Document:

EXHIBIT 10.1

 

Article
I. NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE CONVERTIBLE 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 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. 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.

 

	Principal Amount: $104,000.00	Issue Date: August 28, 2020
	Purchase Price: $104,000.00	 

 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, BANTEC, INC., a Delaware corporation (hereinafter called the “Borrower”), hereby promises
to pay to the order of GENEVA ROTH REMARK HOLDINGS, INC., a New York corporation, or registered assigns (the “Holder”)
the sum of $104,000.00 together with any interest as set forth herein, on August 28, 2021 (the “Maturity Date”), and
to pay interest on the unpaid principal balance hereof at the rate of ten percent (10%)(the “Interest Rate”) per annum
from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration
or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein.
Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent
(22%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing
on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed.
All payments due hereunder (to the extent not converted into common stock, $0.0001 par value per share (the “Common Stock”)
in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made
at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of
this Note. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain
Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

This
Note is 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 Borrower and will not impose personal liability upon the holder thereof.

 

The following terms
shall apply to this Note:

 

    

     

    

Article
II. ARTICLE I. CONVERSION RIGHTS

 

1.1              
Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the
date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date
and (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount
of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable
shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the
Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion
Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall
the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common
Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1)
of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived by the Holder.
The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion,
in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in
accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means
resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion
date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the
Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion
of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder’s
option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion
Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding
clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.2              
Conversion Price. The Conversion Price shall be equal to the Variable Conversion Price (as defined herein)(subject to equitable
adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities
or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions
and similar events). The "Variable Conversion Price" shall mean 58% multiplied by the Market Price (as defined herein)
(representing a discount rate of 42%). “Market Price” means the lowest Trading Price (as defined below) for the Common
Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading
Price” means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink Sheets electronic quotation
system or applicable trading market (the “OTC”) as reported by a reliable reporting service (“Reporting Service”)
designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security, the closing bid
price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no
closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any
market makers for such security that are listed in the “pink sheets”. If the Trading Price cannot be calculated for
such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined
by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading
Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which
the

Common Stock is tradable
for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then
being traded.

 

    

     

    

 

1.3              
Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all
times to have authorized and reserved six times the number of shares that would be issuable upon full conversion of the Note (assuming
that the 4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the Note (as
defined in Section 1.2) in effect from time to time, initially 584,707,646 shares)(the “Reserved Amount”). The Reserved
Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s
obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and
non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would
change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the
Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common
Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges
that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this
Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged
with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance
with the terms and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1.4                Method
of Conversion.

 

    (a)               
Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning
on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity
Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time
from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other
reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject
to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder).

 

The
Holder shall be entitled to deduct $500.00 from the conversion amount in each Notice of Conversion to cover Holder's deposit fees
associated with each Notice of Conversion. Any additional expenses incurred by Holder with respect to the Borrower's transfer
agent, for the issuance of the Common Stock into which this Note is convertible into, shall immediately and automatically be added
to the balance of the Note at such time as the expenses are incurred by Holder.

 

If
at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock,
then at the sole discretion of the Holder, the Conversion Price hereunder may equal such par value for such conversion and the
Conversion Amount for such conversion may be increased to include Additional Principal, where "Additional Principal"
means such additional amount to be added to the Conversion Amount to the extent necessary to cause the number of conversion shares

issuable
upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price not been
adjusted by the Holder to the par value price.

 

    

     

    

 

(b)               
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.

 

(c)                
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed
to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount
of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on
its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except
the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the
Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates
for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to
enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or
any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation
to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the
Holder in connection with such conversion.

 

(d)               
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth
herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable
upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system.

 

(e)               
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion of this Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay
to the Holder

$2,000
per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to
Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third
party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the
Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the
month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the
first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in
which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount
shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to
convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such
conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages
provision contained in this Section 1.4(e) are justified.

 

    

     

    

 

1.5              
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless: (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such
shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).

 

Any
restrictive legend on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed
and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer
agent shall have received an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions
of counsel in comparable transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without
registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in
the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an
effective registration statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In
the event that the Company does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer
of Securities pursuant to an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of
Default pursuant to Section 3.2 of the Note.

 

1.6
          Effect of Certain Events. 

 

(a)               
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of
the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed
to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon
the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III).
“Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other
entity or organization.

    

     

    

 

(b)                Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of
all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other
similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case
of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of
complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion
of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock
immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled
to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to
any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to
the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation,
provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall
thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon
the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written
notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the
consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or
sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or
acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall
similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c)                
Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any
dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion
of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such
assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had
such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to
such Distribution.

 

1.7            Prepayment. Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on
the table immediately following this paragraph (the “Prepayment Periods”) or as otherwise agreed to between the Borrower
and the Holder, the Borrower shall have the right, exercisable on not more than three (3) Trading Days prior written notice to
the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section
1.7. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the
Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the
date of prepayment which shall be not more than three

(3)
Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional
Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to Holder, or
upon the direction of the Holder as specified by the Holder in a writing to the Borrower (which shall direction to be sent to
Borrower by the Holder at least one (1) business day prior to the Optional Prepayment Date). If the Borrower exercises its
right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash equal to the percentage
(“Prepayment Percentage”) as set forth in the table immediately following this paragraph opposite the applicable
Prepayment Period, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x)
accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder
pursuant to Section 1.4 hereof (the “Optional Prepayment Amount”).

 

    

     

    

 

 

	Prepayment
    Period	Prepayment
    Percentage
	                  1.       The
                                                                                                            period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.
	112%
	                   2.       The
                                                                                                            period beginning on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty
                                                                                                            (60) days following the Issue Date.
	117%
	                  3.       The
                                                                                                            period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is
                                                                                                            ninety (90) days following the Issue Date.
	122%
	                 4.       The
                                                                                                            period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days
                                                                                                            following the Issue Date.
	127%
	                 5.       The
                                                                                                            period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty
                                                                                                            (150) days following the Issue Date.
	132%
	                  6.
          The period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty
    (180) days following the Issue Date.	137%

 

After
the expiration of the Prepayment Periods set forth above, the Holder may submit an Optional Prepayment Notice to the Holder. Upon
receipt by the Holder of the Optional Prepayment Notice post Prepayment Periods, the prepayment shall be subject to the Holder’s
and the Borrower’s agreement with respect to the applicable Prepayment Percentage.

 

Notwithstanding
anything contained herein to the contrary, the Holder’s conversion rights herein shall not be affected in any way until
the Note is fully paid (funds received by the Holder) pursuant to an Optional Prepayment Notice.

 

1.8              
ACH Option. Notwithstanding anything contained herein to the contrary, upon the occurrence of an Event of Default, at the
Investor’s option, in addition to the right to conversion as set forth above and any other rights and remedies as set forth
herein, the Investor, or its affiliate or assignee, may deduct daily ACH payments from the bank account of the Borrower (or any
of its subsidiaries) in the amount of $1,238.09 per day until such time as the Borrower has paid (or the Investor has converted)
an amount equal to the principal balance, interest, accrued interest, Default Amount and any other fees as set forth in the Note.

Article
III. ARTICLE II. CERTAIN COVENANTS 

2.1
              Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the
Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary
course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

    

     

    

Article
IV.  ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events
of default (each, an “Event of Default”) shall occur:

 

3.1              
Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this
Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from
the Holder.

 

3.2              
Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder
in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails 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 shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3              
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this
Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of
twenty (20) days after written notice thereof to the Borrower from the Holder.

 

3.4              
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5              
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6              
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

    

     

    

 

3.7              
Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC
(which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange,
the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8              
Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange
Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9              
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10          
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to
pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as
a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11          
Financial Statement Restatement.The restatement of any financial statements filed by the Borrower with the SEC at any
time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of
such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.12          
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form
as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.13          
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents,
a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after
the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under
this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the
Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this
Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future
debt of Borrower to the Holder.

 

    

     

    

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure
to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and
payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the
Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION
3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS
OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon
the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure
to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to
Section 1.7 or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery
of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of
Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon
at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times
the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the
unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder
pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the
amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) the
“parity value” of the Default Sum to be prepaid, where parity value means (a) the
highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance
with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion
Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result
of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied
by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the
Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other
amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which
hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection,
and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If
the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect.

Article
V. ARTICLE IV. MISCELLANEOUS

4.1              
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder 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 existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

    

     

    

 

4.2              
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery

by
facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below
(if delivered on a business day during normal business hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or
(b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If
to the Borrower, to:

 

BANTEC, INC.

195 Paterson Avenue

Little Falls, NJ 07424

Attn: Michael Bannon,
Chief Executive Officer Fax:

Email:
mike@bantecinc.com If

 

to the Holder:

 

GENEVA ROTH REMARK HOLDINGS,
INC.

111 Great Neck Road,
Suite 214 Great Neck, NY 11021

Attn:
Curt Kramer, Chief Executive Officer

e-mail: genevarothremark@gmail.com

 

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

 

Naidich Wurman LLP

111 Great Neck Road,
Suite 216 Great Neck, NY 11021

Attn: Allison Naidich
facsimile: 516-466-3555

e-mail: allison@nwlaw.com

 

4.3              
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

 

4.4              
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined
in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may
be pledged as collateral in connection with a bona fide margin account or other lending arrangement; and may be assigned
by the Holder without the consent of the Borrower.

 

4.5              
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

    

     

    

 

4.6              
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of
Nassau. The parties to this Note 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. The Borrower
and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's
fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law.

 

4.7              
Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase
Agreement.

 

4.8              
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

IN WITNESS
WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this on August 28, 2020

BANTEC,
INC.

 

		By:	/s/                                        
	 	 	Michael Bannon
	 	 	Chief Executive OfficeExhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made as of this 3rd day of September, 2020 (the “Effective Date”),
by Simulations Plus, Inc., a California corporation (the “Company”) and Shawn O’Connor, an individual
(the “Employee”) with reference to the following facts:

 

A.           
The Company desires to secure the services of the Employee as Chief Executive Officer (“CEO”).

 

B.             The
Employee agrees to perform such services for the Company under the terms and conditions set forth in this Agreement.

 

In consideration of the mutual promises,
covenants and conditions set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is hereby agreed by and between the Company and the Employee as follows:

 

1.            
Representations and Warranties. The Company represents and warrants that it is empowered under its Articles
of Incorporation and Bylaws to enter into this Agreement. The Employee represents and warrants that he is under no employment contract,
bond, confidentiality agreement, or any other obligation that would violate or be in conflict with the terms and conditions of
this Agreement or encumber his performance of duties assigned to him by the Company. The Employee further represents and warrants
that he has not signed or committed to any employment or consultant duties or other obligations that would divert his full attention
from the duties assigned to him by this Agreement; provided, that the foregoing limitations shall not be construed as prohibiting
Employee from making personal investments or participating in business activities or community affairs in such form or manner as
will not prevent Employee from performing his duties and responsibilities hereunder or cause Employee to violate the terms of Section
6 hereof. The parties agree that the Employment Agreement dated June 26, 2018 between the Company and the Employee is hereby terminated
as of the Effective Date.

 

2.            
Employment and Duties. The Company hereby employs the Employee as Chief Executive Officer and the Employee
hereby accepts such employment during the Term.

As CEO the Employee shall have such duties,
authority and responsibility as shall be consistent with the Employee’s position and such other duties as assigned by the
Board of Directors of the Company (the “Board of Directors”).

 

3.            
Term. Subject to the provisions of Section 5, the term of this Agreement shall commence on September 1,
2020 and end on August 31, 2023 (“Term”). The Employee Compensation will be reviewed subsequently on an annual
basis and may be revised based on recommendations from the Compensation Committee.

 

4.            
Compensation. In full and complete consideration for the employment of Employee hereunder, each and all
of the services to be rendered to the Company by the Employee, and each and all of the representations, warranties, covenants,
agreements and promises undertaken by the Employee pursuant to this Agreement, the Employee shall be entitled to receive compensation
as follows:

 

4.1           
One-time Sign-on Bonus. In recognizing the stellar Company financial performance for Fiscal Year 2020 under the
Employee’s leadership, and in appreciation of the commitment to continue his current leadership role for another 3 years,
the Employee shall receive a Sign-On cash bonus in the amount of $100,000 to be paid on the first available payroll cycle upon
the complete execution of this Agreement.

 

4.2           
Base Salary. The Employee shall receive from the Company a base salary of four hundred fifty thousand dollars ($450,000)
per year, payable in equal, bi-monthly installments. From each payment of Base Salary, the Company will withhold and pay to the
proper governmental authorities any and all amounts required by law to be withheld for federal income tax, state income tax, federal
Social Security tax, state disability insurance premiums, and any and all other amounts required by law to be withheld from the
Employee's salary.

 

 

 

    	 	1	 

     

    

 

4.3          
Performance Bonus. For each fiscal year during the term of this agreement, the Employee shall be eligible to receive
a performance bonus based upon actual performance in relation to specific corporate and individual performance metrics and paid
in the form of both cash and stock options as defined in sections 4.2(a) and 4.2(b). Such metrics and their corresponding targets
will be annually determined by the Employee and the Compensation Committee of the Board of Directors, who will annually approve
the final form. The metrics and their corresponding targets will consist of strategic and financial Company and individual goals.
The employee must be employed by the Company on the last date of the fiscal year to be eligible for the Performance Bonus related
to the previous fiscal year. The Company reserves the right to make no payment of the Performance Bonus if the (a) Employee’s
performance or (b) Company’s financial performance does not warrant the payment of Performance Bonuses.

 

(a)           
Cash Bonus. For each fiscal year during the term of this Agreement, the Employee shall be eligible to receive a target
cash performance bonus based on individual and Corporate metrics of up to 50% of the Employee’s salary, which is $225,000
for fiscal year 2021. The actual amount of the bonus is at the discretion of the Compensation Committee of the Board of Directors.

 

(b)           
Stock Options. For each fiscal year during the term of this Agreement, the Employee shall be eligible to receive
a grant of 30,000 stock options under the 2017 Equity Incentive Plan.

 

(c)           
In addition to the cash bonus and stock options defined in sections 4.2 (a) and 4.2 (b), the Board of Directors will have
at its discretion the ability to award an additional cash bonus up to $75,000 and an additional grant of 7,500 stock options under
2017 Equity Incentive Plan, based on the CEO’s and the Company’s performance. This could be tied to M&A activities,
exceeding Company performance goals or other exemplary company-wide activities (at the Board’s discretion). Employee must
be employed by the Company on the last date of the calendar year to be eligible to receive this bonus.

 

4.4          
Benefits. The Company shall provide to the Employee, and the Employee shall be entitled to receive from the Company,
such health insurance and other benefits which are appropriate to the office and position of Employee, adequate to the performance
of his duties and not inconsistent with that which the Company customarily provides at the time to their other management employees.
The Employee's right to vacation and sick leave shall be determined in accordance with the policies of the Company as may be in
effect from time to time and as are approved by the Board of Directors. Employee shall have the right to reimbursement of customary,
ordinary and necessary business expenses, including travel, incurred in connection with the rendering of services and performance
of the functions required hereunder in accordance with the policies of the Company as may be in effect from time to time and as
are approved by the Company’s Board of Directors. Such expenses are reimbursable only upon presentation by Employee of appropriate
documentation pursuant to the policies adopted by the Company’s Board of Directors. Employee’s main corporate business
office will be the Company’s Headquarters in Lancaster, California. However, on a day-to-day basis he may also choose to
work from his home if business needs do not require a physical presence in Lancaster. Employee will be reimbursed for any expenses
associated with working out of the Lancaster office.

 

5.            
Termination of Employment.

 

5.1           
Expiration of the Term of Agreement. This Agreement shall be automatically terminated upon the expiration of the
Term, or as sooner agreed to by both the Employee and the Company in writing in the event this Agreement is superseded by a new
agreement. Upon such termination, the Company shall have no further liability to the Employee for any payment, compensation or
benefit whatsoever under this Agreement except with respect to (a) the Employee's salary and benefits through the effective date
of the Employee's termination, and (b) such other compensation or benefits (if any) which, by the terms of the applicable plan
or policy, is payable to the Employee after termination of employment.

 

5.2          
By Death. This Agreement shall be terminated upon the death of the Employee. The Company's total liability in such
event shall be limited to payment of (a) the Employee's salary and benefits through the date of the Employee's death, and (b) such
other compensation or benefits (if any) which, by the terms of the applicable plan or policy, is payable after the Employee's death.

 

 

 

    	 	2	 

     

    

 

5.3           
By Complete Disability. Employee’s employment may be terminated due to his complete disability. The complete
disability of Employee (“Complete Disability”) means Employee’s inability to perform Employee’s duties
under this Agreement, by reason of any condition of mind or body, physical or mental, which prevents Employee from satisfactorily
performing his essential duties, with or without reasonable accommodation, for a period of at least one hundred eighty (180) consecutive
days. The Company’s total liability in such event shall be limited to payment of the Employee’s salary and benefits
through the effective date of termination upon Complete Disability.

 

5.4           
For Cause. The Company reserves the right to terminate this Agreement immediately, at any time, by providing written
notice to Employee that his employment is being terminated for “Cause”. The Company has “Cause” to terminate
Employee’s employment if, in the reasonable opinion of the Company’s Board of Directors: the Employee fails or refuses
to faithfully and diligently perform the usual and customary duties of his employment which failure or refusal is not cured within
thirty (30) days after written notice thereof is given to Employee; commits any material act of dishonesty, fraud, misrepresentation,
or other act of moral turpitude; is guilty of gross carelessness or misconduct; fails to obey the lawful direction of the Company’s
Board of Directors; fails or refuses to comply with the material policies, standards and/or rules of the Company which from time
to time may be established; violates any term or condition of this Agreement; or acts in any way that has a direct, substantial
and adverse effect on the Company’s reputation. The Company’s total liability to the Employee in the event of termination
of the Employee's employment under this paragraph shall be limited to the payment of the Employee's salary and benefits through
the effective date of termination.

 

5.5          
Without Cause. The Company reserves the right to terminate this Agreement without cause for any reason whatsoever
upon thirty (30) days' written notice to the Employee. Upon termination under this subsection, Employee shall be paid his salary
and benefits through the effective date of termination. In addition, so long as Employee signs a release of all claims against
the Company on a release form provided by the Company to him at that time the Employee shall:

 

(a)           
Receive a one-time payment of an amount equal to twelve (12) months of the Employee's base salary; and.

 

(b)          
Remain on Employee’s existing benefits coverage under COBRA for twelve (12) months after termination date. The cost
for this COBRA benefits coverage will be paid by the Company.

 

(c)           
Other than the one-time payment and the company-paid COBRA coverage as described in 5.5 (a) and (b), the Company shall have
no further obligation to pay the Employee any other compensation or benefits whatsoever. The Employee hereby agrees that the Company
may dismiss him under this Section 5.5 without regard (i) to any general or specific policies (whether written or oral) of the
Company relating to the employment or termination of its employees, or (ii) to any statements made to the Employee, whether made
orally or contained in any document, pertaining to the Employee's relationship with the Company.

 

5.6           
Mutual Consent. This Agreement shall be terminated upon mutual written consent of the Company and the Employee. The
Company’s total liability to the Employee in the event of termination of the Employee's employment under this Section 5.6
shall be limited to the payment of:

 

(a)           
The Employee's salary and benefits through the effective date of termination; and

 

(b)           
Such other compensation or benefits (if any) which, by the terms of the applicable plan or policy, is payable to the Employee
after termination of employment, except as otherwise agreed by the parties in writing.

 

5.7          
Termination of Offices and Board. Upon termination of employment for any reason whatsoever, the Employee shall be
deemed to have resigned from all offices, including the Board of Directors then held with the Company, if any.

 

 

 

    	 	3	 

     

    

 

6.            
Restrictions on Use or Disclosure of Confidential Matters, Proprietary Information and Trade Secrets.

 

6.1          
During the Term of this Agreement, Employee will have access to confidential information of the Company and its customers.
“Confidential Information” is information which is not generally known to the public and, as a result, is of economic
benefit to the Company or its customers in the conduct of its business. The Company and Employee agree that Confidential Information
shall include, but not be limited to, all information developed or maintained by the Company and/or its customers and comprising
the following items, whether or not such items have been reduced to tangible form (e.g., physical writing): techniques, designs,
drawings, processes, inventions, development, equipment, prototypes, methods, databases, consulting agreements, product research,
sales, marketing and strategic plans, programming plans, advertising and promotion plans, products and “availability”
information, existing and developing software products, source code, object code, technical documentation, flow charts, test results,
models, data, research, formulas, ideas, trade names, service marks, slogans, forms, customer lists, client contacts, pricing structures,
business forms, marketing programs and plans, business plans and strategies, layout and design, financial information, financial
structure, operational methods and tactics, cost information, the identity of suppliers or customers of the Company, accounting
procedures, details, and any document, record or other information of the Company relating to the above. Confidential Information
include not only information belonging to the Company or its customers which existed before the date of this Agreement but also
information developed by Employee for the Company or its customers during the term of this Agreement and thereafter. The Employee
will not disclose to anyone, directly or indirectly, any of such Confidential Information or use them other than as necessary in
the course of his duties with the Company. All documents that the Employee prepares, or Confidential Information that might be
given to him or that Employee himself might create in the course of his employment by the Company, are the exclusive property of
the Company. During the Term and at any time thereafter, the Employee shall not publish, communicate, divulge, disclose or use
any of such Confidential Information which has been reasonably designated by the Company as proprietary or confidential or which
from the surrounding circumstances the Employee knows, or has good reason to know, or should reasonably know, ought to be treated
by the Employee as proprietary or confidential without the prior written consent of the Company, which consent may not be unreasonably
withheld by the Company.

 

6.2           
In the course of his employment for the Company, Employee will develop a personal relationship with the Company’s
customers and knowledge of those customers’ affairs and requirements, which may constitute the Company’s only contact
with such customers. The Employee consequently agrees that it is reasonable and necessary for the protection of the goodwill and
business of the Company that the Employee make the covenants contained herein. Accordingly, the Employee agrees that while he is
in the Company’s employ, he will not directly or indirectly:

 

(a)           
Attempt in any manner, to solicit from any customer (except on behalf of the Company’s) business of the type performed
by the Company or to persuade any customer of the Company to cease to do business or reduce the amount of business which any such
customer has customarily done or contemplates doing with the Company, whether or not the relationship with the Company and such
customer was originally established in whole or in part through the Employee's efforts; or

 

(b)          
Engage in any business as, or own an interest in, directly or indirectly, any individual proprietorship, partnership, corporation,
joint venture, trust or any other form of business entity if such business form or entity is engaged in the business in which the
Company is engaged;

 

(c)           
Render any services of the type rendered by the Company to or for any customer of the Company;

 

(d)           
Employ or attempt to employ or assist anyone else to employ any person who is then or at any time during the preceding year
in the Company’s employ.

 

6.3          
For a one (1) year period after the termination of this Agreement for any reason, Employee shall not, directly or indirectly,
ask or encourage any employee(s) of the Company to leave their employment with the Company or solicit any employee(s) of the Company
for employment elsewhere. The Employee further agrees that he shall make any subsequent employer aware of this non-solicitation
obligation.

 

 

 

    	 	4	 

     

    

 

6.4          
Notice of Rights. Notwithstanding any provisions in this Agreement or Company policy applicable to the unauthorized
use or disclosure of trade secrets or Confidential Information, Employee is hereby notified that Employee may not be held criminally
or civilly liable, under any applicable federal or state trade secret law, for the disclosure of a trade secret that is made in
confidence to a federal, state, or local government official, or to an attorney solely for the purpose of reporting or investigating
a suspected violation of law.  Employee also may not be held so liable for such disclosures made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, Employee is advised that individuals
who file a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the
attorney of the individual and use the trade secret in the court proceeding, if the individual files any document containing the
trade secret under seal and does not disclose the trade secret, except pursuant to court order.

 

6.5           
This entire Section 6 shall survive termination of this Agreement.

 

7.            
The Company’s Property.

 

7.1          
Any patents, inventions, discoveries, applications or processes, software and computer programs devised, planned, applied,
created, discovered or invented by the Employee in the course of his employment by the Company and which pertain to any aspect
of the business of the Company, or their respective subsidiaries, affiliates or customers, shall be the sole and exclusive property
of the Company, and the Employee shall make prompt report thereof to the Company and promptly execute any and all documents reasonably
requested to assure the Company the full and complete ownership thereof.

 

7.2          
All records, files, lists, drawings, documents, equipment and similar items relating to the Company’s business which
the Employee shall prepare or receive from the Company in the course of his employment by the Company shall remain the Company’s
sole and exclusive property. Upon termination of this Agreement the Employee shall return promptly to the Company all property
of the Company in his possession and the Employee represents and warrants that he will not copy, or cause to be copied, printed,
summarized or compiled, any software, documents or other materials originating with and/or belonging to the Company, including,
without limitation, documents or other materials created by the Employee for, or on behalf of, the Company. The Employee further
represents and warrants that he will not retain in his possession any such software, documents or other materials in machine or
human readable form.

 

7.3           
This Section 7 shall survive termination of this Agreement.

 

8.            
Outside Activities. During the Term, the Employee shall not, directly or indirectly, either as an officer,
director, employee, representative, principal, partner, shareholder, employee, agent or in any other capacity, engage or assist
any third party in engaging in any business competitive with the business of the Company, or engage in any other gainful occupation
which requires his personal attention, without the prior written consent of the Company, which consent may be withheld by the Company
in their sole and absolute discretion. Following his employment with the Company, the Employee shall not engage in unfair competition
with the Company, aid others in any unfair competition with the Company, in any way breach the confidence that the Company has
placed in the Employee or misappropriate any proprietary information of the Company.

 

9.            
Reports. The Employee, when directed, shall provide written reports to the Company with respect to the
services provided hereunder.

 

10.         
Strict Loyalty. The Employee hereby covenants and agrees to avoid all circumstances and actions that reasonably
would place the Employee in a position of divided loyalty with respect to his obligations under this Agreement.

 

 

 

    	 	5	 

     

    

 

11.          
Assignment. This Agreement may not be assigned to another party by the Employee without the prior written
consent of the Company, which consent may be withheld by the Company, in their sole and absolute discretion.

 

12.          
Arbitration. In the event of any dispute between the Company and the Employee concerning any aspect of
the employment relationship, including any disputes relating to its termination, all such disputes shall be resolved by binding
arbitration before a single neutral arbitrator pursuant to the Federal Arbitration Act, as follows. This provision shall supersede
any prior arbitration agreement, policy or understanding between the parties. The parties intend to revoke any prior arbitration
agreement.

 

12.1         
Claims Covered by the Agreement. The Employee and the Company mutually consent to the resolution by final and binding
arbitration of all claims or controversies (“claims”) that the Company may have against the Employee or that
the Employee may have against the Company or against its officers, directors, partners, employees, agents, pension or benefit plans,
administrators, or fiduciaries, franchisors, or any parent, subsidiary or affiliated companies or corporation (collectively referred
to for purposes of this Section 12 as “Company’s Parties”), relating to, resulting from, or in any way
arising out of Employee’s employment relationship with Company and/or the termination of Employee’s employment relationship
with Company, to the extent permitted by law. The claims covered by this Agreement include, but are not limited to, claims for
wages or other compensation due; claims for breach of any contract or covenant (express or implied); tort claims; claims for discrimination
and harassment (including, but not limited to, race, sex, religion, national origin, age, marital status or medical condition,
disability, or sexual orientation); claims for benefits (except where an employee benefit or pension plan specifies claims procedures
different from the ones described in this Section 12); claims for breach of any duties or obligations; and claims for violation
of any public policy, federal, state or other governmental law, statute, regulation or ordinance, except claims excluded in the
following section.

 

12.2         
Claims Not Covered by the Agreement. Claims the Employee may have for workers’ compensation (excluding discrimination
claims under workers’ compensation statutes), unemployment compensation benefits, or claims under the Private Attorney General
Act of 2014 (“PAGA”), California Labor Code Sections 2699 et seq. are not covered by this Arbitration section.

 

12.3         
Required Notice of Claims and Statute of Limitations. Arbitration may be initiated by the Employee by serving or
mailing a written notice to the Chairman of the Board of the Company. Arbitration may be initiated by the Company’s Parties
by serving or mailing a written notice to the Employee at his last known address. The notice shall identify and describe the nature
of all claims asserted and the facts upon which such claims are based. The written notice shall be served or mailed within the
applicable statute of limitations period set forth by federal or state law.

 

12.4         
Arbitration Procedures.

 

(a)           
After demand for arbitration has been made by serving written notice under the terms of Section 12.3 of this Agreement,
the party demanding arbitration shall file a demand for arbitration with the office of Judicial Arbitration and Mediation Services
(“JAMS”) located in Los Angeles, California. The arbitrator shall be selected from the JAMS panel and the arbitration
shall be conducted pursuant to JAMS policies and procedures. All rules governing the arbitration shall be the rules as set forth
by JAMS. If the dispute is employment-related, the dispute shall be governed by JAMS’ then-current version of the national
rules for the resolution of employment disputes. JAMS’ then-applicable rules governing the arbitration may be obtained from
JAMS’ website which currently is www.jamsadr.com.

 

(b)          
The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of California, or federal law, or
both, as applicable to the claim(s) asserted. The arbitrator shall have exclusive authority to resolve any dispute relating to
the interpretation, applicability, enforceability or formation of this Agreement, including but not limited to any claim that all
or any part of this Agreement is void or voidable.

 

(c)           
Either party may file a motion for summary judgment with the arbitrator. The arbitrator is entitled to resolve some or all
of the asserted claims through such a motion. The standards to be applied by the arbitrator in ruling on a motion for summary judgment
shall be the applicable laws as specified in Section 12.4(b) of this Agreement.

 

(d)           
Discovery shall be allowed and conducted pursuant to the then-applicable arbitration rules of JAMS, provided that the parties
shall be entitled to discovery sufficient to adequately arbitrate their claims and defenses. The arbitrator is authorized to rule
on discovery motions brought under the applicable discovery rules.

 

 

 

    	 	6	 

     

    

 

12.5         
Construction. These arbitration provisions shall be construed and enforced pursuant to the FAA. The Arbitrator,
and not any federal, state, or local court or agency, shall have the exclusive authority to resolve any dispute relating to the
interpretation, applicability, enforceability, or formation of these arbitration provisions, including, but not limited to, any
claim that all or any part of this Agreement is void or voidable. Any disputes regarding the enforceability or validity of these
arbitration provisions shall be resolved as if the arbitrator or other decision-maker, if any, is acting as a federal district
court judge applying the FAA and its precedent.

 

12.6        
Arbitration Decision. The arbitrator’s decision will be final and binding. The arbitrator shall issue a written
arbitration decision revealing the essential findings and conclusions upon which the decision and/or award is based. A party’s
right to appeal the decision is limited to grounds provided under applicable federal or California law.

 

12.7        
Application for Emergency Injunctive and/or Other Equitable Relief. Claims by the Company or Employee for emergency
injunctive and/or other equitable relief relating to unfair competition and/or the use and/or unauthorized disclosure of trade
secrets or confidential information and/or a breach of the provisions of Sections 6, 7, and 8 of this Agreement shall be submitted
to JAMS for emergency treatment. The parties agree that the JAMS administrator may select a neutral hearing officer (subject to
conflicts) to hear the emergency request only. The hearing officer should be experienced in considering requests for emergency
injunctive and/or other equitable relief. The hearing officer shall conform his or her consideration and ruling with the applicable
legal standards as if this matter were heard in a court of law in the applicable jurisdiction for such a dispute.

 

12.8        
Place of Arbitration. The arbitration will be at a mutually convenient location in Los Angeles, California. If the
parties cannot agree upon a location, then the arbitration will be held at a JAMS’ office in Los Angeles.

 

12.9         
Representation, Fees and Costs. Each party may be represented by an attorney or other representative selected by
the party. Each party shall be responsible for its own attorneys’ or representative’s fees. However, if any party prevails
on a statutory claim that affords the prevailing party’s attorneys’ fees, or if there is a written agreement providing
for fees, the arbitrator may award reasonable fees to the prevailing party. The Company shall be responsible for the arbitrator’s
fees and costs to the extent they exceed any fee or cost that the Employee would be required to bear if the action were brought
in court.

 

12.10       
Waiver Of Jury Trial/Exclusive Remedy. The Employee and the Company knowingly and voluntarily waive any constitutional
right to have any dispute between them decided by a court of law and/or by a jury in court.

 

12.11      
Waiver of Representative/Class Action Proceedings. Employee and Company knowingly and voluntarily agree to bring
any claims governed by this Agreement in his/its individual capacity and not as a plaintiff, class member or representative in
any purported class or representative action. They further agree to waive any right to participate in any representative or class
action proceeding related to any claims governed by this Agreement. The Company and Employee also agree that the arbitrator may
not consolidate more than one individual’s claims, and may not otherwise preside over any form of representative or class
action proceeding, including, but not limited to, any representative action under California Business and Professions Code Sections
17200 et seq. For purposes of this Agreement, the term “representative” used in this section specifically excludes
any claims, causes of action, or actions brought under PAGA (“PAGA claims”). Accordingly, any PAGA claims must be pursued
in the appropriate court of law. However, if either Employee or the Company have other claims or actions against each other covered
by this Agreement, then they agree that those non-PAGA claims must first be pursued in arbitration, regardless of which claims
or actions were filed first. The pending court PAGA action shall be stayed pending full and final resolution of the arbitration
pursuant to California Code of Civil Procedure Section 1281.2 and related law.

 

 

 

    	 	7	 

     

    

 

13.          
The Company’s Bylaws, Directions, Policies, Practices, Rules, Regulations and Procedures. The Employee
agrees to become and remain thoroughly familiar with each and all of the Company’s bylaws, directions, policies, practices,
rules, regulations and procedures that relate to the employment and/or to any of Employee's duties and/or responsibilities as an
employee of the Company and to abide fully and by each and all of such bylaws, directions, policies, practices, rules, regulations
and procedures. During the Term, the Employee shall be fully bound by and employed pursuant to each and all of the Company’s
bylaws, directions, policies, practices, rules, regulations and procedures as now in effect or as may be implemented, modified
or otherwise put into effect by the Company during the term of employment, regardless of whether such bylaws, directions, policies,
practices, rules, regulations and procedures are oral or are set forth in any manual, handbook or other document, and it is solely
the responsibility of Employee to become and remain fully aware of and familiar with each and all such directions, policies, practices,
rules, regulations and/or procedures. In the event of any conflict between any provision of this Agreement and any provision of
the Company’s directions, policies, practices, rules, regulations and/or procedures, the provisions of this Agreement govern
for any and all purposes whatsoever.

 

14.          
Indemnification. The Company shall indemnify and hold the Employee harmless from
any and all claims, demands, judgments, liens, subrogation or costs incurred by the Employee with respect to any shareholder derivative
action or other claims or suits against the Company and/or their respective Boards of Directors by individuals, firms or entities
not a party to this Agreement to the maximum extent permitted under California law.

 

15.          
General.

 

15.1        
Further Documents. Each party shall execute and deliver all further instruments, documents and papers, and shall
perform any and all acts necessary reasonably requested by the other party, to give full force and effect to all of the terms and
provisions of this Agreement.

 

15.2        
Successors and Assigns. Except where expressly provided to the contrary, this Agreement, and all provisions hereof,
shall inure to the benefit of and be binding upon the parties hereto, their successors in interest, assigns, administrators, executors,
heirs and devises.

 

15.3        
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be
effective and valid under applicable law. If any provision of this Agreement, as applied to any party or to any circumstance, shall
be found by a court or arbitrator to be invalid or unenforceable under applicable law, such provision will be ineffective only
to the extent of such invalidity or unenforceability, without invalidating or rendering unenforceable the remainder of such provision
and any such invalidity or unenforceability shall in no way affect any other provision of this Agreement, the application of any
provision in any other circumstance or the validity or enforceability of this Agreement.

 

15.4         
Notices. All notices or demands shall be in writing and shall be served personally, telegraphically or by express
or certified mail. Service shall be deemed conclusively made at the time of service if personally served, 24 hours after deposit
thereof in the United States mail properly addressed and postage prepaid, return receipt requested, if served by express Mail,
and five days after deposit thereof in the United States mail, properly addressed and postage prepaid, return receipt requested,
if served by certified mail. Any notice or demand to the Company shall be given to:

 

	 	Simulations Plus, Inc.
	 	42505 10th Street West
	 	Lancaster, CA 93534-7059
	 	Attention: Compensation Committee

 

and any notice or demand to the Employee
shall be given to:

 

	 	Shawn O’Connor
	 	XXXXXXXXXX
	 	XXXXXXXXXX

 

 

 

    	 	8	 

     

    

 

Any party may, by virtue of a written notice
in compliance with this Section, alter or change the address or the identity of the person to whom any notice, or copy thereof,
is to be sent.

 

15.5         
Waiver. A waiver by any party of any of the terms and conditions of this Agreement in any one instance shall not
be deemed or construed to be a waiver of the term or condition for the future, or of any subsequent breach thereof or of any other
term or condition thereof. Any party may waive any term, provision or condition included for the benefit of that party. Any and
all waivers shall be in writing.

 

15.6         
Construction. Except as set forth in Section 12.5 above, this Agreement shall be governed by and construed in accordance
with the laws of the State of California applicable to contracts entered into and fully to be performed therein without regard
to its principles of choice of law or conflicts of law. In all matters of interpretation, whenever necessary to give effect to
any provision of this Agreement, each gender shall include the others, the singular shall include the plural, the plural shall
include the singular and the terms “and” and “or” may be used interchangeably as the context so requires
or implies. The title of the sections of this Agreement are for convenience only and shall not in any way affect the interpretation
of any provision or condition of this Agreement. All remedies, rights, undertakings, obligations and agreements contained in this
Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement
of any party.

 

15.7         
Entire Understanding. This Agreement contains the entire understanding of the parties hereto relating to the subject
matter contained herein and supersedes all prior and collateral agreements, understandings, statements and negotiation of the parties.
Each party acknowledges that no representations, inducements or promises, oral or written, with reference to the subject matter
hereof have been made other than as expressly set forth herein. This Agreement cannot be changed, rescinded or terminated orally.

 

15.8         
Third Party Rights. The parties hereto do not intend to confer any rights or remedies upon any person other than
the parties hereto and those referred to in Section 15.2 hereof so long as any such assignment by Employee was approved by the
Company as provided in Section 11 hereof.

 

15.9         
Attorneys' Fees. In the event of any litigation between the parties respecting or arising out of this Agreement,
the prevailing party shall be entitled to recover reasonable legal fees and costs, whether or not the litigation proceeds to final
judgment or determination.

 

15.10       
Counterparts. This Agreement may be executed in counterparts which, taken together, shall constitute the whole of
the agreement between the parties.

 

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    	 	9	 

     

    

 

IN WITNESS THEREOF, the parties have executed
this Agreement as of the day and year first above written.

 

	
        Company:

         

        

        SIMULATIONS PLUS, INC.

         

         

         

         

        By:  /s/ Walter S. Woltosz                               

        Walter S. Woltosz, Chairman

         

        Date: September
        3, 2020
	
        Employee:

         

        Shawn O’Connor

         

         

         

         

 /s/ Shawn O’Connor                               

Shawn O’Connor, CEO

         

        Date: September 3, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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