHLBank Topeka for payment of any Cash Incentive or Final Deferred Incentive Award under this program.

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10.9Except to the extent superseded by laws of the United States, the laws of the State of Kansas will be controlling in all matters relating to the Plan without regard to the choice of law principles therein. The Plan and all Participant Agreements are intended to comply, and will be construed by FHLBank Topeka in a manner which they are exempt from or comply with the applicable provisions of Section 409A of the Internal Revenue Code of 1986, as amended. To the extent there is any conflict between a provision of the Plan and a provision of Code Section 409A, the applicable provision of Code Section 409A will control. The Plan and all Participation Agreements are intended to comply, and will be construed by FHLBank Topeka in a manner such that they comply with applicable provisions of Section 956 the Dodd-Frank Act, including the proposed rules at 12 CFR §1232, or any successor rules or applicable guidance issued by the FHFA.
10.10The headings and subheadings in the Plan have been inserted for convenience of reference only and will not affect the construction of the Plan provisions. In any necessary construction, the masculine will include the feminine and the singular the plural, and vice versa.
10.11This Plan may be executed in any number of counterparts, each one constituting but one and the same instrument, and may be sufficiently evidenced by any one counterpart.
10.12Notwithstanding any other provision of the Plan, neither FHLBank Topeka nor any individual acting as an employee or agent of FHLBank Topeka will be liable to a Participant for any claim, loss, liability or expense incurred in connection with the Plan, except when the same has been affirmatively determined by a court order or by the affirmative and binding determination of an arbitrator, to be due to the gross negligence or willful misconduct of that person.
10.13If any person entitled to receive a distribution under the Plan is physically or mentally incapable of personally receiving and giving a valid receipt for any payment due (unless a prior claim for the distribution has been made by a duly qualified guardian or other legal representative), then, unless and until a claim for the distribution has been made by a duly appointed guardian or other legal representative of the person, the CEO may provide for the distribution to be made to any other individual or institution then contributing toward or providing for the care and maintenance of the person. Any payment made for the benefit of the person under this section will be a payment for the account of such person and a complete discharge of any liability of FHLBank Topeka and the Plan.
10.14Evidence required of anyone under the Plan may be by certificate, affidavit, document, or other information which the person relying on the evidence considers pertinent and reliable, and which is signed, made, or presented by the proper party or parties.
10.15Any action required of or permitted by FHLBank Topeka under the Plan will be made by the CEO, or his or her designees, as authorized pursuant to this Plan.
10.16In the event any provisions of the Plan are held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and endorsed as if the illegal or invalid provisions had never been contained in the Plan.
10.17A Participant, or any other person entitled to benefits under the Plan, must furnish the  CEO or his or her designee with any and all documents, evidence, data, or other 

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information the CEO or his or her designee considers necessary or desirable for the purpose of administering the Plan. Benefit payments under the Plan are conditioned on a Participant (or other person who is entitled to benefits) furnishing full, true, and complete data, evidence or other information to the CEO or his or her designee, and on the prompt execution of any document reasonably related to the administration of the Plan requested by the CEO or his or her designee.
10.18The Plan will be binding upon and inure to the benefit of FHLBank Topeka and its successors and assigns, and the successors, assigns, designees, and estates of a Participant. The Plan will also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of FHLBank Topeka, but nothing in the Plan will preclude FHLBank Topeka from merging or consolidating into or with or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of FHLBank Topeka hereunder. FHLBank Topeka agrees that it will make appropriate provision for the preservation of a Participant’s rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets. Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of FHLBank Topeka, the term “FHLBank Topeka” will refer to such other organization and the Plan will continue in full force and effect.
10.19From the effective date of this Plan, this Plan shall control and apply to all outstanding Deferred Incentives under this Plan or any prior version of FHLBank Topeka’s Executive Incentive Compensation Plan.

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 Appendix A
Non-NEO Executive Incentive Compensation Plan Participation Agreement
																					
	Participant:			Social Security No.:	
	Address:				Date of Birth:		
							
							

1.    Agreement to Participate. The Participant (identified above and sometimes hereinafter referred to as “I”) hereby agrees to become a Participant in the Federal Home Loan Bank of Topeka Non-NEO Executive Incentive Compensation Plan (the “Plan”).
2.    Acknowledgements: I hereby acknowledge the following: (1) I have received and reviewed a copy of the Plan; (2) all benefits under the Plan remain subject to the claims of the general creditors of Federal Home Loan Bank of Topeka (“FHLBank Topeka”), and in the event of the bankruptcy, insolvency, or any similar situation involving FHLBank Topeka, I acknowledge that I would have the rights of a general unsecured creditor with respect to the benefits under the Plan; (3) that any right to benefits hereunder are subject to the specific terms and conditions of the Plan, including any specific Performance Measures set forth therein or in the Target Document; (4) no benefits will be paid under the Plan if I am terminated for “Cause” as set forth in the Plan Section 10.4.b; (5) no benefits will be paid under the Plan or other remedies may be available to FHLBank Topeka if I violate or fail to fulfill the non-disclosure or non-solicitation provisions set forth under Section 3.5, if applicable; (6) the benefits of the Plan may be subject to FICA taxes before such amounts are actually paid to me; and (7) all amounts received under the Plan shall be taxable to me as ordinary income.
IN WITNESS WHEREOF, I have executed this Participation Agreement as of the date set forth below.
Date:         , 20______        
            Signature of Participant

Received and acknowledged this      day of __________________, 20     .
            FEDERAL HOME LOAN BANK OF TOPEKA

            By:    
            Print Name:        
             Print Title:        

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Appendix B

BENEFICIARY DESIGNATION
CAREFULLY READ THE INSTRUCTIONS FOUND AT THE END
OF THIS FORM BEFORE PROCEEDING.
																					
	Participant:			Social Security No.:	
	Address:				Date of Birth:		
							

The Participant hereby designates the following individual(s) or entity(ies) as his or her beneficiary(ies) pursuant to the terms of the Non-NEO Executive Incentive Compensation Plan of Federal Home Loan Bank of Topeka (“FHLBank Topeka”) [Insert Name, Social Security Number, Relationship, Date of Birth and Address of Individuals and/or fully identify any trust beneficiary by the Name of the Trust, Date of Execution of the Trust, the Trustee’s Name, the address of the trust, and the employer identification number of the trust]:
Primary Beneficiary (ies)    SSN/Tax I.D.
                                                
                                                

Contingent Beneficiary (ies)
                                                
                                                

The Participant hereby reserves the right to change this Beneficiary Designation, and any such change shall be effective when the Participant has executed a new or amended Beneficiary Designation form, and the receipt of such form has been acknowledged by FHLBank Topeka, all in such manner as specified by FHLBank Topeka from time to time, or on a future date specified by any such new or amended Beneficiary Designation form.

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IN WITNESS WHEREAS, the Participant has executed this Beneficiary Designation on the date designated below.
Date: _____________     , ______        
        Signature of Participant

Received
        FEDERAL HOME LOAN BANK OF TOPEKA

Date: _____________     , ______    By:    
        Print Name:        
         Print Title:         

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INSTRUCTIONS FOR COMPLETION 
OF BENEFICIARY DESIGNATION FORM
As a participant in the Federal Home Loan Bank of Topeka Non-NEO Executive Incentive Compensation Plan (the “Plan”), you may be entitled to have certain benefits paid to a designated beneficiary under the Plan in the event of your death. We recommend that you consult your attorney concerning the completion of this form to assure that the desired federal tax consequences are achieved.
The originally-signed copy of this form must be mailed or delivered to FHLBank Topeka at the following address: Federal Home Loan Bank of Topeka, 500 SW Wanamaker,  P.O. Box 176, Topeka KS 66601-0176, and to the attention of the Director of HRI. You should also make and keep one copy of the form, and it should be kept with your other important documents.
If no Primary Beneficiary is alive when the payment becomes due, the benefits will be paid in equal shares to those of the Contingent Beneficiaries who are alive when the payment becomes due.
If you fail to designate a beneficiary, or if no designated beneficiaries are alive when the payment becomes due, or if insufficient information is available to reasonably determine your intent, the death benefits under the Plan will be paid to your estate.
THIS BENEFICIARY DESIGNATION DOES NOT ALTER OR MODIFY THE PROVISIONS OF THE PLAN. IN THE EVENT THAT THIS BENEFICIARY DESIGNATION FORM INADVERTENTLY CONFLICTS WITH THE PROVISIONS OF THE PLAN, THE PROVISIONS OF THE PLAN SHALL CONTROL.

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