Document:

ghmp_ex101.htm

EXHIBIT 10.1
  
 MEMBERSHIP INTEREST PURCHASE AGREEMENT
  
 THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of the 1st day of April, 2021, by and between Kenneth M. Morgan, BLUE WATER & ROOSTER, INC., a North Carolina corporation, and CREEKSIDE SPRINGS, LLC, a Pennsylvania limited liability company (collectively “Sellers”), and Good Hemp, Inc., a Nevada corporation (“Buyer”).Capitalized terms used and not otherwise defined herein shall have the definitions assigned thereto in Section 9 below.
  
 R E C I T A L S
  
 WHEREAS, Buyer desires to acquire certain membership interests and business operations owned by Sellers, and Sellers are willing to sell such membership interests and business operations to Buyer, on the terms and conditions set forth in this Agreement.
  
 A G R E E M E N T
  
 NOW, THEREFORE, the parties, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree as follows:
  
 1. MEMBERSHIP INTEREST PURCHASE; PURCHASE PRICE.
  
 	  
	 1.1. 
	 Membership Interest Purchase. Subject to the provisions of Section 1.2 below, on the Closing Date (as hereinafter defined), Buyer agrees to acquire, and Sellers agree to convey, transfer and deliver to Buyer, one hundred percent (100%) of Sellers’ membership interests, rights, title, and interest in and to Diamond Creek Group, LLC, a North Carolina limited liability company (such company the “Company,” and such membership interests the “Interests”), which operates an alkaline water business (the “Business”) and possesses certain assets used directly in connection with or otherwise associated with the Business (the “Business Assets”).The Business Assets as of Closing shall include all tangible and intangible property related to the Business, including equipment, inventory, customer lists, records, goodwill and other intangible assets, bank accounts (including its bank account), furniture, computers, office supplies and related goodwill, policy manuals, price lists, and customer lists.

	  
	  
	  

	  
	 1.2. 
	 Company’s Liabilities and Obligations. Buyer shall not be obligated to assume, and shall not be deemed to have assumed, any of the liabilities and obligations of any of the Sellers related to the Business or otherwise, and Sellers represent that the liabilities and obligations identified on Schedule 1 attached hereto are the only obligations related to the Business Assets for which Company is liable.

	  
	  
	  

	  
	 1.3. 
	 Purchase Price. In consideration for the transfer of Sellers’ Interests of the Company, Buyer shall deliver to Sellers the purchase price of $690,000.00 (the “Purchase Price”).The Purchase Price will be paid as follows:

 
  
 	  
	 1.3.1. 
	 At or within 24 hours of Closing, Buyer will cause a payment of $90,000 in cash, via wire, certified check, or otherwise readily available funds to be paid to the Company for purposes of acquiring the rights to certain equipment and membership interests as set forth in Sections 2.2.1 and 2.2.2 below, which shall be titled in the name of the Company as of the Closing, and

	  
	  
	  

	  
	 1.3.2. 
	 At or within 24 hours of Closing, Buyer will cause a payment of $410,000 in cash, via wire, certified check or otherwise readily available funds to be paid to the Sellers in proportion to their membership interests in the Company (i.e., 45% to Kenneth M. Morgan, 45% to BLUE WATER & ROOSTER, INC., and 10% to CREEKSIDE SPRINGS, LLC).

	  
	  
	  

	  
	 1.3.3. 
	 By April 21, 2021, Buyer will cause a payment of $190,000 in cash, via wire, certified check or otherwise readily available funds to be paid to the Sellers in proportion to their membership interests in the Company (i.e., 45% to Kenneth M. Morgan, 45% to BLUE WATER & ROOSTER, INC., and 10% to CREEKSIDE SPRINGS, LLC).

 
   
 	 
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 2. CLOSING.
  
 	  
	 2.1. 
	Closing. 

 
  
 	  
	 2.1.1. 
	 Closing Date. Subject to the satisfaction of the conditions set forth herein, the transaction which is the subject of this Agreement shall be closed on April 1, 2021, or such other date as agreed to by the parties (the “Closing” and/or “Closing Date”).

	  
	  
	  

	  
	 2.1.2. 
	 Effect. The parties acknowledge that after Closing, the Company shall be owned 100% by Buyer, and Sellers shall have no rights or other interest in the Company, shall not receive any payment, profit or other distributions from Company, and shall have no further right to any of the Company’s assets, including its book of business, regardless of whether such asset became an asset of the Company before or after Closing.

 
  
 	  
	 2.2. 
	Deliveries by Sellers. At the Closing, Sellers shall deliver the following:

 
  
 	  
	 2.2.1. 
	 Confirmation that the injection equipment necessary to manufacture hemp-infused water has been purchased by the Company and that the Company has paid $47,000 to English Mountain Springs Inc. as consideration for such purchase.

	  
	  
	  

	  
	 2.2.2. 
	 Confirmation that the Company has purchased Drew Sewell’s ownership of Quantum Distributing, LLC, and that the Company has paid $43,000 to Mr. Sewell as consideration for such purchase.

	  
	  
	  

	  
	 2.2.3. 
	 An original counterpart of the Nondisclosure and Noncompetition Agreement, in the form attached hereto as Exhibit B, executed by Kenneth M. Morgan.

	  
	  
	  

	  
	 2.2.4. 
	 All documentation required, if any, to permit Buyer to continue to operate the Business.

	  
	  
	  

	  
	 2.2.5. 
	 Such other documents, including certificates and third-party consents or releases, as may be required hereunder or as reasonably requested by Buyer to complete the transactions contemplated in this Agreement.

 
  
 	  
	 2.3. 
	 Deliveries by Buyer. At the Closing, Buyer will cause payment to Sellers to be initiated pursuant to Section 1.3 and will deliver the following:

 
  
 	  
	 2.3.1. 
	 An original counterpart of the Nondisclosure and Noncompetition Agreement, in the form attached hereto as Exhibit A, executed by the Buyer.

	  
	  
	  

	  
	 2.3.2. 
	Such other documents, including certificates and permits, as may be required hereunder or as reasonably requested by Sellers to complete the transactions contemplated in this Agreement.

 
   
 	 
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 3. SELLERS’ REPRESENTATIONS AND WARRANTIES. Sellers represent and warrants to Buyer that the following are true, correct and complete as of the date of this Agreement:
  
 	  
	 3.1. 
	 Authority. Sellers have all requisite right, power and authority to: (i) execute and deliver this Agreement and its related documents and perform its obligations hereunder and thereunder, and (ii) consummate the transactions contemplated in this Agreement. There are no agreements, contracts or commitments to which the Sellers are a party that would prohibit or restrict the transactions contemplated under this Agreement. No consent, approval, order, or other authorization of any governmental or regulatory authority is required with respect to Sellers’ execution and delivery of this Agreement or any related document, or consummation of the transactions contemplated herein or therein. When executed and delivered by Sellers, this Agreement constitutes the valid and binding obligation of Sellers enforceable in accordance with its terms.

	  
	  
	  

	  
	 3.2. 
	 No Encumbrances. Sellers’ Interests have not been pledged as security for any obligation or otherwise encumbered.

	  
	  
	  

	  
	 3.3. 
	 Organization; Good Standing; Qualification. The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of North Carolina, and has all requisite power and authority to own and operate its properties and assets and to carry on its business as now conducted and as presently proposed to be conducted. 

	  
	  
	  

	  
	 3.4. 
	 Capitalization and Voting Rights. Sellers are currently the only owners of the Company, and after the Closing, Buyer will be the sole owner of the Company. At the Closing, the Interests shall have been duly authorized and validly issued, fully paid and nonassessable, and issued in accordance with the registration or qualification provisions of the Securities Act of 1933, as amended (the “Securities Act”), and any relevant state securities laws, or pursuant to valid exemptions therefrom. There are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal) or agreements for the purchase or acquisition from the Company of any of its ownership interests or other securities or interests. Except for its Operating Agreement, the Company is not a party to or subject to any agreement or understanding that affects or relates to the voting or giving of written consents with respect to any security or the voting by shareholder or officer of the Company.

	  
	  
	  

	  
	 3.5. 
	 Offering. The transfer of the Interests as contemplated by this Agreement is exempt from the registration requirements of the Securities Act, and neither Sellers, the Company, nor any authorized agent acting on their or its behalf will take any action hereafter that would cause the loss of such exemption.

	  
	  
	  

	  
	 3.6. 
	 Books and Records. The books and records of the Company are, and have been, maintained in the usual, regular, ordinary and appropriate manner by the Company, and all of the transactions of the Company are properly reflected therein.

	  
	  
	  

	  
	 3.7. 
	 Ownership of Business Assets; Condition of Tangible Business Assets. At Closing, Buyer shall acquire all of Sellers’ right, title, and interest in the Company, which Company shall own the Business Assets, free and clear of Encumbrances, and in “AS-IS” condition, except as otherwise set forth in Schedule 1.The Business Assets are in good condition and repair, subject to ordinary wear and tear, and are adequate and fit for the uses for which they are intended or being used. 

	  
	  
	  

	  
	 3.8. 
	 Transaction Not a Breach. The execution and delivery of this Agreement and its related documents, the performance by Sellers hereunder, and the consummation of the transactions described herein, will not conflict with or violate (i) any law, ordinance, regulation, order, award, judgment, injunction or decree applicable to Sellers or to the Business Assets, or (ii) conflict with or result in a breach of or constitute a default under any of the terms, conditions or provisions of the articles of incorporation, bylaws, or other instruments of formation or organization of Sellers.

 
   
 	 
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	 3.9. 
	 Listings and Other Data. All receivable listings, customer and supplier lists and all other information, reports and data made available or provided to Buyer by Sellers are true, correct, and accurate in all material respects as of the date provided or made available, as of the date of this Agreement. Sellers have no present knowledge of any intent of any current customer or vendor to modify or terminate any of its outstanding orders or contracts, and Sellers have received no notice to such effect.

	  
	  
	  

	  
	 3.10. 
	 Taxes and Tax Returns. Sellers have paid all federal, state, or local taxes and have filed all Tax Returns relating to the Business that they or the Company was required to have paid or filed, and such returns are true and correct in all material respects.

	  
	  
	  

	  
	 3.11. 
	 Litigation; Compliance with Laws; Licenses and Permits. There is no Proceeding pending or, to the knowledge of Sellers, threatened against or involving Sellers, the Company, Business or the Business Assets, or the propriety of this Agreement or any of the transactions contemplated hereby, at law or in equity, or before or by any court, arbitrator or governmental authority, and the Business is not being operated under or subject to any order, final non-appealable judgment, decree, license or injunction of any court, arbitrator or governmental authority. 

	  
	  
	  

	  
	 3.12. 
	 Absence of Adverse Changes. There has been no material adverse change, or any event, condition or occurrence that is reasonably likely to result in a material adverse change, to the condition of the Business Assets or the business operations of the Business.

	  
	  
	  

	  
	 3.13. 
	 Contracts. Sellers have made available or been willing to provide to Buyer true and complete copies of all assumed contracts, if any, including without limitation all current customer contracts relating to the Business. There are no material agreements relating to the Business, whether verbal or written, that have not been disclosed to Buyer. All of the assumed contracts are in full force and effect and are valid and enforceable according to their terms, and there are no material breaches or defaults thereunder, and no condition exists that would cause, whether by passage of time or otherwise, a breach or default thereunder. Sellers have not entered into any agreement or understanding, whether written or oral, that waives any of their respective rights under any of such assumed contracts.

	  
	  
	  

	  
	 3.14. 
	 Environmental Issues. In connection with the Business or at the business location, Sellers have not transported, stored, maintained, used, manufactured or released any hazardous material or other environmentally sensitive material or substance in violation of any applicable legal or regulatory requirement.

	  
	  
	  

	  
	 3.15. 
	 Solvency. Neither Sellers nor the Business have been the subject of any bankruptcy proceedings (whether voluntary or involuntary), made an assignment for the benefit of creditors, been adjudicated bankrupt or insolvent, petitioned for or been assigned any receiver or trustee relating to the Business or any of the Business Assets, commenced any reorganization or restructuring of debt, or otherwise failed to fulfill its payment obligations in the ordinary course. None of the above has been commenced or threatened against Sellers or the Business.

	  
	  
	  

	  
	 3.16. 
	 Brokers. Sellers have not engaged or incurred any unpaid liability (for any brokerage fees, finders’ fees, commissions or otherwise) to, any broker, finder or agent in connection with the transactions contemplated by this Agreement.

	  
	  
	  

	  
	 3.17. 
	 Disclosure. No representation or warranty by Sellers and no document furnished by Sellers pursuant to this Agreement or otherwise in connection herewith contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make the statements contained therein, in light of the circumstances under which made, not misleading.

 
   
 	 
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 4. BUYER’S REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants to Sellers that the following are true, correct and complete as of the date of this Agreement:
  
 	  
	 4.1. 
	 Authority. Buyer has all requisite right, power and authority to: (i) execute and deliver this Agreement and its related documents and perform his obligations hereunder and thereunder, and (ii) consummate the transactions contemplated in this Agreement. There are no agreements, contracts, or commitments to which Buyer is a party that would prohibit or restrict the transactions contemplated under this Agreement. No consent, approval, order, or other authorization of any governmental or regulatory authority is required with respect to Buyer’s execution and delivery of this Agreement or any related document, or consummation of the transactions contemplated herein or therein. When executed and delivered by Buyer, this Agreement constitutes the valid and binding obligation of Buyer enforceable in accordance with its terms.

	  
	  
	  

	  
	 4.2. 
	 Transaction Not a Breach. The execution and delivery of this Agreement and its related documents, the performance by Buyer hereunder, and the consummation of the transactions described herein, will not conflict with or violate (i) any law, ordinance, regulation, order, award, judgment, injunction or decree applicable to Buyer, or (ii) conflict with or result in a material breach of any contract, agreement, or other instrument, obligation or understanding of any nature to which Buyer is a party or by which Buyer is bound or affected.

	  
	  
	  

	  
	 4.3. 
	 Solvency. Buyer has not been the subject of any bankruptcy proceedings (whether voluntary or involuntary), made an assignment for the benefit of creditors, been adjudicated bankrupt or insolvent, petitioned for or been assigned any receiver or trustee relating to his assets, commenced any reorganization or restructuring of debt, or otherwise failed to fulfill his payment obligations in the ordinary course. None of the above has been commenced or threatened against Buyer.

	  
	  
	  

	  
	 4.4. 
	 Brokers. Buyer has not engaged, or incurred any unpaid liability (for any brokerage fees, finders’ fees, commissions or otherwise) to, any broker, finder or agent in connection with the transactions contemplated by this Agreement.

	  
	  
	  

	  
	 4.5. 
	 Listings and Other Data. All receivable listings, customer lists and all other information, reports and data made available or provided to Sellers by Buyer are true, correct, and accurate in all material respects as of the date provided or made available, as of the date of this Agreement.

	  
	  
	  

	  
	 4.6. 
	 Litigation. There is no Proceeding pending or, to the knowledge of Buyer, threatened against or involving Buyer, the propriety of this Agreement or any of the transactions contemplated hereby, at law or in equity, or before or by any court, arbitrator or governmental authority, that could materially affect this Agreement. 

	  
	  
	  

	  
	 4.7. 
	 Disclosure. No representation or warranty by Buyer and no document furnished by Buyer pursuant to this Agreement or otherwise in connection herewith contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make the statements contained therein, in light of the circumstances under which made, not misleading.

 
   
 	 
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	 4.8. 
	Representations Regarding the Acquisition of the Interests.

 
   
 (a) The Buyer understands the speculative nature and the risks of investments associated with the Company and confirms that it is able to bear the risk of the investment;
  
 (b) The Buyer has had the opportunity to ask questions of the Sellers and receive additional information about the Company, or could acquire it without unreasonable effort or expense necessary to evaluate the merits and risks of any such purchase. Further, the Buyer has been given an opportunity to question the Sellers and receive related documentation to the purchase;
  
 (c) The Buyer has sufficient knowledge and experience in financial and business matters, and is sufficiently familiar with investments of the type represented by the Interests, including familiarity with previous private and public purchases of speculative and restricted securities, that it is capable of evaluating the merits and risks associated with purchase of the Interests; 
  
 (d) In evaluating the merits of the purchase of the Interests, Buyer has relied solely on his, her or its own investigation concerning the Company and has not relied upon any representations provided by the Sellers;
  
 (e) The Buyer and its principals have not: (a) been party to any adverse proceeding brought by the SEC or any similar state agency; (b) any material criminal proceeding regarding the purchase or sale of securities or other crimes, excluding only misdemeanor crimes; or (c) filed bankruptcy proceedings within the past five years;
  
 (f) The Buyer is able to pay his, her or its debts as they become due, and the Buyer (a) is not currently insolvent; (b) has made no general or other assignment for the benefit of creditors; and (c) is not party to any material proceeding that would have an adverse effect on the Buyer’s assets; and
  
 (g) The funds that the Buyer is utilizing to purchase the Interests being acquired hereunder are lawful funds of the Buyer that were earned or acquired by or paid to the Buyer for lawful purposes. 
  
 5. ADDITIONAL COVENANTS.
  
 	  
	 5.1. 
	 Expenses. Unless expressly stated otherwise herein, each of Buyer and Sellers will bear their own respective costs and expenses incurred in connection with the preparation and execution of this Agreement and its related documents, and the consummation of the transactions contemplated herein, including without limitation all legal fees and expenses, and fees arising from accountants, tax and financial advisors. Notwithstanding the foregoing, each of Buyer and Sellers acknowledge and agree as follows: (i) that the Buyer has engaged Brunson Chandler & Jones, PLLC, to prepare documentation, including this Agreement, for the closing of the transactions contemplated herein; (ii) Brunson Chandler & Jones, PLLC, and its attorneys and staff, do not represent Sellers, and Sellers are strongly recommended to, entitled to and has had an opportunity to obtain counsel regarding this transaction and the related documentation; (iii) Buyer will be responsible for the fees of Brunson Chandler & Jones, PLLC for preparation of this Agreement; (iv) Brunson Chandler & Jones, PLLC, and its attorneys and staff have been engaged to prepare the documentation for this transaction only and have made no examinations or representations regarding the Business, the terms of this transaction, or any legal or practical issues related to the Business; (v) Brunson Chandler & Jones, PLLC is hereby indemnified from all future litigation, and Buyer and Sellers shall look to the other parties exclusively to remedy any future disputes related to this transaction or these documents; (vi) all parties have reviewed all the documents related to this transaction and understand the responsibilities and terms set forth herein; (vii) all parties have had opportunities to ask questions and receive all due diligence from the other parties, and their counsel, regarding this transaction.

 
   
 	 
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	 5.2. 
	Confidentiality.

 
   
 	  
	 5.2.1. 
	 Each party agrees that it will (i) not disclose the other party’s Confidential Information to any third party; and (ii) protect all Confidential Information of the other party from unauthorized use, access, or disclosure in the same manner as it protects its own Confidential Information of a similar nature, and in no event with less than reasonable care. Upon the disclosing party’s written request, the receiving party will promptly return any Confidential Information identified in the request to the disclosing party. “Confidential Information” shall mean any information that is proprietary or non-public regarding any party, including without limitation, customer and vendor lists, business plans, network design and structure, and financial information. Confidential Information shall include the terms of this Agreement.

	  
	  
	  

	  
	 5.2.2. 
	 The foregoing restrictions will not apply to information that: (i) is or becomes generally known or available by publication, commercial use or otherwise through no fault of the receiving party or of any third party with a duty to keep such information confidential; (ii) is known to the receiving party at the time of disclosure without violation of any confidentiality restriction and without any restriction on the receiving party’s further use or disclosure; or (iii) is independently developed by the receiving party.

 
  
 	  
	 5.3. 
	 Publicity; Press Releases. The parties agree to consult with each other in good faith concerning any public reports, statement, press releases or other publicity (“Publicity”) regarding this Agreement or the transactions hereunder, but in no case will either party disclose in connection with any such Publicity any financial aspect of the Agreement or the transactions hereunder (including without limitation the Purchase Price) without the other party’s prior written consent; provided, however that any party shall be entitled to give notices or provide information regarding this Agreement or the transactions to governmental or regulatory authorities, creditors, legal and financial advisors, and others as legally required; and further provided, that nothing in this section shall prohibit Buyer from filing the required Current Report on Form 8-K with the SEC regarding the transactions covered by this Agreement, or from issuing a press release or other Publicity indicating new ownership of the Business.

	  
	  
	  

	  
	 5.4. 
	 Business Name. Upon any change of majority control in the Business, or at the mutual agreement of the parties, the parties agree to work together in good faith following the Closing to obtain the transfer of the business name to Buyer, including without limitation to execute and file any documents required by applicable laws, rules and regulations.

 
   
 6. CONDITIONS PRECEDENT.
  
 	  
	 6.1. 
	 Conditions Precedent to Buyer’s Obligations. The obligations of Buyer to consummate the transactions contemplated hereunder and to proceed with the Closing are subject to the fulfillment of the following conditions, any of which may be waived in whole or in part by Buyer in writing.

 
    
 	  
	 6.1.1. 
	 Accuracy of Representations and Warranties. The representations and warranties of Sellers contained in Section 3 of this Agreement shall be true, complete, and accurate in all material respects as of the Closing Date.

	  
	  
	  

	  
	 6.1.2. 
	 Compliance with Agreement. Sellers shall have complied with all obligations, agreements, commitments and covenants, and shall have fulfilled all conditions, required by this Agreement and its related documents to be performed or complied with on or prior to the Closing Date.

 
  
 	 
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	 6.1.3. 
	 Authority; Third-Party Consents. All actions necessary to authorize the execution, delivery, and performance hereunder by Sellers shall have been undertaken and completed. Any filings, registrations, notices, consents, releases and approvals required by Sellers from any governmental entity or other third party for the performance of Sellers’ obligations hereunder shall have been obtained. To the extent that any of such consents or approvals for any contract or obligation to be assumed by Buyer have not been obtained prior to the Closing, and Buyer elects to close the transactions hereunder prior to receiving any such consent or approval, Sellers and Buyer each agree to exercise best efforts to obtain such consent or approval as soon as reasonably feasible following the Closing, and Sellers agree in the meantime to facilitate Buyer’s receipt of the benefit of such assumed contracts and Buyer’s payment of any amounts due under the applicable assumed contracts until such consent or approval has been obtained.

	  
	  
	  

	  
	 6.1.4. 
	 Business Location. As set forth in Section 2.2.4, any documentation necessary to ensure Company’s continued occupancy and use of the Company’s current office location shall have been obtained.

	  
	  
	  

	  
	 6.1.5. 
	 Reasonable Satisfaction. The form and substance of all certificates, notices, actions, and documents required to consummate the transactions contemplated hereunder shall have been reasonably satisfactory to Buyer and its counsel.

 
    
 	  
	 6.2. 
	 Conditions Precedent to Sellers’ Obligations. The obligations of Sellers to consummate the transactions contemplated hereunder and to proceed with the Closing are subject to the fulfillment of the following conditions, any of which may be waived in whole or in part by Sellers in writing.

 
    
 	  
	 6.2.1. 
	 Accuracy of Representations and Warranties. The representations and warranties of Buyer contained in Section 4 of this Agreement shall be true, complete, and accurate in all material respects as of the Closing Date.

	  
	  
	  

	  
	 6.2.2. 
	 Compliance with Agreement. Buyer shall have complied with all obligations, agreements, commitments and covenants, and shall have fulfilled all conditions, required by this Agreement and its related documents to be performed or complied with on or prior to the Closing Date.

	  
	  
	  

	  
	 6.2.3. 
	 Authority; Third-Party Consents. All actions necessary to authorize the execution, delivery, and performance hereunder by Sellers shall have been undertaken and completed. Any filings, registrations, notices, consents, releases and approvals required by Sellers from any governmental entity or other third party for the performance of Sellers’ obligations hereunder shall have been obtained. To the extent that any of such consents or approvals for any contract or obligation to be assumed by Buyer have not been obtained prior to the Closing, and Buyer elects to close the transactions hereunder prior to receiving any such consent or approval, Sellers and Buyer each agree to exercise best efforts to obtain such consent or approval as soon as reasonably feasible following the Closing, and Sellers agree in the meantime to facilitate Buyer’s receipt of the benefit of such assumed contracts and Buyer’s payment of any amounts due under the applicable assumed contracts until such consent or approval has been obtained.

	  
	  
	  

	  
	 6.2.4. 
	 Reasonable Satisfaction. The form and substance of all certificates, notices, actions, and documents required to consummate the transactions contemplated hereunder shall have been reasonably satisfactory to Sellers and its counsel.

 
    
 	 
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 7. INDEMNIFICATION.
   
 	  
	 7.1.
	 Indemnification by Sellers. Sellers shall defend, indemnify and hold harmless Buyer and each of Buyer’s officers, directors, shareholders, employees, counsel, agents, and their respective successors and assigns (collectively, the “Buyer Indemnitees”) from and against, and shall reimburse the Buyer Indemnitees for, each and every Loss incurred by any Buyer Indemnitee, directly or indirectly, arising out of or in connection with: (i) any material inaccuracy in any representation or warranty of Sellers hereunder; (ii) any material breach or nonfulfillment of any covenant, agreement or other obligation of Sellers under this Agreement or any related documents; (iii) any liability or similar claim caused by the actions of the Sellers relating to business operations of the Business prior to Closing; or (iv) any debt, liability, or other obligation of Sellers owing to the actions or responsibility of Sellers arising (or relating to the period) prior to Closing, except for obligations (if any) assumed by Buyer hereunder, or otherwise expressly accepted by Buyer in writing hereafter. Buyer shall be entitled to offset against any amount owed by Buyer to Sellers under this Agreement or any related document, any amounts owed by Sellers to Buyer under this Section 7.1. 

	  
	  
	  

	  
	 7.2. 
	 Indemnification by Buyer. Buyer shall defend, indemnify and hold harmless Sellers and each of Sellers’ officers, directors, shareholders, employees, counsel, agents, and their respective successors and assigns (collectively, the “Sellers Indemnitees”) from and against, and shall reimburse the Sellers Indemnitees for, each and every Loss incurred by any Sellers Indemnitee, directly or indirectly, arising out of or in connection with: (i) any material inaccuracy in any representation or warranty of Buyer hereunder; (ii) any material breach or nonfulfillment of any covenant, agreement or other obligation of Buyer under this Agreement or any related documents; (iii) any liability or similar claim relating to business operations of the Business after Closing; or (iv) any debt, liability, or other obligation of Buyer arising (or relating to the period) after Closing, except for obligations (if any) assumed by Buyer hereunder, or otherwise expressly accepted by Buyer in writing hereafter.

	  
	  
	  

	  
	 7.3. 
	 Indemnification Procedure. If any Proceeding shall be brought or asserted against a party entitled to indemnification (or any successor thereto) pursuant to Sections 7.1 or 7.2 (each, an “Indemnitee”) in respect of which indemnity may be sought under this Section 7 from an indemnifying party or any successor thereto (each, an “Indemnitor”), the Indemnitee shall give prompt written notice of such Proceeding to the Indemnitor. The Indemnitee shall, reasonably and in good faith, assist and cooperate in the defense thereof. Notwithstanding anything herein to the contrary, the Indemnitor shall not, without the Indemnitee’s prior written consent, settle or compromise any Proceeding or consent to the entry of judgment with respect thereto.

 
  
 8. MISCELLANEOUS.
   
 	  
	 8.1. 
	 Notices. Any notices from one party to another shall be deemed sufficiently given upon delivery (with the return receipt, the delivery receipt, or the affidavit of messenger), refusal by addressee or notice to the recipient from the Post Office that such notice is undeliverable, if such notice has been mailed by United States registered or certified mail, postage prepaid, or delivered by overnight courier addressed to:

 
   
 	 If to Sellers:
	  
	 Kenneth M. Morgan, Executive Manager
 401 Hawthorne Lane, Suite 110, Box 280
 Charlotte, NC 28204

	  
	  
	  

	 If to the Company:
	  
	 Good Hemp Wellness, LLC
 20311 Chartwell Center Drive, Suite 1469
 Cornelius, NC 28031
 Attn: William Alessi

	  
	  
	  

	 with a copy to:
	  
	 Brunson Chandler & Jones, PLLC
 Walker Center, 14th Floor
 175 S. Main Street, Suite 1410
 Salt Lake City, UT 84111
 Attn: Lance Brunson, Esq.

 
  
 or at such other address or addresses as such party may from time to time specify by notice in writing to the other, given in the manner provided in this Section.
  
 	 
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	 8.2. 
	 Waiver; Severability. No delay or failure on the part of any party hereto in exercising any right, power or privilege under any of this Agreement shall impair any such right, power or privilege or be construed as a waiver of any default or any acquiescence therein. The unenforceability or invalidity of any provision of this Agreement shall not affect the enforceability or validity of any other provision.

	  
	  
	  

	  
	 8.3. 
	 Benefit and Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, beneficiaries, successors and assigns. Except as expressly stated herein, this Agreement shall not confer any rights or remedies on any third party.

	  
	  
	  

	  
	 8.4. 
	 Entire Agreement; Amendment. The exhibits attached to this Agreement are incorporated herein by reference. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereto, supersedes all prior oral or written agreements, instruments and understandings with respect to such matters, and may be modified only by instruments signed by the parties. This Agreement may not be amended or modified except by written agreement of the parties hereto.

	  
	  
	  

	  
	 8.5. 
	 Survival. All of the covenants of the parties shall survive the execution of this Agreement and the Closing, including without limitation the indemnification obligations of the parties. All of the representations and warranties of the parties shall survive the execution of this Agreement and the Closing, regardless of the parties’ respective due diligence investigations and even if the other party knows or should have known of any misrepresentation or breach of any warranty at the time of Closing, for a period of one year following the Closing.

	  
	  
	  

	  
	 8.6. 
	 Further Assurances. Prior to, on, and after the Closing, each party shall execute, deliver and/or furnish to the other party, upon reasonable request, such further information or documents, and do such other acts and things, for the purpose of fulfilling the transactions contemplated hereunder.

	  
	  
	  

	  
	 8.7. 
	 Attorneys’ Fees. In the event that any party hereunder brings a Proceeding to enforce this Agreement, the party that prevails in such Proceeding shall be entitled to recover, in addition to all other amounts and relief that may be granted, its reasonable costs and attorneys’ fees incurred in connection with such Proceeding.

	  
	  
	  

	  
	 8.8. 
	 Redressability. In the event that any party hereunder brings a Proceeding regarding this Agreement, thirty (30) days prior to the initiation of the Proceeding, the party commencing the action will give written notice of grievances to the opposing party. The opposing party will have the opportunity to redress the grievances within the thirty (30) days, unless another period is expressly permitted under this Agreement.

	  
	  
	  

	  
	 8.9. 
	 Counterparts. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

	  
	  
	  

	  
	 8.10. 
	 Governing Law. This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating hereto, shall be construed and governed in accordance with the laws of the State of North Carolina, excluding the choice of law rules thereof.

	  
	  
	  

	  
	 8.11. 
	 Headings; Interpretation. The subject headings of Sections of this Agreement are included for purposes of convenience only and shall not affect the construction or interpretation of any of its provisions. This Agreement shall be interpreted as if all the parties had drafted it.

 
   
 	 
	10
	

	 

 
  
 9. DEFINITIONS. In addition to any other definitions contained in this Agreement, the following words, terms, and phrases shall have the following meanings when used in this Agreement.
  
 “Agreement” means this Membership Interest Purchase Agreement.
  
 “Business” has the meaning ascribed thereto in Section 1.1.
  
 “Business Assets” has the meaning ascribed thereto in Section 1.1.
  
 “Buyer” means Good Hemp, Inc., a Nevada corporation. 
  
 “Buyer Indemnitees” has the meaning ascribed thereto in Section 7.1.
  
 “Closing” and “Closing Date” have the meanings ascribed thereto in Section 2.1.
  
 “Company” has the meaning ascribed thereto in Section 1.1.
  
 “Confidential Information” has the meaning ascribed thereto in Section 5.2.
  
 “Encumbrance” means any encumbrance, security interest, mortgage, lien, pledge, claim, lease, right of first refusal, option, restrictive easement, charge or other restriction or third party rights.
  
 “Indemnitee” has the meaning ascribed thereto in Section 7.3.
  
 “Indemnitor” has the meaning ascribed thereto in Section 7.3.
   
 	 
	11
	

	 

 
   
 “Knowledge” or “knowledge” (including the terms “knowing” and “knowingly”) will be deemed to be present with any party when the matter in question was brought to the attention of, or if due diligence had been exercised, would have been brought to the attention of the party, or any of its responsible employees.
  
 “Loss” means any loss, damage, injury, harm, detriment, decline in value, liability, claim, demand, cost of any Proceeding, settlement, judgment, award, fine, penalty, tax, fee, charge, cost or expense (including, without limitation, costs associated with avoiding any of the foregoing), and the fees, disbursements and expenses of attorneys, accountants and other professional advisors). 
  
 “Nondisclosure and Noncompetition Agreement” has the meaning ascribed thereto in Section 2.2.2.
  
 “Proceeding” means any action, suit, litigation, arbitration, lawsuit, claim, proceeding (including any civil, criminal, administrative, investigative or appellate proceeding, and any informal proceeding), prosecution, contest, hearing, inquiry, audit, examination, investigation, challenge, controversy or dispute commenced, brought or conducted or through any governmental authority, including the courts, or any arbitrator.
  
 “Promissory Note” has the meaning ascribed thereto in Section 1.3.2.
  
 “Publicity” has the meaning ascribed thereto in Section 5.3.
  
 “Purchase Price” has the meaning ascribed thereto in Section 1.3.
  
 “Sellers Indemnitees” has the meaning ascribed thereto in Section 7.2.
  
 “Sellers” means Kenneth M. Morgan, BLUE WATER & ROOSTER, INC., and CREEKSIDE SPRINGS, LLC. 
  
 “Interests” has the meaning ascribed thereto in Section 1.1.
  
 “Taxes” means all taxes, charges, fees, levies, duties or other similar assessments, reassessments or liabilities.
  
 “Tax Returns” mean any report, return or statement required to be supplied to a taxing authority in connection with Taxes.
  
 	 
	12
	

	 

 
  
 IN WITNESS WHEREOF, the parties have duly executed and delivered this Membership Interest Purchase Agreement effective as of the date first above written.
  
 	 BUYER:
	  

	  
	  

	 Good Hemp, Inc. 
	  

	  
	  
	  

	  
	 /s/ William Alessi 
	  

	  
	 William Alessi
	  

	  
	 President
	  

	  
	  
	  

	  
	  
	  

	 SELLERS:
	  

	  
	  
	  

	  
	 /s/ Kenneth M. Morgan
	  

	  
	 Kenneth M. Morgan
	  

	  
	  
	  

	  
	  
	  

	 BLUE WATER & ROOSTER, INC.
	  

	  
	  
	  

	 By
	 /s/ Greg Kopsch 
	  

	  
	 Greg Kopsch, President
	  

	  
	  
	  

	  
	  
	  

	 CREEKSIDE SPRINGS, LLC
	  

	  
	  
	  

	 By 
	 /s/ James A. Sas 
	  

	  
	 James A. Sas, Managing Partner
	  

 
  
 	 
	13
	

	 

 
  
 LIST OF EXHIBITS
  
 	 Schedule 1
	 --
	 List of Assumed Liabilities

	  
	  
	  

	 Exhibit A
	 --
	 Nondisclosure and Noncompetition Agreement

 
  
 	 
	
	

	 

 
  
 Schedule 1
  
 List of Assumed Liabilities
  
 Buyer shall assume the following liabilities and obligations of Sellers, specifically:
  
 (i) [Intentionally Left Blank] 
  
 Schedule 1
  
 	 
	
	

	 

 
  
 EXHIBIT A
  
  
 Nondisclosure and Noncompetition Agreement
  
  
  
  
  
 [INTENTIONALLY LEFT BLANK]
   
 	 
	A-1
	

	 

 
   
 NONDISCLOSURE AND NONCOMPETITION
 AGREEMENT 
  
 This Nondisclosure and Noncompetition Agreement (the “Agreement”) is made by Kenneth M. Morgan (“MORGAN”) in favor of Good Hemp, Inc., a Nevada corporation (“Good Hemp”), effective as of April 1, 2021 (the “Effective Date”).
  
 For good and valuable consideration, the parties hereby agree as follows: 
  
 1. Background. Ken Morgan is selling to Good Hemp, Inc. all of his membership interests in Diamond Creek Group, LLC (“Diamond Creek”) pursuant to that certain Membership Interest Purchase Agreement executed concurrently herewith (the “Purchase Agreement”).As part of the sale to Good Hemp, Good Hemp is requiring MORGAN to agree to (1) keep information regarding the sale confidential, and (2) agree not to compete, on the terms specified herein, with Good Hemp, Diamond Creek Group, LLC or any of their subsidiaries beginning on the Effective Date and continuing for a period of five years. This Agreement sets forth the terms and conditions for MORGAN’s nondisclosure, noncompetition, and general release of claims.
  
 2. Confidential Information. As used in this Agreement, “Confidential Information” means any information or data, of any kind or nature furnished by or on behalf of Good Hemp or its agents, relating to the Purchase Agreement and the transactions contemplated therein, and whether such information is printed, written, oral, or electronically stored or reproduced, and whether provided in response to a specific inquiry or voluntarily furnished on, before, or after the Effective Date hereof that relates to Good Hemp and/or MORGAN or either entity’s business, and includes, but is not limited to: financial information, records, budgets, minutes, purchase and sale agreements, designs, sketches, drawings, surveys, environmental reports, feasibility studies, marketing plans and materials, business plans, analyses, strategies, forecasts, concepts, ideas, or any information derived, summarized, or extracted from any of the foregoing, including any and all data, reports, records (financial and otherwise), trade secrets, verbal communications, and/or other materials. However, Confidential Information does not include information which: (i) is or becomes publicly known and made generally available in the public domain by publication, commercial use or otherwise through no fault of MORGAN or of any third party with a duty to keep such information confidential either prior to the time of disclosure by Good Hemp or thereafter; (ii) is known to the receiving party at the time of disclosure without violation of any confidentiality restriction and without any restriction on the receiving party’s further use or disclosure; (iii) is independently developed by the receiving party; or (iv) is approved for release by written agreement of Good Hemp. Nevertheless, it shall not be a violation of this section 2 for MORGAN to disclose matters related to the Purchase Agreement to attorneys, CPA’s, financial advisors or the like. 
  
 3. Non-Disclosure of Confidential Information. All Confidential Information is considered highly sensitive and strictly confidential. Accordingly, MORGAN agrees to maintain the Confidential Information in the utmost confidence. MORGAN agrees that each of them shall take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information of the other party. Without limiting the foregoing, MORGAN shall take at least those measures that he takes to protect his own confidential information of a similar nature, but in no case less than reasonable care, and MORGAN will not, without the prior written consent of Good Hemp (except as required by applicable law, regulation, or legal process), disclose the Confidential Information to any person(s).
  
 	 
	A-2
	

	 

 
  
 4. Obligation to Disclose Confidential Information. In the event that MORGAN or any of MORGAN’s representatives or advisors (“Representatives”) is requested or required by applicable law, regulation, or legal process to disclose any of the Confidential Information, MORGAN will notify Good Hemp in writing immediately (unless prohibited by law) so that Good Hemp, at its sole expense, may seek an appropriate protective order or other remedy or, in its sole discretion, may waive compliance with the terms of this Agreement, and if Good Hemp seeks such an order, MORGAN will provide such cooperation at Good Hemp’s expense and as Good Hemp shall reasonably request. In the event that (a) no such protective order or other remedy is obtained, or (b) Good Hemp waives compliance with the terms of this Agreement and MORGAN or any of MORGAN’s Representatives are legally compelled to disclose such Confidential Information, MORGAN or MORGAN’s Representatives, as the case may be, will furnish only that portion of the Confidential Information which MORGAN is advised by counsel is legally required. MORGAN will give Good Hemp written notice (unless prohibited by law) of the Confidential Information to be disclosed as far in advance as practicable and will exercise all reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the Confidential Information.
  
 5. Term of Nondisclosure. This covenant of nondisclosure shall continue in perpetuity.
  
 6. Noncompetition Covenant. From the Effective Date and continuing for a period of five years, MORGAN hereby agrees that he shall not, and shall not permit any of his employees, agents or affiliates (“Affiliates”), to do any of the following without the prior written consent of Good Hemp:
  
 a. Compete. Carry on any business or activity (whether directly or indirectly, as a partner, shareholder, owner, principal, agent, director, affiliate, advisor or consultant) or compete in any way with the business of Diamond Creek or its subsidiaries anywhere within North America. For the purposes of this Section 6(a), “compete in any way with the business of Diamond Creek” shall mean engaging in or attempting to engage in any business similar to that carried on by Diamond Creek or its affiliates.
  
 b. Solicit Business. Solicit or influence or attempt to influence any client, customer or other person, either directly or indirectly, to direct such client’s, customer’s or other person’s purchase of Diamond Creek’s products and/or services away from Diamond Creek or to any person, firm, corporation, institution or other entity other than Diamond Creek.
  
 c. Solicit Personnel. Solicit any employee of Good Hemp (or its subsidiaries) for employment who was employed by Good Hemp or its subsidiaries within six (6) months of the solicitation. For purposes of this Section, the term “solicit” shall not include the following activities by MORGAN:(i) advertising for employment in any bulletin board (including electronic bulletin boards), newspaper, trade journal or other publication available for general distribution to the public; (ii) participation in any hiring fair or similar event open to the public not targeted at Good Hemp’s employees; (iii) use of recruiting or employee search firms that have been instructed by MORGAN not to target any such employee; and (iv) negotiating with and/or offering employment to any such employee who initially contacts MORGAN or one of their affiliates or who engages in discussions with MORGAN or one of their affiliates as a result of any of the activities included in clauses (i)-(iii).MORGAN may employ any such employee provided that neither they nor any of their affiliates has solicited such employee in contravention of this paragraph 6(c).
  
 7. Equitable Relief; Rights Upon Breach. In the event of any breach of this Agreement, Good Hemp, in addition to any other remedies at law or in equity that it may have, will be entitled to equitable relief including injunctive relief and specific performance. MORGAN agrees that in the event of its breach of any of the covenants set forth in this Agreement, Good Hemp shall have the right to: (a) receive compensation for actual damages from MORGAN for any losses incurred by reason of such breach, including all reasonable attorneys’ fees and costs of suit; and/or (b) apply to a court of competent jurisdiction for the entry of an immediate order to restrain or enjoin the breach of said covenants and otherwise to specifically enforce the provisions of this Agreement.
  
 	 
	A-3
	

	 

 
  
 8. Alternative Dispute Resolution. The parties agree that any dispute arising after the execution of this Agreement shall first be submitted to mediation through a mediator mutually agreed upon by MORGAN and Good Hemp. Each party agrees to bear its own costs of mediation and to equally split the cost for the mediator. If mediation fails, the other remedies available under this Agreement or at law or in equity shall be available.
  
 9. Attorneys’ Fees. In the event any action in law or equity or any arbitration or other proceeding is brought for the enforcement of this Agreement or in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to reasonable attorney’s fees and other costs reasonably incurred in such action or proceeding. 
  
 10. Miscellaneous Terms.
  
 (a) This Agreement may be amended or modified only in writing and signed by all parties.
  
 (b) This Agreement may be executed in two or more counterparts, each of which shall be deemed an original for all purposes and together shall constitute one and the same document. Facsimile and emailed pdf signatures shall be relied on as original signatures in all respects.
  
 (c) The rights under this Agreement may not be assigned or duties delegated without the other party’s prior written consent. Any attempted assignments without such consent shall be void.
  
 (d) This Agreement shall be binding upon the parties and their respective successors and permitted assigns and shall inure to the benefit of the parties and their respective successors and permitted assigns.
  
 (e) This Agreement shall be construed and governed by and under the laws of the State of North Carolina, without regard to its choice of law principles. Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a state or federal court of the State of North Carolina, and each party consents to the jurisdiction of such court and agrees that legal process may be served by United States certified mail, return receipt requested. Venue for any action shall be in Mecklenburg County, North Carolina. Process in any proceeding referred to in the preceding sentence may be served on any party anywhere. 
  
 (f) Confidential Information delivered hereunder shall remain the property of Good Hemp, and this Agreement shall not be construed as a license or any other grant of any right whatsoever in connection with the Confidential Information.
  
 (g) The invalidity of enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. If a court of competent jurisdiction determines that any restriction in this Agreement is overbroad or unreasonable under the circumstances, such restriction shall be modified or revised by such court to include the maximum reasonable restriction allowed by law. 
  
 (h) No delay or omission by Good Hemp in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by Good Hemp on any one occasion is effective only in that instance and will not be construed as a bar to or a waiver of any right on any other occasion. 
  
 (i) This Agreement has been negotiated at arms’ length by and between the parties, each having the opportunity to be represented by legal counsel of its choice and to negotiate the form and substance of this Agreement. Therefore, this Agreement shall not be more strictly construed against any party by reason of the fact that one party may have drafted any or all of the provisions of this Agreement.
  
 11. Entire Agreement. This document, as amended from time to time, contains the entire agreement between the parties. There are no representations, warranties, or understandings between the parties that are not contained herein. This Agreement may not be modified or amended except in writing and signed by the parties hereto.
  
 	 
	A-4
	

	 

 
  
 IN WITNESS WHEREOF, the parties have executed this Nondisclosure and Noncompetition Agreement and Release of Claims as of the Effective Date first set forth above.
  
  
 	 MORGAN:
	  
	 GOOD HEMP:
	  

	  
	  
	  
	  

	  
	  
	 Good Hemp, Inc.
	  

	  
	  
	  
	  

	 /s/ Kenneth M. Morgan 
	  
	 /s/ William Alessi
	  

	 Kenneth M. Morgan
	  
	 William Alessi, CEO
	  

 
  
 	 
	A-5Exhibit
10.1

 

 

 

Securities
Purchase Agreement

 

By
and Among

 

Clubhouse
Media Group, Inc.

 

And

 

GS
Capital Partners, LLC

 

Dated
as of April 1, 2021

 

 

 

    	 	 	 

    	 

    

 

TABLE
OF CONTENTS

 

	Article
    I. 	DEFINITIONS	1
	 	 	 
	Section
    1.01 	Definitions.	1
	Section
    1.02 	Interpretive
    Provisions.	2
	 	 	 
	Article
    II. 	PURCHASE
    AND SALE; AGREEMENTS	3
	 	 	 
	Section
    2.01 	Purchase
    and Sale.	3
	Section
    2.02	Deliverables
    at Closing.	3
	Section
    2.03 	Closing.	3
	Section
    2.04 	Use
    of Proceeds.	3
	 	 	 
	Article
    III. 	REPRESENTATIONS
    AND WARRANTIES OF THE COMPANY	4
	 	 	 
	Section
    3.01 	Authorization
    of Transactions.	4
	Section
    3.02 	Governmental
    Approvals; Non-contravention.	4
	Section
    3.03 	Brokers.	4
	 	 	 
	Article
    IV. 	REPRESENTATIONS
    AND WARRANTIES OF BUYER	5
	 	 	 
	Section
    4.01 	Authorization
    of Transactions.	5
	Section
    4.02 	Governmental
    Approvals; Non-contravention.	5
	Section
    4.03	Investment Representations.	5
	Section
    4.04 	Brokers.	6
	 	 	 
	Article
    V. 	INDEMNIFICATION	6
	 	 	 
	Section
    5.01	General
    Indemnification.	6
	Section
    5.02 	Procedures
    for Indemnification.	6
	Section
    5.03 	Payment.	7
	Section
    5.04 	Effect
    of Knowledge on Indemnification.	7
	 	 	 
	Article
    VI. 	MISCELLANEOUS	7
	 	 	 
	Section
    6.01 	Notices.	7
	Section
    6.02 	Attorneys’
    Fees	8
	Section
    6.03 	Amendments;
    No Waivers; No Third-Party Beneficiaries.	8
	Section
    6.04 	Expenses.	8
	Section
    6.05 	Further
    Assurances.	9
	Section
    6.06 	Successors
    and Assigns; Benefit.	9
	Section
    6.07 	Governing
    Law; Etc.	9
	Section
    6.08 	Survival.	10
	Section
    6.09 	Resolution
    of Disputes.	10
	Section
    6.10 	Severability.	10
	Section
    6.11 	Entire
    Agreement.	11
	Section
    6.12 	Specific
    Performance.	11
	Section
    6.13 	Construction.	11
	Section
    6.14 	Counterparts.	11
	 	 	 
	Exhibit
    A	Form
    of Promissory Note	13

 

    	 	i	 

    	 

    

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is entered into as of April 1, 2021 (the “Closing Date”),
by and among Clubhouse Media Group, Inc., a Nevada corporation (the “Company”) and GS Capital Partners, LLC, a New
York limited liability company (“Buyer”). The Company and the Buyer may be collectively referred to herein as the
“Parties” and individually as a “Party”.

 

WHEREAS,
the Company desires to issue and sell to the Buyer a convertible promissory note of the Company and certain shares of common stock,
par value $0.001 per share of the Company (the “Common Stock”) on the terms set forth herein and the Buyer wishes
to purchase such securities on the terms and conditions provided for herein and the Parties desire to undertake the other actions
and enter into the other agreements as set forth herein;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

Article
I. DEFINITIONS

 

Section
1.01 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms, as used herein, have
the following meanings:

 

	 	(a)	“Affiliate”
    means, with respect to a specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under
    common Control with, the specified Person.
	 	 	 
	 	(b)	“Business
    Day” means any day except Saturday, Sunday and any legal holiday or a day on which banking institutions in Nevada generally
    are authorized or required by Law or other governmental actions to close.
	 	 	 
	 	(c)	“Contract”
    means any contract, commitment, understanding or agreement (whether oral or written).
	 	 	 
	 	(d)	“Control”
    means (a) the possession, directly or indirectly, of the power to vote 10% or more of the securities or other equity interests
    of a Person having ordinary voting power, (b) the possession, directly or indirectly, of the power to direct or cause the
    direction of the management and policies of a Person, by contractor otherwise, or (c) being a director, officer, executor,
    trustee or fiduciary (or their equivalents) of a Person or a Person that controls such Person.
	 	 	 
	 	(e)	“Governmental
    Entity” means any federal, state, municipal, local or foreign government and any court, tribunal, arbitral body, administrative
    agency, department, subdivision, entity, commission or other governmental, government appointed, quasi-governmental or regulatory
    authority, reporting entity or agency, domestic, foreign or supranational.
	 	 	 
	 	(f)	“Law”
    means any applicable foreign, federal, state or local law (including common law), statute, treaty, rule, directive, regulation,
    ordinances and similar provisions having the force or effect of law or an Order of any Governmental Entity.
	 	 	 
	 	(g)	“Liabilities”
    means liabilities, obligations or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured,
    fixed or unfixed, known or unknown, asserted or un asserted, choate or inchoate, liquidated or unliquidated, secured or unsecured,
    absolute, contingent or otherwise, including any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage,
    deficiency, cost or expense.

 

    	 	1	 

    	 

    

 

	 	(h)	“Lien”
    means, with respect to any property or asset, any lien, security interest, mortgage, pledge, charge, claim, lease, agreement,
    right of first refusal, option, limitation on transfer or use or assignment or licensing, restrictive easement, charge or
    any other restriction of any kind, and any conditional sale or voting agreement or proxy, and including any restriction on
    the ownership, use, voting, transfer, possession, receipt of income or other exercise of any attributes of ownership, in respect
    of such property or asset, and any agreement to give any of the foregoing.
	 	 	 
	 	(i)	“Losses”
    means any losses, damages, deficiencies, Liabilities, assessments, fines, penalties, judgments, actions, claims, costs, disbursements,
    fees, expenses or settlements of any kind or nature, including legal, accounting and other professional fees and expenses.
	 	 	 
	 	(j)	“Order”
    means any judgment, writ, decree, determination, award, compliance agreement, settlement agreement, injunction, ruling, charge,
    judicial or administrative order, determination or other restriction of any Governmental Entity or arbitrator.
	 	 	 
	 	(k)	“Person”
    means a natural person, a corporation, a limited liability company, a partnership, an association, a trust or any other entity
    or organization, including a government or political subdivision or any agency or instrumentality thereof.
	 	 	 
	 	(l)	“Securities
    Act” means the United States Securities Act of 1933, as amended, and the rules and regulation promulgated thereunder.
	 	 	 
	 	(m)	“Transactions”
    means the purchase and sale of the Securities and the other transactions contemplated under the Transaction Documents.
	 	 	 
	 	(n)	“Transaction
    Documents” means this Agreement, the Note and any other agreement, document, certificate or writing delivered or to
    be delivered in connection with this Agreement and any other document related to the Transactions related to the forgoing,
    including, without limitations, those delivered at the Closing.

 

Section
1.02 Interpretive Provisions. Unless the express context otherwise requires, the words “hereof,” “herein,”
and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; terms defined in the singular shall have a comparable meaning when used
in the plural, and vice versa; the terms “Dollars” and “$” mean United States Dollars, unless otherwise
specified herein; references herein to a specific Section, Subsection, Recital or Exhibit shall refer, respectively, to Sections,
Subsections, Recitals or Exhibits of this Agreement; wherever the word “include,” “includes,” or “including”
is used in this Agreement, it shall be deemed to be followed by the words “without limitation”; references herein
to any gender shall include each other gender; references herein to any Person shall include such Person’s heirs, executors,
personal representatives, administrators, successors and assigns; provided, however, that nothing contained in this Section 1.02
is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; references herein to a Person in
a particular capacity or capacities shall exclude such Person in any other capacity; references herein to any contract or agreement
(including this Agreement) mean such contract or agreement as amended, supplemented or modified from time to time in accordance
with the terms thereof; with respect to the determination of any period of time, the word “from” means “from
and including” and the words “to” and “until” each means “to but excluding”; references
herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented or superseded
in whole or in part, and in effect from time to time; and references herein to any Law shall be deemed also to refer to all rules
and regulations promulgated thereunder.

 

    	 	2	 

    	 

    

 

Article
II. PURCHASE AND SALE; AGREEMENTS

 

Section
2.01 Purchase and Sale.

 

	 	(a)	Subject
    to the terms and conditions of this Agreement, at the Closing (as defined below), the Company shall issue and sell to Buyer
    a convertible promissory note of the Company in the form as attached hereto as Exhibit A (the “Note”) in the aggregate
    principal amount of $550,000.00 for a purchase price of $500,000.00 (the “Purchase Price”), reflecting
    a $50,000.00 original issue discount.
	 	 	 
	 	(b)	Subject
                                         to the terms and conditions of this Agreement, at the Closing, the Company shall issue
                                         and sell to Buyer 45,000 shares of Common Stock of the Company (the “Shares”
                                         and, together with the Note, the “Securities”) at a purchase price of $0.001
                                         per Share, for a resulting total purchase price of $45.00 (the “Share Purchase
                                         Price” and, together with the Note Purchase Price, the “Purchase Price”).

 

Section
2.02 Deliverables at Closing.

 

	 	(a)	At
    the Closing, Buyer shall deliver to the Company:

 

	 	(i)	The
    Purchase Price via a check payable to the Company or wire transfer pursuant to the wire transfer instructions as provided
    by the Company to Buyer, provided, however, that the Parties acknowledge and agree that the Company has agreed to pay $10,000
    to the Buyer to reimburse the Buyer for Buyer’s costs in connection with the Transactions, and therefore Buyer shall
    be entitled to retain such amount from the Purchase Price paid at the Closing; and
	 	 	 
	 	(ii)	a
    copy of the Note, duly executed by an authorized officer of the Buyer.

 

	 	(b)	At
    the Closing, the Company shall:

 

	 	(i)	Deliver
    to the Buyer a copy of the Note, duly executed by an authorized officer of the Company; and
	 	 	 
	 	(ii)	Issue
    the Shares to the Buyer and take such actions as required to cause the Buyer to be recorded as the beneficial and record holder
    of the Shares.

 

Section
2.03 Closing. On the terms set forth herein, the closing of the Transactions (the “Closing”) shall take place
by conference call and electronic communication (i.e., emails/pdf) or facsimile, with exchange of original signatures to follow
by mail, on the Closing Date and effective as of 11:59 p.m. Eastern time, on such date.

 

Section
2.04 Use of Proceeds. The Company covenants and agrees that it shall utilize the Purchase Price to pay for auditing fees
and other necessary costs to get the Company’s SEC filings up to date and compliant, and to pay for legal, organizational
and marketing costs for a planned Regulation A offering.

 

    	 	3	 

    	 

    

 

Article
III. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to Buyer that the following representations and warranties contained in this Article III are true
and correct as of the Closing Date:

 

Section
3.01 Authorization of Transactions. The Company is a corporation duly authorized and in good standing in the State of Nevada
and has the requisite power and capacity to execute and deliver the Transaction Documents to which it is a party and to perform
its obligations hereunder and thereunder. The execution, delivery and performance by the Company of the applicable Transaction
Documents and the consummation of the Transactions have been duly and validly authorized by all requisite action on the part of
the Company. The Transaction Documents to which the Company is a party have been duly and validly executed and delivered by The
Company. Each Transaction Document to which the Company is a party constitutes the valid and legally binding obligation of the
Company, enforceable against the Company in accordance with its terms and conditions, except to the extent enforcement thereof
may be limited by applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’ rights or by the
principles governing the availability of equitable remedies.

 

Section
3.02 Governmental Approvals; Non-contravention.

 

	 	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    or Person is necessary for the execution, delivery or performance by the Company of this Agreement or any other Transaction
    Document to which the Company is a party.
	 	 	 
	 	(b)	The
    execution, delivery and performance by the Company of the Transaction Documents to which the Company is a party, and the consummation
    by the Company of the Transactions, do not (i) violate or conflict with any Law or Order to which the Company may be subject,
    (ii) constitute a violation or breach of, be in conflict with, constitute or create (with or without due notice or lapse of
    time or both) a default (or give rise to any right of termination, modification, cancellation or acceleration) of any obligation
    under any Contract to which the Company is a party or to which the Company is subject or by which the Company’s properties,
    assets or rights are bound or (iii) result in the creation or imposition of any Lien upon any of the rights, properties or
    assets of the Company.

 

Section
3.03 Brokers. Other than Boustead Securities, LLC, the Company has not engaged, or caused to be incurred any Liability
or obligation to, any investment banker, finder, broker or sales agent or any other Person in connection with the origin, negotiation,
execution, delivery or performance of the Transaction Documents to which it is a party, or the Transactions.

 

    	 	4	 

    	 

    

 

Article
IV. REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to the Company that the following statements contained in this Article IV are true and correct as of the
Closing Date:

 

Section
4.01 Authorization of Transactions. Buyer is a limited liability company, duly qualified under the laws of the State of
New York, and has the requisite power and capacity to execute and deliver the Transaction Documents to which it is a party and
to perform its obligations hereunder and thereunder. The execution, delivery and performance by Buyer of the applicable Transaction
Documents and the consummation of the Transactions have been duly and validly authorized by all requisite action on the part of
Buyer. The Transaction Documents to which Buyer is a party have been duly and validly executed and delivered by Buyer. Each Transaction
Document to which Buyer is a party constitutes the valid and legally binding obligation of Buyer, enforceable against Buyer in
accordance with its terms and conditions, except to the extent enforcement thereof may be limited by applicable bankruptcy, insolvency
or other Laws affecting the enforcement of creditors’ rights or by the principles governing the availability of equitable
remedies.

 

Section
4.02 Governmental Approvals; Non-contravention.

 

	 	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    is necessary for the execution, delivery or performance by Buyer of this Agreement or any other Transaction Document to which
    Buyer is a party.
	 	 	 
	 	(b)	The
    execution, delivery and performance by Buyer of the Transaction Documents to which Buyer is a party, and the consummation
    by Buyer of the Transactions, do not violate any Laws or Orders to which Buyer is subject or violate, breach or conflict with
    any provision of Buyer’s organizational documents.

 

Section
4.03 Investment Representations.

 

	 	(a)	Buyer
    understands and agrees that the consummation of this Agreement including the delivery of the Securities as contemplated hereby
    constitute the offer and sale of securities under the Securities Act and applicable state statutes and that the Securities
    are being acquired for Buyer’s own account and not with a present view towards the public sale or distribution thereof,
    except pursuant to sales registered or exempted from registration under the Securities Act.
	 	 	 
	 	(b)	Buyer
    is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the Securities Act.
	 	 	 
	 	(c)	Buyer
    understands that the Securities are being offered and sold to Buyer in reliance upon specific exemptions from the registration
    requirements of United States federal and state securities Laws and that the Company is relying upon the truth and accuracy
    of, and Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of
    Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of Buyer to acquire the
    Securities.

 

    	 	5	 

    	 

    

 

	 	(d)	At
    no time was Buyer presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement,
    or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection
    and concurrently with such communicated offer. Buyer is not purchasing the Securities acquired by Buyer hereunder as a result
    of any “general solicitation” or “general advertising,” as such terms are defined in Regulation D
    under the Securities Act, which includes, but is not limited to, any advertisement, article, notice or other communication
    regarding the Securities acquired by Buyer hereunder published in any newspaper, magazine or similar media or on the internet
    or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general
    advertisement.
	 	 	 
	 	(e)	Buyer
    is acquiring the Securities for its own account as principal, not as a nominee or agent, for investment purposes only, and
    not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part and no other person has
    a direct or indirect beneficial interest in the Securities. Further, Buyer 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.
	 	 	 
	 	(f)	Buyer,
    either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial
    matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so
    evaluated the merits and risks of such investment.
	 	 	 
	 	(g)	Buyer
    understands that no United States federal or state agency or any other governmental or state agency has passed on or made
    recommendations or endorsement of the Securities or the suitability of the investment in the Securities nor have such authorities
    passed upon or endorsed the merits of the transactions set forth herein.

 

Section
4.04 Brokers. Buyer has not engaged any investment banker, finder, broker or sales agent or any other Person in connection
with the origin, negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

 

Article
V. INDEMNIFICATION

 

Section
5.01 General Indemnification. Each Party (the “Indemnifying Party”) agrees to indemnify, defend and hold harmless
the other Party and such other Party’s Affiliates and each of their respective directors, officers, managers, partners,
employees, agents, equity holders, successors and assigns (each, an “Indemnified Party”), from and against any and
all Losses incurred or suffered by any Indemnified Party arising out of, based upon or resulting from any breach of any representation
or warranty of the Indemnifying Party herein or breach by the Indemnifying Party of, or any failure the Indemnifying Party to
perform, any of the covenants, agreements or obligations contained in or made pursuant to this Agreement or the Transaction Documents
by the Indemnifying Party.

 

Section
5.02 Procedures for Indemnification. In the event that an Indemnified Party shall incur or suffer any Losses in respect
of which indemnification may be sought under this Article V against the Indemnifying Party, the Indemnified Party shall assert
a claim for indemnification by providing a written notice (the “Notice of Loss”) to the Indemnifying Party stating
the nature and basis of such indemnification. The Notice of Loss shall be provided to the Indemnifying Party as soon as practicable
after the Indemnified Party becomes aware that it has incurred or suffered a Loss.

 

    	 	6	 

    	 

    

 

Section
5.03 Payment. Upon a determination of liability under this Article V the Indemnifying Party shall pay or cause to be paid
to the Indemnified Party the amount so determined within five (5) Business Days after the date of such determination. If there
should be a dispute as to the amount or manner of determination of any indemnity obligation owed under this Agreement, the Indemnifying
Party shall nevertheless pay when due such portion, if any, of the obligation that is not subject to dispute. Upon the payment
in full of any amounts due under this Article V with respect to any claim, the Indemnifying Party shall be subrogated to the rights
of the Indemnified Party against any Person with respect to the subject matter of such claim.

 

Section
5.04 Effect of Knowledge on Indemnification. The right to indemnification, reimbursement or other remedy based upon any
representations, warranties, covenants and obligations set forth in this Agreement shall not be affected by any investigation
conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty,
covenant or obligation. The waiver of any condition based upon the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, shall not affect the right to indemnification, reimbursement or other remedy
based upon such representations, warranties, covenants or obligations.

 

Article
VI. MISCELLANEOUS

 

Section
6.01 Notices.

 

	 	(a)	Any
    notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally
    delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

if
to the Company, to:

 

Clubhouse
Media Group, Inc.

Attn:
Amir Ben-Yohanan

201
Santa Monica Blvd., Suite 30

Santa
Monica, California 90401

Email:
amir_yoh@yahoo.com

 

With
a copy, which shall not constitute notice, to:

 

Anthony
L.G., PLLC

Attn:
John Cacomanolis

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

Email:
jcacomanolis@anthonypllc.com

 

If
to the Buyer, to:

 

GS
Capital Partners, LLC

Attn:
Gabe Sayegh

30
Washington St. Suite 5L

Brooklyn,
NY 11201

Email:
gabe@gscapitalfund.com

 

    	 	7	 

    	 

    

 

	 	(b)	Any
    Party may change its address for notices hereunder upon notice to each other Party in the manner for giving notices hereunder.
	 	 	 
	 	(c)	Any
    notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch,
    if sent by overnight courier, (iii) upon dispatch, if transmitted by email with return receipt requested and received and
    (iv) three (3) days after mailing, if sent by registered or certified mail.

 

Section
6.02 Attorneys’ Fees. In the event that any Party institutes any action or suit to enforce this Agreement or to secure
relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs,
including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered
therein.

 

Section
6.03 Amendments; No Waivers; No Third-Party Beneficiaries.

 

	 	(a)	This
    Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants, representations,
    warranties or conditions hereof may be waived, only by a written instrument executed by both of the Parties.
	 	 	 
	 	(b)	Every
    right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law,
    or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any obligation by
    another Party shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or
    existing.
	 	 	 
	 	(c)	Neither
    any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor
    any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy or from requiring
    satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that Party
    or impairs any right of the Party giving such notice or making such demand, including any right to take any action without
    notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of
    this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
    respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.
	 	 	 
	 	(d)	Notwithstanding
    anything else contained herein, no Party shall seek, nor shall any Party be liable for, consequential, punitive or exemplary
    damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement
    or any provision hereof or any matter otherwise relating hereto or arising in connection herewith.

 

Section
6.04 Expenses. Unless otherwise contemplated or stipulated by a Transaction Document, all costs and expenses incurred in
connection with this Agreement shall be paid by the Party incurring such cost or expense.

 

    		8	 

    	 

    

 

Section
6.05 Further Assurances. Following the Closing, each Party shall execute and deliver such documents and other papers and
take such further action as may be reasonably required to carry out the provisions of the Transaction Documents.

 

Section
6.06 Successors and Assigns; Benefit. The provisions of this Agreement shall be binding upon and inure to the benefit of
the Parties and their respective successors and assigns. No Party may assign, delegate or otherwise transfer any of its rights
or obligations under this Agreement without the written consent of the other Party. Other than as specifically set forth herein,
including in Article V, nothing in this Agreement shall confer on any Person other than the Parties, and their respective successors
and assigns, any rights, remedies, obligations, or Liabilities under or by reason of this Agreement.

 

Section
6.07 Governing Law; Etc.

 

	 	(a)	This
    Agreement, and all matters based upon, arising out of or relating in any way to the Transactions or the Transaction Documents,
    including all disputes, claims or causes of action arising out of or relating to the Transactions or the Transaction Documents
    as well as the interpretation, construction, performance and enforcement of the Transaction Documents, shall be governed by
    the laws of the United States and the State of Nevada, without regard to any jurisdiction’s conflict-of-laws principles.
	 	 	 
	 	(b)	SUBJECT
    TO Section 6.09, ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS
    OR THE CONTEMPLATED TRANSACTIONS SHALL BE INSTITUTED SOLELY IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS
    OF THE STATE OF CALIFORNIA, IN EACH CASE LOCATED IN LOS ANGELES COUNTY, CALIFORNIA, AND EACH PARTY IRREVOCABLY SUBMITS TO
    THE PERSONAL JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY
    WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND
    AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
    BROUGHT IN AN INCONVENIENT FORUM.
	 	 	 
	 	(c)	EACH
    PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
    ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE
    THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
    CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
    OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
    OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
    IN THIS Section 6.07(c).
	 	 	 
	 	(d)	Each
    of the Parties acknowledge that each has been represented in connection with the signing of this waiver by independent legal
    counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this waiver
    with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of this waiver
    and grants this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver
    with legal counsel.

 

    	 	9	 

    	 

    

 

Section
6.08 Survival. The representations and warranties in this Agreement shall survive the Closing for a period of 12 months
from the Closing Date, and no claim for indemnification may be made after such time. All covenants and agreements in this Agreement,
and such provisions herein as required to give effect to the same, will survive until fully performed; provided, however, that,
nothing herein shall prevent a Party from making any claim hereunder, or relieve any other Party from any liability hereunder,
after such time for any breach thereof.

 

Section
6.09 Resolution of Disputes. Except as otherwise provided herein, all controversies, disputes or actions between the Parties
arising out of the Transactions or this Agreement, including their respective Affiliates, owners, officers, directors, agents
and employees, arising from or relating to this Agreement shall on demand of either party be submitted for arbitration to in accordance
with the rules and regulations of the American Arbitration Association. The arbitration shall be conducted by one arbitrator jointly
selected by each Party who is a party to the Dispute, provided, however, that if such Parties are unable to agree on the identity
of the arbitrator within 10 Business Days of commencement of efforts to do so, each Party who is a party to the Dispute shall
select one arbitrator and the arbitrators so selected shall select a final arbitrator, and the final arbitrator shall conduct
the arbitration alone. The Parties agree that, in connection with any such arbitration proceeding, each shall submit or file any
claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedures) within
the same proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding shall
be barred. The arbitrator shall be instructed to use every reasonable effort to perform its services within seven days of request,
and, in any case, as soon as practicable. The Parties agree to be bound by the provisions of any limitation on the period of time
by which claims must be brought under Nevada law or any applicable federal law. The arbitrator(s) shall have the right to award
the relief which he or she deems proper, consistent with the terms of this Agreement, including compensatory damages (with interest
on unpaid amounts from due date), injunctive relief, specific performance, legal damages and costs. The award and decision of
the arbitrator(s) shall be conclusive and binding on all Parties, and judgment upon the award may be entered in any court of competent
jurisdiction. Any right to contest the validity or enforceability of this award shall be governed exclusively by the United States
Arbitration Act. The arbitration shall be conducted in Los Angeles, California. The provisions of this Section 6.09 shall continue
in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.

 

Section
6.10 Severability. If any provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of
law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the Transactions is not affected in any manner adverse to any Party. Upon such determination
that any provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the
Transactions are fulfilled to the extent possible.

 

    	 	10	 

    	 

    

 

Section
6.11 Entire Agreement. The Transaction Documents constitute the entire agreement between the Parties with respect to the
subject matter hereof and thereof and supersede all prior agreements and understandings, both oral and written, between the Parties
with respect to the subject matter hereof and thereof.

 

Section
6.12 Specific Performance. Each Party agrees that irreparable damage would occur if any provision of this Agreement were
not performed in accordance with the terms hereof and that each Party shall be entitled to seek specific performance of the terms
hereof in addition to any other remedy at law or in equity.

 

Section
6.13 Construction. The table of contents and headings contained in this Agreement are for reference purposes only and will
not affect in any way the meaning or interpretation of this Agreement. In the event of a conflict between language or amounts
contained in the body of this Agreement and language or amounts contained in the Exhibits attached hereto, the language or amounts
in the body of the Agreement shall control. References to Articles or Sections shall refer to those portions of this Agreement.
The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer
to this Agreement as a whole and not to any particular Article, Section or clause of or Exhibit to this Agreement.

 

Section
6.14 Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and
the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other
Parties, it being understood that each Party need not sign the same counterpart. A facsimile copy or electronic transmission of
a signature page shall be deemed to be an original signature page.

 

[Signature
page follows]

 

    	 	11	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the Closing Date.

 

	 	Clubhouse
    Media Group, Inc.
	 	 	 
	 	By:	/s/
    Amir Ben-Yohanan
	 	Name: 	Amir
    Ben-Yohanan
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	GS
    Capital Partners, LLC
	 	 	 
	 	By:	/s/
    Gabe Sayegh
	 	Name:	Gabe
    Sayegh
	 	Title:	President

 

    	 	12	 

    	 

    

 

Exhibit
A

Promissory
Note

 

(Attached)

 

    	 	13

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