Document:

Exhibit 10.1

 

Form
of Convertible Note Purchase Agreement 

 

This Convertible Note Purchase Agreement (the
“Agreement”) dated as of [_______], 2021 (the “Effective Date”) among:

 

(a)            MOSAIC
IMMUNOENGINEERING INC., a Delaware corporation (the “Company”) and

 

(b)            And
the persons and entities (each individually a “Purchaser,” and collectively, the “Purchasers”) named
on the Schedule of Purchasers attached hereto (the “Schedule of Purchasers”)

 

Each of the Company and the Purchasers are, individually,
a “Party” and are, collectively the “Parties.”

 

Background

 

A.            The
Company desires to issue and sell (the “Offering”) up to an aggregate principal amount of up to $5,000,000 of convertible
notes in substantially the form attached to this Agreement as Exhibit A (each a “Note” and, collectively, the
“Notes”) for a purchase price equal to the principal amount thereof (the “Consideration”) set forth
opposite each Purchaser’s name on the Schedule of Purchasers.

 

B.             The
Offering is being conducted pursuant to the exemptions from the registration provisions of the Securities Act of 1933, as amended (the
“Securities Act”) provided by Section 4(a)(2) of the Securities Act and Rule 506(b) (“Rule 506”)
of Regulation D thereunder.

 

C.             The
Purchaser (the Purchaser, together with the other purchasers of the Notes, are sometimes referred to collectively as the “Purchasers”)
desires to purchase a Note.

 

NOW THEREFORE, in consideration of the
mutual promises contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties to
this Agreement agree as follows:

 

1.            
Definitions. Capitalized terms not otherwise defined in this Agreement will
have the meanings set forth in this Section 1.

 

1.1           
“Common Stock” means the Company’s common stock, $0.00001 par value per share.

 

1.2           
“Conversion Stock” (for purposes of determining the type of Equity Securities issuable upon conversion of the
Notes) means:

 

(a)           
with respect to a conversion pursuant to Section 4.1, units of the Equity Securities issued in the Qualified Financing; and

 

(b)           
with respect to a conversion pursuant to Section 4.2, Common Stock.

 

 

 

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1.3           
“Conversion Price” means:

 

(a)           
with respect to a conversion pursuant to Section 4.1, the lesser of: (i) the product of (x) 100% less the Discount and (y)
the lowest per unit purchase price of the Equity Securities issued for cash in the Qualified Financing; and (ii) the quotient resulting
from dividing (x) the Valuation Cap by (y) the Fully Diluted Capitalization as of the Effective Date; and

 

(b)          
with respect to a conversion pursuant to Section 4.2, the quotient resulting from dividing (x) the Valuation Cap by (y) the Fully
Diluted Capitalization as of the Effective Date.

 

1.4           
“Corporate Transaction” means:

 

(a)           
the closing of the sale, transfer or other disposition, in a single transaction or series of related transactions, of all or substantially
all of the Company’s assets;

 

(b)           
the consummation of a merger or consolidation of the Company with or into another entity (except a merger or consolidation in which
the holders of voting securities of the Company immediately prior to such merger or consolidation continue to hold a majority of the outstanding
voting securities of the Company or the surviving or acquiring entity immediately following the consummation of such transaction); or

 

(c)           
the closing of the transfer (whether by merger, consolidation or otherwise), in a single transaction or series of related transactions,
to a “person” or “group” (within the meaning of Section 13(d) and Section 14(d) of the Exchange Act) of the Company’s
voting securities if, after such closing, such person or group would become the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act) of more than 50% of the outstanding voting securities of the Company (or the surviving or acquiring entity).

 

For the avoidance
of doubt, a transaction will not constitute a “Corporate Transaction” if its sole purpose is to change the state of the Company’s
organization or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s
securities immediately prior to such transaction. Notwithstanding the foregoing, the sale of Equity Securities in a bona fide financing
transaction will not be deemed a “Corporate Transaction.”

 

1.5           
“Discount” means 20%.

 

1.6           
“Equity Securities” means (a) Common Stock; (b) any securities conferring the right to purchase Common Stock;
or (c) any securities directly or indirectly convertible into, or exchangeable for (with or without additional consideration) Common Stock.
Notwithstanding the foregoing, the following will not be considered “Equity Securities”: (i) any security granted, issued
or sold by the Company to any director, officer, employee, consultant or adviser of the Company for the primary purpose of soliciting
or retaining their services; and (ii) any convertible promissory notes (including the Notes) issued by the Company.

 

1.7           
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

 

 

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1.8           
“Fully Diluted Capitalization” means the number of issued and outstanding Common Stock, assuming (a) the conversion
or exercise of all of the Company’s outstanding convertible or exercisable securities, including convertible Preferred Stock and
all outstanding vested or unvested options or warrants to purchase the Company’s Common Stock; and (b) solely for purposes of Section
1.3(a) and Section 1.3(b), the issuance of all of the Company’s Common Stock reserved and available for future issuance under any
of the Company’s existing equity incentive plans or any equity incentive plan created or expanded in connection with the Qualified
Financing. Notwithstanding the foregoing, “Fully Diluted Capitalization” excludes: (i) any convertible promissory notes issued
by the Company (including the Notes issued pursuant to this Agreement); and (ii) any Equity Securities that are issuable upon conversion
of any outstanding convertible promissory notes. For the avoidance of doubt, as of the Effective Date, the Fully Diluted Capitalization
is 8,833,664.

 

1.9          
“Maturity” means, with respect to each Note issued under this Agreement, unless previously converted or repaid,
upon the occurrence of a Corporate Transaction, unless otherwise converted into Conversion Stock pursuant to Section 4.2.

 

1.10        
“Note Documents” means this Agreement and the Notes.

 

1.11        
 “Notes” means the one or more promissory notes issued to each Purchaser pursuant to Section 2, the form of
which is attached hereto as Exhibit A.

 

1.12        
“Material Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations,
condition (financial or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of
the Company to perform its obligations under the Note Documents.

 

1.13         
“Noteholder” means each person or entity holding a Note.

 

1.14         
“Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association,
joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity
not specifically listed herein.

 

1.15         
“Preferred Stock” means the Company’s Series B Preferred Stock

 

1.16        
“Qualified Financing” means the next sale (or series of related sales) by the Company of its Equity Securities
following the date of this Agreement from which the Company receives gross proceeds of not less than Five Million Dollars ($5,000,000)
(excluding, for the avoidance of doubt, the aggregate principal amount of the Notes).

 

1.17        
“Requisite Noteholders” means such Noteholders holding an aggregate principal amount of 51% of the aggregate
principal amount of the Notes then outstanding.

 

1.18         
“Securities Act” means the Securities Act of 1933, as amended.

 

1.19         
“Smaller Financing” means the next sale (or series of related sales) by the Company of its Equity Securities
following the date of this Agreement from which the Company receives gross proceeds of less than a Qualified Financing (excluding, for
the avoidance of doubt, the aggregate principal amount of the Notes).

 

1.20        
“Subsidiary” of any Person means another Person, an amount of the voting securities, other voting ownership
or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body
(or, if there are no such voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first
Person.

 

 

 

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1.21        
“Valuation Cap” means Twenty One Million Dollars ($21,000,000).

 

2.            
Purchase and Sale of Notes. In exchange for the Consideration paid by each Purchaser, the Company will sell and issue to
such Purchaser one or more Notes. The Consideration for each Note will be equal to the principal amount of such Note, as set forth opposite
such Purchaser’s name on the Schedule of Purchasers.

 

3.            
Closings.

 

3.1          
Initial Closing. The initial closing of the sale of the Notes in return for the Consideration paid by each Purchaser (the
“Initial Closing”) will take place remotely via the exchange of documents and signatures on the date of this Agreement,
or at such other time and place as the Company and the Purchasers purchasing a majority-in-interest of the aggregate principal amount
of the Notes to be sold at the Initial Closing agree upon by email or in writing. At the Initial Closing, each Purchaser will deliver
the Consideration to the Company in immediately available funds in accordance with the wire instructions set forth in Exhibit B and the
Company will deliver to each Purchaser one or more executed Notes in return for the respective Consideration provided to the Company.

 

3.2          
Subsequent Closings. In any subsequent closing (each a “Subsequent Closing”), the Company may sell additional
Notes subject to the terms of this Agreement to any purchaser as the Company shall select; provided that the aggregate principal
amount of Notes issued pursuant to this Agreement does not exceed Five Million Dollars ($5,000,000), and the final Subsequent Closing
shall occur no later than July 31, 2021, unless extended by the Company. Any subsequent purchasers of Notes will become parties to, and
will be entitled to receive Notes in accordance with, this Agreement. Each Subsequent Closing will take place remotely via the exchange
of documents and signatures or at such locations and at such times as will be mutually agreed upon orally or in writing by the Company
and such purchasers of additional Notes. The Schedule of Purchasers will be updated to reflect the additional Notes purchased at each
Subsequent Closing and the parties purchasing such additional Notes.

 

4.            
Conversion. Each Note shall be convertible into Conversion Stock pursuant to this Section 4.

 

4.1           
Qualified Financing Conversion.

 

(a)           
The principal balance and unpaid accrued interest on each Note will automatically convert into Conversion Stock upon the closing
of the Qualified Financing. The number of Conversion Stock the Company issues upon such conversion will equal the quotient (rounded down
to the nearest whole unit) obtained by dividing (x) the outstanding principal balance and unpaid accrued interest under each converting
Note on the date of conversion by (y) the applicable Conversion Price. At least five (5) days prior to the closing of the Qualified Financing,
the Company will notify the holder of each Note in writing of the terms of the Equity Securities that are expected to be issued in such
financing. The issuance of Conversion Stock pursuant to the conversion of each Note will be on, and subject to, the same terms and conditions
applicable to the Equity Securities issued in the Qualified Financing.

 

(b)          
Upon any Smaller Financing, each Noteholder will have right to convert the principal balance and unpaid accrued interest upon the
closing of a Smaller Financing, subject to the same terms and conditions as set forth for a Qualified Financing under Section 4.1(a).

 

4.2           
Corporate Transaction Conversion. In the event of a Corporate Transaction prior to the conversion of a Note pursuant to
Section 4.1, at the closing of such Corporate Transaction, the holder of each Note may elect that either: (a) the Company will pay the
holder of such Note an amount equal to the sum of (x) all accrued and unpaid interest due on such Note and (y) one and one-half (1.5)
times the outstanding principal balance of such Note; or (b) such Note will convert into that number of Conversion Stock equal to the
quotient (rounded down to the nearest whole unit) obtained by dividing (x) the outstanding principal balance and unpaid accrued interest
of such Note on the date of conversion by (y) the applicable Conversion Price. The Company shall provide Purchaser at least fifteen (15)
days’ notice of any proposed Corporate Transaction.

 

 

 

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4.3           
Mechanics of Conversion.

 

(a)           
Surrender of Note. Upon the conversion of the Notes, pursuant to Section 4 of this Agreement, each Noteholder shall surrender
all Notes held by it for cancellation to the principal office of the Company.

 

(b)          
Certificates. As promptly as practicable after the conversion of each Note and the issuance of the Conversion Stock, the
Company will issue and deliver to the holder thereof a certificate or certificates evidencing the Conversion Stock (if certificated),
or if the Conversion Stock are not certificated, will deliver a true and correct copy of the Company’s unit register reflecting
the Conversion Stock held by such holder. The Company will not be required to issue or deliver the Conversion Stock until the holder of
such Note has surrendered the Note to the Company (or provided an instrument of cancellation or affidavit of loss). The conversion of
the Notes pursuant to Section 4.1 and Section 4.2 may be made contingent upon the closing of the Qualified Financing or Corporate Transaction,
as applicable.

 

(c)           
Effect of Conversion. On and after the effective time of the conversion date, the Noteholder shall be treated for all purposes
as the holder of the Conversion Stock issued thereunder. On and after the effective time of the conversion or the repayment of the Notes,
the Company shall be forever released and discharged from all its obligations and liabilities under this Agreement and the Notes and the
terms and conditions herein.

 

5.            
No Rights as Stockholder. Neither this Agreement nor the Notes shall, except upon the Notes’ conversion into Conversion
Stock, entitle the Noteholder to any of the rights of a stockholder of the Company.

 

6.            
Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser that, except
as set forth in either the schedules delivered herewith (collectively, the “Disclosure Schedules”) or the SEC
Reports (as such term is defined below):

 

6.1           
Organization, Good Standing and Qualification. The Company and its Subsidiaries (as defined below) are each corporations
duly organized, validly existing and in good standing under the laws of the jurisdiction of their incorporation. Each has all requisite
corporate power and authority to carry on their business as now conducted. Each of the Company and its Subsidiaries are duly qualified
to do business as a foreign corporation and are in good standing in each jurisdiction in which the conduct of their business.

 

6.2          
Authorization and Enforceability. The Company has all corporate power and authority and has taken all requisite action on
the part of the Company, its officers, directors and stockholders necessary for (i) the authorization, execution and delivery of the Note
Documents, (ii) the authorization of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization,
issuance (or reservation for issuance) and delivery of the Notes and the shares of common stock, $0.00001 par value per share (the “Common
Stock”) of the Company issuable upon conversion thereof (the “Conversion Shares” and, together
with the Notes, the “Securities”). The Note Documents, upon execution and delivery thereof by the Company, will
constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting
creditors’ rights generally and to general equitable principles.

 

 

 

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6.3           
Capitalization. The Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “10-K”)
sets forth as of its date: (i) the authorized and outstanding capital stock of the Company; (ii) the number of shares of capital stock
issuable pursuant to the Company’s stock plans; and (iii) the number of shares of capital stock issuable and reserved for issuance
pursuant to securities (other than the Notes) exercisable for, or convertible into or exchangeable for any shares of capital stock of
the Company. All of the issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued
and are fully paid, nonassessable and free of pre-emptive rights and were issued in full compliance with applicable state and federal
securities law and any rights of third parties. All of the issued and outstanding shares of capital stock of the Subsidiary have been
duly authorized and validly issued and are fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with
applicable state and federal securities law and any rights of third parties and are owned by the Company, beneficially and of record,
subject to no Lien (as defined below). No Person is entitled to pre-emptive or similar statutory or contractual rights with respect to
any securities of the Company. Except as contemplated by the Note Documents and except as disclosed in the SEC Reports, there are no outstanding
warrants, options, convertible securities or other rights, agreements or arrangements of any character under which the Company is or may
be obligated to issue any equity securities of any kind. Except as disclosed in the SEC Reports and except for the Note Documents, there
are no voting agreements, buy-sell agreements, option or right of first purchase agreements or other agreements of any kind among the
Company and any of the securityholders of the Company relating to the securities of the Company held by them. Except as disclosed in the
SEC Reports, no Person has the right to require the Company to register any securities of the Company under the Securities Act, whether
on a demand basis or in connection with the registration of securities of the Company for its own account or for the account of any other
Person. For purposes of this Agreement, “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, encumbrance, charge or security interest of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset
and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

6.4          
Governmental Approval. No action, consent or approval of, registration or filing with or any other action by any federal,
state, local or foreign court or governmental agency, authority, instrumentality or regulatory body (collectively, “Governmental
Authority”) is or will be required in connection with the transactions contemplated hereby, except for such as have been made or
obtained and are in full force and effect and post-sale filings pursuant to applicable state and federal securities laws which the Company
undertakes to file within the applicable time periods.

 

6.5          
Accuracy of Filings. Neither the 10-K nor any of the Company’s reports, schedules, forms, statements and other documents
filed with the Securities and Exchange Commission (the “SEC”) since the filing of the 10-K (collectively, the “SEC
Reports”), including, without limitation, the Company’s Quarterly Reports on Forms 10-Q, at the time of filing contained
any untrue statement of a material fact or omitted to state a material fact required to make the statements contained therein, in light
of the circumstances in which they were made, not misleading, except to the extent that such statements have been modified or superseded
by later SEC Reports filed on a non-confidential basis filed prior to the date hereof.

 

6.6           
No Material Adverse Effect. Since December 31, 2020, except as identified and described in the SEC Reports or as described
in Section 2(f) of the Disclosure Schedules, no Material Adverse Effect has occurred with respect to the business, assets, liabilities,
operations, condition (financial or otherwise), or operating results of the Company or its Subsidiaries, taken as a whole.

 

6.7          
Title to Properties. The Company has good and marketable title to all real properties and all other properties and assets
owned by it, in each case free from Liens that would materially affect the value thereof or materially interfere with the use made or
currently planned to be made thereof by them.

 

 

 

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6.8           
Intellectual Property.

 

(a)           
All Intellectual Property (as defined below) of the Company necessary for the operation of the business as currently conducted
is in material compliance with all legal requirements (including timely filings, proofs and payments of fees) and is valid and enforceable.
No Intellectual Property of either the Company or its Subsidiaries, which is necessary for the conduct of Company’s and such Subsidiary’s
respective businesses as currently conducted or as currently proposed to be conducted, has been or is now involved in any cancellation,
dispute or litigation, and, to the Company’s knowledge, no such action is threatened. No patent of either the Company or its Subsidiaries
has been or is now involved in any interference, reissue, re-examination or opposition proceeding. For purposes of this Agreement, “Intellectual
Property” means all of the following: (A) patents, patent applications, patent disclosures and inventions (whether or not patentable
and whether or not reduced to practice); (B) trademarks, service marks, trade dress, trade names, corporate names, logos, slogans and
Internet domain names, together with all goodwill associated with each of the foregoing; (C) copyrights and copyrightable works; (D) registrations,
applications and renewals for any of the foregoing; and (E) proprietary computer software (including but not limited to data, data bases
and documentation).

 

(b)           
The Company and its Subsidiaries own or have the valid right to use all of the Intellectual Property that is necessary for the
conduct of the Company’s and each Subsidiary’s respective businesses as currently conducted or as currently proposed to be
conducted and for the ownership, maintenance and operation of the Company’s and each Subsidiary’s properties and assets, free
and clear of all Liens, adverse claims or obligations to license all such owned Intellectual Property and trade secrets, confidential
information and know-how (including but not limited to ideas, formulae, compositions, processes, procedures and techniques, research and
development information, computer program code, performance specifications, support documentation, drawings, specifications, designs,
business and marketing plans, and customer and supplier lists and related information) (collectively, “Confidential Information”),
other than licenses entered into in the ordinary course of the Company’s and each Subsidiary’s businesses. The Company and
each Subsidiary have a valid and enforceable right to use all third party Intellectual Property and Confidential Information used or held
for use in the respective businesses of the Company and its Subsidiaries.

 

(c)           
To the knowledge of the Company, the conduct of the Company’s and each Subsidiary’s businesses as currently conducted
does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights
of any third party or any confidentiality obligation owed to a third party, and, to the Company’s knowledge, the Intellectual Property
and Confidential Information of the Company and each Subsidiary which are necessary for the conduct of Company’s and such Subsidiary’s
respective businesses as currently conducted or as currently proposed to be conducted are not being Infringed by any third party. There
is no litigation or order pending or outstanding or, to the Company’s knowledge, threatened, that seeks to limit or challenge or
that concerns the ownership, use, validity or enforceability of any Intellectual Property or Confidential Information of the Company and
its Subsidiaries and the Company’s and each Subsidiary’s use of any Intellectual Property or Confidential Information owned
by a third party, and, to the Company’s knowledge, there is no valid basis for the same.

 

(d)          
The consummation of the transactions contemplated hereby and by the other Note Documents will not result in the alteration, loss,
impairment of or restriction on the Company’s ownership or right to use any of the Intellectual Property or Confidential Information
which is necessary for the conduct of Company’s business as currently conducted or as currently proposed to be conducted.

 

(e)          
The Company has taken reasonable steps to protect the Company’s rights in its Intellectual Property and Confidential Information.
Each employee, consultant and contractor who has had access to Confidential Information which is necessary for the conduct of the Company’s
business as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of
such Confidential Information and has executed appropriate agreements that are substantially consistent with the Company’s standard
forms thereof. Except under confidentiality obligations, there has been no material disclosure of any of the Company’s Confidential
Information to any third party.

 

 

 

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6.9           
Compliance with Laws. Except as described in the SEC Reports or as set forth in the Disclosure Schedules, there are no actions,
suits or proceedings at law or in equity or by or before any Governmental Authority now pending or, to the knowledge of the Company, threatened
against or affecting the Company or any of its business, property or rights (i) that involve this Agreement or any Note Document or (ii)
as to which, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect in the Company. Neither the Company nor its Subsidiaries nor any of their respective properties or assets is in violation of, nor
will the continued operation of their properties and assets as currently conducted violate, any law, rule or regulation (including any
applicable environmental law, ordinance, code or approval) or any restrictions of record or agreements affecting the properties, or is
in default with respect to any judgment, writ, injunction, decree or order of any Governmental Authority, where such violation or default
could reasonably be expected to result in a Material Adverse Effect in the Company or its Subsidiaries. The Company possesses adequate
certificates, authorities or permits issued by appropriate Governmental Authorities necessary to conduct the business now operated by
it, except where such failure has not had and could not reasonably be expected to have a Material Adverse Effect, individually or in the
aggregate, and the Company has not received any notice of proceedings relating to the revocation or modification of any such certificate,
authority or permit that, if determined adversely to the Company, could reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate.

 

6.10         
Tax Returns. The Company has timely prepared and filed (or timely filed for an extension for) all tax returns required to
have been filed by the Company with all appropriate Governmental Authorities and timely paid all taxes shown thereon or otherwise owed
by it, other than taxes being contested in good faith and for which adequate reserves have been made on the Company’s financial
statements included in the SEC Reports. The charges, accruals and reserves on the books of the Company in respect of taxes for all fiscal
periods are adequate in all material respects, and there are no material unpaid assessments against the Company nor, to the Company’s
knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or audits by any federal,
state or local taxing authority except for any assessment which is not material to the Company, taken as a whole. All taxes and other
assessments and levies that the Company is required to withhold or to collect for payment have been duly withheld and collected and paid
to the proper Governmental Authority or third party when due, other than taxes being contested in good faith and for which adequate reserves
have been made on the Company’s financial statements included in the SEC Reports. There are no tax Liens or claims pending or, to
the Company’s knowledge, threatened against the Company or any of its assets or property.

 

6.11         
Rule 506 Compliance. To the Company’s knowledge, neither the Company nor any director, executive officer, other officer
of the Company participating in the offering, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities,
calculated on the basis of voting power, and any promoter connected with the Company in any capacity on the date hereof (each, an “Insider”)
is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a
“Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2)(i) or (d)(3) of the Securities
Act. The Company is not disqualified from relying on Rule 506 for any of the reasons stated in Rule 506(d) in connection with the issuance
and sale of the Securities to the Purchaser pursuant to this Agreement. The Company has exercised reasonable care, including without limitation,
conducting a factual inquiry that is appropriate in light of the circumstances, into whether any such disqualification under Rule 506(d)
exists. The Company has furnished to the Purchaser, a reasonable time prior to the date hereof, a description in writing of any matters
relating to the Company and the Insiders that would have triggered disqualification under Rule 506(d) but which occurred before September
23, 2013, in each case, in compliance with the disclosure requirements of Rule 506(e).

 

7.            
Representations and Warranties of the Purchasers. In connection with the transactions contemplated by this Agreement, each
Purchaser, severally and not jointly, hereby represents and warrants to the Company as follows:

 

7.1           
Authorization. Each Purchaser has full power and authority (and, if such Purchaser is an individual, the capacity) to enter
into this Agreement and to perform all obligations required to be performed by it hereunder. This Agreement, when executed and delivered
by each Purchaser, will constitute such Purchaser’s valid and legally binding obligation, enforceable in accordance with its terms,
except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws
of general application affecting enforcement of creditors’ rights generally, and (b) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies.

 

 

 

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7.2          
Purchase Entirely for Own Account. Each Purchaser acknowledges that this Agreement is made with such Purchaser in reliance
upon such Purchaser’s representation to the Company, which such Purchaser confirms by executing this Agreement, that the Notes,
and the Conversion Stock (collectively, the “Securities”) will be acquired for investment for such
Purchaser’s own account, not as a nominee or agent (unless otherwise specified on such Purchaser’s signature page hereto),
and not with a view to the resale or distribution of any part thereof, and that such Purchaser has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Agreement, each Purchaser further represents that such Purchaser
does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person
or to any third person, with respect to the Securities. If other than an individual, each Purchaser also represents it has not been organized
solely for the purpose of acquiring the Securities.

 

7.3          
Disclosure of Information; Non-Reliance. Each Purchaser acknowledges that it has received all the information it considers
necessary or appropriate to enable it to make an informed decision concerning an investment in the Securities. Each Purchaser further
represents that such Purchaser has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions
of the offering of the Securities. Each Purchaser confirms that the Company has not given any guarantee or representation as to the potential
success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities.
In deciding to purchase the Securities, each Purchaser is not relying on the advice or recommendations of the Company and such Purchaser
has made its own independent decision that the investment in the Securities is suitable and appropriate for such Purchaser. Each Purchaser
understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities or made any finding
or determination concerning the fairness or advisability of this investment.

 

7.4           
Investment Experience. Each Purchaser is an investor in securities of companies in the development stage and acknowledges
that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or
business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

 

7.5           
Accredited Investor. Each Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation
D promulgated under the Securities Act. Each Purchaser agrees to furnish any additional information requested by the Company to assure
compliance with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities.

 

7.6          
Restricted Securities. Each Purchaser understands that the Securities have not been, and will not be, registered under the
Securities Act or any state securities laws, by reason of specific exemptions under the provisions thereof which depend upon, among other
things, the bona fide nature of the investment intent and the accuracy of each Purchaser’s representations as expressed herein.
Each Purchaser understands that the Securities are “restricted securities” under U.S. federal and applicable state securities
laws and that, pursuant to these laws, such Purchaser must hold the Securities indefinitely unless they are registered with the Securities
and Exchange Commission and registered or qualified by state authorities, or an exemption from such registration and qualification requirements
is available. Each Purchaser acknowledges that the Company has no obligation to register or qualify the Securities for resale and further
acknowledges that, if an exemption from registration or qualification is available, it may be conditioned on various requirements including,
but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which
are outside of such Purchaser’s control, and which the Company is under no obligation, and may not be able, to satisfy.

 

7.7          
No Public Market. Each Purchaser understands that no public market now exists for the Note and that the Company has made
no assurances that a public market will ever exist for the Notes.

 

7.8          
No General Solicitation. Each Purchaser, and its officers, directors, employees, agents, equityholders or partners have
not either directly or indirectly, including through a broker or finder solicited offers for or offered or sold the Securities by means
of any form of general solicitation or general advertising within the meaning of Rule 502 of Regulation D under the Securities Act or
in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act. Each Purchaser acknowledges that
neither the Company nor any other person offered to sell the Securities to it by means of any form of general solicitation or advertising
within the meaning of Rule 502 of Regulation D under the Securities Act or in any manner involving a public offering within the meaning
of Section 4(a)(2) of the Securities Act.

 

 

 

    	 	9	 

     

    

 

7.9          
Residence. If the Purchaser is an individual, such Purchaser resides in the state or province identified in the address
shown on such Purchaser’s signature page hereto. If the Purchaser is a partnership, corporation, limited liability company or other
entity, such Purchaser’s principal place of business is located in the state or province identified in the address shown on such
Purchaser’s signature page hereto.

 

7.10        
Foreign Investors. If a Purchaser is not a United States person (as defined by Section 7701(a)(30) of the Internal
Revenue Code of 1986, as amended), such Purchaser hereby represents that it has satisfied itself as to the full observance of the laws
of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (a) the
legal requirements within its jurisdiction for the purchase of the Securities; (b) any foreign exchange restrictions applicable to
such purchase; (c) any governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, conversion, redemption, sale, or transfer of the Securities. Each such Purchaser’s
subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other
laws of such Purchaser’s jurisdiction. Each such Purchaser acknowledges that the Company has taken no action in foreign jurisdictions
with respect to the Securities.

 

8.            
Miscellaneous.

 

8.1           
Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement will inure to the
benefit of, and be binding upon, the respective successors and assigns of the parties; provided, however, that the Company may not assign
its obligations under this Agreement without the written consent of the Requisite Noteholders. This Agreement is for the sole benefit
of the parties hereto and their respective successors and permitted assigns, and nothing herein, express or implied, is intended to or
will confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

 

8.2           
Choice of Law. This Agreement and the Notes, and all matters arising out of or relating to this Agreement, whether sounding
in contract, tort, or statute will be governed by and construed in accordance with the internal laws of the State of Delaware, without
giving effect to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application
of the laws of any jurisdiction other than those of the State of Delaware.

 

8.3           
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together will be deemed to be one and the same agreement. Counterparts may be delivered via facsimile, email (including PDF or www.docusign.com)
or other transmission method, and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and
effective for all purposes.

 

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

 

8.5          
Notices. All notices and other communications given or made pursuant hereto will be in writing and will be deemed effectively
given: (a) upon personal delivery to the party to be notified; (b) when sent by email or confirmed facsimile; (c) five (5) days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications will be sent to the
respective parties at the addresses shown on the signature pages hereto (or to such email address, facsimile number or other address as
subsequently modified by written notice given in accordance with this Section 8.5).

 

8.6          
No Finder’s Fee. Each party represents that it neither is nor will be obligated to pay any finder’s fee, broker’s
fee or commission in connection with the transactions contemplated by this Agreement. Each Purchaser agrees to indemnify and to hold the
Company harmless from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising
out of the transactions contemplated by this Agreement (and the costs and expenses of defending against such liability or asserted
liability) for which each Purchaser or any of its officers, employees or representatives is responsible. The Company agrees to indemnify
and hold each Purchaser harmless from any liability for any commission or compensation in the nature of a finder’s or broker’s
fee arising out of the transactions contemplated by this Agreement (and the costs and expenses of defending against such liability or
asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

 

 

 

    	 	10	 

     

    

 

8.7           
Expenses. Each party will pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery
and performance of this Agreement.

 

8.8           
Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement,
the prevailing party will be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other
relief to which such party may be entitled.

 

8.9           
Entire Agreement; Amendments and Waivers. This Agreement, the Notes and the other documents delivered pursuant hereto constitute
the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof. The Company’s
agreements with each of the Purchasers are separate agreements, and the sales of the Notes to each of the Purchasers are separate sales.
Notwithstanding the foregoing, any term of this Agreement or the Notes may be amended and the observance of any term of this Agreement
or the Notes may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent
of the Company and the Requisite Noteholders. Any waiver or amendment effected in accordance with this Section 8.9 will be binding upon
each party to this Agreement and each holder of a Note purchased under this Agreement then outstanding and each future holder of all such
Notes.

 

8.10         
Effect of Amendment or Waiver. Each Purchaser acknowledges and agrees that by the operation of Section 8.9 hereof, the Requisite
Noteholders will have the right and power to diminish or eliminate all rights of such Purchaser under this Agreement and each Note issued
to such Purchaser.

 

8.11         
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties
agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible
to that under the provisions rendered unenforceable. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provisions, such provisions will be excluded from this Agreement and the balance of the Agreement will be interpreted as if such
provisions were so excluded and this Agreement will be enforceable in accordance with its terms.

 

8.12         
Transfer Restrictions.

 

(a)           
“Market Stand-Off” Agreement. Each Purchaser hereby agrees that it will not, without the prior written consent
of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company’s firm commitment
underwritten public offering under the Securities Act pursuant to which the Common Stock will be listed on a national securities exchange
(such offering, the “IPO”), and ending on the date specified by the Company and the managing underwriter(s) (such period
not to exceed one hundred eighty (180) days, or such other period as may be requested by the Company or an underwriter to accommodate
regulatory restrictions): (A) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option
or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any
Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock (whether such
units or any such securities are then owned by the Purchaser or are thereafter acquired); or (B) enter into any swap or other arrangement
that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities; whether any such transaction
described in clause (A) or (B) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing
provisions of this Section 8.12(a) will: (x) apply only to the IPO and will not apply to the sale of any shares to an underwriter pursuant
to an underwriting agreement; (y) not apply to the transfer of any units to any trust for the direct or indirect benefit of the Purchaser
or the immediate family of the Purchaser, provided that the trustee of the trust agrees to be bound in writing by the restrictions set
forth herein, and provided further that any such transfer will not involve a disposition for value; and (z) be applicable to the Purchasers
only if all officers and directors of the Company are subject to the same restrictions and the Company uses commercially reasonable efforts
to obtain a similar agreement from all members individually owning more than 5% of the outstanding Common Stock. Notwithstanding anything
herein to the contrary (including, for the avoidance of doubt, Section), the underwriters in connection with the IPO are intended third-party
beneficiaries of this Section 8.12(a) and will have the right, power and authority to enforce the provisions hereof as though they were
a party hereto. Each Purchaser further agrees to execute such agreements as may be reasonably requested by the underwriters in connection
with the IPO that are not inconsistent with this Section 8.12(a) or that are necessary to give further effect thereto.

 

 

 

    	 	11	 

     

    

 

In order to enforce
the foregoing covenant, the Company may impose stop transfer instructions with respect to each Purchaser’s registrable securities
of the Company (and the Company securities of every other person subject to the foregoing restriction) until the end of such period. Each
Purchaser agrees that a legend reading substantially as follows will be placed on all certificates representing all of such Purchaser’s
registrable securities of the Company (and the Company securities of every other person subject to the restriction contained in this Section
8.12(a)):

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD BEGINNING ON THE EFFECTIVE DATE OF THE COMPANY’S REGISTRATION STATEMENT FILED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES,
A COPY OF WHICH MAY BE OBTAINED AT THE COMPANY’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SECURITIES.

 

(b)          
Further Limitations on Disposition. Without in any way limiting the representations and warranties set forth in this Agreement,
each Purchaser agrees not to make any disposition of all or any portion of the Securities unless and until the transferee has agreed in
writing for the benefit of the Company to make the representations and warranties set out in Section 6 and the undertaking set out in
Section 8.12(a) of this Agreement and:

 

(i)            
there is then in effect a registration statement under the Securities Act covering such proposed disposition, and such disposition
is made in connection with such registration statement; or

 

(ii)          
such Purchaser has (A) notified the Company of the proposed disposition; (B) furnished the Company with a detailed statement of
the circumstances surrounding the proposed disposition; and (C) if requested by the Company, furnished the Company with an opinion of
counsel reasonably satisfactory to the Company that such disposition will not require registration under the Securities Act.

Each Purchaser agrees
that it will not make any disposition of any of the Securities to the Company’s competitors, as determined in good faith by the
Company.

 

(c)           
Legends. Each Purchaser understands and acknowledges that the Securities may bear the following legend:

 

THIS INSTRUMENT AND THE SECURITIES
ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT OR UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER
THE ACT.

 

8.13         
Exculpation among Purchasers. Each Purchaser acknowledges that it is not relying upon any person, firm, corporation or equityholder,
other than the Company and its officers and directors in their capacities as such, in making its investment or decision to invest in the
Company. Each Purchaser agrees that no other Purchaser, nor the controlling persons, officers, directors, partners, agents, equityholders
or employees of any other Purchaser, will be liable for any action heretofore or hereafter taken or not taken by any of them in connection
with the purchase and sale of the Securities.

 

8.14         
Acknowledgment. For the avoidance of doubt, it is acknowledged that each Purchaser will be entitled to the benefit of all
adjustments in the number or amount of securities of the Company as a result of any splits, recapitalizations, combinations or other similar
transactions affecting the Company’s securities underlying the Conversion Stock that occur prior to the conversion of the Notes.

 

 

 

    	 	12	 

     

    

 

8.15         
Further Assurances. From time to time, each of the parties agrees to execute and deliver such additional documents and to
provide such additional information as may reasonably be required to carry out the terms of this Agreement and the Notes and any agreements
executed in connection herewith or therewith.

 

8.16         
Waiver of Jury Trial. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION
HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY
FURTHER REPRESENTS AND WARRANTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

8.17         
Company Non-Waivers. Except as otherwise specifically provided herein, the Company, does not waive presentment, demand,
notice of nonpayment, protest and all other demands and notices in connection with the delivery, acceptance, performance or enforcement
of the Notes.

 

[SIGNATURE PAGES FOLLOW]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
this Convertible Note Purchase Agreement as of the date set forth above.

 

	 	MOSAIC IMMUNOENGINEERING, INC.
	 	 
	 	 
	 	By                                                        
	 	Name: Steven King
	 	Title: President and Chief Executive Officer

 

	 	Address:	Mosaic ImmunoEngineering Inc.
	 	 	19881 Brookhurst Street, C-245
	 	 	Huntington Beach, CA 92646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed
this Convertible Note Purchase Agreement as of the date set forth above.

 

 

 

 

	 	__________________________________
	 	Name: [PURCHASER NAME]
	 	 
	 	 
	 	 
	 	Address:
	 	[STREET]
	 	[CITY], [STATE] [ZIP CODE]
	 	Email Address: [EMAIL ADDRESS]
	 	Principal Amount $________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	15	 

     

    

 

SCHEDULE OF PURCHASERS

 

Initial Closing Date: [DATE], 2021

	Purchaser	Principal Amount of Promissory Note
	[NAME]	
    [PRINCIPAL AMOUNT].00

     

     

	TOTAL	[TOTAL AMOUNT].00

 

 

 

 

 

Subsequent Closing Date: [DATE], 2021

	Purchaser	Principal Amount of Promissory Note
	[NAME]	
    [PRINCIPAL AMOUNT].00

     

	TOTAL	[TOTAL AMOUNT].00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	16	 

     

    

 

EXHIBIT A

Form of Convertible Promissory Note

 

THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON
THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT.

 

CONVERTIBLE PROMISSORY NOTE

 

	No. CN-[NUMBER]	Date of Issuance
	$[PRINCIPAL AMOUNT]	[DATE], 2021

 

 

FOR VALUE RECEIVED,
Mosaic ImmunoEngineering Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of [PURCHASER
NAME] (the “Noteholder”), the principal sum of $[PRINCIPAL AMOUNT], together with interest thereon from the date of
this Note. Interest will accrue at a simple rate of eight percent (8.00%) per annum. Unless earlier converted into Conversion Stock pursuant
to Section 4 of that certain Convertible Note Purchase Agreement, dated [DATE], 2021, by and among the Company, the Noteholder and the
other parties thereto (the “Purchase Agreement”), the principal and accrued interest of this Note will be due and payable
by the Company at Maturity.

 

This Note is one of a series
of Notes issued pursuant to the Purchase Agreement, and shall be governed and construed in accordance with the terms and provisions thereof.
Capitalized terms not defined herein will have the meanings set forth in the Purchase Agreement.

 

1.           
Payment. The entire amount of this Note then outstanding and not converted into Conversion Stock shall be payable in full, together
with any and all accrued interest thereon, at Maturity.

 

(a)               
All payments will be made in lawful money of the United States of America at the principal office of the Noteholder, or at such
other place as the Noteholder may from time to time designate in writing to the Company. Payment will be credited first to accrued interest
due and payable, with any remainder applied to principal. Prepayment of principal, together with accrued interest, may not be made without
the written consent of the Requisite Noteholders, except in the event of a Corporate Transaction (as set forth in Section 4.2 of the Purchase
Agreement).

 

(b)              
Payment on Non-Business Days. Whenever any payment to be made shall be due on a Saturday, Sunday, federal or state holiday, or
a date on which banks in the State of California are authorized or required to be closed, such payment may be made on the next succeeding
business day.

 

2.           
Security. This Note is a general unsecured obligation of the Company.

 

3.           
Conversion of the Notes. This Note and any amounts due hereunder will be convertible into Conversion Stock in accordance
with the terms of Section 4 of the Purchase Agreement.

 

4.           
Amendments and Waivers; Resolutions of Dispute; Notice. The amendment or waiver of any term of this Note, the resolution
of any controversy or claim arising out of or relating to this Note and the provision of notice among the Company and the Noteholder will
be governed by the terms of the Purchase Agreement.

 

 

 

    	 	17	 

     

    

 

5.           
Successors and Assigns. This Note applies to, inures to the benefit of, and binds the respective successors and assigns
of the parties hereto; provided, however, that, except in connection with a Corporate Transaction, the Company may not assign its obligations
under this Note without the written consent of the Requisite Noteholders. Any transfer of this Note may be effected only pursuant to the
Purchase Agreement and by surrender of this Note to the Company and reissuance of a new note to the transferee. The Noteholder and any
subsequent holder of this Note receives this Note subject to the foregoing terms and conditions, and agrees to comply with the foregoing
terms and conditions for the benefit of the Company and any other Purchasers (or their respective successors or assigns).

 

6.           
Officers and Directors not Liable. In no event will any officer or Director of the Company be liable for any amounts due
and payable pursuant to this Note.

 

7.           
Limitation on Interest. In no event will any interest charged, collected or reserved under this Note exceed the maximum
rate then permitted by applicable law, and if any payment made by the Company under this Note exceeds such maximum rate, then such excess
sum will be credited by the Noteholder as a payment of principal.

 

8.           
Choice of Law. This Note, and all matters arising out of or relating to this Note, whether arising in contract, tort, or
statute shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflict
of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction
other than those of the State of Delaware.

 

9.           
Approval. The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved
the Company’s execution of this Note based upon a reasonable belief that the principal provided hereunder is appropriate for the
Company after reasonable inquiry concerning the Company’s financing objectives and financial situation. In addition, the Company
hereby represents that it intends to use the principal of this Note primarily for the operations of its business, and not for any personal,
family or household purpose.

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

 

 

IN WITNESS WHEREOF, the Company has executed this
Note as of the date set forth above.

 

 

	 	MOSAIC IMMUNOENGINEERING, INC.
	 	 
	 	 
	 	By:                                                                             
	 	Name: Steven King
	 	Title: President and Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	19Document

Exhibit 10.8

Form of Performance LTIP Unit Award Agreement 
This Performance LTIP Unit Award Agreement (the “Award Agreement”) is made and entered into as of March [__], 2021 by and between Ashford Hospitality Trust, Inc., a Maryland corporation (the “Company”), Ashford Hospitality Limited Partnership, a Delaware limited partnership (the “Partnership”) and [_________________] (the “Participant”).  All capitalized terms in this Award Agreement shall have the meanings assigned to them herein, or, if not so defined, as assigned to them in the Company’s 2021 Stock Incentive Plan and as the same may be amended from time to time (the “Plan”), or the Seventh Amended and Restated Agreement of Limited Partnership of the Partnership, as the same may be amended from time to time (the “Operating Agreement”), as applicable. 
Grant Date:  March [__], 2021
Total Number of LTIP Units: [insert MAXIMUM – note: 2021 AHT PLTIPs can vest up to 250% of target because of the TSR modifier], of which the “Target Number of LTIP Units” is [insert TARGET]
Performance Period:  January 1, 2021 – December 31, 2023, unless shortened to a Shortened Performance Period as defined in Section 5.1
1.Grant.  Pursuant to the terms and conditions of this Award Agreement and the terms and conditions of the Plan and the Operating Agreement, the Company hereby grants the Participant all rights, title and interest in the record and beneficial ownership of the Total Number of LTIP Units set forth above which shall remain subject to forfeiture to the extent the applicable  performance goals described in Section 2 (or as calculated pursuant to Section 5) are not achieved.  This grant of LTIP Units is made in consideration of the services to be rendered by the Participant to the Company, Ashford Inc. (“Advisor”) and/or their respective Affiliates and is subject to the terms and conditions of the Plan and the Operating Agreement.  It is intended that the LTIP Units granted hereunder will constitute “profits interests” for all U.S. federal tax purposes and as specifically described in Rev. Proc. 93-27, 1993-2 C.B. 343 and Rev. Proc. 2001-43, 2001-2 C.B. 191.
Notwithstanding the foregoing or anything to the contrary set forth in this Agreement or in the Plan, the Participant hereby expressly acknowledges and agrees that this grant of LTIP Units (and any rights associated therewith) has been approved and granted by the Committee subject to and conditioned upon the approval of the Plan by the Company’s stockholders at the Company’s 2021 Annual Meeting of Stockholders. If such stockholder approval is not obtained, the Participant further acknowledges and agrees that the LTIP Units (and any rights associated therewith) shall be forfeited by the Participant without consideration immediately following such 2021 Annual Meeting of Stockholders.

HOU:3658620.10

2.Vesting; Performance Goals.  Except as otherwise set forth in Section 5 below, the number of LTIP Units that vest shall be calculated as follows:

(i)  Subject to the Participant not experiencing a Termination of Service through the last day of the Performance Period or Shortened Performance Period, as applicable, the Participant shall be eligible to vest in a number of LTIP Units equal to the product of (x) the Target Number of LTIP Units multiplied by (y) the applicable Performance Multiplier.

(ii) Any LTIP Units that fail to vest upon the completion of the Performance Period (or in accordance with Section 5) shall be automatically forfeited for no consideration. For the purposes of this Award Agreement, “Termination of Service” shall mean the Participant’s termination of service or employment with the Company for any reason in a manner that constitutes a “separation from service” with the Company pursuant to the regulations under Section 409A of the Code.

a. Performance Multiplier.
 
(i)General. The “Performance Multiplier” shall equal the product of (x) the Base Multiplier (as defined below) multiplied by the TSR Modifier (as defined in Section 2.1(d), below). The “Base Multiplier” shall equal the sum of (A) the Hotel NOI Multiplier plus (B) the Debt-Preferred-TEV Multiplier, as defined in Section 2.1(b) and (c) below, respectively.

(ii)Hotel NOI Multiplier. The “Hotel NOI Multiplier” shall equal the product of (x) one-half (1/2), multiplied by (y) the Base Hotel NOI Multiplier. The “Base Hotel NOI Multiplier” shall be determined in accordance with the table below:

						
	If the Company’s Hotel NOI Is...	The Base Hotel NOI Multiplier Is...
	Less than $100,000,000	0
	$100,000,000 (“Threshold Hotel NOI”)
	0.5
	$200,000,000 (“Target Hotel NOI”)
	1.00
	$300,000,000 (“Maximum Hotel NOI”) or greater
	2.00

The Threshold Hotel NOI will be reduced by thirty percent (30%), the Target Hotel NOI will be reduced by fifty-five percent (55%), and the Maximum Hotel NOI will be reduced by eighty percent (80%), respectively, of Hotel NOI (as defined below, but calculated with respect to the corresponding figures reported in the Company’s earnings release for the fiscal year ending December 31, 2019) that is attributable to any hotel assets disposed of by the Company during the Performance Period or Shortened Performance Period, as applicable, as identified and calculated by the Committee. The Base Hotel NOI Multiplier shall be interpolated on a linear basis for achievement of Hotel NOI between the Threshold Hotel NOI and Target Hotel NOI, or Target Hotel NOI 
2

and Maximum Hotel NOI, levels. For purposes of this Award Agreement, “Hotel NOI” means the Company’s Hotel EBITDA, as reported in the Company’s earnings release for the fiscal year ending December 31, 2023, reduced by the Company’s “FF&E Reserve” for the fiscal year ending December 31, 2023 (as calculated by the Committee).

(iii)Debt-Preferred-TEV Multiplier. The “Debt-Preferred-TEV Multiplier” shall equal the product of (x) one-half (1/2), multiplied by (y) the Base Debt-Preferred-TEV Multiplier. The “Base Debt-Preferred-TEV Multiplier” shall be determined in accordance with the table below:

						
	If the Company’s Debt-Preferred-TEV Ratio Is...	The Base Debt-Preferred-TEV Multiplier Is...
	Greater than 95.0%	0
	95.0% (“Threshold Ratio”)
	0.5
	85.0% (“Target Ratio”)
	1.00
	75.0% (“Maximum Ratio”) or lesser
	2.00

The Base Debt-Preferred-TEV Multiplier shall be interpolated on a linear basis for achievement of a Debt-Preferred-TEV Ratio between the Threshold Ratio and Target Ratio, or Target Ratio and Maximum Ratio, levels. For purposes of this Award Agreement, “Debt-Preferred-TEV Ratio” means the quotient, expressed as a percentage, of (x) the sum of (A) the Company’s Net Debt (as defined below) plus (B) the aggregate par value of all outstanding shares of the Company’s preferred stock outstanding as of December 31, 2023, plus any accrued but unpaid dividends thereon, divided by (y) the sum of (1) the Company’s Net Debt plus (2) the aggregate par value of all outstanding shares of the Company’s preferred stock outstanding as of December 31, 2023, plus any accrued but unpaid dividends thereon, plus (3) the aggregate value of all outstanding shares of the Company’s Common Stock (including for this purpose any outstanding partnership units in the Company’s operating partnership) outstanding as of December 31, 2023 (calculated by multiplying the aggregate number of such outstanding shares of Common Stock and partnership units reported on Form 10-K for the fiscal year ending December 31, 2023 by the closing price of the Common Stock on such date, or, if such date is not a trading day, the closing price of the Common Stock on the immediately preceding trading day). “Net Debt” is defined as “indebtedness” less (w) “cash and cash equivalents,” (x) “restricted cash,” (y) financial assets “due from third-party hotel managers,” and (z) “marketable securities,” each as reported in the Company’s consolidated financial statements reported on Form 10-K for the fiscal year ending December 31, 2023.

(iv)TSR Modifier. The “TSR Modifier” shall be determined in accordance with the table below:

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	If the Company’s Annualized TSR Is...	The TSR Modifier Is...
	5% or less (“Threshold TSR”)
	75%
	9% (“Target TSR”)
	100%
	13% (“Maximum TSR”) or more
	125%

The TSR Modifier shall be interpolated on a linear basis for achievement of an Annualized TSR between the Threshold TSR and Target TSR, or Target TSR and Maximum TSR, levels. For purposes of this Award Agreement, “Annualized TSR” shall mean: (i) the sum of (A) 1.00 plus (B) the Total Stockholder Return (as defined below) for the Performance Period or the Shortened Performance Period, as applicable, with the sum of (A) and (B) raised to the power of 365/x, minus (ii) 1.00, where “x” is equal to the number of days that has elapsed in the Performance Period or the Shortened Performance Period, as applicable. “Total Stockholder Return” means, with respect to each share of Common Stock, a rate of return reflecting stock price appreciation, plus the reinvestment of dividends in additional shares of stock, from the beginning of the Performance Period through the end of the Performance Period or the Shortened Performance Period, as applicable. For purposes of calculating Total Stockholder Return, the beginning stock price will be based on the volume weighted average price of the Common Stock for the 20 trading days immediately preceding the first trading day of the Performance Period on the principal stock exchange on which the Common Stock then trades and the ending stock price will be based on the volume weighted average price of the Common Stock for the 20 trading days immediately preceding the last trading day of the Performance Period or the Shortened Performance Period, as applicable, on the principal stock exchange on which the Common Stock then trades (in each case, as calculated by the Committee). For this purpose, (x) dividends will be deemed reinvested at the closing price of the last day of the month after the “ex dividend” date, (y) all cash special dividends shall be treated like regular dividends, and (z) all spin-offs or share-based dividends shall be assumed to be sold on the issue date and reinvested in the issuing company that same date.

b.Calculations; Adjustments.  The Committee shall have the full and plenary authority to interpret this Award Agreement, and to calculate the achievement of the performance metrics described herein. The Committee’s determinations with respect to any such interpretations or calculations shall be final and binding upon the Participant. The Committee shall have the authority to make appropriate adjustments to the definitions of Hotel NOI, Debt-Preferred-TEV Ratio, and Annualized TSR, or the calculation of any of the foregoing, to the extent that the Committee deems necessary.
3.Distributions.  Prior to vesting of LTIP Units, all distributions with respect to LTIP Units shall be held back by the Partnership and shall be subject to the same vesting requirements and forfeiture restrictions as the underlying LTIP Units.  In the event that the underlying LTIP Units (or any portion thereof) vest, accumulated distributions thereon shall be deemed distributed to Participant in cash and such cash used by Participant immediately thereafter to purchase such number of Common Partnership Units (as defined in the Operating Agreement) with an aggregate fair market value as of 
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the date of vesting of the underlying LTIP Units equal to the amount of cash deemed distributed.  For the purposes of the forgoing sentence, the Common Partnership Units shall be valued using the volume weighted average price of the Company’s Common Stock for the twenty (20) consecutive trading days immediately preceding the applicable date of vesting determined in accordance with the Operating Agreement. 
4.Operating Agreement; Rights as LTIP Unitholder.  Participant acknowledges and agrees that Participant’s LTIP Units acquired pursuant to this Award Agreement shall be subject to this Award Agreement, the Plan and the Operating Agreement (a copy of which has been provided to Participant as of the Grant Date).  Participant acknowledges having received a copy of the Operating Agreement and having read the Operating Agreement in its entirety. Upon acceptance of Participant’s LTIP Units and execution of this Award Agreement, Participant will automatically become a party to the Operating Agreement as an LTIP Unitholder (as defined in the Operating Agreement) and will be bound by all of the terms and conditions of the Operating Agreement.  Participant agrees to execute, in connection with the LTIP Units granted hereunder, such further documentation as reasonably requested by the Company or by the Partnership (or its general partner) to evidence the admission of Participant to the Partnership as an LTIP Unitholder. Participant shall have all the rights of an LTIP Unitholder with respect to Participant’s LTIP Units upon the Grant Date, provided that all other conditions to the issuance, including the forfeiture provisions contained herein and in the Operating Agreement have been satisfied.
5.Acceleration of Vesting. 
a.Definitions.

 (i)    For the purposes of this Section 5, “Involuntary Termination” means (A) at a time that the Participant is otherwise willing and able to continue providing services, a Termination of Service by the Company without Cause and without the consent of Advisor (including in connection with the Participant’s termination as an officer of the Company or the termination of the Amended and Restated Advisory Agreement between the Company and Advisor dated June 10, 2015, as may be amended from time to time (the “Advisory Agreement”), other than a termination by the Company for the reasons described in Section 12(c)(ii)-(vi) of the Advisory Agreement) or (B) a Termination of Service by Participant for Good Reason.
(ii)    The “Shortened Performance Period” means the beginning of the Performance Period through the date immediately prior to the earliest to occur of (A) a Change of Control of the Company (as defined in the Plan), (B) a change of control of Advisor (as defined in any employment or other written agreement between the Participant and Advisor (the “Employment Agreement”)) if such change of control of Advisor results in the vesting of the LTIP Units under the terms of the Employment Agreement, (C) Participant’s Involuntary Termination, death or 
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Disability or (D) Participant’s involuntary termination of employment from Advisor if such involuntary termination results in the vesting of the LTIP Units under the terms of the Employment Agreement.
b.Change of Control. In the event of a Change of Control of the Company prior to the end of the Performance Period, (i) the Performance Multiplier shall be determined in accordance with Section 2 calculated based on actual performance during the Shortened Performance Period and (ii) the number of LTIP Units that vest in accordance with Section 2 using the Performance Multiplier for the Shortened Performance Period shall vest immediately prior to the closing of such Change of Control. If a change of control of Advisor (as defined in the Employment Agreement) causes vesting of the LTIP Units under the Employment Agreement prior to the end of the Performance Period, the LTIP Units shall vest in accordance with the Employment Agreement and, to the extent not specifically addressed in the Employment Agreement, the number of LTIP Units that vest shall be the number of LTIP Units that vest in accordance with Section 2 using the Performance Multiplier for the Shortened Performance Period (which shall be determined in accordance with Section 2 calculated based on actual performance during the Shortened Performance Period). 
c.Termination of Service. In the event of the Participant’s (i) Involuntary Termination or (ii) death or Disability prior to the end of the Performance Period, a number of LTIP Units shall vest on the date of such event equal to the greater of (A) the Target Number of LTIP Units and (B) the number of LTIP Units that vest in accordance with Section 2 using the Performance Multiplier for the Shortened Performance Period (which shall be determined in accordance with Section 2 calculated based on actual performance during the Shortened Performance Period). If an involuntary termination of employment from Advisor causes vesting of the LTIP Units under the Employment Agreement prior to the end of the Performance Period, the LTIP Units shall vest in accordance with the Employment Agreement and, to the extent not specifically addressed in the Employment Agreement, the number of LTIP Units that shall vest shall be the greater of (A) the Target Number of LTIP Units and (B) the number of LTIP Units that vest in accordance with Section 2 using the Performance Multiplier for the Shortened Performance Period (which shall be determined in accordance with Section 2 calculated based on actual performance during the Shortened Performance Period). 
6.Withholding. If the Company determines that it is obligated to withhold any tax in connection with the grant, vesting or settlement of the LTIP Units, the Participant must make arrangements satisfactory to the Company to pay or provide for any applicable federal, state, local and other withholding obligations. The Participant may satisfy any federal, state, local or other tax withholding obligation relating to the LTIP Units hereunder by tendering cash payment to the Company or by any of the following means: (i) authorizing the Company to withhold LTIP Units from the LTIP Units otherwise retained by the Participant hereunder; provided, however, that no LTIP Units are withheld with a value exceeding the maximum amount of tax required to be withheld by law; or 
6

(ii) delivering to the Company previously owned and unencumbered LTIP Units. The Company also has the right to withhold from any other compensation payable to the Participant.
7.Tax Liability.  Notwithstanding any action the Company takes with respect to any or all tax or other tax-related withholding with respect to LTIP Units (“Tax-Related Items”), the ultimate liability for all Tax-Related Items (and any associated penalties and interest) is and remains the Participant’s responsibility, and the Company (i) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of LTIP Units, distributions with respect to LTIP Units, or the subsequent sale or other disposition of any such LTIP Units acquired hereunder; and (ii) does not commit to structure the LTIP Units to reduce or eliminate the Participant’s liability for Tax-Related Items.
8.No Right to Continued Service. Neither the Plan nor this Award Agreement shall confer upon the Participant any right to be retained in any capacity as a service provider to the Company, Advisor or any of their respective Affiliates.  Further, nothing in the Plan or this Award Agreement shall be construed to limit the discretion of the Company, Advisor or any of their respective Affiliates to terminate the Participant’s service at any time, with or without Cause.  
9.Transferability. The Award and the LTIP Units may not be transferred otherwise than as permitted under the Operating Agreement.
10.Compliance with Law.  The grant and any forfeiture of LTIP Units hereunder shall be subject to compliance by the Company and the Participant with all applicable requirements of federal and state securities laws.  No LTIP Units shall be issued pursuant to this Award unless and until any then applicable requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.  The Participant understands that the Company is under no obligation to register any units with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.
11.Notices. Any notice required to be delivered to the Company under this Award Agreement shall be in writing and addressed to the General Counsel of the Company at the Company’s principal corporate offices.  Any notice required to be delivered to the Participant under this Award Agreement shall be in writing and addressed to the Participant at the Participant’s address as shown in the records of the Company at the time such notice is to be delivered. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.
12.Governing Law. This Award Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without regard to conflict of law principles.
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13.Interpretation. Any dispute regarding the interpretation of this Award Agreement shall be submitted by the Participant or the Company to the Committee for review.  The resolution of such dispute by the Committee shall be final and binding on the Participant and the Company.
14.Award Subject to Plan and Operating Agreement.  This Award Agreement is subject to the Plan as approved by the Company’s shareholders and the Operating Agreement.  The terms and provisions of the Plan and the Operating Agreement as each may be amended from time to time are hereby incorporated herein by reference.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan or a term or provision of the Operating Agreement, the applicable terms and provisions of the Plan or the Operating Agreement will govern and prevail.
15.Successors and Assigns.  The Company may assign any of its rights under this Award Agreement. This Award Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Award Agreement will be binding upon the Participant and the Participant’s beneficiaries, executors, administrators and the person(s) to whom this Award Agreement may be transferred in accordance with Section 9.
16.Severability. The invalidity or unenforceability of any provision of the Plan, the Operating Agreement or this Award Agreement shall not affect the validity or enforceability of any other provision of the Plan, Operating Agreement or this Award Agreement, and each provision of the Plan, Operating Agreement and this Award Agreement shall be severable and enforceable to the extent permitted by law.
17.Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of LTIP Units under this Award Agreement does not create any contractual right or other right to receive any LTIP Units or other awards in the future. Future awards, if any, will be at the sole discretion of the Company.  Any amendment, modification, or termination of the Plan or Operating Agreement shall not constitute a change or impairment of the terms and conditions of the Participant’s service with the Company, Advisor and/or their respective Affiliates.
18.No Guarantee of Tax Consequences.  The Company, its Affiliates, the Board and the Committee make no commitment or guarantee to the Participant (or to any other person claiming through or on behalf of the Participant) that any federal, state, local or other tax treatment will (or will not) apply or be available to any person eligible for benefits under this Award Agreement and assume no liability or responsibility whatsoever for the tax consequences to the Participant (or to any other person claiming through or on behalf of the Participant).  Notwithstanding anything herein to the contrary, the Company does not guarantee that any LTIP Unit intended to be a “profits interest” shall be treated as such for tax purposes, and none of the Company, any Affiliate thereof, the Board or the Committee shall indemnify any individual with respect to the tax consequences if they are not so treated. 
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19.Section 83(b) Election.  It shall be a condition subsequent to the grant of LTIP Units hereunder that the Participant makes a timely election under Section 83(b) of the Code within thirty (30) days following the Grant Date in substantially the form attached hereto as Exhibit A with respect to the LTIP Units and to consult with the Participant’s tax advisor to determine the tax consequences of filing such an election under Section 83(b) of the Code.  The Participant acknowledges that it is the Participant’s sole responsibility, and not the responsibility of the Company or any of its Affiliates, to timely file the election under Section 83(b) of the Code even if the Participant requests the Company or any of its Affiliates or any of their respective managers, directors, officers, employees and authorized representatives (including attorneys, accountants, consultants, bankers, lenders, prospective lenders or financial representatives) to assist in making such filing.  The Participant agrees to provide the Company, on or before the due date for filing such election, proof that such election has been timely filed.
20.Claw-back Policy. This Award (including any proceeds, gains or other economic benefit actually or constructively received by the Participant upon any receipt or exercise of any Award or upon the receipt or resale of any LTIP Units) shall be subject to the provisions of any claw-back policy implemented by the Company, Advisor or any of their respective Affiliates, as applicable, including, without limitation, any claw-back policy adopted to comply with the requirements of any federal or state laws and any rules or regulations promulgated thereunder, to the extent set forth in such claw-back policy.
21.Amendment. The Committee has the right, without the consent of the Participant, to amend, modify or terminate the Award, prospectively or retroactively; provided, that, such amendment, modification or termination shall not, without the Participant’s consent, materially reduce or diminish the value of the Award as of the date of such amendment or termination.
22.No Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation for purposes of calculating any severance, bonus, retirement, welfare, insurance or similar benefit, as applicable, except as otherwise provided in any employment agreement, service agreement or similar agreement in effect between the Company, Advisor or any of their respective Affiliates and the Participant.
23.Counterparts. This Award Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Award Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.
24.Headings. The headings in this Award Agreement are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.
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25.Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan, the Operating Agreement and this Award Agreement. The Participant has read and understands the terms and provisions thereof, and accepts the Award subject to all of the terms and conditions of the Plan, the Operating Agreement and this Award Agreement. 

[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement as of the date first written above.
						
		ASHFORD HOSPITALITY TRUST, INC.
		By: ___________________________________
Name: Robert G. Haiman
Title: Executive Vice President,
General Counsel & Secretary

						
		

ASHFORD OP GENERAL PARTNER  LLC, as general partner of Ashford Hospitality Limited Partnership

		By: ___________________________________
Name: Robert G. Haiman
Title: Executive Vice President,
General Counsel & Secretary

						
		

PARTICIPANT

		By: ___________________________________
Name: [______________________]

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Exhibit A

HOW TO MAKE A SECTION 83(b) ELECTION

    The attached Section 83(b) election form was prepared pursuant to Section 1.83-2 of the Treasury Regulations.  If you decide to make an election, you must do the following:

i.Fully complete, date and sign the election form as indicated.  Type or print your name under the signature line on the form.

ii.Within 20 days of the issuance of LTIP Units to you, file the executed form with the Internal Revenue Service Center where you file your federal income tax returns.  You are strongly urged to use certified mail, return receipt requested.  You may enclose a copy of the completed form with your filing and ask the IRS to file-stamp the copy and to return it to you.  You should enclose a self-addressed envelope for this purpose.

iii.Forward a copy of the completed election form to the Company’s offices.

iv.Keep a copy of the completed form for your files.

v.Timely file any forms or documents (if any) that may be necessary for state tax purposes.

Note that if you fail to file the completed election form with the IRS within 30 days following the issuance of the LTIP Units to you, the election will be invalid, and the tax consequences will be determined as if no elections were made.  There is no grace period for making the election.  None of the Company, the Partnership or the affiliate of either of the foregoing is responsible for the filing of your election.

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SECTION 83(b) ELECTION

The undersigned taxpayer makes this election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) and Treasury Regulations Section 1.83-2 promulgated thereunder:

1.    Taxpayer’s general information:
    *Name:                                 
    *Address:                                
                                        
                                        
*Social Security #/Taxpayer ID#:                

2.    Description of property with respect to which the election is being made:
    *    [_________] LTIP Units (as defined in the Seventh Amended and Restated Agreement of Limited Partnership, as amended from time to time (the “Partnership Agreement”), of Ashford Hospitality Limited Partnership, a Delaware limited partnership (the “Partnership”)), granted pursuant to the Partnership Agreement.
3.    Date on which the property was transferred:  March [__], 2021

4.    Taxable year for which the election is being made:  2021
5.    Nature of restriction or restrictions to which the property is subject:  the LTIP Units are subject to forfeiture and vesting based on achievement or certain financial metrics and the taxpayer’s continued employment or service relationship.
6.    The fair market value of the property at time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse):  $0.
7.    The amount (if any) paid for the property :  $0.

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8.    The amount to include in gross income is $_____________.  (The result of the amount reported in Item 6 minus the amount reported in Item 7.)
The undersigned taxpayer will file this election with the Internal Revenue Service office with which the taxpayer files his or her annual income tax return not later than 30 days after the date of the transfer of the property.  A copy of the election also will be furnished to the Company.  The undersigned is the person performing the services in connection with which the property was transferred.
The undersigned understands that the foregoing election may not be revoked except with the consent of the Internal Revenue Commissioner.
Dated:                
Signature:___________________________
Print Taxpayer Name:___________________________
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